NAME BRAND PITCH TYPE
Media
MARKET DATE
September 8 , 2016
The Data You Need to Win This Pitch
DESCRIPTIONYum Brands just launched a review of KFC’s $220 million media business. WPP’s MEC has handled media duties for the brand for over a decade but opted not to participate in the review. According to Kantar Media, the fast food brand spent around $55 million on measured media during the first quarter of 2016, down
from $56.5 million over the same period last year. “The search seeks to identify and select a world-class agency capable of deploying innovative media strategies while leveraging cost efficiencies and
maximizing return on investment,” a brand rep said in a statement. The review is being handled by Los Angeles consultancy Select Resources International. MEC has yet to publicly respond to the news, but the WPP shop has
recently changed several of its biggest accounts including AT&T, which recently consolidated its $2 billion account with Omnicom by picking BBDO for creative and the recently launched Hearts & Science for media duties.
Yum Brands Launches Review for
$220 Million KFC Media Account
thU.S.
Client Profile / Market
KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast a rich, decades-long history of success and innovation. It all started more than 70 years ago with one cook who created a soon-to-be world famous recipe with a list of secret herbs and spices scratched out on the back of the door to his kitchen.
That cook was Colonel Harland Sanders of course, and now KFC is the world's most popular chicken restaurant chain, specializing in that same Original Recipe®, along with Extra Crispy™ chicken, home-style sides and buttermilk biscuits. There are more than 18,000 KFC outlets in 115 countries and territories around the world, each with chefs preparing delicious, complete family meals at affordable prices.
COMPANY BACKGROUND
MAIN COMPETITORS
2014 Sales (mil)
2015 Employees (total yum brands)
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
16,000.00
505,000
-1.11%
-
-4.4%
7%
FINANCIAL OVERVIEW- Source: AccessConfidential.com -
Mr. Kevin D. Hochman
Chief Marketing Officer
Mr. Steve KellySenior Manager,
Digital Marketing
DECISION MAKERS by
U.S. Fast Food Market
2015 U.S. REVENUE
$225b- IBISWorld -
ANNUAL GROWTH 10-15
2.5%- IBISWorld -
200,000FAST FOOD IN THE U.S.
50% 50%
OTHERS QSR
Quick Service Restaurants (Fast Foods + Fast Casual)Account for half of sales in the entire restaurant sector
Americans & Fast Food
- Technomic -
In 2015, annual sales for the chicken industry rose
8%
- CDC’s National Centerfor Health Statistics -
8%of children and adolescents,
aged 2-19, consume fast food on any given day
$625Annual per capita expenditure
on Fast Food
50 MlnAmericans eat at one
fast food restaurant everyday
- FranchiseHelp.com -
- FranchiseHelp.com -
Quality Doesn’t Mean Healthfulness
Technomic’s Consumer Brand Metrics tool asks consumers to rate brands on a range of attributes. According to Technomic’s 2015Future of Limited Service Restaurants Consumer Trend Report, the most important factor for fast-food patrons is “high-quality, fresh food”.
While the top 10 brands that ranked highest for “availability of healthy options” had unimpressive sales growth,the top 10 fast-food brands that ranked highest for “food quality,” on average, had double digit growth.
Consumer Ranking
TOP 10 FAST FOOD CHAINS FOR AVAILABILITY OF HEALTHY OPTIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Chain
Jamba Juice
Subway
Pinkberry
Chick-fil-A
Potbelly Sandwich Shop
Golden Corral
Quiznos
Sizzler
Papa Murphy’s Pizza
Luby’s
2015 YOY Sales Change
2.1%
-3.4%
-1.9%
8.8%
14.2%
0.3%
-28.8%
0.8%
4.7%
0.2%
AVERAGE SALES CHANGE: -0.3%
Consumer Ranking
TOP 10 FAST FOOD CHAINS FOR FOOD QUALITY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Chain
In-N-Out Burgers
Papa Murphy’s
Chick-fil-A
Krispy Kreme
Marco’s Pizza
Culver’s
Cold Stone Creamery
Jet’s Pizza
Potbelly Sandwich Shop
Ben & Jerry’s
2015 YOY Sales Change
5.1%
4.7%
8.8%
7.4%
34.3%
15.5%
-0.4%
13.4%
14.2%
-5.5%
AVERAGE SALES CHANGE: 10.9%
- Technomic Consumer Brand Metrics - - Technomic Consumer Brand Metrics -
Fast Food industry in numbersKentucky Fried Chicken
$4,328
2014 AD spending $251.9 Million
- QSR Magazine -
- Source: AccessConfidential.com -
U.S. Sales 2015(millions) % change
3%
14,577 unitsKFC has
Operating in 125
countries
70% locatedOutside the U.S.
TOP CHICKEN CHAINS
Segment rank
Qsr 50Rank
CompanyName
2015 U.S. Sales (Mln)
1 8 Chick-fil-A $6,825.9
2 14 KFC $4,328.3
3 20Popeyes Louisiana Kitchen
$3,100.0
4 25 Zaxby’s $1,576.4
Fast Food industry in numbersThe re-Colonelization
KFC data indicates that only two out of five millennials have
even tried KFC.
Kevin Hochman, KFC’s CMO
After 21 years, KFC brought back the brand’s
mascot to its TV ads.
In addition to a marketing campaign starring Colonel
Sanders, the brand is working to freshen up the food to the
Colonel’s standards.
The “Re-Colonelization” will also involve a national employee
retraining program and a new satisfaction guarantee.
The ad had 80% positive reactions. Analysts and
company executives have credited the campaign with boosting sales in the U.S.
Same-store sales grew 3% in 2015, after plunging by more than 15% two years earlier.
Fast Food industry in numbersColonel Sanders goes to Comic Con
At San Diego and New York 2015 Comic Cons, Life-sized Wi-Fi-enabled Colonel Sanders statues were positioned in various spots around the comic con area
When con-goers located the Colonel statues and connected to the Wi-Fi, they were directed to a co-branded KFC and "Robot Chicken" digital hub to check out KFC and Robot Chicken custom content.
At the event, KFC created and distributed a graphic novel called “KFC Presents: The Colonel's Adventure Comics”.
Additionally, TV network Adult Swim and KFC brought together Colonel Sanders and the Robot Chicken for the very first time in a multi-platform programs spanning on-air, online and on-site activations.
Consumer Opinions
Raising Cane’s 70%
Zaxby’s 63%
Chick-fil-A 77%
FAVORITE CHICKEN CHAINS
El Pollo Loco 59%
Buffalo Wild Wings 53%
Bojangles’ Famous 60%
Boston Market
Popeyes
Wingstop 52%
KFC 37%
Church’s Chicken
Source: Marketforce.com
51%
51%
46%
Market Force studied consumers’ favorite Quick Service Restaurant over a range of
attributes, including:food quality, healthiness, fast and friendly
service, atmosphere, cleanliness, and value.
KFC scores last out of the brands studied on four ofthe seven measures.
Healthiest food optionsBest Food Quality
Fast Food Chicken Trends
80%
60%
20%
0
40%
PDQ
FASTEST GROWING CHICKEN CHAINS
Nando’s Raising Cane’s Chicken Fingers
Total Unit GrowthSales Growth
80%
Purchase Consideration: QSR categories. Base: Frequent Fast Food Eaters
17.5% 14% 9%- YouGov -
QSR Chicken QSR Burger QSR Pizza QSR Mexican
19.5%
48% visited a chicken chain at
least five times in the previous 90 days
18% brought children
on their visit
40% have downloaded a chicken chain’s app
- Source: Marketforce.com -- Technomic-
FAST FOOD CHICKEN
CONSUMERS
QUICK DEFINITION: These Chicken Lovers Buy From KFC’s Competitors
Fast food chicken consumers are people interested in at
least one of the top four fast food chicken chains by sales. We’ve excluded KFC in order to better highlight the
differences between Colonel Sander’s current fans and the consumers buying the competition.
47%
10%
20%
0
30%
13-17
• • •
• • •
13-17 13-17 13-17 13-17 13-17
53%FEMALE
57%MARRIED
42%WITH
CHILDRENFOODIES
178.4
SPORTS ENTHUSIASTS
125.6
FASHION LOVERS
129.7
POLITICALLY ACTIVE
178.4
45%
Fast Food Chicken Consumer
Compare the Fast Food Chicken Consumers Demographicwith KFC’s Audience
KFC audience overlaps with our
Fast Food Chicken Consumers
demographic by 58% in interests, including:
Food, Sports, Politics and Fashion
FAST FOOD CHICKEN CONSUMERS:FOOD
The foodies trait collects high popularity points on KFC’s
audience.
They don’t love to cook and highly over-index on Food-to-go
trait (193.6)
They are enthusiasts about Snack Foods (176 pop) and
more specifically chips. Among their favorite brands we can find
Pringles, Doritos and Lay’s.
GOURMET &
170.7
FOODIES178.4
FOOD WEBSITES22%
SELF CONSCIOUSSNACKERS182.8
SPECIALTY FOOD
TOP GOURMET FOOD BRANDS TOP FOOD WEBSITE
KNOWMORE
IGOURMETFOODS
TONYCACHERE’S
MARBLE SLAB
CREAMERY
KNOWMOREeMEALS
KFC’s AUDIENCE CROSSOVERS
FAST FOOD CHICKEN CONSUMERS:FASHION
KFC audience doesn’t dedicate much time to research for latest fashion trends (fashion lovers:
101 pop).
Their favorite apparel categories are footwear (150.1 pop) and athletic apparel (128.4 pop).
Most popular brands are: Adidas, New Yorker and
Ice-Watch
FASHIONLOVERS
129.7 POPULARITY
ACCESSORIESADDICTED
178.1 POPULARITY
CHILDRENCLOTHING
160.0 POPULARITY
CLICK HERE TO SEE TOP FASHION BRANDS
AND RETAIL STORES
KFC’s AUDIENCE CROSSOVERS
Similarly to Fast Food Chicken Consumers, KFC audience is
interested in sports (118.0 pop) and over-index as Athletes
(148.1 pop) and Fans of Fighting (127.4 pop).
They are highly interested in Wrestling (176.5 pop) and Soccer (166.0 pop). Their
favorite athletes are: Usain Bolt, Lionel Messi and Neymar Jr.
FAST FOOD CHICKEN CONSUMERS:SPORTS
SPORTSENTHUSIASTS
125.6 POPULARITY
ATHLETES
136.3 POPULARITY
VOLLEYBALL
125.6 POPULARITY
TOP VOLLEYBALL PLAYERS
KNOWMOREJEN KESSY
KFC’s AUDIENCE CROSSOVERS
KFC’s AUDIENCE CROSSOVERS
KFC audience is not interest at all in politics. The politically
active trait scores 29.8 popularity points.
Among People & Society matters, Religion & Belief is the
only one having positive popularity index points (103.9)
FAST FOOD CHICKEN CONSUMERS:POLITICALLY ACTIVE
POLITICALLY ACTIVE
123.8
POLITICALACTIVISTS157.9
• • • • • •
RELIGION & BELIEFMATTERS
162.5
CLICK HERE TO SEE FAVORITE POLITICIANS &
POLITICAL ORGANIZATIONS
TOP PEOPLE & SOCIETY ORGANIZATIONS
KNOW MORE
United Bible
Societies
OperationChristmas
Child
CONSUMER INSIGHTS SUITE
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