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Thursday, October 21, 2010

KFC - Good Things Come Together With KFC



A recession compounded by a series of socio-economic negativities and competitive pressure was adversely affecting KFC sales. Malaysians were being cautious with their spending.  So the solution wasn’t only about price-offs and promotions; it was about morale. We knew KFC had a strong emotional connection with generations of Malaysians by virtue of its heritage. KFC wasn’t fast food; it was comfort food for millions of Malaysians. It was the everyday, touching stories of Malaysians around KFC that formed the core of our idea to win back their hearts. 

What was our strategic communications challenge? 
KFC hit by poor sales driven by external market conditions
A triple market siege on the brand hit KFC’s first quarter business creating a gaping chasm between KFC and consumers that threatened to substantially erode KFC’s market share and put us in the red for the rest of 2009. We were acutely aware that the business needed a powerful jump-start before it was too late but the odds were stacked heavily against KFC with external market forces keeping the customers away.

A 3rd consecutive month of poor sales might put the entire KFC business in jeopardy
As early as January 09, sale transactions started to fall dangerously low against forecasted numbers and contrary to the brisk business normally experienced during this period on account of CNY. The threat of a three-month consecutive dip in in-store transaction volume was imminent, that risks placing KFC Malaysia well into the red for the rest of 2009. 

Three distinctively different factors were at play against KFC :-
  1. A worsening global economic climate provided all the trappings for an overtly cautious consumer. As consumer confidence plummeted, so did consumer expenditure at KFC.
  2. McDonald’s dealt yet another blow on KFC when it launched phenomenal price reductions of up to 30% off regular prices to popular combo meals over Lunch and Dinner, the biggest dining parts of a day! The novelty of a full meal at dramatically affordable price points at McDonalds fueled greater hype with a full on advertising blitz and major couponing promotions. 
  3. KFC’s situation was further complicated with the boycott of American brands by The Malaysian Islamic Consumers Association and NGOs following Washington’s support of Israel. Some 100 products ranging from food, beauty to clothing were identified as American. KFC was strongly hit since the Malay community formed a contribution to the KFC business. The drop-out rate amongst the core Malay target made the threat of loss more eminent than ever.

KFC numbers were reflecting the market factors
In the month of February 2009, KFC experienced its sharpest decline in sales recorded at -19% for its same store growth as a direct result of external, market forces at play.

The Challenge was clear
KFC had to revive its sales of KFC and get people eating fried chicken again amidst a recessionary doom and gloom and to overcome the negative sentiments caused by the boycott. We also had to address a price sensitive market interested in getting more for their money. 

The challenge was to connect emotionally with Malaysians by making KFC an intrinsic part of Malaysian life. Pivotal to this is to give consumers a strong emotive reason to continue supporting the brand amidst so much negative sentiment.

What were our campaign objectives?
  1. Reverse the negative trend of -19% decline in sales dollar value accrued in Feb 09 (the signs of decline already evident in Jan 09) and return to healthier numbers averaged between -1% to 1% sales.
  2. Sustain high Top of Mind Recall for the brand against negative sentiments prevalent as outlined above.
  3. Effect flat to negative consumer response to burger category in light of McDonald’s aggressive price down campaign.

What was oour big idea? 
“Good things come together with KFC”

How did we arrive at the big idea? 
The insight was inspired by something all Malaysians relate to easily

KFC is food that Malaysians grew up with and is familiar to generations of Malaysians who love it for its great taste.  It is KFC’s inimitable taste and style of fried chicken that never fails to delight and bring families together, forges friendships, cements bonds between people and nourishes the soul – all the things only a great meal can do!

Conjuring typical scenarios of a life of harmony and togetherness ala a Malaysian style was key to bringing the idea to life

Pneumonic device acts as a rallying call
We first developed a symbol that was used in all our communications as a beacon/rallying flag to show the brand encouraged togetherness. Visually, we knew it was an effective and rapid approach to communicating ‘contact’ and togetherness so Malaysians could quickly comprehend the core of the message.

Two pieces of jigsaw in a perfect fit portraying Malaysians coming together became the symbol that formed the mainstay of all our communication.

Break down the stigma of Americanism
We needed to dismantle projections of KFC as anything but foreign. We realized that the one advantage we had was that the brand was widely familiar with Malaysians through generations. We decided to reinforce this advantage strongly so Malaysians remember the brand as a way of Malaysian life instead of a symbol of Americanism.

Five TV spots - (carefree, good times, close knits, warm welcome and close knit. With the existing spots, a 6th spot was produced ¬- a vignette, which captured the essence of all five themes) were created. Each spot was designed to capture a slice of typically Malaysian life, each showing how KFC is deeply immersed in the happiness of Malaysian life and encouraging togetherness even in diversity in race, color and creed.

Pushing the point of differentiation strongly against McDonald’s
We were acutely aware that McDonald’s lost out to KFC on one thing. Its meals were individualistic or excluding in nature and presentation. KFC on the other hand was inclusive in every way – pieces of chicken and servings we offered points towards the ideals of eating together – one aspect of Malaysian life which we love. The idea of sharing was strongly visualized in our communication to drive home the fact that sharing was one thing that one could never really experience at McDonald’s no matter how cheap its meals. Sharing and togetherness that KFC offered was priceless if you will.

Make Malaysians forget the Doom and Gloom of the Recession
The campaign built upon light moments and optimism with KFC. We are inherently familiar food and is a source of comfort to Malaysians amidst the doom and gloom of the recession. We knew that it was exactly what KFC could do and we simply built on it as an opportunity in our communications and get more Malaysians consuming KFC. 

How did we bring the idea to life? 
Coming together to engage consumers
The main objective for the thematic campaign was to create immediate coverage across a wide group of demographics in Malaysia. Hence a multi media combination approach (TV, Print and Radio) was used to create the bigness and immediacy needed. 

The TV campaign kicked off with 5 different versions of TVCs. Careful consideration was made to match each version of the ads with the relevant channel as well as programme genre to create a stronger connection with the audience. 

The print campaign covered all major titles (both national and local) with extensive reach across different states. Ads carrying heartwarming messages were placed in prominent positions within the main news pages of each paper, to evoke a sense of cheer amidst the gloom and doom normally prevalent during challenging times.

The radio campaign kicked off with a long 60secs jingle covering various feel good moments shared with family and friends. The ads were placed on prime drive time segments not only to achieve high listenership numbers, but also to entertain listeners as they brave through traffic as part of a typical workday. The jingle was thereafter shortened to drive frequency.

The entire media campaign was played out across 4 weeks and obtained a coverage of 95% of Urban Adults between the ages of 15 to 39 (Base : 5 million), achieving an average frequency of 17 times*.

When measured against the Total adults 15yrs, the entire campaign reached 85%* (Base: 14.2 mil). (Source: Weekly Nielsen Media Research report) 

How do we know it worked? 
From ashes to phoenix 
  • We need to illustrate the point that last fiscal 2008, KFC recorded its best performance in 35 years grossing the highest sales (Dollar Value) at an average of 18% sales between January and May 08 on a same store basis.
  • In the same period of 2009 this year, KFC has not only reversed its downtrend of -19% in Feb 09 but also to return sales levels to par with 2008 average across 5 months (Jan-May 09). Challenged by the economic downturn and highly charged negativities against KFC in the same period, this is phenomenal results considering that 2008 was also a record sales year. 
(Source: KFC sales results)


Other info
  • KFC effectively sustained its Past 3 Months incidence rating amongst its principal Malay target at 97% average between Quarter 4 ’08 and Quarter 1 ’09 with a negligible (+/- )1% difference. 
  • This is further substantiated by a marked decline in Hamburger QSR (KFC’s principal source of competition) incidence amongst Malays in the same period dropping from 68% to 58%.
  • KFC’s high value Family segment also effectively sustained its Past 3 Months incidence rating recorded at 96% average between Quarter 4 ’08 and Quarter 1 ’09 with a negligible (+/-)1% difference
  • Top of Mind levels for KFC also continue to lead strongly at 69% compared to McDonald’s at 22% for Quarter 1 ’09. 
(Source: Nielsen Omnibus – Brand Image Tracking Q109)

Anything else going on that might have helped  drive results? 
  1. Musical Coin-box premium promotion for Family Feast which ran between (March and April 09).
  2. JOM Jimat value meal campaign which ran between (April and May 09).

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