분야
docxGeneral information
Recommendations
Conclusion
Market Background
The Korean Fast Food industry
Globalization – Strategy of fast food industry in Korea
Various taste source for customizing Korean
Consumer in fast food industry
Emphasizing brand value
Westernize
Other options
Family Restaurant Chains
Traditional Korean Food
SWOT analysis
4 Ps Analysis
Recommendations
Conclusion
Bibliography
There is tremendous growth in the Korean fast food industry which was help by the development of the Korean Economy. However due to the Asian financial crisis of 1997 the industry was also badly hit with revenues declining by 25%. It wasn't until two years later that the industry slowly started recovering again.
Korean fast food market scale is about one point 3 trillion won. Experts evaluate Korean market is mature stage, because Korean appetite became westernized, Hamburger already have replaced Korean traditional meal with unprecedented growth rate. Major five companies which take the lead in Korean Fast-food market are Lotteria, McDonald’s, KFC, Popeye’s, and Burger King. Among these, Lotteria and Mc Donald’s have about 60% market share. This makes them two the biggest competitors in the Korean market. Lotteria being the pioneer of fast food in the Korean industry. Lotteria saw success from the very start. Seeing a growth rate increase of over 10% when it was first established. In recent surveys Lotteria surfaced as the number one preference amongst Korean consumers. McDonald's entered the Korean market 10 years after Lotteria was established; it was even lagging behind Burger King and KFC. But despite that it has still risen as the second largest fast - food chain in Korea.
In Korea, the number of existing fast-food stores reaches over 2000. In subway adjacent area, university town, residential area and anywhere many people live, there are surely fast food restaurants. And, because they sell limited product, like hamburger, or chicken, it is obvious that the competition among fast food brands for market share is intense.
The 5 big brands are Lotteria; since year 1979, it has been come out and as a Korean native fast food brand, now taking 43% of the market share. McDonalds, which has a global brand power, came in to Korea in 1988 and its taking 2nd place with 21% of market share.
Followed by KFC (16%), Burger King (7%), Popeye’s (14%) Lotteria has almost 2or 3times bigger market share.
2) http://www.imf.org/external/pubs/ft/weo/2008/02/weodata/groups.htm#ae call date 2010/05/03
3) http://koreatimes.co.kr/www/news/nation/2009/10/116_54174.html call data2010/05/03
4) http://cafe.naver.com/tjlc1004.cafe?iframe_url=/ArticleRead.nhn%3Farticleid=48204
