marketing case study:
New management today is incredibly
deliberate about making the KFC brand
relevant again. There’s two big ways for
doing that, in the context of this industry: and
that is through bold marketing activations and
bold menu innovation. It’s all about making
the brand and the product really relevant to
emerging and quickly changing consumer
taste. They will do this in a way that’s
grounded in how the brand is currently
positioned, yet it has to be dynamic enough to push out those boundaries. The new assigned
CMO is finding ways to take what’s iconic about the brand to where their customers are to
show up in unexpected way that ultimately make those experiences better for them. Looking
out for trends and trying to be there in the moment when those trends are happening, willing to
go outside of what is comfortable.
You need to research trends and insert your brand into them. To be relevant is much harder,
and it starts with really knowing who you are, as a brand. KFC began working in
2014 and that was really the start of the turnaround. Spent months
going through the archives and to realize that when KFC had been at
their best as a brand, it was led by the heartbeat of our brand, Colonel
Sanders. The new assigned CMO also chose to put all those evocative,
iconic signifiers – the Red & White Bucket, the Colonel tie – back into
the front and center of the brand. Once re-grounded on who the brand
was, they looked for new ways to show up and express that. KFC wants to create experiences
that people want to be a part of that elevate what people are already doing. Also like to find
micro-cultures and experiment around how we can embed into them.
Fundamentally, you want to be a brand that people want to be a part of. It’s that simple. You
don’t want to be slapping your logo onto things; you want to create experiences that people
want to get involved with. For example, if KFC was concerned with staying conventional, they
could hire a few Instagram influencers and get them eating and talking about KFC. And that
would be just fine. Instead, they looked at the trend for Influencers and asked how to embed
the brand in that trend in a way that would invite people in. So, KFC used Colonel into a virtual
influencer and he struck a chord with the public. People really began to follow him, engage
with him, to such an extent that, ultimately, we were paid by brands like Dr Pepper, Casper,
and Old Spice to promote their products. In the end, a quarter of KFC media spend on this
campaign was paid for by other brands. And the virtual Colonel was out there influencing on
behalf of other brands. You don’t get any more relevant than when other brands are paying you
to make their brands relevant.
Fast food customers have a lot of choice and are not very
loyal, so spending a lot of time building an innovation
program that is highly craveable to customers, so that they
want to come to the brand. There was a time that the KFC
brand risked becoming irrelevant, so committing to becoming
a brand that is relevant across generations was the only
option. Reconnected with heritage to understand what of core
anchors emotionally to customers, and then looked at how we
could innovate and push boundaries to drive our relevance
and deliver this kind of growth. Menu innovation needs to be
exciting and really make people want to come to KFC to try
it. Yet, KFC experience and pricelists must stay affordable for
the relevant target market KFC chooses to do business with.
The appearance of this menu innovation program was
Chicken & Waffle that launched in the fall. Waffles are a huge food trend, that most people
have heard of but haven’t tried, either because they couldn’t find it or they couldn’t afford it.
By bringing in a delicious waffle that could serve hot at over 4,000 restaurants around the
country, at a price point that people could afford, that allowed them to be a part of this huge
food trend. It’s delivered through a product that is at the core of our business, our world-famous
fried chicken, so we can do it in a way that’s grounded in who we are – but pushes into a trend
that’s happening out in the world.
Questions:
1. Considering the above mentioned in the case, please explain KFC competitive strategy for
growing the business and how it is reflecting on their new brand Positioning strategy and how
it may apply on their marketing offering with all its 3 key components.
2. Please explain your view in detail for KFC brand communication mix as mentioned above in
the case and how it may/may not serve their strategy turnaround attempt and what do you think
they should do further if any to achieve their strategic goals.
In the dynamic landscape of the fast-food industry, maintaining relevance and capturing the attention of consumers is a challenging endeavor. KFC, a brand that has stood the test of time, embarked on a strategic journey to reposition itself in the market, aligning its competitive strategy with its brand positioning and leveraging a meticulously crafted brand communication mix. This essay delves into KFC’s competitive strategy for business growth, its new brand positioning strategy, and the alignment of these strategies with its brand communication mix.
KFC’s competitive strategy revolves around two pivotal pillars: bold marketing activations and innovative menu offerings. This strategy is grounded in the understanding that remaining relevant requires not only connecting with emerging consumer tastes but also exceeding their expectations. KFC has recognized the need to rekindle its identity and heritage, symbolized by Colonel Sanders, who embodies the heart of the brand. The resurgence of iconic elements like the Red & White Bucket and the Colonel’s tie reaffirms the brand’s identity.
In terms of brand positioning, KFC’s strategy is to create experiences that resonate with consumers and elevate their interactions with the brand. This requires an in-depth understanding of their target audience, trends, and micro-cultures. By embracing the trend of virtual influencers, exemplified by the virtual Colonel, KFC succeeded in making the brand relevant in a novel and engaging manner. This approach of embedding the brand into emerging trends positions KFC as an innovative, forward-thinking brand.
KFC’s brand communication mix is a fusion of elements that project its identity, convey its message, and engage consumers. This mix comprises advertising, public relations, direct marketing, sales promotion, and personal selling. The case study highlights KFC’s approach of not merely slapping its logo on things but creating immersive experiences. The virtual Colonel influencer campaign exemplifies this approach. The influencer trend was harnessed in a way that resonated with the audience, strengthening brand relevance.
The integration of menu innovation is another key component of KFC’s brand communication mix. The launch of the Chicken & Waffle offering is a prime example. By tapping into the waffle trend and making it accessible across a vast number of locations, KFC aligned its menu innovation with broader food trends. This enhances their brand’s allure and encourages consumers to engage with the brand through their taste preferences.
KFC’s brand communication mix is in sync with its turnaround strategy. The focus on experiences and trend integration amplifies the brand’s relevance. The virtual Colonel campaign not only positioned KFC as an influencer but also established an emotional connection with consumers. Additionally, the Chicken & Waffle launch capitalized on a popular trend, making it both affordable and accessible. This cohesive approach demonstrates a comprehensive understanding of the brand’s DNA and its audience’s desires.
While KFC’s current strategy is promising, continuous innovation is essential to maintain momentum. To achieve their strategic goals, KFC should consider the following:
Sustainable Innovation: KFC should consistently introduce new menu offerings and experiences to keep customers engaged and intrigued.
Personalization: Leveraging data-driven insights, KFC can personalize its offerings and communications to resonate with individual preferences.
Digital Engagement: Expanding digital engagement through social media, interactive campaigns, and mobile apps can strengthen consumer connections.
Partnerships: Collaborating with other brands or influencers can extend KFC’s reach and appeal.
Sustainability: Emphasizing sustainable practices aligns with changing consumer values and can further enhance brand loyalty.
In conclusion, KFC’s strategic revival is a remarkable case of aligning competitive strategy, brand positioning, and brand communication mix. By embracing trends, revitalizing its heritage, and focusing on experiences, KFC has rekindled its relevance and set a course for sustainable growth. As the brand continues to evolve, maintaining its commitment to innovation and customer-centricity will be pivotal in realizing its strategic goals and securing a bright future in the competitive fast-food industry
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