Yum Brands has initiated a review of KFC's $220 million media account, seeking a world-class agency to enhance media strategies and maximize ROI. After a decline in media spending, KFC is also undergoing a 're-colonelization' marketing campaign to revitalize the brand and improve sales, which saw a 3% increase in same-store sales in 2015. The fast food industry is experiencing rising competition, with consumer preferences shifting towards high-quality food and healthier options.

1. NEW BUSINESS PITCH
It’s Finger Lickin’ Good!

2. NAME BRAND PITCH TYPE
Media
MARKET DATE
September 8 , 2016
The Data You Need to Win This Pitch
DESCRIPTION
Yum 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
th
U.S.

3. 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 Kelly
Senior Manager,
Digital Marketing
DECISION MAKERS by

4. 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

5. Americans & Fast Food
- Technomic -
In 2015, annual sales
for the chicken industry rose
8%
- CDC’s National Center
for Health Statistics -
8%
of children and adolescents,
aged 2-19, consume fast food on
any given day
$625
Annual per capita expenditure
on Fast Food
50 Mln
Americans eat at one
fast food restaurant everyday
- FranchiseHelp.com -
- FranchiseHelp.com -

6. 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 2015
Future 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 -

7. 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 units
KFC has
Operating
in 125
countries
70% located
Outside the U.S.
TOP CHICKEN CHAINS
Segment
rank
Qsr 50
Rank
Company
Name
2015 U.S.
Sales (Mln)
1 8
Chick-
fil-A
$6,825.9
2 14 KFC $4,328.3
3 20
Popeyes
Louisiana
Kitchen
$3,100.0
4 25 Zaxby’s $1,576.4

8. 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.

9. 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.

10. 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 of
the seven measures.
Healthiest food optionsBest Food Quality

11. 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-

12. 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.
10%
20%
0
30%
13-17
• • •
•••
13-17 13-17 13-17 13-17 13-17
53%
FEMALE
57%
MARRIED
42%
WITH
CHILDREN
FOODIES
178.4
SPORTS
ENTHUSIASTS
125.6
FASHION
LOVERS
129.7
POLITICALLY
ACTIVE
178.4

13. 45%
Fast Food Chicken
Consumer
Compare the Fast Food Chicken Consumers Demographic
with KFC’s Audience
KFC audience
overlaps with our
Fast Food Chicken
Consumers
demographic by 58%
in interests,
including:
Food, Sports, Politics
and Fashion

14. 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
FOODIES
178.4
FOOD WEBSITES
22%
SELF CONSCIOUS
SNACKERS
182.8
SPECIALTY FOOD
TOP GOURMET FOOD BRANDS TOP FOOD WEBSITE
KNOW
MORE
IGOURMET
FOODS
TONY
CACHERE’S
MARBLE
SLAB
CREAMERY
KNOW
MORE
eMEALS
KFC’s
AUDIENCE CROSSOVERS

15. 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
FASHION
LOVERS
129.7POPULARITY
ACCESSORIES
ADDICTED
178.1POPULARITY
CHILDREN
CLOTHING
160.0POPULARITY
CLICK HERE TO SEE
TOP FASHION BRANDS
AND RETAIL STORES
KFC’s
AUDIENCE CROSSOVERS

16. 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
SPORTS
ENTHUSIASTS
125.6POPULARITY
ATHLETES
136.3POPULARITY
VOLLEYBALL
125.6POPULARITY
TOP VOLLEYBALL PLAYERS
KNOW
MORE
JEN KESSY
KFC’s
AUDIENCE CROSSOVERS

17. 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
POLITICAL
ACTIVISTS
157.9
• • • • • •
RELIGION & BELIEF
MATTERS
162.5
CLICK HERE TO SEE
FAVORITE POLITICIANS &
POLITICAL ORGANIZATIONS
TOP PEOPLE & SOCIETY ORGANIZATIONS
KNOW
MORE
United
Bible
Societies
Operation
Christmas
Child

18. CONSUMER
INSIGHTS SUITE
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