AdAge reports that the chain formerly known as Kentucky Fried Chicken isn't seeing much payoff after a series of highly-publicized stunts -- back & forth name changes, relocating the "secret" recipe, bringing Col. Sanders to the U.N., the infamous grilled chicken coupon mess with Oprah, and, of course, launching the Double Down. AdAge:
Although KFC remains the largest player in the growing segment of fast-food chicken, its share continues to drop, according to Technomic. 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.
While KFC has seen short-term sales gains from their stunts, a loss of focus on their signature product and a "lack of consistent brand positioning" has ultimately seen them losing market share. Read the full article at AdAge for more.
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