Kids may prefer to chow down McDonald's burgers in Singapore, but not Lynette Lee's four-year-daughter Chloe. It's KFC - especially its popcorn chicken - for Chloe because Mum says it's better.
Mum would since mum is the marketing director of KFC/Pizza Hut/Taco Bell in Singapore. While McDonald's is winning hands down as the choice of kids, KFC is allying itself with parents, promoting "wholesome meals" for the family. The gamble is that kids will go along with their parents' choice.
Which is why KFC's new Zinger chicken burger boasts a crispy yet nutritious positioning (sceptics claim they find the juxtaposition a tough line to swallow). KFC certainly needs the differentiation in a market where its arch rival has nearly twice as many outlets (130 to KFC's 70). And, Lee admits, a much bigger marketing budget that is probably in the same ratio, though she is loathed to reveal actual dollars and cents.
In Malaysia, however, the scenario is reversed. KFC has 300 outlets to McDonald's 100, and a proportionately bigger marketing budget to boot.
But KFC's Singapore operation is catching up since the Malaysian owner of the KFC/Pizza Hut/Taco Bell franchise took over the KFC business in Singapore last July.
Since then it has opened about five new stores, including the first Singaporean food outlet operated by the deaf. Located in a housing estate right next to a social centre, the outlet is based on a successful model of three similar KFC outlets in Malaysia. It's KFC's gesture of "giving back" to society.
"We still see KFC, being true to its name, as a fastfood joint. We are an American fastfood concept. We might adapt to local flavours, for example a local spicier sauce."
Lee is optimistic that KFC's Singapore operation will eventually catch up with its Malaysian business. "At least we're growing steadily," she notes. "Steadily" is perhaps a welcome change of pace from the fast track Lee embarked on since venturing into marketing in 1988. In that time she's moved from FMCG firms to fastfood before returning to the FMCG battlefield.
Her first job after graduating with a business administration degree in Singapore was with shoe care brand Nicholas Kiwi. Working with senior marketers who were strong in evaluating creative briefs made her realise the value of adding advertising agency experience to her resume.
So Lee joined Leo Burnett in 1991 as an account executive on McDonald's.
It turned out to be a steep and fast learning curve. A year later, Lee took off for Unilever, handling the marketing of Wall's ice-cream in a "saturated" market. "Everybody was fighting for space in the limited number of cabinets in a shop," she recounts. Despite the competition, Lee helped grow the business by 25 per cent year-on-year, and in the process, she strengthened her portfolio management skills. That led to her being headhunted by Effem Foods, which was about to add ice-cream to its range of products in Singapore, in addition to Mars, Snickers, Pedigrees and Whiskers.
In the fight for cabinet space, Lee sold the idea of "pick and mix" ice-cream to the 7-Eleven chain, resulting in sales growth of 300 per cent in six months, though from a small base. However that was not enough to sustain the high costs of importing its ice-cream from Europe. In 1997, Lee was headhunted to join KFC. "I thought (because) I had been in FMCG all my life, there's nothing I can't handle. I had a little fastfood experience, so I took on the (KFC) job. But fastfood is 10 times the pace of FMCG." The pace apparently suits her. "I guess it must be my cup of tea because I've been here since 1997," says the marketer, who also drives a fast car - a BMW 318 IS.
LEE: ON THE RECORD
US brand backlash: In Singapore, anti-American sentiment is not so rampant; as such, no real hostility to our brands here.
Singapore price war: The (Singapore and Malaysia) markets are very different. In Singapore I would say the price war is more intense than Malaysia; but our underlying principle is still the same, which is a complete wholesome meal for the family.
On the fast track: Things we did in three months (at Leo Burnett on the McDonald's account) were what others would do in a year because of the kind of campaigns they (McDonald's ran). With packaged food, you have two major campaigns a year. But here, it's like three campaigns in a month.
Career range: There's a trend of me moving around every two to three years. When you're young and restless, you're like, 'okay I've done this and I'm ready for something else'.
KFC expansion: Under the new boss, we have opened a number of new stores; three to five KFC stores and three Pizza Hut stores since July.