KFC has finally reacted to the consumer perception ‘KFC is expensive‘ by coming out with a range of products under the new category ‘streetwise’. These products are much more economical compared to the Zinger Burgers that they sold earlier at around Rs 100 per unit. Hence, the TG is defined a bit more clearly, showing inclination towards the college youth.
Check out the campaign video below:
Let’s see what all the campaign brings to fore:
1. Affordability: Of course, the pivot of the campaign is to present eating options at lower price points. The aim is to break the ‘myths’ of KFC being expensive
2. Focus on TG instead of Product: A sound marketing tactic, the focus of the ad is not on showing the products. The focus is on showing that the college students are a part of the TG.
Strategically, and evaluated independently, the move is a sound one with great potential. But there is one problem – Arch-Rival McDonald’s has already been there done that. They took the consumers by storm by launching Menu entries at Rs 20 and 25. They knew that as a branded food joint, they would be perceived as expensive. And they took this challenge head-on, with campaigns talking about economical SKUs (aap ke zamane mein baap ke zamane ke daam. This pricing style, coupled with their higher number of well placed outlets already makes them a hot favorite among college junta.
But, there is also one thing which is going KFC’s way. McDonald’s menu has been largely stagnant till recently (when they launched the McSpicy range). People need a bit more variety in their palette, especially in case of a food joint where the frequency of visits can exceed 2-3 times/week.
Interesting to Note: While KFC is going the McDonald’s way by lowering price points, McDonald’s is going the KFC way by launching McSpicy range which is priced high (@ Rs 89 a burger). Compared to their existing range, this was an expensive proposition, obviously aimed to help with the profitability numbers. This was a move right up KFC’s alley – high price points. They promptly countered with the launch of the Hot Zinger. For them, this was not a price hike, so wasn’t seen negatively, and did well to counter an immediate threat from McSpicy.
So, there are things going both ways for both players. The cheaper SKUs help build loyalty and frequency of customer visits, the expensive SKUs help with the profitability. The player who can find the optimum product mix to balance the two will eventually win.
Note: You may have noticed that KFC’s branding these days rarely mentions the entire name – Kentucky Fried Chicken. This is to pull more vegetarian customers towards the veg offerings in its menu. A ‘chicken’ in the name would repel all vegetarians. This strategy is especially needed in countries like India with a large proportion of the population being vegetarian and Fried Chicken not popular enough to be the sole growth-driver.