Fast food giant KFC plans to stay one step ahead of the competition in the coming year through product innovations and affordable pricing.
KFC’s MD Jamaludin Md Ali says that the fast food chain will keep its product lines fresh by having major launches every quarter as well as smaller promotions every month.
Hot Rods launched
Spending just over RM1 mln (US$285,000) on advertising and promotion, KFC recently launched Hot Rods – chunky boneless chicken skewered on a stick. This product is targeted at children and young teens just in time for the school holidays. Ali says that he expects sales to be boosted by 10% during the promotional period.
Challenges year ahead, staying positive
KFC in Malaysia sees 2009 to be a challenging year, but expects its 2008 sales volume to continue into 2009. “We’re challenged by the escalation in raw material prices. Furthermore, the government has forecast a slowdown next year.
Ali states that customers have not made fewer visits to KFC stores over the past 3 months. Infact, he said, business improved after petrol prices and electricity tariffs were raised.
“We had not increased our prices when fuel prices and electricity tariff were raised. As a result, consumers shifted from more expensive restaurants to ours,” he said.