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Popeyes vs Kentucky Fried Chicken

Paper type: Essay
Pages: 7 (1699 words)
Categories: Fast Food, Food, Restaurant Review, Swot Analysis
Downloads: 31
Views: 228

Popeyes: To be the world’s best fast service restaurant. Being the best ways supplying impressive quality service, tidiness, and worth, so that makes every client in every dining establishment smile.

SWOT Analysis:

Strengths

The strength of Popeyes is based on its distinct brand name and style of Louisiana spicy chickens that it supplies on its menu together with its chicken sandwiches, chicken tenders, fried shrimps and other seafood, jambalaya, red beans and rice and other regional items.

Popeyes is an extremely differentiated brand with enthusiasm for its New Orleans heritage n tasty genuine foods. Weak point: Popeyes is second to its sis company KFC. About 90% of their domestic dining establishments are focused in Tennessee and Louisiana. The majority of their restaurants lie in populous African-American areas; providing higher chances of being robbed and providing them a greater close-out outlook. Opportunities: Popeyes serves the food that the world longs for and is continuing to expand its worldwide reach.

Popeyes runs and franchises 1,977 restaurants in 45 states and 26 foreign countries and out of the 1,977 restaurants 1,542 of them are domestic franchise restaurants and 397 of them are international franchises. Approximately 55% of the international franchises are located in South Korea, Canada and Turkey. Dangers: The Majority Of Popeyes’ locations can be founded in urban neighborhoods. The regional competition on neighborhood fried chicken dining establishment deal lower cost to Popeyes’ business rates. There are poor client base in particular locations and natural disasters. The SWOT analysis for the future of Popeyes looks to be excellent.

Due to more customer desiring the taste and feel of “southern hospitality” style food, numerous franchises are beginning to appear in lots of areas throughout America and globally. When it comes to the marketing element of Popeyes, the business markets itself to a non-southern citizen base that has actually always wished to experience the idea of “southern hospitality”. Popeyes chooses the concept of being “Louisiana Fresh and Bonafide Fried Chicken”. With its mix of southern spices, herbs and regional foods on its menu; Popeyes brings the tastes of Louisiana to your taste.

The advantage that Popeyes have over their competition is that they cater to a more diverse and international customer base. They offer and have both domestic and international franchising if an individual domestic or foreign wanted to franchise a Popeyes location. Their international franchising extends as far as South Korea. It is owned and operated by Yum Brands; the same company that owns and operate KFC, Taco Bell and Pizza Hut. One distinct advantage is that all Popeyes franchises do not share the same building as you see a Pizza Hut and a Taco Bell or a KFC and a Taco Bell.

One major improvement that I feel Popeyes should improve upon is its domestic in minority based neighborhood for the safety of its employees and monetary losses and its minority base advertisement concept. They should appeal to all neighborhoods and advertise to the appeasement of all. Popeyes sells chicken so their “target market” is anybody who likes chicken. So to make it more sensible, their target markets are young, single individuals, married couples and families and older citizens who do not time at home to be in the kitchen at all times.

Their age group goes as low as five and as high as 65. You can now see Popeyes in all sort of neighborhoods: Black, White, Hispanic and Asians just to name a few. If you ever work in a Popeyes, you will see the diversity of the people who like fried chicken. The opportunity for growth in this target market is great. Because as the current market ages, they are still going to be consumers of the same products as they have been and will encourage those that they bring along to be consumer of the same products as well.

One obstacle they should be concerned about as a company on the rise is “disinterest” due to the lack of creativity if they do not become more imaginative and creative. As a human, the mind gets boring after doing and having the same thing over and over. They should also be concerned of a stiffer competition market from their competitors. Everybody wants to be the number one brand that is preferred but it is the company who is always thinking ahead and calculating risk and rewards to be the preferred brand that stays the preferred brand.

Kentucky Fried Chicken (KFC): The Kentucky Fred Chicken mission statement is “To sell fast food in a fast, friendly environment that appeal to pride conscious, health minded consumers”. Vision Statement: Food, Fun & Festival, this is what KFC is all about. Leading the market since its inception, KFC provides the ultimate chicken meals for a Chicken Loving Nation. Be it Colonel Sanders secret original Recipe Chicken or Hot & Spicy Version, every bite brings YUM on our face. At KFC we can proudly say, “We Do Chicken right”.

SWOT Analysis:

Strengths:

Kentucky Fried Chicken is a very famous chain of quick-service chicken restaurant that started from Louisville, Kentucky. The company is became a sub-brand of Yum Brands in the year 2002 and benefitted greatly from the position and brand value of Yum foods. In the past, KFC chain of restaurants grew at a very fast pace and has become today one of the largest chicken restaurants chain in the world. KFC has been known to be an innovator in the chicken restaurant segment with an annual sale of more than a billion dollars.

The KFC as a brand is well established in the dining out as well as delivery service provider in the fast food industry. Despite the entrance and presence of many competitors in the fast food industry the company was able to retain its large loyal customer base because of its unique offering. Due to this reason the KFC ranks highest when it comes to chicken restaurant chains, convenience restaurants and variety food provider. KFC currently has more than fifty percent of the market share in fast food industry and the new competitions are finding it very difficult to capture any of its share.

Over the years KFC has gained great recognition as a reputable brand for fast food even after the death of Col. Sanders and has globally positioned itself well in the industry. Weaknesses: When other companies in the chicken industry were trying to increase its market share; KFC were not able to compete well in the market or retain its customers. Also the special paper buckets that is now used by the KFC for delivering large sized orders was originally introduced by Wendy’s restaurant. The company has entered so many markets in the past in the United States that its growth rate was about only one percent a year.

KFC has said not to pay attention to its resource and development. Opportunities: KFC has been trying to enter new markets and position itself in some of the hard to enter markets like South America. With more investments; the company can definitely make its position stronger in the food industry. More spending on the resources and development as well as introducing new food items and products KFC can increase its market share and profits. Threats: The competitors of KFC have successfully captured a large market share.

According to findings McDonalds has about 35 percent of the share in Sandwich Segment whereas the Burger King owns about sixteen percent of the market share in fast food industry. The local restaurants in different countries where KFC has presence pose a threat to the company. The baby boomers formed the major part of the loyal customers of the company that now have ages between 35 to 50 years and are likely to move towards healthier foods. The other competitors in the industry are continuously improving and trying to enter new markets and increase their market share and sales.

With the lifestyle of people changing due to growing awareness about healthier food people now look for something healthy, low calories and delicious at the same time. KFC as a company is doing well in its global positions and how it is the number one preferred brand in the “quick-service chicken” restaurant industry. KFC and more accurately, owners of KFC, Yum! Brands Inc. is the foreign company with the largest presence in China. KFC dominates the fast food market in China and is well over twice as large as McDonald’s there. KFC implemented a better strategy than McDonald’s in China.

While McDonald’s tried to stay true to their menu and kept their product offering in China somewhat similar to what the rest of the world knows (burgers and fries); KFC incorporated local dishes with their famous fried chicken. They also looked more to local employees to make big decisions instead of just taking their instructions from the U. S. headquarters. This allowed KFC to enter the hearts, minds and stomachs of more Chinese people. KFC have many advantages over their competitors in terms of production, innovation, and ways of appealing to the satisfaction of their target market.

Since its introduction into the American way of life, KFC has managed to always keep its original startups but yet adding new favorable additions to suit the needs of each generation. KFC provides a quick and easy meal. It can also be bought in large amounts. KFC can improve on its customer service at certain locations. Even though its mostly a franchising based company but yet the franchisee should take it upon themselves to train better and better equip their franchises to hand the demands of their negative aspects of their stores.

The interesting area for growth with KFC is in its international markets. If KFC can take the same approach that it took when it franchised in China, the results will be more international investments from different individuals who see the opportunity as a way to invest in something new. With being the number one international “quick-service chicken” restaurant, there can instances where language barrier can play a factor in transitioning into the newer markets. And also they should be concerned with the pricing they implement in those new markets that they explore as well.

Cite this essay

Popeyes vs Kentucky Fried Chicken. (2017, Jan 05). Retrieved from https://studymoose.com/popeyes-vs-kentucky-fried-chicken-essay

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