Discover KFC’s new marketing strategy

“We have a great opportunity to create more modern relevance and more modern engagement with modern families and modern young singles,” Chevez said. “This is the next big growth opportunity.”

Nintendo lessons

Chavez’s background as a marketer at Nintendo of America – where he was senior vice president of sales, marketing and communications before leaving for KFC – explains his interest in young consumers and how KFC will go about attracting them. At Nintendo, Chavez led the marketing of its groundbreaking Nintendo Switch console, whose appeal lay in its versatility with various gamers, he said.

“What we’ve done at Nintendo over the past seven to ten years is unlock the demand for modern video games for modern families; it wasn’t about going against Microsoft and Sony,” Chavez said. “And over time, we’ve built relationships with those families through digital accounts and loyalty. We know KFC has a great opportunity there to unlock relationships with families who love KFC through digital media and loyalty. .

Although KFC has unveiled a new app and website over the past year enabling new conveniences such as easier online ordering, it is still in the process of developing an official loyalty program. Chavez said more details on that program are yet to come.

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KFC’s global same-store sales increased 11% in fiscal 2021 and 7% in the United States. In the most recent fourth quarter, same-store sales in the United States increased 4% and 12% on a two-year basis. The United States is KFC’s second largest market, accounting for 17% of its total sales. Its fourth-quarter performance in the United States was triggered by increased sales of its chicken sandwich, which now represents 9% of its sales mix, compared to 1% in the fourth quarter of 2020.

About a third of new KFC ads will feature the chicken sandwich.

KFC is a division of Yum brands, which also controls the Taco Bell, Pizza Hut and Habit Burger brands.

Chavez declined to specify what KFC was spending behind the new campaign, but said spending would be “significantly higher” quarter over quarter than it was a year ago. The campaign is designed to reach target customers “in the places and spaces that matter most to them,” he said, which means more premium digital videos like Hulu and Peacock and what Chavez called programming. “top tier,” including the NBA playoffs. , “American Idol” and in “hyper-targeted” programmatic digital media led by Spark Foundry.

“What we want people to think and feel after seeing this campaign is, ‘KFC is for me, it’s for us. Let’s get KFC tonight,’ he said. brand relevance across multiple demographics Second, we’ll look at all the typical metrics – breakthrough, likeability, persuasion, attention – but the most important is this: is the brand becoming more relevant to me and my family ?”

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William L. Hart