Marketing Math

MacDo defines American Fastfood. KFC was the first fast food restaurant in China.
Fast Food industry in China:
  * Emergence of western fast-food chain
  * Changed restaurant landscape in China because it is really different from the Chinese food culture. Usually, people share food and eat together in big places. KFC was more able to succeed cause Chinese prefer chicken as beef.
  * Booming scales & competition

Business Strategies:
“Localization approach”
  * Franchising (direct investment and quality control)
  * Ingredients (internal supply chain and strong network which is very important to do business in China).
  * Design & Menu (they tried to adapt MacDo to Chinese culture. Chinese love red, prosperity burger, something with red beans, adapted menus   local style menu)
  * Drive-thru & 24h (Sinopec   largest petrol retailer in China; and 24hours open)
  * Internet & delivery ( and Home delivery only in some countries)
  * Nationalism (Beijing Olympic “I’m lovin’ it when China wins” and new perspective)
  * Infusion of Western tradition to Chinese local market. They tried to get Chinese consumer by using chicken instead of beef. Chinese were really interested in this new culture of eating.

Controversial Issues:
  * Cost Problem (underpaid wage and inflation). Macdo augmented his price of French fries because the demand has augmented. They augmented the income of their employees from 50% because they were underpaid.
  * Social issues (environmental and health). Chinese think they were treated differently because they advertisement is different in China. They are not pretending to be healthy there.
  * Patriotism (Side effect in AD; US or China?)
Macdo is with Coca and KFC is Pepsi. China is the only country were MacDo loose. China prefers KFC because of chicken.
MacDonald adapts their price according to the places. It is more expensive where people are richer, even in one country.
MacDo invested a lot...