Kungfu Catering Management Company Limited

Abstract

Kungfu is the most successful Chinese fast food chain in China. It provides healthy Chinese fast food and efficient service. However, it faces difficulty in expansion in China. The research objectives of this project are to study and develop business expansion strategy for Kungfu and to develop a marketing campaign for Kungfu to enhance its brand image. We have done primary research and secondary research in this project. We gained insights into Chinese fast food competitive environment via many research paper, press materials and consultancy reports. Moreover, the individual interviews with ten consumers help us to understand Kungfu’s competitive position of Kungfu and the customers’ perceptions of it. We found that the Chinese consumers demand healthy food and efficient service, especially in big cities. Kungfu has potential to capture the opportunities in Chinese fast food market. Nevertheless, the competition in the industry is very intense. Despite current competitors, many domestic and foreign competitors are entering this market. Based on the findings, we have suggested Kungfu to develop its business in two phases. In the first phase, it should enhance its internal operation, such as operation standardization, product development and environment design. After that, Kungfu can start expansion in China from first-tier cities. Moreover, we have suggested several details to facilitate the process of expansion, such as franchising and IPO.