China Food

How can we become a Chinese restaurant by selling stewed string, opening crazy week temple and foreign fast food KFC?

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a glimpse of the underlying logic behind KFC becoming a Chinese restaurant.
 
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Text: bingsan

Source: marketing has a set (ID: cbobmo)

 
Reading tips: This article will reveal ↓ from the perspective of competitive strategy
1. Why did KFC become a Chinese restaurant?
2. What is the underlying logic behind KFC’s localization strategy?
3. What is the asymmetric structure that enables Taobao to beat ebay?
4. How does KFC use asymmetric structure?
Recently, everyone seems to be talking about a topic, that is: how can KFC become a Chinese restaurant?
From Zongzi on the Dragon Boat Festival to moon cakes on the Mid Autumn Festival;
From the bean milk fried dough sticks and scallion cake we often eat in the morning to the string of stewed crayfish we like to eat in the evening
Foreign fast food KFC almost contracts Chinese people’s three meals a day with Chinese food.
If it’s just carrying some selling Chinese food, KFC has made great efforts in decoration.
For example, when you go to Inner Mongolia, you open a yurt.
△ located in Xiangsha Bay, Ordos, Inner Mongolia
Yurt version KFC
When you run to Xinjiang, let Colonel Sanders play Dongbula at the door.
When you go to Shandong, Suzhou and Fuzhou, it’s even more like “getting up in the temple”. It’s a visual feeling of “living at the height of the temple”. You go not only to the imperial court, but also to the residence of ancient princes and ministers.
△ KFC is located in the lion forest, a garden in Suzhou
△ KFC store located in Xi’an wild goose pagoda
In particular, its store in Zhuhai Xiangshan Lake Park is nicknamed “crazy week Temple”, which makes people feel like they can’t help but want to worship when they go to the door.
It can be said that in today’s KFC, half of the ordering pages are Chinese dishes, and most of the stores are decorated better than Chinese restaurants.
This makes people ask: why should KFC try so hard to be a Chinese restaurant?
From gas station to
, the world’s largest fried chicken chain
KFC’s differentiated growth strategy
 
To find out why KFC chose to be a Chinese restaurant, we first need to understand KFC’s past and present life.
KFC was founded in 1952. Its full name is Kentucky Fried Chicken, which is “Kentucky Fried Chicken”, or KFC for short.
Although KFC is now the world’s second largest fast food and the largest fried chicken chain. However, its birth is quite unintentional.
Because at the beginning, its founder Haran Sanders opened a restaurant to help its gas station attract business.
Gradually, however, people found that the restaurant opened at the gas station had an irresistible specialty – fried chicken. Many people don’t even come to the gas station to refuel, just to eat a bite of fried chicken from Kebin gas station. So Sanders simply opened a Sanders restaurant across the road, specializing in his specialty – fried chicken. Today’s restaurant is the prototype of KFC.
In the following years, Sanders experienced several ups and downs in his life. His gas station closed down after the outbreak of World War II, and his restaurant was forced to close due to the interstate highway plan across Kentucky. When he started his second business, he was already penniless. The reason why he was able to make a comeback was that the old man went to major hotels one by one with a seasoning bucket.
Baidu Encyclopedia wrote about this entrepreneurial experience, which is very touching:
With a pressure cooker and a 50 pound seasoning bucket, he drove his old Ford on the road.
Dressed in a white suit, a black bow and dressed as a southern gentleman, the white haired Colonel stopped at the door of every hotel, selling fried chicken recipes from Kentucky to Ohio, asking to show fried chicken to bosses and clerks. If they like fried chicken, sell them concessions, provide ingredients and teach them how to fry.
At first, no one believed him. The restaurant owner even thought it was a waste of time to listen to the strange old man’s nonsense. Sandoz’s publicity work was very difficult. For two years, he was rejected 1009 times. Finally, when he walked into a hotel for the 1010th time, he got an answer of “OK”. With one person, there will be a second person. At the insistence of Sanders, his idea has finally been accepted by more and more people.
In 1952, the first KFC restaurant authorized to operate in Salt Lake City was established, which is the beginning of catering franchise in the world.
Of course, quoting this story is certainly not just because it is very moving. The most important point is that it reveals the core strategy behind the rise of KFC – differentiation.
Differentiation strategy is an important strategy that enterprises can rely on before establishing competitive barriers. It includes the differentiation of resources, modes and cognition. If you want to structure it, you can express it as a formula:
Differentiated structure = resource differentiation + mode differentiation + cognitive differentiation.
If enterprises can build a reasonable differentiation structure, they can form a growth engine different from their competitors.
The reason why jiangxiaobai can rise rapidly in the Baijiu industry, which has formed the inherent pattern of “old liquor world”, is inseparable from its use of differentiation strategy.
From the story of KFC’s initial rise, we can see that it is a typical enterprise relying on differentiation strategy.
Perhaps from the perspective of resource differentiation, KFC had no significant advantages in this regard at the beginning. However, the “catering franchise” model used at the beginning is a typical model differentiation method.
First, this model is very light. Sell franchises with formula as the core, provide ingredients and teach frying methods. From the perspective of KFC, it saves many costs such as opening stores.
Secondly, from the perspective of hotel restaurants, the most difficult thing to open a restaurant is the standardization of dishes. KFC provides ingredients and teaches the differentiated innovation mode of frying methods, which not only ensures the standardization of dishes, but also helps the hotel obtain new growth points. To a certain extent, it is equivalent to having a popular product that can be drained and profitable.
In addition to the differences in mode, KFC’s very significant difference in the structure of differentiation also lies in cognitive differentiation.
From the entrepreneurial story of Haran Sanders, we can see that “fried chicken” is KFC’s flagship product.
Now when we open KFC’s ordering page, it is not difficult to find that whether it is golden chicken nuggets, Orleans roast wings, finger sucking original chicken, spicy chicken wings and strong fried chicken rice… KFC has been making differentiated product cognition around “chicken”.
Cognitive differentiation is one of the important elements of constructing enterprise differentiation structure. It can effectively distinguish products from competitive products in the minds of consumers and occupy a favorable position.
Some netizens have summed up the difference between KFC and McDonald’s in fast food products:
·KFC is mainly chicken.
·McDonald’s has beef and chicken.
Obviously, KFC has been successful in making differentiated cognition around “chicken”.
With the differentiation model and cognitive differentiation, KFC has also achieved a rapid rise. From 1952, KFC had its first franchise restaurant. In just five years, KFC has developed 400 chain stores in the United States and Canada.
Seeing here, you must want to ask. After talking so much, what does it have to do with KFC’s determination to be a Chinese restaurant?
It matters a lot.
We know that the localization of Chinese restaurants is one of the strategies behind the localization of KFC.
Asymmetric structure
The secret skill of KFC
Now look at the pattern of the global catering market, McDonald’s is obviously the second to none. So far, McDonald’s has more than 30000 stores around the world, while KFC has only one-third of its stores, that is, more than 10000.
However, if we focus on the Chinese market, we will find that McDonald’s and KFC have achieved a 180 ° reversal in strength.
McDonald’s has 4000 stores in China, while KFC has 8168 stores, twice as many as McDonald’s.
KFC’s achievements in the Chinese market are inseparable from its use of “asymmetric structure”.
“Asymmetric structure” was proposed by Dr. Wang Sai, a well-known market growth strategy consultant. He once opened up a chapter in his book the five lines of growth.
Strictly speaking, asymmetric structure should belong to differentiated structure, which is a unique form of differentiation strategy.
However, the construction of differentiation structure is the growth of enterprises and competitors in their different growth ranges (although the competition for customers is still unavoidable). Because the essence of differentiation is dislocation competition, we can capture the differences in the growth range by obtaining our own unique niche.
The asymmetric structure is different. The underlying logic behind it is attack. It refers to enterprises that do not avoid industry leaders and other competitors and directly attack the advantageous barriers of industry leaders.
The asymmetric structure has brought into full play the Taiji wisdom of “interdependence between blessing and disaster” in Chinese culture. It has verified that the advantages and disadvantages can be transformed into each other like the two poles of Taiji. The opponent’s advantages often contain structural fatal holes.
The rise of Taobao is a typical case of the application of asymmetric structure.
When Taobao was founded in May 2003, its biggest competitor eBay had conquered cities and territories all over the world and had entered the Chinese market.
The newly established Taobao, like an ant, how to shake the big tree of ebay?
At this time, Taobao founder Ma Yun saw the attack points hidden in eBay’s advantages.
At that time, eBay’s model was to collect booth fees from merchants and Commission on transactions between buyers and sellers. Taobao, on the other hand, announced the implementation of the three-year free strategy, that is, it will not charge service fees to merchants within three years.
This move quickly reaped customers, making the merchants who originally settled on eBay quickly turn to Taobao. By 2006, Taobao had occupied 70% of the market, while eBay could only announce its withdrawal from the Chinese market.
The ingenious point of asymmetric structure is that often the advantage of the strong is the Achilles heel that makes it difficult to fight.
Take the business war between Taobao and eBay as an example. Many people will be curious that when eBay entered China, its global revenue has exceeded $2 billion. Why did eBay not follow up and destroy Taobao in time in the face of the attack of Taobao?
At that time, eBay had formed an established revenue and profit model. As a leader at that time, it was difficult to turn around. If eBay adjusted its model for a single market, it would endanger the business in other markets.
Moreover, if eBay followed Taobao’s play, its revenue would also decline sharply, affecting its market value in the capital market, which was a greater loss for eBay at that time. For eBay, it was obviously unwise to face such a loss for Taobao, a small localized Internet company that was very young at that time and whose future life and death were difficult to determine.
It is under such circumstances that Taobao, relying on the asymmetric situation formed by a single point breakthrough, continues to upgrade and further expand the asymmetry with eBay, thus successfully forcing eBay out of the Chinese market.
Turn to KFC. In 1987, KFC entered the Chinese market and opened China’s first restaurant in Qianmen, Beijing.
At that time, McDonald’s was already the leading leader in the global catering industry and began to attack cities around the world. Although KFC achieved rapid growth during the slowdown of McDonald’s growth from 1961 to 1968, it still can only catch up with it in its subsequent development. And from the 1970s to 1980s, KFC experienced several resales and developed slowly. In 1986, when Pepsi Cola bought KFC, the strength of the two sides had become increasingly different.
So, how and where should KFC attack in order to realize the Jedi counterattack under the encirclement and suppression of McDonald’s?
The first is through the deep cultivation of key markets.
1. Foreign fast food goes to the countryside to seize the Chinese market.
KFC entered the Chinese market three years earlier than McDonald’s, which made it take the lead in the differentiated market in this region of China.
△ on November 12, 1987, the first KFC in Beijing officially opened.
 
Moreover, although foreign fast food was still a fashionable thing that made Chinese people feel very fresh in China in the 1990s, KFC chose to “go to the countryside”.
In terms of breadth, KFC has expanded from the developed areas in the east to the relatively backward central and western regions. In depth, it quickly sank from the first and second tier cities to the third and fourth tier cities.
This idea is no stranger to us now, because it is frequently mentioned in the past two years as “seizing the sinking market”.
However, in the 1990s, when McDonald’s still focused on the first and second tier cities and made foreign fast food a “luxury” that only the upper class in a few places could consume, KFC’s decision to “go to the countryside” had to be bold.
Because even now, many brands will choose to focus on central cities and open flagship stores to enhance brand influence and value perception. However, KFC chose to give up the “category first opportunity” advantage of foreign fast food in China at that time.
But it is with this bold decision that KFC has achieved rapid expansion in the Chinese market.
From 1987 to 2004, KFC opened more than 1000 stores in the mainland. In the same period, McDonald’s was less than half. In many people’s memories, KFC was the first in their hometown, and it took many years before McDonald’s came back.
Seeing this, you must want to ask, why didn’t McDonald’s follow up in time when KFC was sinking the market?
Because McDonald’s was already a big man in the industry at that time, it didn’t need to lose its brand value perception in order to follow up with KFC. And its layout in the global market also makes it difficult for it to focus on the Chinese market like KFC. All this has given KFC the opportunity to develop rapidly in the Chinese market.
2. Localization and global standardization of PK.
Having finished the asymmetric competition of KFC in the sinking market, let’s take a look at KFC’s “localization strategy”.
In fact, the localization strategy is also the asymmetric structure built by KFC in the face of McDonald’s.
For the catering industry, product standardization is very important. The rational and efficient system has always been the advantage of McDonald’s.
In this regard, McDonald’s even made the slogan “in any McDonald’s in the world, customers can enjoy the good taste of the same standard.”
So, how can KFC compete with McDonald’s?
Its approach is “localization”.
You put forward that “in any McDonald’s in the world, customers can enjoy the good taste with the same standard.”
Then I will do the opposite and integrate KFC dishes in different regions into local characteristics.
For example, in India, where everything can be curry, curry is sandwiched in a super large hamburger.
In the UK, the birthplace of rainbow sugar, rainbow sugar is mixed into desserts.
In China, it has become a Chinese restaurant.
Don’t think KFC’s move can’t do the rotten move of McDonald’s standardization. In fact, although it seems that KFC has only added some dishes with local characteristics to the menu, it involves complex processes such as R & D, production and commissioning, as well as many human and material resources such as suppliers, R & D and market.
However, this way of playing is just above the seven inches of McDonald’s, dissolving McDonald’s global standardization advantage and building an asymmetric competitive advantage through differentiated products.
Although KFC focuses on “chicken” dishes, for the public, they are hamburgers, French fries and coke… There is still some homogeneity between the two products.
Through asymmetric competition and strengthening differentiated products, KFC has a stronger appeal in various regional markets. It also engraves its localization strength and cognition into the hearts of consumers.
From the perspective of the Chinese market alone, KFC has opened more than 8000 chain restaurants in more than 1000 cities and towns, and even went deep into China’s fourth and fifth tier cities and first tier towns. Let yourself, who has been suppressed in the international market, beat McDonald’s with a backhand in the Chinese market.
Write at the end
Chinese wisdom of foreign fast food KFC
So far, from the interesting point of foreign fast food KFC making Chinese food, we have a glimpse of the unknown business war between the two fast food giants.
Behind KFC’s so-called “localization” strategy, it is actually KFC’s business wisdom to fight back based on its competitors’ competitive advantages.
Lao Tzu said, “those who oppose the Tao move, and those who are weak use the Tao.”. Everything in the world is constantly changing. Behind the advantages of the strong, there may also be a broken turnaround.
The story of KFC’s determination to be a Chinese restaurant seems lively and interesting. Behind it is the ingenious application of this foreign brand to China’s ancient wisdom.
Perhaps this is the charm of business.
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