EXECUTIVE SUMMARY
The international market is flooded with various sectors and industries that involve products of daily
as well as occasional use for the consumers. The use of the products can vary from industrial purpose
to private consumption. One such thriving industry in the modern world is the food and beverage industry. Food and beverage industry combined with the hospitality sector makes up one of the mostattractive target sectors for multi-national corporations. The concept evolved from the very first dinersin the late 18thcentury
When the world realized the concept of paid dining experience. Now, the worldcannot live without the taste of a McAloo Tikki or the zing of a Zinger. The bottom line being that the order-to-eat MNCs have taken over the market like ants on a corpse, gobbling up every ounce of it.
This sector has slowly covered all income groups of consumers and has targeted to achieve a marketshare of the highest percentage and the ever increasing competition is resulting in more profitable options for the consumers
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The consumers are being served with a range of food and beverages to relish on catering every style of taste and preferences. With growing competition the food giants have take their services to a higher level with better decreased serving time, value for money prices and changing specialties in their products.
The following report is a comparative analysis of the operational parameters of McDonalds andKentucky Fried Chicken (KFC) and projects an overview of various factors that differentiate theservices of the two food giants
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It covers factors like the product variety, cleanlines, customer needs, hospitality management, customer relationship management, supply chain management and equal level in this two big company.The survey was based on the consumer’s response on their choice between KFC and McDonalds and the basis of their choice was differentiated into various factors.
HISTORY
1940 is the birth year of McDonald’s and they have started everything. Their Speedier Service System that was introduced in their very first restaurant is being followed until now in modern day fast food chains. McD originated was born in food chains business in US but are now spread all over the world. These are the most favorite options when anyone thinks about fast food. Both of these have entirely different cuisines.
Their very first mascot was a man with a head of a hamburger that is wearing a chef’s hat. It was replaced by McDonald’s ever popular clown man. McDonald’s signature colors are red and yellow. McD is known for its speedy service system.
With outlets in 119 countries across the world McD serves more than 58 million customers on a daily basis. Although the signature colors of McD are Red and yellow we as a customer would not find any change in them The logo is the trademark for the Mcd and it become strength branding in the fast food restaurant Their major market focus on nine country like Australia, Brazil, Canada, China, France, Germany, Japan, the United Kingdom, and the United States.The first McDonald's restaurant opened in Des Plaines, Illinois, near Chicago,
KFC stands for Kentucky Fried Chicken and was born in food chains business in US This chain started way back in 1930 at the time of the Great Depression. Harland Sanders was the original creator of this chain
Harland Sanders He is the same man whom you see in the logo of KFC. KFC is known for their finger licking chicken recopies which are made from 11 special herbs.In facts, before KFC was exist the first named as “Sanders Court and Cafe”, following the name their founder that original creator from Kentucky.
In age of 40 as an operator of a service station in Corbin,Harlan change his carrier in cooking and began to cook and serve food to hungry travelers from his own living quarters. Before longcustomers were turning up for food alone so he moved across the street to a motel and 142-seater restaurant which he named “Sander’s Court” it wasduring this time that the his devised recipe for fried chicken using a secret
In add,Harland Sanders died in 1980 he was 90 year old. Although the he is nolonger with us, his philosophies of hard work and excellent service we provide to our customers will always be a part of KFC tradition.Until today KFC is one of most campony that using the recipe secret, and also have a trademark statement that we already known as a “finger lickin’ good”.in fast food industry
- CLEANLINES
As we know the two of this francais have a responsibility to operate ethically, and to leverage their influence as a bigger campony that provide food chain to this several scope like environmental, animal welfare, food safety and quality issues.This two integrated company fully adhere to make their stringent International Food Quality and Safety standards, as well as to the local government’s requirements.(Malaysia law and act food services)
This company (McD & KFC) are constantly evaluating options that in other term of the world has successfully introduced as well as looking at how other industries locally are managing sustainability issues that are common to their business.When it comes to the safety and well-being of customers,they together put customer in first priority. Like maintain rigorous, sciencebased standards and evaluations in critical areas throughoutour food supply chain.
This two company food suppliers must have food safety management systems in place, including Quality Assurance Program (QAP),a verified Hazard Analysis Critical Control Point (HACCP) planand crisis management, food security and other applicableprograms.They also updated their Supplier Quality Management System to align food safety and quality expectations into one global standardized
In addition to developing and implementing their policies and programs, they also have been leading the effort to harmonize food safety standards and audits within the food industry by working with the Global Food Safety Initiative (GFSI). This willreduce redundant audits and enable their suppliers to focus more resources and upgrade their service to continuous improve
THE SYSTEM THAT KFC USE FOR OUTSOURCE
McD ALWAYS MAKE SURE THEIR STAFF FOLLOW THE POLICIES
The raw materials, processed products or additives are certified Halal. The preparation and handling of raw food meets Halal, hygiene and safety standards.Premises are constantly kept safe and clean with proper and systematic cleaning schedules.
Equipments and utensils are cleaned every time before and after they are used, and are strictly used for Halal food cooking. Packaging materials are made of substances approved by Islamic Laws while the packaging process is handled with utmost hygiene care.Food storage is properly allocated according to wet and dry food materials.
Their poultry products are sourced from a slaughterhouse that has Halal ertification from JAKIM.Quality Ingredients100% Halal Beef import meat patties that are produced from 100% halal beef with no additives, preservatives or flavor enhancers. The Inspections are carried out before the beef arrives at the plants, followed by several separate quality checks by their suppliers.
Both of this company have Halal Farm-Fresh Chicken for produce chicken products are selected for their whole someness and meet all their physical and bacteriological specifications. Their vegetable ingredients are freshly shredded in ourrestaurants before they are used. The lettuce heads are grown in fresh farm locally or outside sourced.
- IN HOUSE SIGNAGE
Over the years, McDonald's and KFC Holding has developed TV advertising campaigns that have become, for example become part of our lives and culture. Their commercials have focused not only on product, but rather on the overall based this two giant company experience, portraying warmth and a real slice of everyday life.This "image" or "reputation" advertising has become a trademark both of company and created many memory experiece television moments
The example including McDonald's is Say McDonald's (1997),We Love to See You Smile (2000)There's a little McDonald's in Everyone (2001) - Canada OnlyI’m lovin' it (2003)McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards
Using the following methods is KFC that use same signage in house like using reminder advertisement KFC stimulates repeat purchases of its products.The company trademark “finger lickin good” is just a wakeup call to the consumer to remind themhow good they felt the last time they ate KFC chicken.
Sponsorship is another tool to strengthen an organizations image. KFC has been the sponsor of the Malaysia sports for a long time
Branded Prepaid Coupons KFC brings to prepaid coupons of different meal combo options, which act as great distributor trade or customer incentives. These exciting incentives are guaranteed to give a boost to their sales and can make the incentives stand out from the order run
In order to act as true partners, KFC will print branded coupons of your own company or product, which can be redeemed at any of the KFC restaurant nationwide or restaurants of our choice.Corporate meeting, seminars & workshops at KFC, Meeting with trade people or customers canalso be arranged at KFC.This company can arrange all related facilities for the meeting. This facility is available at select outlets.
- PHYSICAL FEATURES
Employees all restaurant crew members are trained and certified in-house in basic hygiene practices, sanitation and food safety.Their staff from bottom up like managers and crew are required to wash their hands at least every hour with Anti-Microbial Handwash.
Handling their food delivered is very important to the restaurant is inspected routinely before acceptance.Internal cooking temperatures of beef patties arechecked twice daily to ensure that they are cooked right for consumption.Raw food is stored in walk-in freezers in a systematic manner according to their sensitivity to temperature fluctuation.
Example like raw eggs are stored in the chiller at 1 – 4°C with a shelf life of 14 days and a secondary shelf life of 30 minutes once they are taken out of the chiller and stored at room temperature. All raw food is handled using the specialist equipment like disposable gloves of a different color from gloves for cooked food or condiments to prevent the food from expose other things that not required Restaurant that operate on this two company have a planned maintenance that performed according to the Planned Maintenance Calendar on all equipment used for cooking, holding or storing foods to ensure properworking order.
The operation must do every day like tables are wiped clean every morning with a sanitizer solution and thereafter every time each table is cleared.Other than that,sanitized towels used at the food preparation tables for thorough cleaning are used only once and thereafter placed in the soiled towel bucket.
The water filtration system in their restaurants is capable of removing 99.9% of particles greater than 1 micron (including bacteria) from the water.In all tools to serving food handling trays, utensils and utensil holdersare disassembled, cleaned and sanitized at least every4 hours.Clean towels are kept in sanitizer solution at proper concentration to ensure a ready supply of sanitized for maintain the sanitizer
Other physical features(energy/water usage)Climate change is a crucial issue, generating growing interest from many sectors of society from individuals and NGOs, to governments and corporations. The urgency of this issue means that everyone has a role to play in reducing food industry impacts, including companies like McDonald’s and KFC
They has been working to minimize the environmental footprint by initiating energy conservation. So then, they have continued to seek methods to improve our environmental performance not just because it is the right thing to do, but also because it is smart business
.Efficiency and innovation are natural by-products of thinking “green”. When they conserve energy, produce less waste and minimize resources used by our suppliers, they use less and spend less. Both parties practice in their restaurant by use of electrical energy and natural gas accounts for the bulk of direct greenhouse gas emissions that they have
More efficient use of these resources helps them save money and reduces the environmental impacts. Within the restaurant, they more focus are the heating and cooling systems and the cooking appliances, which together account for approximately 80% of a typical restaurant’s energy use.
In Malaysia ensures that all restaurants are installed with power system stabilizers to provide improved stabilization of the system. Power factor correction boards are also utilized to channel improved power factor and reduce energy costs. To date, they efford have already show resulted in electricity savings
McDonald
Being a Muslim-majority country, all McDonald's in Malaysia are certified halal. Thus, pork products are not offered in Malaysian McDonald's to satisfy halal certification requirements.
The standard menu items served in Malaysia include Big Mac, Cheeseburger, Double Cheeseburger, Quarter Pounder, Big N' Tasty, McChicken, Chicken McNuggets, Fillet-O-Fish and McMuffins.
Local menu items:(Malaysia branch)
§ Spicy Chicken McDeluxe: A burger consists of marinated chicken thigh meat with crispy coat, with lettuce and special sauce in corn meal-bun.
§ Ayam Goreng McD (Literally： McD Fried Chicken): A two-piece fried chicken. Comes in regular or spicy.
§ Bubur Ayam McD (Literally： McD Chicken Rice Porridge): Chicken strips in rice porridge with scallions, sliced ginger, fried shallots and diced chillies.
§ Beef burger: A basic beef burger, marketed under the McSaver menu.
§ Chicken burger: A basic chicken burger, marketed under the McSaver menu.
Seasonal and limited-time menu items:
Prosperity Beef Burger: Offered before the Chinese New Year and available throughout Chinese New Year season, normally in December which is just few months before the festival.
§ Prosperity Chicken Burger: Offered right after the introduction of Prosperity Beef Burger, but it is still available before the Chinese New Year and available throughout Chinese New Year season
§ Double McChicken, Double Fillet-O-Fish, Double McDeluxe: Respective burgers with double patty, limited-time recurring items. Currently served in Mcdonalds' Malaysia for a limited time.
§ GCB (Grilled Chicken Burger): A burger with grilled chicken thigh topped with sauce and lettuce, served in 2010 and 2011.
§ Bubur Ikan McD: Fish rice porridge, served in 2002.
§ Grilled Chicken Foldover: Equivalent to McArabia, served in 2006-2007.
§ Spicy McNuggets: Served during the 2006 World Cup season
§ Mega Mac: A burger consisting of four beef patties, served in 2008
§ Kiwi Sundae: Served in 2000 in Kuala Lumpur
§ Chicken McDeluxe: The chicken patty is made from 100% chicken breast. Served in 2011.
§ Double Chicken McDeluxe: Served in 2011.
§ McFlurry Milo: Served in 2011 in nationwide.McFizz: A special type of beverage which is a mix of Minute Maid™ 100% orange juice and Sprite. Served with Prosperity Burger set in 2011.
Kentucky Fried Chicken
KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried piecesof chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marin and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machineFor a product to occupy a clear, distinctive and desirable place relative to competing products inthe minds of target consumer.
Beside that in KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken.
For a product to occupy a clear,distinctive and desirable place relative to make competing products in the minds of target consumer.In KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken.KFC is synonymous with chicken.
It has to be because chicken is its flagship product. The latest they have on offer is the marinated hot and crispy chicken that is crisp and crunchy on the outside, and soft and juicy on the inside
List by KFC for breakfast order menu
McDonald
Crew training begins on the very first day of work. New hires, crew and crew trainers are involved in a carefully planned crew development curriculum. Lessons begin with crew orientation, and gradually progressing towards the introduction of Crew Development Program (CDP) and Crew Trainer Development Program (CTDP)
Beside that the functional in stilling the very basic roles and responsibilities of each and every crew onfacets of quality, service, cleanliness,make a good quality product and value. More restaurant management staff started off as crew members. Restaurant Management Curriculum helps train managers to be fully responsible for the restaurants they are in charge to provide the good service focus on the food quality
The curriculum includes self-study, in-store training and classes that prepare them for a bigger role in the store, which will eventually lead to a restaurant manager position.The four components of the curriculum have a relate in each another components
• Shift Management
This teaches the basic knowledge andskills to run a restaurant shift
• Systems Management
This includes role playing, discussions and interactive exercises in and out of the restaurant setting.
• Restaurant Leadership Practices
A five-day program that simulates the complexities of a real restaurant environment and reinforces the concept of decision making and building a high performing team.
• Business Leadership Practices
This course is designed for restaurant managers who have been on the job for about a year. It trains participants to acquire the skills necessary to successfully develop a restaurant business plan that will meet the goals set by the region, division, country and their own restaurant organization and development opportunities
Kentucky Fried Chicken
Fist and foremost in KFC service to provide a good quality food is improved reporting of business processes leads inevitably to a more streamlined production process.With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distributionof the finished product to produce the good service at the same time to make good food
Quick Reflexes as a corollary to improved supply the total service comes an improved ability to react to changes inthe market. Better MIS systems enable an enterprise to react more quickly to their environment,enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie.
In facts,these factors help KFC to work smoothly and efficiently as we already known that they are the only fast food chain which is selling fried chicken in which they are specialized.MIS systems let the KFC management to capture information and store it. Other than that, all relevant steps are being taken to review and improve their training programmed to avoid the recurrence of such incidents and to provide only the best service to customer.
Last but not least is whenever they are making bills it helps them to count sales per day, per week and per month because a copy of the bill is stored in the computer. Access stored information easily and manipulate it for the needs of their clients while billing or taking order they just enter the code of the product requested at that time.It can save cost especially in time and can produce better
Every market leading enterprise will have at least one core competency that is a function they perform better than their competition. By building an exceptional management information system intothe enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the KFC in service scope.
In fast food market is strongly dominated by these 2 brands. But when it comes to comparing these two brands the following study brings us to a conclusion that as far as market presence and brand value is concerned McDonald's has definitely proved a point for themselves. But KFC who reentered the market value has shown a rapid progress and no wonder if in the coming years KFC overtakes McDonald’s in the market share.
Both the food-giants have given each other immense competition in terms of customer satisfaction and promotional strategies. The range of products and offers offered by each is remarkable in every context. Although McDonalds has an upper hand with the vegetarian crowd because of its exclusive products, KFC is slowly catching up to the challenge. KFC provides vegetarian alternatives with an added advantage of a complete meal including rice and desert. Where McDonaldsfall into the snack option KFC had covered the meal area.
So that customer will choose that who can fulfiil their need and wants and also have variety product to made.Automatically customer as a habit for all user like to choose the good and best service like KFC.It is not quite evident which one can betermed as better than the other. But because of some weakness it can be explosure to be more serious.
WHY?..
Because in statistics KFC 31% found the food priced nominally and an equal amount of people surveyed i.e. 31% found it expensive.Eventhough it was concluded that it dropped down to the individual in the case of KFC and there was no clear market trend. In McDonald's 46% found it nominally priced as well as value for money while just 8% found it expensive.Hence in terms of comparative study it was concluded that McDonalds was optimally priced although KFC wasn't overpriced either.
The results indicated that a major section, i.e. around 52% for KFC and 42% for McDonald's, of people spent between Rs.100-500 thus advocating the fact that the places are priced moderately .KFC also always to upgrade the menu and add more options to it. The fried chicken category already has more options and varieties as compared to the vegetarian section.McDonalds does not try to enter the meals category into its menu
In generally differ,both of this company have as are both for animal rights if whether or not they consider better animal welfare standards but differentiation variation of dishes.For example, McDonald’s main offer is hamburgers while KFC’s main offer is fried chicken.Mc Donald’s other offers include breakfast menu, desserts, chicken sandwiches and French fries. KFC’s other offers include chicken wraps, sandwiches, salads, roasted and grilled chicken cuisines and desserts.So more people in this word like to prefer KFC because of their health food better than Mcd,It not means that KFC is a health food but in others statement that McD have lack of health food compare to the KFC.
Lastly,both the brands under consideration are big brands and hence have the capability to allocate adequate budgets towards all sections of marketing. Whether they choose to or not to, is the question at hand.This particular question analyzes the potency of the advertising strategies used by the food brands in attracting or influencing the customers.The significant questions from the survey and their respective response have been mentioned in the media.
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