The Study On Horizontal Product Differentiation Strategy Of Western-style Chain Restaurant Enterprise

With the gradually accelerating pace of modern society, traditional dining has been notsatisfied with the pubic efficiency requirements, so the convenient modern fast-food emerges.Our modern fast food industry starts in the introduction of Western-style fast food, KFC andMcDonald’s have been at the forefront of Western-style fast-food industry over the years.KFC and McDonald’s has been at the forefront of Western-style fast-food industry over theyears, local Western-style fast-food chain enterprises flourished under their influence, theseenterprises mainly through low prices to attract consumers, highly similar products andservices, design style cottage of serious issues and market positioning uncertainty arewidespread. With the improvement of people’s living standards as well as KFC andMcDonald’s from the first-tier cities to expanding the surrounding area, the localWestern-style fast-food chain enterprises will face more severe survival and development ofthe environment, while the rapid expansion of Dicos and Wallace also show the localenterprises has enormous potential in developing Western-style fast food. Therefore,introducing KFC and McDonald’s products differentiation strategy in the domestic market isvery necessary, which can helps local Western-style fast-food chain enterprises to grow inlearning and inspiration, and gradually obtained capabilities to against strong opponents.This paper has two aspect meanings: described the monopoly and competition shape ofWestern fast food market, providing competitive decisions for the Western-style fast-foodchain enterprises, chapters arranged as follows: first, sort the related theories systematically,find a clear research direction; and then analyze the Western fast food industry developmentstatus and market structure, in order to study the behavior of enterprises below pave the way;then discuss the KFC and McDonald’s product transverse differentiation strategy and sitestrategy based on analysis the multi-dimensional and non-uniform Hotelling model; at lastconcluded above findings and put forward suggestions and outlook. This study obtained twomain conclusions:(1) KFC and McDonald’s have attached great importance to create product differentiation,KFC see family members as its main target, actively implement the localization strategy, andnow it become the first domestic Western-style fast-food chain big brands; McDonald’s aim at the characteristics of younger age groups, improve the product sales model, graduallynarrowing the gap between KFC.(2) By comparing KFC and McDonald’s layout in the Guangzhou market we can findthat fast food restaurants like to set in the place where consumer concentrated distribution, sothe two companies on the spatial layout showing high similarity, there must be intensecompetition between the two enterprises. however the target customers of the two enterpriseshave differences, therefore the tendency on layout between the two enterprises is not exactlythe same, by differentiation layout, they ease the pressure of competition in a certain extent.