Comparing the competitive advantages between McDonald and KFC, for young consumers in Hsinchu area.

Professor: Dr. Trappey Students: 9562503 9562502 952028

Introduction

Literature review
In Taiwan, McDonald grew up fast and successfully with flexible marketing strategies and QSC&V (Guang-Shiash Hu, 2000), Although McDonald adopted the marketing strategy of cutting prices, the consumers will not increase their consuming amount. (Wei-Hua Chen, Chia-Chun Tsai, 2003) Only the improvement of utility and enjoyment will raise up consuming amount (Yi-Wen Wang & Ming-Tsung Lee,2005).

Define the problem and market research questions.

Comparing the competitive advantages between McDonald and KFC. The target population is the young consumers (under 30) in Hsinchu City.

Methodology

Research Framework:
Hypotheses

Survey

Statistical Analysis

Research Finding

Conclusions

suggestions

We will use the approach of setting up a questionnaire concerning customers

preference. and collect results from young consumers in Hsinchu area, to compare the advantages between Macdonald and KFC when customers choose western fast food chains. The Hypothesis were shown below

Hypothesis1 Hypothesis2

To compare with KFCEnvironment is a competitive advantage of McDonald

To compare with KFC Food selection is a competitive advantage of McDonald To compare with KFCPrice is a competitive advantage of McDonald To compare with KFCBrand image is a competitive advantage of McDonald To compare with KFCService is a competitive advantage of McDonald To compare with KFCTaste of Food is a competitive advantage of Macdonald

Hypothesis3
Hypothesis4 Hypothesis5 Hypothesis6

Data Collection Plan:

What: to compare with the advantages of Macdonald and KFC in young consumers in Hsin-Chu Where: Macdonald and FKC in kung-Fu Rd. Who: Young Consumers (under 30 years old) When: 23 May How: Adopting questionnaires How many: 70 valid questionnaires

Results and Finding

Beliefs of Young Consumers:

5.04

5.03

4.99

5.26 4.81

5.27

Environme nt

Food S e le c tion

P ric e

Bra nd Ima g e

S e rvic e

Ta ste of Food

When young consumers selected a fast food restaurant, they care about the service and taste of food most.

Hypothesis 1 : To compare with KFCEnvironment is a competitiv advantage of McDonald Hypothesis: Ha: M>KFC
Boxplot of Mac., KFC
50 45 40

Two-sample T for Mac. vs KFC

N Mean StDev SE Mean Mac. 70 33.50 8.05 0.96 KFC 70 33.46 6.20 0.74

Data

35 30 25 20 Mac. KFC

Difference = mu (Mac.) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 0.04 P-Value = 0.486 DF = 13

P-value>0.05, Do not Reject H0, Environment is not a competitive advantage of McDonald

Hypothesis 2 : To compare with KFCFood selection is a competitive advantage of McDonald Hypothesis: Ha: M>KFC
Boxplot of Mac, KFC
50 45 40

Two-sample T for Mac vs KFC

N Mean StDev SE Mean Mac 70 33.74 7.08 0.85 KFC 70 33.74 5.59 0.67
Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = -0.00 P-Value = 0.500 DF = 138

Data

35 30 25 20 Mac KFC

P-value>0.05, Do not Reject H0, Food selection is not a competitive advantage of McDonald

Hypothesis 3 : To compare with KFCPrice is a competitive advantage of McDonald Hypothesis: Ha: M>KFC
Boxplot of Mac, KFC

Two-sample T for Mac vs KFC

50 40
Data

N Mean StDev SE Mean Mac 70 34.0 11.3 1.4 KFC 70 30.87 8.81 1.1 Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1.81 P-Value = 0.037 DF = 130
Mac KFC

30

20

10

P-value<0.05, Do not Reject H0, Price is a competitive advantage of McDonald

Hypothesis 4: To compare with KFCBrand image is a \ competitive advantage of McDonald Hypothesis: Ha: M>KFC
Boxplot of Mac, KFC
50

Two-sample T for Mac vs KFC

N Mean StDev SE Mean Mac 70 34.40 9.76 1.2 KFC 70 32.16 8.61 1.0
Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1.44 P-Value = 0.076 DF = 138

40

Data

30

20

10 Mac KFC

P-value>0.05, Do not Reject H0, Brand image is not a competitive advantage of McDonald

Hypothesis 5: To compare with KFCService is a competitive advantage of McDonald Hypothesis: Ha: M>KFC
Boxplot of Mac, KFC
50 45 40

Two-sample T for Mac vs KFC

N Mean StDev Mac 70 38.21 8.82 KFC 70 35.96 8.51 SE Mean 1.1 1.0

Data

35 30 25 20 Mac KFC

Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1.54 P-Value = 0.063 DF = 138

P-value>0.05, Do not Reject H0, Service is not a competitive advantage of McDonald

Hypothesis 6: To compare with KFCTaste of Food is a competitive advantage of Macdonald Hypothesis: Ha: M>KFC
Boxplot of Mac, KFC
55 50 45

Two-sample T for Mac vs KFC

N Mean StDev SE Mean Mac 70 37.66 8.01 0.96 KFC 70 36.70 7.36 0.88

Data

40 35 30 25 20 Mac KFC

Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 0.74 P-Value = 0.231 DF = 138

P-value>0.05, Do not Reject H0, Food is not a competitive advantage of McDonald

Summary Table of Test:

STDDV (Belief times Rating)
McDonald KFC

Factors

Blief

Mean (Belief times Rating) McDonald KFC

Tvalue

Pvalue

Environme nt Food Selection Price

5.04
5.03 4.99 4.81 5.26 5.27

33.50
33.74 34.00 34.40 38.21 37.66

33.46
33.76 30.87 32.16 35.96 36.79

8.05
7.08 11.3 9.76 8.82 8.01

6.2
5.59 8.81 8.91 8.51 7.36

0.04
0 1.81* 1.44 1.54 0.74

0.486
0.5 0.037* 0.076 0.063 0.231

Brand Image
Service Taste of Food

Conclusions & Suggestions

Conclusions:
(1) When young consumers selected a fast food restaurant, they care about the service and taste of food most. In order to increase the market share of young consumers, restaurants have to put most effort on the service and taste of food. (2) Young consumers consider that the McDonald provided a more reasonable price than KFC. To McDonald, its a advantage to KFC and should be maintained. On the other hand, KFC should make a detail research about the reason why young consumers have such recognition about the price of two restaurants. (3) We found that every factor, the all standard deviation of McDonald were greater than KFC. It possibly means that young consumers give the more diverse rating on McDonald. (4) We got the marginal p-value on service and taste of food and that could be the latent competitive advantages of McDonald.

Suggestions:
This is just an explorative research. Seventy questionnaires maybe not sufficient to get the precise results. Enlarge the number of the respondents is the first suggestion in future research. Moreover, most our respondents are senior high school students, we may lack the opinions of college students and others who are under 30 years old. Why young consumers think the price of McDonald are more reasonable, a detail research is needed.

Thanks for your Attention

Professor: Dr. Trappey Students: 9562503 9562502 952028