KFC and BBDO part ways

Jennifer Chan, group chief executive of BBDO/Proximity Malaysia, said the split followed a change of ownership of the KFC franchise, which is now operated by a division of J-Corp, the Johor State Government’s investment arm.

The business will shift to McCann Erickson, which claimed the estimated RM25 million (US$7.7 million) account after a four-way credentials pitch believed to involve Ogilvy & Mather as well as the incumbent.

“Of course we’re sad, having to take a separate path,” said Chan. “The fact that our work has been testimony to the now-robust KFC brand is something we’re extremely proud of.”

“We’d like to believe our contribution over the decades is a result of where the brand is today - be it from a business, financial and creative perspective,” she added.

A highlight of the KFC/BBDO relationship came when KFC became a RM1 billion company.

During BBDO’s tenure, the brand has sustained high levels of brand recall, and has won numerous creative awards at One Show and Cannes on the way to becoming a household name.

“We’re really looking forward to other exciting challenges on the road ahead,” Chan added. “I wish KFC the best and as on every journey, I truly believe our paths will cross again.” The ‘Finger lickin’ good’ brand celebrated its 35th anniversary in Malaysia this year, having opened its first restaurant in Kuala Lumpur in 1973.

The anniversary was marked by a RM3 million advertising burst that featured its new Colonel Chicken Rice combo. Since the 1970s the Malaysian-operated KFC Holdings has launched 480 outlets in Brunei, Singapore and Malaysia where it employs 14,000 staff.

KFC’s most recent launch was in Cambodia where it became the first Western fast-food chain to enter the country with a restaurant opening in Monivong Boulevard in Phnom Penh.

The brand has a marketing budget of US$1 million with which it will promote the six outlets planned to launch in the Kingdom this year (Media, 25 March).

While fast-food rivals such as McDonald’s and Burger King have struggled to establish themselves in much of Southeast Asia, KFC has flourished thanks to its strategy of adapting to local tastes.

Chicken is generally more popular than burger meat in the region, while KFC has localised to Asian tastes by including rice and spiced chicken on its menu.

News of the BBDO/KFC split in Malaysia follows seven months after BBDO relinquished control of the KFC business in Singapore, where the account is now also handled by McCann Erickson.

In Cambodia the business is awarded by project. Independent agencies Red Dot, BrandSolutions and Bassac Orchid have handled the launch marketing activity.