KFC Strategy for Overcoming Liabilities of Newness in the Japanese Market

KFC Strategy for Overcoming Liabilities of Newness in the Japanese Market

KFC opened its first store in Japan in 1970 and granted Mitsubishi Corporation the franchise rights of the subsidiary. Since then, the food chain has expanded throughout Japan with much success, with KFC’s fried chicken becoming a Christmas tradition in the country. Despite the success, KFC’s initial penetration into the Japanese market was not a walk in the park, as it faced new liabilities.

Some of the challenges faced by KFC as it entered the Japanese market include the inability to transfer its competitive advantage into the country. An advantage of a resource is provided by the competitive environment in which a country operates (Hatten, 2012). KFC was a market leader in the US, but the company faced new competition and a new culture in Japan. The Japanese people, being chicken consumers, have a unique way of preparing their chicken (Hatten, 2012). The problem is that KFC’s headquarters continued to impose practices that were successful in the US but were against the norms in Japan.

KFC had to adapt to the Japanese environment by adopting local conventional marketing to overcome some challenges. The company used marketing strategies with a Japanese storyline instead of superstars like in the US. For instance, the company used anime with Japanese characters to market children’s meals (Zhang & Zhou, 2012). Another marketing strategy adopted to align with Japanese culture is display advertising of menu items. The Japanese insist on seeing what they will eat before they purchase; hence, the effort endeared KFC to the customers.

Furthermore, KFC had to adapt its television advertising to suit Japanese interests. The food chain formed joint ventures with original Japanese marketers to ensure television advertising aligned with the country’s way of life (Pressman Archive, 2016). One of the prepositions put forward by the company to prove that it had better food is the insistence that it was not selling junk food. The Japanese are known to pay attention to healthy eating.

Also, KFC employed training strategies to ensure its employees adapted to the Japanese way of life. The employees underwent basic operation training (BOT) and on-the-job training (OJT) (Pressman Archive, 2016). The training programs were conducted by Japanese expert trainees who offered critical insights into Japanese culture.

Despite its success in the US market, KFC faced many hurdles during its initial entry into the Japanese market. The food chain had to make changes to overcome the challenges, shifting from the original American way of doing things. The company stopped working with its headquarters’ recommendations and adopted customized practices. Other strategies include localized marketing and employee training to adapt to the Japanese culture.

References

Hatten, T. S. (2012). Small business management entrepreneurship and beyond. Boston Houghton Mifflin Co.

Pressmin Archive. (2016). Enterprise — Colonel Comes to Japan (Kentucky Fried Chicken) — 1981 [YouTube Video]. In YouTube. https://www.youtube.com/watch?v=uwwmKcFVji8

Zhang, Q., & Zhou, L. (2012). Cultural adaptation pattern analysis of McDonald’s and KFC in the Chinese market.

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How did KFC overcome liabilities of newness in Japan?

KFC Strategy for Overcoming Liabilities of Newness in the Japanese Market