motivation analysis of transnational corporation’s localization through the kfc and mc.donald's marketing strategy difference 从肯德基与麦当劳的市场战略差异看跨国企

毕业论文论文题目从肯德基与麦当劳的市场战略差异看跨国企业的本土化战略动机作者所在系部外语系作者所在专业英语作者所在班级B08711作者姓名作者学号20084071128指导教师姓名完成时间201262北华航天工业学院教务处制MOTIVATIONANALYSISOFTRANSNATIONALCORPORATIONSLOCALIZATIONTHROUGHTHEKFCANDMCDONALDSMARKETINGSTRATEGYDIFFERENCEBYTHESISADVISORBAIGUIRONGSUBMITTEDTOTHEBACOMMITTEEINPARTIALFULFILLMENTOFTHEREQUIREMENTSOFTHEDEGREEOFBACHELOROFARTSINTHEFOREIGNLANGUAGESDEPARTMENTOFNORTHCHINAINSTITUTEOFAEROSPACEANDENGINEERING北华航天工业学院本科生毕业论文原创性及知识产权声明本人郑重声明所呈交的毕业论文MOTIVATIONANALYSISOFTRANSNATIONALLOCALIZATIONTHROUGHTHEKFCANDMCDONALDSMARKETINGSTRATEGYDIFFERENCE是本人在指导教师的指导下，独立进行研究工作取得的成果。除文中已经注明引用的内容外，本论文不含任何其他个人或集体已经发表或撰写过的作品或成果。对本论文的研究做出重要贡献的个人和集体，均已在文中以明确方式标明。因本毕业论文引起的法律结果完全由本人承担。本毕业论文成果归北华航天工业学院所有。本人遵循北华航天工业学院有关毕业论文的相关规定，提交毕业论文的印刷本和电子版本。本人同意北华航天工业学院有权保存毕业论文的印刷本和电子版，并提供目录检索与阅览服务；可以采用影印、缩印、数字化或其它复制手段保存论文；在不以营利为目的的前提下，可以公布非涉密毕业论文的部分或全部内容。特此声明毕业论文作者指导教师年月日年月日摘要诚如马克思在资本论中的论述，21世纪以来，经济全球化以空前的速度和规模席卷了世界各地，不甘落于人后的各国企业家纷纷奔走于新老市场之间，然而，结果并不尽如人意，成功只眷顾了他们当中的一小部分。作为失败的教训，本土化战略的推行并未引起经济学家们预期的重视，仍旧有相当多的企业输在了本土化战略上，丧失了抢占新市场的先机，甚至结束了他们的国际之旅。本文正是以此为背景展开论述，从跨国企业进军国际市场失利的重要原因本土化战略为切入点，以肯德基和麦当劳进军中国市场之战为例，深刻阐述跨国企业进入国外市场战略中，本土化战略的重要性，并放眼经济全球化的大局，从宏观的角度阐释本土化战略与经济全球化的内在关联，在此基础上，结合对未来经济走势的预测，为跨国企业进军国外新市场的战略提供理论建议与参考。关键词本土化市场战略全球化ABSTRACTJUSTASMARXSTATEDINDASKAPITAL,THEECONOMICGLOBALIZATIONHASSWEEPEVERYWHEREAROUNDTHEWORLDATANUNPRECEDENTEDSPEEDSINCETHE21STCENTURYTHEENTREPRENEURSWHODONTMEANTOSTRAGGLEALONGBEHINDTHEOTHERSSTARTTOEXPLOITNEWMARKETSUNFORTUNATELY,FAILUREMEETSTHEMAJORITYASALESSON,THEPRACTICEOFLOCALIZATIONSTRATEGYDOESNTREACHTHELEVELECONOMISTSHASEXPECTEDALOTOFENTERPRISESSTILLFAILINLOCALIZATION,LOSINGTHEOPPORTUNECHANCETOSEIZEMARKETS,EVENENDINGTHEIRINVESTMENTTRAVELINFOREIGNTHEPAPERDISSERTSUNDERTHISBACKGROUND,DIVIDINGTHEWHOLEPASSAGEINTOTHREEPARTSFIRST,STANDINGONECONOMICGLOBALIZATION,POINTOUTTHATMULTINATIONALCORPORATIONSAREBAFFLEDININTERNATIONALMARKETSBECAUSELACKINGOFLOCALIZATIONSECOND,EXAMPLETHEWARKFCVSMCDONALDSINCHINESEMARKETANDEXPOUNDTHEIMPORTANCEOFLOCALIZATIONININTERNATIONALMARKETINGSTRATEGYTHEN,THEESSAYFOCUSESONGENERALSITUATIONOFECONOMICGLOBALIZATIONTOSTUDYTHEINNERSHIPOFLOCALIZATIONSTRATEGYANDECONOMICGLOBALIZATIONANDSUPPLYTHEORETICALADVICEANDREFERENCEFORMULTINATIONALCORPORATIONSMOVINGTONEWMARKETS,COMBININGWITHPREDICTIONOFFUTUREECONOMICTRENDKEYWORDSLOCALIZATION,MARKETING,STRATEGY,GLOBALIZATIONCONTENTSABSTRACTINCHINESEIABSTRACTIIINTRODUCTION1CHAPTER1LOCALIZATIONSTRATEGYSBACKGROUND111THEBACKGROUNDOFLOCALIZATIONSTRATEGY112THEDEFINITIONOFLOCALIZATIONSTRATEGY,ECONOMICGLOBALIZATIONANDMARKETINGSTRATEGY3CHAPTER2KFCANDMCDONALDSINCHINA521THEINDUSTRYBACKGROUNDOFKFCANDMCDONALDS522MCDONALDSFAILINGIN“LOCALIZATION“INCHINA623MCDONALDSANDKFCINCHINA8CHAPTER3REPRODUCTIONOFLOCALIZATIONSTRATEGY1031THELOCALIZATIONSTRATEGYOFCOCACOLA1032THECASESOFMULTINATIONALENTERPRISESLOCALIZATIONSTRATEGY11CHAPTER4THETRENDANDPROSPECTOFLOCALIZATION1341THEMOTIVATIONOFMULTINATIONALENTERPRISESLOCALIZATIONSTRATEGY1342TRENDOFLOCALIZATION14CHAPTER5CONCLUSION15ACKNOWLEDGMENTS16BIBLIOGRAPHY17MOTIVATIONANALYSISOFTRANSNATIONALCORPORATIONSLOCALIZATIONTHROUGHTHEKFCANDMCDONALDSMARKETINGSTRATEGYDIFFERENCEINTRODUCTIONINRECENTTHIRTYYEARS,AMOREEFFICIENTCOMMUNICATIONOFINFORMATION,TRANSPORTATIONANDFUNDSREDUCETHETIMECOSTANDDISTANCEALOTOFMULTINATIONALCORPORATIONSAPPEARALONGWITHTHENEVERENDINGCHANGESANDIMPROVEMENTOFINTERNATIONALECONOMYALSOTHEMOREFIERCECOMPETITIONTHEYMAKETHEIRENDINGSVARIOUSBECAUSEOFDIFFERENTATTITUDESTO“LOCALIZATION”DURINGTHEIRMARKETINGSTRATEGYTHETHESISMAKESITSSTATEMENTBASEDONTHISBACKGROUNDTHATELABORATEINDETAILSABOUTIMPORTANCEOFLOCALIZATIONSTRATEGYWHENMULTINATIONALCORPORATIONSMARCHINTOTHEINTERNATIONALMARKETANDITBEGINSTOPICWITHTHEREASONTHATTRANSNATIONALCORPORATIONSSUFFERASETBACKINFOREIGNMARKETSLOCALIZATIONSTRATEGYANDEXEMPLIFIESTHEBUSINESSWARBETWEENKFCANDMCDONALDSINCHINAONTHEOTHERHAND,THISESSAYPUTSITSEYESONTHEGENERALSITUATIONANDSTATESTHEINTERNALRELATIONBETWEENLOCALIZATIONSTRATEGYANDECONOMICGLOBALIZATIONINMACROSCOPICALWAYBASEDONTHESE,THEPAPERPROVIDESTHEORETICALADVICEANDREFERENCEFORMULTINATIONALCORPORATIONSMARCHINGINTONEWFOREIGNMARKETSNOWADAYSALONGWITHTHEPREDICTIONOFFUTUREECONOMICTENDENCYCHAPTER1LOCALIZATIONSTRATEGYSBACKGROUNDINTHISPART,THEWRITERWILLMAKEADETAILEXPLANATIONOFTHELOCALIZATIONSTRATEGYSBACKGROUNDINTHEFIRSTSECTIONTHENINTHESECONDSECTION,WRITERWILLINTRODUCEINDEFINITIONOF“LOCALIZATIONSTRATEGY”,“ECONOMICGLOBALIZATION”AND“MARKETINGSTRATEGY”11THEBACKGROUNDOFLOCALIZATIONSTRATEGYJUSTASMARXSTATEDINDASKAPITAL,ECONOMICGLOBALIZATIONHASENJOYEDANAPPARENTDEVELOPMENTSINCE1980SWHENITCOMESTO21CENTURY,THEFLOURISHOFTHEMULTINATIONALCORPORATIONHASGREATLYPROMOTEDTHEENHANCEMENTOFTHISTRENDTHEECONOMICGLOBALIZATIONHASSWEEPEVERYWHEREAROUNDTHEWORLDATANUNPRECEDENTEDSPEEDALONGWITHECONOMICGLOBALIZATION,THEMARKETINGGLOBALIZATIONPUTMORECOMPETITIVEPRESSUREONLOCALENTERPRISESDEPENDINGONDOMESTICMARKETANDRESOURCESSEPARATELYISFARFROMMEETINGTHEIRNEEDSOFCOMPETITION,SOTHATMOREANDMOREENTREPRENEURSANDINVESTORSSHIFTTOOVERSEASUNFORTUNATELY,LACKINGOFKNOWLEDGEANDTHEORETICALGUIDANCETOTHESITUATIONANDTHEOVERALLTRENDOFJUDGMENT,MANYCORPORATIONSFAILEDINLOCALIZATIONSTRATEGIESINTHEPROCESSOFENTERINGAFOREIGNMARKETFOREXAMPLE,CHRYSLERCORPORATIONMADEITSFUTURESTILLGLOOMYINTHEYEAR2008,AFTERITSENTERINGINCHINESEMARKETFORMORETHANTWENTYYEARS,JUSTBECAUSELACKINGINRECOGNIZEOFLOCALIZATIONINRECENTYEARS,THECHRYSLERHASJUSTTURNAROUNDTHEWHOLELOSINGSITUATIONINTOSUCCESSTHROUGHTHECOOPERATIONWITHCHANGCHENGCORPORATIONUNDERTHELEADINGOFPHILMURTAUGHCEOOFCHRYSLERINASIAPACIFICZONETAKINGALLABOVEINTOCONSIDERATION,MANYPROFESSORSANDSCHOLARSHASDEVOTEDTHEMSELVESTOTHESTUDYOFTHELOCALIZATIONSTRATEGYANDECONOMICGLOBALIZATIONFROMTHEANGLEOFCORPORATIONMARKETINGSTRATEGYDURINGTHEPROCESSOFECONOMICGLOBALIZATION,MOREANDMORECORPORATIONSENTERINGTHEFOREIGNMARKETSHAVESUFFEREDFRUSTRATIONANDFAILUREREPEATEDLYCONSIDERINGTHISPHENOMENON,MANYWELLKNOWNENTREPRENEURS,PROFESSORSANDSCHOLARSHASDISCUSSEDONITTOPROVIDETHEORETICALGUIDANCEFORTHECOMPANIESDEVELOPMENTTHISSTRATEGYEMPHASIZESTOGAINMOREDEVELOPMENTBY“ADAPTING”SIMILARLY,BANKOFEASTASIACHINAPUTFORWARDWITH“CREATETHEBESTFOREIGNBANKOFLOCALIZATION”ANDTHEIRDEPUTYDIRECTORMRSUNMINJIEPOINTSTHAT“IFFOREIGNBANKSWANTTOKEEPAFOOTHOLDINCHINA,THEIRTOPMANAGEMENTLAYERMUSTOWNVISIONOFLOCALIZATION,ANDOTHERWISE,THEIRDEVELOPMENTINCHINAWILLHAVEDIFFICULTYINTAKINGASTEP”MRYANGXIANGDONG,THEMANAGINGDIRECTOROFTHECARLYLEGROUPANDCHAIRMANOFCARLYLEASIANFONDCOMMITTEE,POINTSINCHINESEFORUMOFTRANSNATIONALCORPORATIONSTHATLOCALIZATIONISTHEKEYTOSUCCESSFORMULTINATIONALCORPORATIONSTHECLEANINGCOMPANYMAKETHEIRFIRSTJOBASTRYINGHARDTOGROOMLOCALSURVEYSTAFFFORDOINGALOTOFMARKETINGSURVEYSTOGETHERDEEPLYTHENTHEYWILLBUILDUPHUGEDATABASEFORSTUDYINGANDDEVELOPINGNEWPRODUCTSALSOAWAYTOEXPLOREMARKETTHESEALLINDICATETHATMULTINATIONALCORPORATIONSATTACHIMPORTANCETOLOCALIZATIONSTRATEGYINSTUDYINGANDDEVELOPINGNEWPRODUCTSALSOTHEWAYTOEXPLOREMARKET“YUMBRANDSINCHASBEENTHEMOSTSUCCESSFULFOREIGNCOMPANYINCHINA”,THEWRITEROFABILLIONCUSTOMERSFROMTHECHINESEBUSINESSFIRST,JAMESMCGREGORSAIDTHEPRESIDENTOFYUMBRANDSINC,CEOOFTHEKFCANDPIZZAHUTONCETOLDJOURNALISTTHATTHESUCCESSOFKFCANDPIZZAHUTINCHINADUETOTHEMANAGEMENTLOCALIZATIONWASHINGTONPOSTHASALSOREPORTEDINFEBRUARY16TH,2011“LOCALIZATIONLEADKFCTOSUCCESSINCHINA”ASTHETOPOFINTERNATIONALCATERINGINDUSTRY,YUMBRANDSINCISDIFFERENTINCHINAFROMTHEOTHERCOMPANIESESPECIALLYTHESUCCESSOFKFCLOCALIZATIONSTRATEGYINITIATESALOTOFTHINKING12THEDEFINITIONOFLOCALIZATIONSTRATEGY,ECONOMICGLOBALIZATIONANDMARKETINGSTRATEGYLOCALIZATIONSTRATEGYMEANSTOADJUSTTOTHEINTERNATIONALMARKETLOCALIZATIONISASTRATEGYFORADAPTINGTOTARGETMARKET,ANDSTRIVINGTOBEAMEMBEROFITBUTNOTAFOREIGNCOMERTHISSTRATEGYEMPHASIZESTOGAINMOREDEVELOPMENTBY“ADAPTING”THISSTRATEGYMAINLYINCLUDESFOURASPECTSPRODUCTIONLOCALIZATION,MARKETINGLOCALIZATION,HUMANRESOURCESLOCALIZATION,STUDYANDDEVELOPMENTLOCALIZATIONECONOMICGLOBALIZATIONREFERSTOINCREASINGECONOMICINTERDEPENDENCEOFNATIONALECONOMIESACROSSTHEWORLDTHROUGHARAPIDINCREASEINCROSSBORDERMOVEMENTOFGOODS,SERVICE,TECHNOLOGYANDCAPITALWHEREASGLOBALIZATIONISCENTEREDAROUNDTHEDIMINUTIONOFINTERNATIONALTRADEREGULATIONSASWELLASTARIFFS,TAXES,ANDOTHERIMPEDIMENTSTHATSUPPRESSESGLOBALTRADE,ECONOMICGLOBALIZATIONISTHEPROCESSOFINCREASINGECONOMICINTEGRATIONBETWEENCOUNTRIES,LEADINGTOTHEEMERGENCEOFAGLOBALMARKETPLACEORASINGLEWORLDMARKETDEPENDINGONTHEPARADIGM,ECONOMICGLOBALIZATIONCANBEVIEWEDASEITHERAPOSITIVEORANEGATIVEPHENOMENONMARKETINGSTRATEGYISAPROCESSTHATCANALLOWANORGANIZATIONTOCONCENTRATEITSLIMITEDRESOURCESONTHEGREATESTOPPORTUNITIESTOINCREASESALESANDACHIEVEASUSTAINABLECOMPETITIVEADVANTAGEITSERVESASTHEFUNDAMENTALUNDERPINNINGOFMARKETINGPLANSDESIGNEDTOFILLMARKETNEEDSANDREACHMARKETINGOBJECTIVESPLANSANDOBJECTIVESAREGENERALLYTESTEDFORMEASURABLERESULTSCOMMONLY,MARKETINGSTRATEGIESAREDEVELOPEDASMULTIYEARPLANS,WITHATACTICALPLANDETAILINGSPECIFICACTIONSTOBEACCOMPLISHEDINTHECURRENTYEARTIMEHORIZONSCOVEREDBYTHEMARKETINGPLANVARYBYCOMPANY,BYINDUSTRY,ANDBYNATION,HOWEVER,TIMEHORIZONSAREBECOMINGSHORTERASTHESPEEDOFCHANGEINTHEENVIRONMENTINCREASESMARKETINGSTRATEGIESAREDYNAMICANDINTERACTIVETHEYAREPARTIALLYPLANNEDANDPARTIALLYUNPLANNEDSEESTRATEGYDYNAMICSMARKETINGSTRATEGYINVOLVESCAREFULSCANNINGOFTHEINTERNALANDEXTERNALENVIRONMENTSINTERNALENVIRONMENTALFACTORSINCLUDETHEMARKETINGMIX,PLUSPERFORMANCEANALYSISANDSTRATEGICCONSTRAINTSEXTERNALENVIRONMENTALFACTORSINCLUDECUSTOMERANALYSIS,COMPETITORANALYSIS,TARGETMARKETANALYSIS,ASWELLASEVALUATIONOFANYELEMENTSOFTHETECHNOLOGICAL,ECONOMIC,CULTURALORPOLITICAL/LEGALENVIRONMENTLIKELYTOIMPACTSUCCESSAKEYCOMPONENTOFMARKETINGSTRATEGYISOFTENTOKEEPMARKETINGINLINEWITHACOMPANYSOVERARCHINGMISSIONSTATEMENTONCEATHOROUGHENVIRONMENTALSCANISCOMPLETE,ASTRATEGICPLANCANBECONSTRUCTEDTOIDENTIFYBUSINESSALTERNATIVES,ESTABLISHCHALLENGINGGOALS,DETERMINETHEOPTIMALMARKETINGMIXTOATTAINTHESEGOALS,ANDDETAILIMPLEMENTATIONAFINALSTEPINDEVELOPINGAMARKETINGSTRATEGYISTOCREATEAPLANTOMONITORPROGRESSANDASETOFCONTINGENCIESIFPROBLEMSARISEINTHEIMPLEMENTATIONOFTHEPLANCHAPTER2KFCANDMCDONALDSINCHINAINTHISCHAPTER,THEWRITERWILLINTRODUCETHEINDUSTRYBACKGROUNDOFKFCANDMCDONALDSINTHEFIRSTSECTIONTHENINTHESECONDSECTION,THEPAPERWILLDISCUSSTHEREASONWHYMCDONALDSLOOSESTOKFCINCHINESEMARKETANDINTHETHIRDSECTION,THEWRITERWILLMAKEACONCLUSIONABOUTKFCANDMCDONALDSINCHINA21THEINDUSTRYBACKGROUNDOFKFCANDMCDONALDSKFCISNOTTHESAMELEVELWITHMCDONALDSFROMTHEWORLDSCOPE,ORWEMAYSAYTHATKFCSTILLHASALONGDISTANCEWITHMCDONALDSMCDONALDSHASMORETHAN30,000SUBBRANCHESOVER121COUNTRIESANDAREAS,WHICHCANPRODUCEANINTERNATIONALTURNOVERABOUT4063BILLIONDOLLARS,WHILE,KFCJUSTOWNSMORETHAN11,000SUBBRANCHESOVER80COUNTRIESANDAREASAROUNDTHEWORLDACCORDINGTOTHESURVEYBYTECHNOMIC,ASTUDYORGANIZATIONINAMERICANFOODINDUSTRY,ONAMERICANFASTFOODSALESANDTHEAMOUNTOFCANTEENS,MCDONALDSTOPSTHELISTOFFOODINDUSTRYPERFORMANCEWITH13,609CANTEENSANDMORETHAN221BILLIONDOLLARSALESHOWEVER,KFCJUSTRANKSTHESEVENTHWITH5,524CANTEENSAND4936BILLIONDOLLARSWHILE,ASTHETOPONEBRANDOVERTHEWHOLEWORLD,MCDONALDSAPPEARSTODEPARTFROMHISNORMALBEHAVIORANDISNOTOPTIMISTICINTHESITUATIONTHATCHINESEMARKETREACHESITSOUTSTANDINGACHIEVEMENTSAREFARBEHINDTHOSEOFKFC,WHICHOCCUPIESTHESECONDPLACEINTHEWORLDANDTHESEVENTHINAMERICAACCORDINGTOTHEINFORMATIONANDSTATISTICSCOLLECTEDBYCHINACHAINSTOREANDFRANCHISEASSOCIATIONIN2003,MCDONALDSHAS543STORESINCHINA,WITHATOTALOF3,200,000,000RMBOFSALESVOLUMEBYTHEENDOF2002BASEDONTHEROUGHCALCULATION,WECANINFERTHATTHEANNUALREVENUESOFEACHSTORE,INCHINASMARKET,AREABOUT6,000,000BYTHEENDOF2002,YUMHASATOTALOF902SHOPSINCHINAMORETHAN90OFTHEMFROMKFC,WITHSALESOF7,300,000,000YUANANDSOFORTH,INCHINASMARKET,THEANNUALOPERATINGINCOMEOFEACHSHOPOFKFCIS8,000,000YUANPERYEARONDECEMBER8TH,1990,THEFIRSTMCDONALDSSHOPINCHINAWASSETUPINSHENZHENSUBSEQUENTLY,INAPRIL,1992,MCDONALDSFOUNDEDTHELARGESTSHOPINTHEWORLDINWANGFUJING,BEIJING,WHICHHADATTRACTEDMORETHANTENTHOUSANDOFPEOPLEONTHATDAYUPTOTHEFIRSTQUARTEROF2002,MCDONALDSALREADYHADMORETHAN460SHOPSINALLDURINGTHE14YEARSMCDONALDSENTERINGCHINASMARKET,BYTHEENDOF2004,THENUMBEROFMCDONALDSCHAINSTORERAISEDTOABOUT600THEPROBLEMWASTHATITENJOYEDRAPIDDEVELOPMENTINTHEINITIALSTAGE,WHILESUFFEREDSLOWDEVELOPMENTINTHELATTERPERIODDURINGTHERECENTTHREEYEARSFROM2002TO2004,THENUMBEROFTHENEWSHOPSEVERYYEARWASONLY475,WHICHMEANTHATTHEANNUALRATEOFGROWTHWASPURELYABOUT25THEDATAWASLESSTHANANNUALRATEOFGROWTHINTHEINITIALSTAGE,WHICHWAS38ABOUTKFCKFCSETUPITSFIRSTSTOREINCHINAONNOVEMBER12TH,1987,WHICHWASLOCATEDINQIANMEN,BEIJINGITWASTHEFIRSTWESTERNSTYLEFASTFOODCHAINSWHICHENTEREDTHEMARKETOFCHINASMAINLANDDURING6YEARSFUMBLE,THENUMBEROFKFCSSTORESROSETO10INTHENATIONBYTHEENDOF1992ONJUNE25TH,1996,THE100THSTOREOFKFCINCHINAWASESTABLISHEDINANZHENBRIDGE,BEIJINGTHISWASALANDMARKWHICHSYMBOLIZEDTHATTHEDEVELOPMENTOFKFCHADSTEPPEDINTOANEWSTAGEINCHINASMARKET9CHAINSTORESWEREESTABLISHEDPERMONTHIN2002,ANDTHESTATISTICSBECAME25IN2003THEEXPANSIONWASFASTERANDFASTERONDECEMBER14TH,2004,WITHTHEESTABLISHINGOFTHEKFCSTOREINSANYA,HAINANPROVINCE,THENUMBEROFKFCSSTORESHADALREADYREACHED1200INCHINASOFAR,THENUMBEROFKFCSSTORESHADBEENASTWICEASTHOSEOFMCDONALDS22MCDONALDSFAILINGIN“LOCALIZATION“INCHINABASEDONTHESTATEMENTINTHEFIRSTCHAPTER,WECANSEETHATMCDONALDS,THEBESTBRANDINTHEWORLDSFASTFOODFIELD,ISFARBEHINDKFC,NOMATTERINMARKETSHARESORPROFITSSOWHATLEADSTOTHISDISPARITYJUSTASTHEINTRODUCTIONINCHAPTERONE,THEPRESIDENTOFYUMHASTOLDTHEJOURNALISTTHATITWASTHELOCALIZATIONMANAGEMENTTHATMADEKFCANDPIZZAHUTSOSUCCESSFULINCHINATHEFOLLOWINGPARTOFTHISCHAPTERWILLANALYZEHOWMCDONALDSISDEFEATEDBYKFCINCHINASMARKET,FROMTHEDISPARITYOFMARKETINGSTRATEGIESBETWEENMCDONALDSANDKFC1GLOBALSTRATEGYVSLOCALIZATIONSTRATEGYMCDONALDSCONTINUESTOCARRYOUTTHESTRATEGYOFGLOBALIZATIONINCHINABASEDONTHISGUIDANCE,MCDONALDSPAYSGREATATTENTIONTOSTRATEGICADJUSTMENTWHILETHINGSARETOTALLYDIFFERENTINKFCKFCIMPLEMENTSTHELOCALIZATIONSTRATEGY,WHICHADVOCATES“DOINROMEASROMEDOES“,INORDERTOACHIEVEALLROUNDLOCALIZATION2PRODUCTANDPRODUCTIONKFCMAINLYSELLSWESTERNSTYLEFASTFOOD,LIKEHAMBURGERS,FRIEDCHICKENS,CHIPS,SOFTDRINKSANDSOONSODOESMCDONALDSEXCEPTICECREAM,SALAD,ANDFRUITWHICHAREOFFEREDBYMCDONALDSADDITIONALLY,WECANSEETHATTHESTYLEOFFOODSOLDBYTHETWOTYCOONSAREALMOSTTHESAMEHOWEVERINTHESPECIFICPROCESSOFPRODUCTION,THEIMPORTANTREASONWHYKFCISMOREPOPULARINCHINAISTHATITCATERSTOTHECHINESETASTETHISISSUPPOSEDTOBEOFGREATIMPORTANCETOTHECATERINGINDUSTRYKFCDEVOTESITSELFTOREMAININGITSOWNCHARACTERISTICS,ANDSPARESNOEFFORTSINPRODUCTLOCALIZATIONASWELLITADOPTS“THREEPRONGEDAPPROACH“FIRSTLY,ITIMPROVESTHEEXOTICFLAVORTOCHINESESTYLE,SUCHASCHICKENTACO,NEWORLEANSROASTEDWING,ANDPORTUGUESEEGGTARTALLOFTHEMAREIMPROVEDBASEDONCHINESETASTESECONDLY,ITLAUNCHESCHINESESTYLEFASTFOODWHICHMEETSCHINESECONSUMERSEATINGHABITS,SUCHASCONGEEWITHMINCEDPORKANDPRESERVEDEGG,SHREDDEDPORKWITHPRESERVEDVEGETABLESOUP,PUMPKINPORRIDGEWOLFBERRYANDSOONTHIRDLY,ITDEVELOPSNEWPRODUCTSWITHCHINASREGIONALCHARACTERISTICS,LIKEOLDBEIJINGCHICKENROLLWITHBEIJINGFLAVOR,SICHUANFRAGRANTSPICYCHICKEN,GUANGDONGFLAVORCLUCKCHATSFLESHANDSOONINADDITION,KFCWILLLAUNCHLOCALIZATIONPRODUCTSFORLONGORSHORTTERMSAVERAGEEVERYMONTHONTHECONTRARY,MCDONALDSKEEPSTHESAMEMENUFORMANYYEARS,LIKEBEEFBURGER,BIGMAC,WHEATFRAGRANTCHICKENANDSOONALTHOUGHITBRINGSOUTSOMEMEWPRODUCTSLIKESPICYCHICKENBURGERANDSPICYCHICKENWINGS,ITSEEMSTHATMCDONALDSTAKESUPANDADOPTKFCSTHOUGHTSINSTEADOFUSINGITSOWNINTHEASPECTOFPRODUCTLOCALIZATION,MCDONALDSISFARBEHINDTHATOFKFCITISCRUCIALFORCATERINGINDUSTRYTOBESUITABLEFORCONSUMERSTASTETAKEMONKEYFOREXAMPLE,ITWILLDEFINITELYINFAVOROFBANANABETWEENTHECHOICEOFBANANAANDMEATITDEPENDSONITSNATURE3BRANDSTRATEGYKFCHASBEENALWAYSCARRYINGONBRANDLOCALIZATIONSTRATEGYYUMCHINACHIEFSUJINGSHIHASELABORATEDKFCSVISIONANDLONGTERMGOALSASSOONASHECAMETOCHINAIN1990SMAKINGKFCTOBENUMBERONEINCHINASCATERINGINDUSTRYFORTHISPURPOSE,COLONELSANDERSPUTONTANGZHUANGTHEADVERTISEMENTSTHATMCDONALDSUSEDAREFILLEDWITHHIPHOPSTYLE,WHICHMAKESTHEBRANDMOREANDMOREEXOTICMEANWHILE,KFCISCOMMITTEDTOBRANDIMAGELOCALIZATIONINTHESPRINGFESTIVALOF2003,COLONELSANDERSCARRIEDOUTANEWMEASUREINMORETHAN800CHAINSTORESOF170CITIESTHATSERVERSINKFCSHOULDPUTONTHEUNIFORMCLOTHINGTANGZHUANGTOGREETTHEGUESTIFYOUSAYTHATTODAYSUNCLEMCDONALDSHASBECOMESYNONYMOUSWITHYOUTH,DISGUSTINGNESS,ANDVIGOR,THENGRANDPAKFCISONBEHALFOFTHECHINESETRADITIONALFAMILY,KINSHIP,FRIENDSHIPANDUNDERSTANDINGBEINGDIFFERENTWITHMCDONALDSIN“LOCAL“AND“EXOTIC“IMAGESNOTONLYHELPSKFCTOAVOIDTHEINTERFERENCEOFTHECOMPETITORSINMARKETINGCOMMUNICATION,BUTALSOATTRACTSTHOSEMIDDLEAGEDANDOLDCONSUMERSWHOORIGINALLYHAVEPSYCHOLOGICALREPELLENCEONTHEFOREIGNFASTFOOD4THESTAFFLOCALIZATIONSTRATEGYSINCETHEFIRSTSHOPINCHINAWASSETUPTILLNOWTHENUMBEROFSHOPSUPTO3000,KFCHASALWAYSBEENPLEDGING100STAFFLOCALIZATIONNOMATTERSERVERS,MANAGERSINKFC,OREVENTHEMANAGERSOFFUNCTIONALDEPARTMENTSINCOMPANYAREALLCHINESEPEOPLE,WHICHPAVESTHEWAYFORITSSTRATEGICPLANNING,INTEGRATINGWITHLOCALCULTURE,ANDGRASPINGTHEPSYCHOLOGYOFCONSUMERSHOWEVERTHESITUATIONINMCDONALDSISTOTALLYDIFFERENTINMCDONALDS,THEEXECUTIVESOFTHECOMPANYAREALLFOREIGNERSTHELOCALIZATIONOFPOLICYMAKERLEADSTOASERIESOFDISPARITIESONDECISIONMAKING,SUCHASTARGETGROUPORIENTATION,PRODUCTPOSITIONING,COSTPRICE,LOCATIONSTRATEGY,NDBRANDOPERATIONBETWEENMCDONALDSANDKFCLACKINGOFSTRONGSUPPORTOFORGANICSAFEGUARDSONPRODUCTLOCALIZATION,MCDONALDSISFARBEHINDKFCALLALONG,NOMATTERNUMBERSORSPEED,ALTHOUGHITCONTINUESTOBRINGFORTHTHENEWLOCALIZATIONPRODUCTSASWELLBYTHEENDOFNOVEMBER,2004,MCDONALDSHADJUSTBEGUNTOLAUNCH“TRIANGLEWRAP“,AIMINGATTHECHINESEMARKET23MCDONALDSANDKFCINCHINAASWEALLKNOWN,WECANSEETHESIGNBOARDOFKFCEVERYWHEREAROUNDOURLIFEBUTFINDINGMCDONALDSISNOTSOEASYASKFCTHISHASOBVIOUSLYINDICATEDTHECOMPETITIONRESULTSBETWEENMCDONALDSANDKFCFORMANYYEARSSINCE1980STHEREAREMANYELEMENTSTHATLEADTOSUCHADEFEAT,INCLUDINGGOVERNMENTINTERVENTIONANDPOLICYGUIDEHOWEVERJUSTASMENTIONEDPREVIOUSLY,LOTSOFSCHOLARSANDEXPERTSHASPOINTEDOUTTHATTHEDISPARITYANDDEGREEOFLOCALIZATIONSTRATEGYISTHEKEYELEMENTANDCRITICALREASONFORMCDONALDSFAILUREMEANWHILE,POLICYMAKEROFTHECOMPANYPAYSMOREATTENTIONTOINTERNATIONALSTANDARDIZATION,WHICHCOMPOSESOFTHESPECIFICREASONSTHATLEADTOMCDONALDSEVENTUALLYDEFEATEDWHATSMORE,NOTREALIZINGTHESTAFFLOCALIZATIONISTHEMAINREASONTHATCAUSESMCDONALDSFAILUREINSITESELECTIONANDTARGETGROUPORIENTATIONALLINALL,BASEDONTHESTATEMENTOFTHEDISPARITYOFTHEMARKETINGSTRATEGIES,FROMFOURASPECTSTHISCHAPTERDEMONSTRATESTHECASESTHATKFCDEFEATSMCDONALDSI