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KFC’s music and sports strategy for Indonesia

In Indonesia, KFC is not just known for its fried chicken, it is also synonymous with music and sporting events, said Vipul Chawla, vice president & chief marketing officer for Yum! Asia Franchise, the parent company of KFC.

Chawla tells Marketing Events that KFC Indonesia is the biggest restaurant brand across sectors in Indonesia, with a 60% market share. Also, with over 450 stores it has the highest awareness and penetration levels of any Quick Service Restaurant (QSR) brand in Indonesia, he adds.

Earlier this year, in a Bloomberg article, Yum! Asia Franchise, also the parent company of Pizza Hut and Taco Bell dining chains, was faced with protectionist measures by the Indonesian government to protect small businesses. Other fast-food companies were also faced with these measures. The plan was to limit restaurant franchise holders to operate 250 outlets in Indonesia over the next five years.

This only raises competition in the saturated fast food industry, putting the onus on these fast food brands to stand out.

Chawla said that KFC associates itself with themes such music, sports and the environment for its events. KFC hosts a variety of activities in music and sports, drawing consumers into its stores to enjoy music or football.

For example, it hosts several music and sporting events, including “meet and greet” artist sessions held in various KFC branches in Indonesia in the month of October, at least twice a month to promote the albums of leading artists on the “KFC Music Hit List.”

“Given that we have large, prime locations serving a variety of food and beverages through a large part of the day or even the night, we find it useful to use our locations as the venue for events that our consumers in the neighbourhood find exciting,” Chawla added.

For its sporting events, it also hosts a “KFC Bike Sport” twice a week in various KFC branches in Indonesia.

Chawla said that this helps it target audiences who are teens and young adults “who value an authentic experience, be it in food or lifestyle.”

Its music concerts held in key stores with leading artists who are part of the KFC music hit list label/program have been “extremely successful in building traffic in store and also in building the image of KFC as a lifestyle brand,” adds Chawla.

The brand has also witnessed a healthy portion of sales coming from its music combos, which is the brand’s unique package that bundles a KFC meal with music CDs from various artistes, though he declines to reveal figures.

For its sports focused concerts, the Nonton Bareng have succeeded in drawing thousands of people to its KFC stores late in the night to watch televised football matches, sealing KFC as a late night destination, especially during the football season.

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