Yum Brands which owns KFC, (Taco Bell and Pizza Hut chains) launched its latest campaign around its cold coffee offering. With India’s entire food-service market estimated at almost `3 trillion, and the quick-service restaurant market estimated at `572 billion (which is growing at 25-30% a year), the growth potential is high. While adapting menus to cater to local tastes is a strategy adopted by most players, the differentiation strategy adopted by will determine if and how they grow in the long term. With low entry barriers, new entrants like Starbucks, Denny’s and Applebee’s who are slated to launch in the Indian market, will stiffen competition.
Driving the growth in India’s fast-food sector is the 60% of India’s population, or 700 million people, under the age of 30. Realising this potential, marketers increasingly are turning their brands into ‘youth brands’ to increase appeal among their target audience. As a consumer market, India has everything from strong GDP growth to rising income and increasing westernisation to fuel growth for at least the next 10 years. While, KFC majorly offers ready-to-eat snacks on its menu, this campaign focuses on the experience when drinking KFC’s cold coffee – Krushers Kafeccino.
|KFC Krushers website screenshot|
The vivid visual elements used to describe the experience makes product stand apart. The commercial has been cleverly created to attract new customers to try the offering assuring them the experience would be ‘so good’. The campaign does well in attracting new customers into its foray. With little brand loyalty to fast food joints, the campaign may not bring in significant business impact in the long-term. But, by creating a youth appeal to the brand, the campaign aids an increase in their retail foot-print.
Rating: The campaign adds traction to the brand but may not aid long-term brand loyalty
For more ad videos, check out the Brands India YouTube channel