At the conference, KFC KOREA revealed its ambition to raise customer’s long-term royalty toward the brand by store remodeling, opening new stores, and hiring additional employees with concentrating on expanding customers and raising brand value. In this year, it will additionally open about 30 new stores and remodeling stores, and provide the best taste and service to customers by increasing more than 10% of employee recruitment.
Lee Jin-mu, Representative of KFC KOREA, said, “We are trying to make more customers meet our foods. And maximization of ‘cost-effectiveness’ is the solution of the way to achieve our goals. So far, the price policy was set to only limited customers, so there were some limitations to company sales and growth. We now changed the policy to let various customers enjoy KFC products.” And, “Finding the reasonable price and value that customers think is the key point of cost-effectiveness maximization strategy.”
▲ Lee Jin-mu, Representative of KFC KOREA
▲ Maximization of cost-effectiveness is the starting point of a three-year plan that KFC KOREA pushes forward.
Based on sales maximization and brand strengthening plan established in a three-year unit, KFC KOREA revealed its goal to take a leap to the most-loved brand among more customers by being faithful as a global no. 1 chicken specialized brand and expanding customer value.
In long-running economic recession, by providing rich and high quality menu with reasonable price, it will raise customer satisfaction and expand customer group of KFC KOREA. Especially, it has a plan to differentiate from other fast-food companies by fixing ‘KFC Magicbox,’ which is an issue in that, of course high cost-effectiveness, it is possible to enjoy burger and chicken at the same time, to menu.
‘KFC Magicbox,’ newly launched on July 1, showed the best cost-effectiveness as it is possible to buy five menus with 4,900won. It is sold about a million from the product’s launch, and it shows tangible results such as increasing about 15% of sales of the same time the year before and 20% of the number of customers.
After the price reduction of about 29% of the price of ‘New Colonel Burger’ from 1400won to 1000won during IMF in 1998, KFC KOREA caught customers’ steps by reducing prices of main products such as chicken and burgers in July, 2016, which is the first time in 18 years.
Especially, even though it reduced the price, it provides unchanged high quality menu according to the quality management program of the global dining company YUM, so it creates a great sensation from customers.
In addition, by following the trend of gradually expanding delivery market, it is planning to expand currently 60 delivery service stores for providing the same service to the customers who cannot visit the store. Also, it will expand up to 50 KFC Chicken and Beer stores where customers can enjoy both chicken and beer.
▲ KFC Magicbox aims for ‘box meal’ concept, different from the original single dish and set menu.
▲ Considering the distinct characteristic that KFC cooks directly at the store, it will reinforce employee recruitment, education, and etc.
▲ Representative Lee Jin-mu, Vice-president Kim Hyeong-eop, Business Director Hwang In-seok, and Marketing Chief Park Hyeong-yeol had question and answer session.