The IPMI Group Field Project on CFC Repositioning was to recommend a strategy to differentiate and strengthen California Fried Chicken brand in Indonesia, the recommendation is divided into two steps namely: short term strategy followed by long term strategy.

CFC was established in Indonesia on December 1983, inspired by the entrance of Kentucky Fried Chicken (KFC) into Indonesia. During that time CFC was getting almost equal market share with KFC. Starting early 90's, Mc Donald start to enter the market and with their aggressive marketing strategy, CFC started to loss their ground. This had been supported by various Market Survey done by numbers of Marketing Consultant in Indonesia.

The survey in 1999 reported that CFC is in the third position on its brand awareness and patronage, behind Mc Donald and KFC. They are very close in par with Texas. Survey has also indicated that CFC does not put a good image in the consumer's mind. And with that, CFC management found that it is important for them to find a solution that could leverage their market position in Indonesia.

The recommended short-term strategy is to create a " Happy" image, which will attract Children and Teenagers, and with a comprehensive and coordinated supporting environment, it will also position as the Family Restaurant. The competitive pricing strategy will also broaden the market into a wider market

segment. With this first step, we expect CFC be able to put their position almost equal with KFC and Mc. Donald. Then come into the second step is to leverage the successful "Happy" environment into "Nationalism". This will have to take some time in educating the market and making use of some opportunities from time to time.



This second step is a powerful step which will not be able to be followed by the International brand such as KFC or Mc. Donald. And through that, we expect CFC to be able to position as the market leader in Indonesia.

This case has a lot of similarity with Jollibee as the local Brand of similar fast food industry in Philippines that has successfully be the Market leader in Philippines, and therefore we have made numbers of comparison in the approach and strategy being recommended.



Reseach Location: PT Pioneerindo Gourmet International, Tbk.

Supervisor: Karlos Knapp, PhD.

Accepted on 26 Augustus 2002



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