World Business News

Monday, 14 February 2011

Unit 4: McDonalds and KFC go head to head - who will chicken out?

Is this an example of product innovation, or a simple example of copying a competitor product to take them on in a battle for market share?


Brand Republic (an excellent site of marketing news stories) reports that McDonalds UK is about to enter a new segment of the fast food market. It is a segment which is dominated by KFC (and perhaps Dominos UK for pizza) - the shared meals segment. Click here for article

The 20-piece Chicken McNuggets ShareBox has now been launched, priced at £3.99. How does that compare with a bucket of chicken from KFC? Perhaps your students can report back after some quick market research.

The marketing strategy behind the product launch is described as follows:

“The company intends to take market share from fast-food rivals, such as KFC, which offers shared chicken buckets, and Burger King, which sells its Chicken Bites in boxes of seven and 14.

Attracting a high number of families through the doors is key for fast-food outlets, which are battling against customers’ tendency to eat at home in the current straitened economic climate.”

Will it work? - You decide!

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