While stunts (moving the secret recipe, taking Colonel Sanders to the U.N. and, most recently, launching the 500-calorie Double Down sandwich) drove buzz and the introduction of grilled chicken spiked short-term sales, the moves also contributed to a lack of consistent brand positioning and a distraction from KFC's flagship product -- both of which have hurt the chain and allowed competitors to creep in and carve out share.
KFC's market share tumbled six full points since 2005 to 30% in 2009, while the category grew from $14.5 billion to $16.1 billion.
Ever-growing threats? Brands such as Chick-fil-A. The much-smaller chain, at least by locations, has built a cult-like following with high-quality sandwiches, better-for-you options, excellent service and clean stores. It now commands 20% of the market with just 1,500 locations. That's less than one-third of KFC's 5,200-store U.S. presence. And Chick-fil-A operates on a six-day week, as its restaurants are closed on Sundays.
Ever-growing threats? Brands such as Chick-fil-A. The much-smaller chain, at least by locations, has built a cult-like following with high-quality sandwiches, better-for-you options, excellent service and clean stores. It now commands 20% of the market with just 1,500 locations. That's less than one-third of KFC's 5,200-store U.S. presence. And Chick-fil-A operates on a six-day week, as its restaurants are closed on Sundays.
Branding consultant Denise Lee-Yohn noted that, for KFC, trumpeting grilled chicken and then promoting products like the Double Down may have muddied the brand. "They don't have a clear identity anymore, and I think that's hurt them," she said.
Harry Balzer of the NPD Group noted that KFC doesn't just need to look out for direct competitors, but also hamburger chains selling chicken sandwiches, and supermarket chains.
Harry Balzer of the NPD Group noted that KFC doesn't just need to look out for direct competitors, but also hamburger chains selling chicken sandwiches, and supermarket chains.
0 comments:
Post a Comment