Final Communications Plan

Prepared for: Kentucky Fried Chicken

Prepared by: Meaghan Jordan

Date:13 May 2010

CCT 667: Contemporary Corporate Communications

Professor A. Hoffman

  1. Executive Summary

As outside council to Kentucky Fried Chicken, a Yum! Brands company, I was asked to consult on the branding crisis plaguing the popular fast food chains in the United States market.

The public identity of Kentucky Fried Chicken has been on shaky ground for the past five years. The inconsistent branding and products have caused market share values and annual revenues to consistently decrease. The primary constituent, the consuming public, has been left to decipher the mixed messages presented by the Kentucky Fried Chicken brand.

Through the implementation of a three-phase strategy, Kentucky Fried Chicken will be able to reestablish itself as a profitable leader in the fast food chicken industry. The design of a logo and company name, in conjunction with a healthy menu that properly embodies the meaning of the brand will be the key to a clear identity. The final piece of the equation requires a comprehensive, nationwide advertising planto re-launch thecontemporary and comprehensible identity of the Kentucky Fried Chicken brand.

II. The Company

The American fast food chain Kentucky Fried Chicken (KFC) was a family run business, founded in 1930 by Harland Sanders in Corbin, Kentucky. The Sanders Court and Café featured Southern comfort foods, specifically the widely enjoyed fried chicken. Sanders began franchising his secret recipe throughout the 1950’s and 1960’s. Following the sale of Sander’s interest in his company to a group of investors in 1964, Kentucky Fried Chicken was taken public, as well as being listed on the New York Stock Exchange in 1969. Kentucky Fried Chicken has been owned by a number of companies and their subsidiaries since 1982, these include RJR Nabisco, and PepsiCo. The PepsiCo brand expanded their restaurant interests, including KFC, to form Tricon Global Restaurants, which in 2002 became Yum! Brands. Yum! Brands own KFC, Pizza Hut, Taco Bell, Long John Silvers and A&W All-American Foods.[1] As the largest, global restaurant company, Yum! Brands is ranked #239 on the Fortune 500 List, generating revenues of approximately $11 billion in 2009.[2]

Roger Eaton, the President of KFC and Laurance Roberts, the Chief Operating Officer of KFC, oversees the daily activities of the KFC Corporation, based in Louisville, Kentucky[3]. The Chief Executive Officer and President of Yum! Brands, David C. Novak, manage the overall direction of the KFC Corporation and the other food chains owned by the company.[4]The Yum! Brands are responsible for 5,200 restaurants in the United States, as well as locations in 109 countries and territories.[5]The parent company of these popular fast food chains operates on the basis of four fundamental beliefs. The foundation of business at Yum! Brands are to: “Build leading brands across China in every significant category. Drive aggressive international expansion and build strong brands everywhere. Dramatically improve U.S. brand positions, consistency and returns. Drive industry leading, long-term shareholder and franchise value.”[6]A combination of corporate leadership and the positive reputation of KFC have maintained the number one spot in the fast food chicken market for the last 57 years.

III. The Issue

The 57 year old fast food chain Kentucky Fried Chicken, known for its Southern home cooking, specifically the 11 herb and spice flavored fried chicken, is close to seeing its leading position in the market niche it built fall to the wayside. In the last five years KFC has seen a decline in its markets shares, dropping “…6 full points since 2005 to 30% in 2009, while the category grew from $14.5 billion to $16.1 billion.”[7] KFC is facing new competitors in the fast food chicken industry, which are offering innovative, affordable products that KFC is not able to match. The four main competitors, Chick-Fil-A, Popeye’s, Church’s and Zaxby’s have proven in the past 5 years that they are not afraid to go up against the KFC conglomerate. Each of the competitors posted increases in 2009 sales, whereas KFC lost revenue and shares in the market.

[8]*Technomic estimate. Source: Technomic

The numbers are indicative of KFC’s growing troubles within the restaurant market.

A number of factors have contributed to KFC’s decline with the consumer in recent years. The first problem facing the company is their branding issues. In the last ten years the company logo and name has been changed numerous times from Kentucky Fried Chicken to KFC. The back and forth with the name, in conjunction with the varying logo designs and color schemes, has caused confusion for the companies primary constituents, the consuming public. It has forced the question to be asked is the restaurant KFC or Kentucky Fried Chicken and is the company image represented by a bucket of chicken or its founder “The Colonel.” The inconsistent message from the company has created an identity crisis for the public.

The second branding crisis for KFC involves the products being adding to the already extensive menu offered in each of the restaurants locations.The past decade has brought about a national lifestyle trend towards healthy living. The restaurant industry, particularly fast food, has come under scrutiny for the nutritional content of their quick meals. KFC, in another effort to comply with the new health conscious culture, introduced a grilled chicken option in 2009. The addition to the menu was intended as a means of increasing sales. However, “That quarter, KFC reported its first same-store sales growth in two years. But results have been negative ever since, and fell 4% for the year as a whole.”[9] The introduction of KFC grilled chicken resulted in a further departure away from the true spirit of Kentucky Fried Chicken. The inconsistent product branding once again created confusion for the consumer, because grilled chicken is not fried chicken.

The decline in sales in 2009 prompted the addition of another new product in 2010. KFC added the Double Down sandwich, which includes 2 “KFC® Original Recipe® Filet, Colonel’s Sauce, Bacon, Pepper Jack Cheese, Monterey Jack Cheese.”[10] This “sandwich,” also offered with grilled chicken, is meant to be a more mobile way to eat a sandwich, as well as a healthier, bread free choice. Once again KFC has muddled their brand by departing from the traditional Kentucky Fried Chicken. The current reality of the situation indicates major alterations need to occur within the company’s infrastructure.

IV. The Communications Plan

The current branding confusion present in the Kentucky Fried Chicken (KFC) Company is affecting both the annual revenues and consumer product satisfaction.The overall objective at this point in time is to reduce the brands identity crisis through a three-part, directly structured communications strategy.[11]The direct structure approach will make clear the point Kentucky Fried Chicken is attempting to make with their new campaign, prior to explaining why the change was implemented. The first portion of the strategy will re-establish the logo and commercial name of the restaurant chain. The second portion of the strategy will address the disjointed products by introducing a new marketing campaign related to the menu. The third portion of the strategy will utilize the results of parts one and two to launch a new advertising campaign, showcasing the companies nod to its historic roots with a modern twist The implementation of these two plans will enable Kentucky Fried Chicken to once again be a competitive member of the fast food chicken industry.

-Stage I: Company Branding

  • Develop a logo incorporating both the initial and word forms of Kentucky Fried Chicken
  • Use a hybrid of the original logo and a contemporary design
  • Integrate the image of “The Colonel” because he is synonymous with Kentucky Fried Chicken
  • Utilize the iconic image and mascot abilities of “The Colonel”
  • Successful competitors all use mascots for advertisements
  • McDonald’s: Ronald McDonald
  • Burger King: The King
  • Taco Bell: The Chihuahua
  • Popeye’s: Popeye

The second portion of the three-part strategy encompasses the newly designed logo into an innovative advertising and marketing campaign. This segment incorporates the current need to restore the restaurants menu to its original state, as Colonel Sanders intended it.

-Stage II: The Redesigned Product

  • Kentucky Fried Chicken is about Southern, home cooked, comfort food. Re-Launch KFC as a meal from the kitchen, using farm grown ingredients.
  • Based on “5 Leading Menu Trends for 2010”
  • “New Spin on Old Favorites: Comfort Foods: Look for increased menuing of upscale comfort foods, with an explosion of simple foods with a small number of “real-food” ingredients. Expect to see a fresh, premium or high-quality spin on familiar, humble foods, such as artisan cheeses used in macaroni and cheese. Interest in premium burgers and burger concepts will continue, with even greater emphasis on freshness, customization, toppings and condiment bars. Sandwich and other concepts will focus increasingly on hearty melts. Cassoulets, chili and other rustic bean-based dishes may get new respect.”[12]
  • “Back to the Future: Tending Our Gardens and Farms” With the First Lady now tending an official White House garden, look for more chefs to follow suit with proprietary herb or vegetable gardens. The emphasis on local and seasonal ingredients will grow and flower. Fascination with heirloom farm products—from tomatoes to pork—will continue; by the 2010 holiday season, look for a flap of interest in heirloom poultry breeds.”[13]
  • Based on the Yum! Brands philosophy “A balanced diet consists of a variety of foods from the recognized good groups such as grains/rice/cereals, vegetables, dairy, meat/ beans, fats, fruits, and optional calories such as sweets. All food can be part of a balanced diet when eaten in moderation and combined with physical activity. Our goal is to always provide a variety of menu options that can be part of a sensible diet.”[14]
  • Encompass healthy ingredients but simultaneously promote Kentucky Fried Chicken with Southern Sides
  • Organic vegetables, health conscious cheeses, turkey bacon instead of pork
  • More vegetable options
  • Introduce side or full mea salads which include chicken

The third, and final section of the strategy utilizes the newly formed logo and menu to launch an extensive advertising campaign. The campaign will be distributed nationwide, as KFC is a staple in the majority of the United States’ geographic regions.

-Stage III: The Advertising Campaign

  • A retrospect of “The Colonel’s” life with adjustments to current culture; being health savvy
  • Print Advertisements: The image of “The Colonel” in a country kitchen, cooking Southern, comfort foods. Looking through kitchen window to see a garden, suggesting the home grown ingredients being utilized by the company
  • Television Advertisements: Begin with “The Colonel” moving from the home garden into a farmhouse kitchen. He cooks the famous 11 herbs and spice Kentucky Fried Chicken and all of the Southern side dishes. Takes the cooked food through a swinging door into the dining room of a typical chains location, where he serves the food to the all-American family.
  • Online Advertisements: Banner ads on food and cooking websites. Feature images similar to the print ads.
  • The publication and press tour for “The Colonel’s Cookbook for Healthy Southern, Home Cooking”
  • The KFC website features recipes for typical southern foods. Expand the portion of the website into a book.
  • Include recipes for a variation of Kentucky Fried Chicken without divulging “The Colonel’s” secret blend of herbs and spices.
  • Partner with a weight loss or healthy living brand to show credibility for being healthy
  • Launch the cookbook simultaneously with the redesigned logo and menu
  • Book Tour with “The Colonel”
  • Promotional appearances on major network talk shows
  • The Today Show, Live with Regis & Kelly, The Tonight Show, The David Letterman Show
  • Possibility of corporate sponsorship
  • Supply KFC at major, public events
  • I.e.: sporting events, entertainment venue

Each portion of the potential communications plan outlined above will aid in restoring a cohesive brand identity for the Kentucky Fried Chicken restaurant chain.

V. Implementation

The three stages of this communications strategy will be implemented in a sequential order. The successful completion of one stage will ensure the success of the next one. The first stage will commence immediately, allowing two months for completion. At the end of the two months a cohesive logo and name will be in place, allowing for stage two to begin. The menu and ingredient redesign will be given three months for completion. During this period, KFC will form business agreements with local farms to supply the ingredients for the restaurants dishes. The third stage will be allotted six months to complete and launch the advertising campaign, including the brands cookbook. These communication tactics will guarantee an outcome of a cohesive brand identity at the conclusion of an eleven-month period.

It is essential that this potential plan be put into action immediately, as the brand is currently suffering from its very public identity crisis. The best way to gain input on the state of the current fast food chicken market is to look to the newer companies who are competing with KFC. Drawing on competitors, who are slowly advancing in the market, will be a positive model for a company that is stuck between past and present cultures.

The intentions of this proposed plan is to restore the Kentucky Fried Chicken brand to its former glory. Not only does the consumer need to have a clear understanding of the brand, but the products also need to be synonymous with their namesake. If the branding situation is rectified the consumer will once again frequent KFC for meals, rather than considering eating at a competitors restaurant. This will hopefully increase sale revenues and market share values. The potential for continued growth in the competitive fast food chicken market will ensure KFC remains number one in the business.

VI. Summary and Recommendations for Actions

The Kentucky Fried Chicken brand was the pioneer in the fast food market focusing solely on chicken. The 1990’s incited the need for KFC to alter their cuisine as a direct “…result of changes in American dietary habits.”[15] The new millennium pushed the United States to become more health conscious, which KFC embraced by cooking their food in an oil that produced chicken with zero grams of trans fat per serving. Now in the past two years KFC has come under scrutiny again for their chicken options. In a bold move, the company introduced a grilled chicken choice to the menu, which departed from the essential meaning of the brand. Combining the lack of unification in the menu and the conflicting logo’s, Kentucky Fried Chicken has suffered both the loss of credibility and monetary gain in the public eye.

The three-part communications strategy addresses the umbrella issue of the company’s inability to exude a steady identity in relation to their brand. The Chairman of Yum! Brands publically acknowledged, “…"we still have our work cut out for us" in turning around KFC's U.S. business,” and that they were “…focused on improving the business, "but there is a lot of wood to chop, so to speak."[16]Initiating phases one through three of the plan will re-establish a logo, a culturally acceptable yet innovative menu, and the means to effectively promote and market the 21st century Kentucky Fried Chicken.

Works Cited

Argenti, Paul A. "Communicating Strategically." Corporate Communication. 5th ed. New York: McGraw-Hill/Irwin, 2009. 39. Print.

---. "Identity, Image, Reputation, and Corporate Advertising." Corporate Communication. 5th ed. New York: McGraw-Hill/Irwin, 2009. 77. Print.

"Kentucky Fried Chicken Ingredient Guide." April 2010.Web. <

"KFC: About Us." 2010.Web. <

"KFC: History." 2010.Web. <

"Technomic names 5 leading menu trends for 2010." Technomic. December 10 2009 2009-2010.Web. <

"What Makes Our Food Yummy?" 2010.Web. <

York, Emily Bryson. "KFC's Stunts Make Nightly News but Don't Stop Sales Slide." April 19 2010.Web. <

"Yum! Brands." 2010.Web. <

"Yum! Senior Officers." 2010.Web. <

"Yum! Vision & Strategy." 2010.Web. <

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[1] "KFC: History." 2010.Web. <

[2] "Yum! Brands." 2010.Web. <

[3] "Yum! Senior Officers." 2010.Web. <

[4] "Yum! Senior Officers." 2010.Web. <