What’s on the menu today? Product differentiation analysis

19 Dec

Let’s talk about product differentiation for McDonald’s, Quick and KFC to show how theses brands make themselves more attractive to existing and new customers.

Competing and defending market share within the fast food market has always been a challenging task and operating within the current environment is even more demanding.

It is difficult to come up with new products, new tastes, and new kind of burgers, which are truly distinctive in the eye of the customer and deliver worthwhile benefits. Moreover, in the fast food industry, the competition is aggressive and McDonald’s, KFC and Quick very often “copy” each other.

We can notice a high level of product differentiation for the three brands.

The Fast Food industry is a monopolistic competition, composed of a relatively large number of sellers and an easy entry and exit in the industry. In fact, the consumer perceives that there are non-price differences among competitor’s products. That is why ideas and innovation are one of the main priorities of these companies.

Brands innovate everywhere they can possibly do: menus sizes, tastes, Bio, Menus for children and so on … Brands also adaptate their product strategy to the cultural and consumption habits of the country.

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