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Chindavanh VILIVONG Student ID: 2011557878

McDonalds VS KFC
Analysis through Customer-Based Brand Equity Pyramid

Salience

Needs satisfied: Food Category Identification: Fast-food restaurant

Performance
A LOT OF CALORIES!!!

McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, shakes and desserts.

KFC primarily sells chicken pieces, wraps, salads and sandwiches. Outside the USA, KFC offers hamburgers or kebabs and other regional fare.

Logo: Stylized M letter or McDonalds Mascot: clown Ronald McDonald Colors: Yellow, Red, White Slogans: McDonalds. I'm lovin' it. Nothing can do it like McDonald's, etc

Logo: Stylized acronym KFC or Kentucky Fried Chicken Symbol: brands founder Colonel Sanders Colors: Red, White, Dark Blue Slogans: There's Fast Food, Then There's KFC. We do chicken right. Finger Lickin' Good

Service & Prices


McDonalds
Speed
Attitude Price
Very Fast Polite Cheap

KFC
Fast Polite Little higher

Imagery: McDonalds

The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 furthered the principles of the modern fast-food restaurant. The original Mascot speedy was replaced by Ronald McDonald by 1967.

Through the high standards of service set by brothers and maintained by its new owner Ray Kroc and further expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Nowadays McDonald's is the largest chain of fast food restaurants in the world. It has more than 33,000 outlets worldwide (123 countries) with annual revenue more than 24 billions $.

Imagery: KFC
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952 though the idea actually goes back to 1930. Initially his restaurant generally served travelers, often those headed to Florida. So the original idea of KFC was based on selling good enough chicken for acceptable money to occasional

Through original recipes and the idea of selling fried chicken for acceptable price it has become a popular American brand. They also established high level service standards. Further investments from new owners Yum! Brands and Pepsi made it recognized all over the world. The founder of company remains the symbol of KFC even after his death.

According to the corporate website, KFC is present in 110 countries and territories around the world. It has in excess of 5,200 outlets in the United States and more than 15,000 units in other parts of the world

Global brand

Glocal brand

Brands core: cheap & fast food with a high level of service. Purchase situation: Whenever you are hungry and need to eat cheap and fast Consumers: middle and low class employees, students and children, travelers.

Brands core: tasty chicken for acceptable price Purchase situation: Whenever you are hungry and want to eat chicken for acceptable price. Consumers: middle and low class employees, students and travelers

Judgments
McDonalds is considered to be a good and convenient place to eat cheap and fast. Usually people are satisfied about the level of products quality and service for the price they are paying. KFC is considered to be good and convenient place to eat cheap chicken. People are usually satisfied about the level of products quality and service for the price they are paying.

BUT

Being global brands make them good targets for criticism and applying stereotypes. The main accuse is related to obesity and heart deceases caused by the fast-food consumption
The use of popular toys encourages children to eat more McDonald's food contributing to many children's health problems, including a rise in obesity. KFC is continuously accused for the animal rights violations.

Both companies are supplied with soy beans by Brazilian company Cargill which is mostly responsible for the forest destruction and emissions of carbon dioxide into the atmosphere.

Breaking Stereotypes
Majority of the criticism is constructive but there are some destructive stereotypes which widely applied to global fast-food brands. 1) Only global brands are criticized for obesity, quality of ingredients etc. but there are a lot smaller restaurants with less control which can use worse quality ingredients and sell food containing much more calories without any notice. 2) Global brands are often criticized for breaches of sanitary regulations but there is no guarantee that in smaller restaurants ingredients are washed before cooking. And even in an expensive restaurant a waiter can spit into your soup. 3) Instead of smaller restaurants global networks are spending a lot of money as a part of social responsibility policy such as recovering of destroyed forests or help to children with some deceases. 4) Being big brands its necessary to find reliable supplier. As an example, McDonalds switched to using coffee beans taken from stocks that are certified by the Rainforest Alliance.

Feelings

In general: Convenient Easy access Friendly Reliable Fast Not healthy For children: fun For the new markets: western style, cool

In general: Convenient Cozy Easy access Better quality for higher price Not healthy For the new markets: western style, prestigious

Resonance
McDonalds
Comparably low loyalty level among consumers on the old markets except for children. Many occasional purchases.

KFC
Existence of loyalty among consumers mostly based on their personal preferences of chicken to burgers.

Both companies have a high level turnover of staff. There is even term McJob which means a lowpaying job that requires little skill and provides little opportunity for advancement"