KFC changes tack in Thai food battle

The three-year repositioning exercise - which includes an extensive refurbishment of its 300 outlets - is in response to a 12-month market survey conducted by Nielsen Media Research which found that consumers were looking at KFC for more than just fried chicken. "Our customers felt that KFC lacked ambience and the service element, said Sran Smutkochorn, senior director for the KFC brand. "They also want more variety, not just low prices."

Seventeen restaurants are being refurbished this year at a cost of 80 million baht. Outlets will be themed along the lines of jungle, ocean and space. While orders will still be taken at the counter, hostesses will help with seating and serving food. Both the lighting and decor will also be toned down.

KFC is supporting its relaunch with a thematic campaign by Ogilvy & Mather, comprising TVCs and print ads at bus shelters and the city's rail system. Translated in English as 'The Spice in your Life', the tagline in Thai "literally means happiness beyond the food - to the service, ambience, location that makes a total eating experience", said Sran. One TVC shows a man proposing to his girlfriend at the new premises, another has a father allowing his kids to make their own food choices.

Meanwhile, two rice dishes being promoted at a cost of 30 million baht to the end of September are adding a new dimension to its menu. "We want to increase the frequency of visits. You can eat a lot of fried chicken but you can't eat it all the time, so we want to offer other items."

Thailand's fried chicken market is worth an estimated 13.5 billion baht a year, with KFC's share at 45 per cent, Sran said. KFC is targeting full-year growth of 10 per cent to about five billion baht.