nobody’s unpredictable consolidated report: value understanding ecuador, el salvador and jamaica...

Nobody’s Unpredictable

Consolidated Report: Value UnderstandingEcuador, El Salvador and Jamaica

Buenos Aires, January 2009


Introduction

134408 Promociones Segmento Teen.

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Introducción

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A tough economic environment is foreseen for the next years in the CaribLA region and around the

world. Several developed markets around the world have already shown signs of an economy in

recession. We expect that the effects of this economic slow down get stronger in the next months in our

region. As for our industry, several of our competitors have been strengthening their “value menu” or are

already positioned in the “value” or low price QSR. KFC needs to understand the current situation of this

consumer who is more price sensitive and develop a consumer based value strategy. The strategic

framework to understand and propose a value platform should be based on the YRI Insight model,

where consumers use brands as jobs (further explanation will be provided on the model). .


Objectives


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Overall Objectives

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Develop a list specific insight related to specific jobs (YRI model) that could serve as communication

insights for future value campaigns. As well as a base of consumer knowledge that help us build a Value

consumer platform.


Methodology and Sample


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Methodology and sample

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The study was carried out on the basis of 12 (twelve) prolonged duration focus groups (4 per country), segmened as follows:

All groups were moderated and analyzed by a team of experts who specialize in qualitative research techniques. All groups were accessible for observation from a one way viewing room provided for that end. Focus group dates: From January 12th through January 27th, 2009

# Country Gender Age Characteristics Others Characteristics SEL

1

Quito, Ecuador

Women 20-25High Users of QSR, Heavy

users of KFC No kids

Medium2 Men 20-25

3Moms 30-40

Heavy Users of QSR, Heavy

users of KFC

with at least one kid no older than 13 years old4

5

Kingston, Jamaica


users of KFC No kids

Medium6 Men 20-25

7Moms 30-40


users of KFC

with at least one kid no older than 13 years old8

9

San Salvador, El Salvador


users of KFC No Kids

Medium10 Men 20-25

11Moms 30-40


users of KFC

with at least one kid no older than 13 years old

12


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Methodology and Sample

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Additionally, 2 (two) focus groups were added in Jamaica

Group Sex Age SEL Characteristics Country

1

Male 35 -55 DLight consumers (last 3 months) /

Ex KFC heavy consumers (6 months)Kingston, Jamaica

2


Main Learnings


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Main Learnings

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• In terms of the global economic crisis context, we detected that the concerns in El Salvador and Jamaica have to do with the local crisis situation which they have been perceiving across time with the price increases and salaries which, in comparison, have increasingly lost their purchasing power.

• In this sense, people have adopted an attitude of compensation and savings, removing from their food expenses those products that they perceive as “luxury” items.

• Within this scenario, the elements that collaborate in sustaining the bond with the fast food category are the discount coupons and the combos for sharing these are allies that aid them to continue consuming and which alleviate their sense of loss.

• In this sense, every action that is made in the line of proposals to alleviate the crisis must be clearly consolidated as an ally, that allows them not to lose / gives new meaning to something that was part of their normal pre-crisis life. Inversely, the reduction in the portions of food served is felt as a real loss and generates hostility.

• The crisis situation presents an opportunity for KFC not only because its actions would work from a tactical point of view but also from a strategic viewpoint given that the brand has the opportunity to consolidate itself as an ally.

• At present, the KFC brand is highly valued, In Ecuador, in particular, the image held of the brand is of high international prestige – given the brand’s origin – in addition to the value assigned at a local level for the work it does on the menu. This brings the brand closer to the consumer, not only in terms of accessibility and tradition, but because it shows a clear and close bond with the consumer.

• From this perspective, a consolidated and conclusive value equation emerges: quality – satisfactory size – price in line with the other two. This is an aspect that also emerges in Jamaica and El Salvador though not with the same emphasis.


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Main Learnings

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• In Jamaica and El Salvador, within the context of the reigning crisis, in one segment the brand appears to have lost some value. This is reflected on certain doubts regarding: quality (raw chicken) – inadequate size – high price. The sensation of losing purchasing power in addition to a brand that is not perceived as an ally during tough times, translate into the brand’s loss of value and its becoming the target of the hostility generated by the sense of the possible loss of the category.

• On the other hand, the need for the brand to update itself emerges as relevant because, even though it does not show grave brand related weaknesses, it does lack traits to generate greater appeal and involvement.

• In this sense, to succeed in lowering the brand’s functionality aspect and enriching it with emotionality and closeness appears to be an interesting route to growth.


Analysis of the Results


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In the Context of the World Crisis

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OPINION

At present, the global crisis appears to not have a correlation with the local one.

Nevertheless, it does generate sensations of uncertainty and fear of having to renounce or limit their consumption habits as well as fears related to the economic difficulties they may have to face

CURRENT SITUATION

Prices have not changed

In general consider that, up

to now, it has only affected the

USA

Hold that the crisis has still not

reached the country

They don’t feel it has affected

them up to now

Some believe that it could

come at some point during the

year

FEARS

SENSATIONS

PERCEPTION

With certain attitudes that oscillate between: Tranquility, serenity inasmuch as they still don’t

perceive the effects of the crisis. Cautious and attentive to when it comes. Precaution once it is felt: in terms of savings as

well as reduction of purchases of everything that is not considered a basic need.

Consumption habits

continue being the same

Others have the sensation that it

is more of a threat: which is

announced every year but never

happens


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In El Salvador as well as in Jamaica, the perception is of a local economic crisis:

“We are undergoing a difficult economic situation.”

An aspect which is perceived through the price hikes and the sensation that their

purchasing power is increasingly lessened.

In this sense, they attempt to counteract these effects by taking on an active attitude.

“Prioritize expenses.”


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In this context, the strategies used to resolve the problem:

Mothers Young

Caution with the household budget.

• Go to the basics

“You stop buying some things, soft drinks, treats.”

• Lower relevance of brands

“You choose the cheapest, even if it is not a good brand.”

• Seek to save or to suppress the expense of non essential items (clothing, shoes)

Aim at optimizing expenses so as not to have to generate big

changes in their habits.

“Cheaper.”

“look for promotions / offers.”

Ways of compensating within their housewife role – efficient home manager.

To be able to keep the categories that identify them arise as a

relevant aspect.

Intelligent shopper


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Therefore,

Where does the room for opportunity emerge in this context of concrete or

possible crisis?

Aid them to sustain consumption through:

• Variety of options / promotions

• New proposals Don’t remain static / offer more tempting alternatives.

Without denying the crisis context, provide a fun /recreational / pleasant space a place to meet up with / share with loved ones.

To become an oasis that is accessible.


The Restaurant Category


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The Reference framework: The Restaurant Category

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In all of the countries under study, the activity …

Implies a subjective context in which entails the following sensations:

The restaurant consolidates itself as a place in which self gratification is promoted.

Eating away from home / restaurants

“Tranquility.” “Union.” “Joy.” “Distraction.”

Elements which translate into a pleasurable experience


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It is a place that is …

From two points of view

Gratifying in itself

To be able to share / enjoy with others (peers, friends ,

family)

To be able to satisfy their own individual desire

“you have options, variety.”

It is a space that facilitates the sharing / gathering in that the

customers are serviced / attended to.

The possibility of choosing between different menu

alternatives is something that brings pleasure in addition to an added value that gives them …

“A different flavor from the food you eat at home.”


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Eating at restaurants also implies:

An aspect that emerges with great emphasis among the mother segment as, for them, it implies an added

value of enjoyment because …

“I don’t have to cook.”“I take a break from cooking, washing up”

The restaurant offers the housewife a role exchange, given that the restaurant takes up the role of giver and allows the housewife

to place herself in a position of receiver gratifying and pleasurable

“To be attended to.”

Breaking away from the routine


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On the other hand, in addition to the subjective implications already mentioned and, with greater emphasis in the male segment and in Jamaica, in general:

Emerges as a highly relevant issue

“One has to feel full.”

This is a demand that implies an infantile position and which is manifested rationally as:

“I can pay for it if the amount makes it worth it.”

To fully satisfy hunger

As a basic and primary issue “To feel satisfied.”


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Consumption Occasions

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Regarding consumption occasions, we detected gender related differences:

Women Men

Higher preponderance of situations in which the emphasis is placed on the nucleus / the

affective bond

• To celebrate

• To compensate the kids

• Weekend union

• After church (El Salvador)

• When they don’t feel like cooking / didn’t have the time

• To go out with friends

Accent is placed on social / group.

Preponderance of situations in which the category functions as a solution

• When there is no time

• Being far away from home

• To satisfy appetite

• To study with a group

• When living alone

Or else …

• To relax

Greater accent is placed on the individual / functional.


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The Choice

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As a tendency, in all countries:

The choice of restaurant has to do with the type of food desired

Availability of money

“The cost.”

An aspect which, in one segment in El Salvador…

“We look for family promotions.”

“The refill option” (Male segment)

Moment / Situation / Company

“Depends on who you are going with”“if you go without the kids, you go to

a more peaceful place.”“When it rains, we prefer to go to a

totally closed place.”

Which may be places for normal or special occasions.

One segment points out:

“The service.” ; “That it is not too full.” (Mother segment, El Salvador)


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The Choice

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In Summary:

• The Restaurant Category presents a relevant imagery in that it is the creator / facilitator of very attractive emotional / gratifying context.

• Predominantly in the male segment, we detected a more basic / primary bond in which physical satisfaction (feeling full) is emphasized.


The Subcategory: Fast Food


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The Fast Food Restaurant Category

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In all segments, at its very essence, the category is associated with:

“Fast.” “Easy.”“If I am late and have to

get going quickly.”

Associations linked to speed and time savings lie on the basis possibility of satisfying hunger in short time

But, at the same time, other aspects are highlighted as well, particularly in Ecuador

“Enjoyment.” “Fun.” “Cozy environment.” “Friendliness.”

These are relevant emotional aspects that are, however, detected rather weakly in Jamaica and El Salvador

OPPORTUNITY

Strong functional

basis


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Then, another strong aspect emerges…

• Which allows for the relationship to be sustained beyond some of the rational aspects presented by one female segment in El Salvador

“Fattening”“Junk food.”

• To counteract this, in Ecuador, mentions are made regarding the food being:

“healthy.”“Safe.”

The appetite appeal“I like it a lot.”

Aspects which are reinforced by the light / healthy alternatives offered: “The salads.”


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In this sense, the fast food restaurants offer a suitable environment in sync with restaurants with an added value that

has to do with accessibility and a sensation of relaxation.

“It doesn’t matter if you’re not dressed up, you can’t go to an expensive restaurant like this.”


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As elements that stand out in the category, the following arise:

“Variety.”

“Innovation.”

“Promotions.”

“Accessible prices.”

“With amusement / games for children.”

(Mother seg)

“Good service.”


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Therefore, in some sense …

Are seen as a pleasurable place where the customer does not feel questioned / observed

It consolidates itself in their mind as an own space – almost like home – but with an attractive added value:

• It resolves the food issue

• Offers attention

• Does not demand extra effort

Within a framework of: Hygiene – Cleanliness – Saftey

Fast Food restaurants


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Questioned Aspects – El Salvador

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Preponderantly in El Salvador, the following aspects of the category are questioned:

“Uncomfortable chairs”

“The size has been reduced and the price has increased”

“The quality has diminished”

“Not all have a place in the bathroom to change baby

diapers.” (Mother segment)

In detriment of the pleasure and enjoyment of the context / environment.

Places the finger on the pain related to a sense of loss

The appetite appeal aspect is weakened

Its role as an ally to mothers is weakened.


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Specific Occasions in which Fast Food restaurants are visited

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Even though there is consensus in visiting these restaurants most often on weekends, differences do emerge depending on the segments, namely:

Prep. Female segment Prep. Male segment

Prize:

“When the kids have gotten good grades.”

“When I want to give myself a treat.”

“Gatherings with friends.”

“Birthdays.”

“When there is no time.”

“At work.”

“Studying at night.”

Relaxed and enjoyable environment which is perceived as highly gratifying

“In a restaurant, the kids don’t eat and neither do we.”

Strongly functional ally.

Felt as a resolution.


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Specific Occasions in which Fast Food restaurants are visited

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In the mother’s segment,

Fast food restaurants are perceived as strong allies in their maternal role

Giving their children gratification

“The kids go to have fun, they enjoy themselves, they like it.”

“I don’t like going to a place where they are just sitting down there

bored”

To feel gratified

“For the tranquility of both, they play and let us eat in peace.”

A space which stands as an ally for relaxation/ a relaxed moment.It offers a space for their children’s

entertainment which translates into maternal enjoyment.


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The Economic Situation and its Effect on theRelationship

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In both Jamaica and El Salvador, mentions are made regarding:

“The prices have gone up.”

The price hike they perceive weakens the bond.

“We used to go four times a week, now we go only twice a week.”

Even though, particularly in El Salvador, the following strategies are used:

“We look for the ecocombos or a bigger sized combo and refill and we share”

• To share and save on those things that are seen as more superfluous / not basic

• The coupons are important allies.

“I don’t buy the toys.”

“Combos for more people.”

“Use the discount coupons.”


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The Economic Situation and its Effect on theRelationship

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In this sense, the following emerges as interesting routes to approach …

Work on proposals that allow for the relationship with the category to be sustained based on:

In order to promote the image of the brand as an ally which understands the consumer and

gives him/ her the opportunity to gratify him/herself.

• Discount coupons

• Special promotions

In a context that allows for sharing.


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Summary of the Category

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In all countries, fast food restaurants combine:

FUNCTIONALITY AND EMOTIONALITY

Economic accessibility Restaurants in generalVS.

Aspects which make frequent visits possible

While, at the same time:

Prep. Male Seg.

Value the convenience and capacity to “fill themselves up”

Prep. Mothers Seg.

Value them as a space for their own and their children’s

enjoyment.

In a relaxed / undemanding context

“you can go dressed as you wish.”


KFC’s Image

http://images.google.com.sv/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/b/bf/KFC_logo.svg/300px-KFC_logo.svg.png&imgrefurl=http://www.bestsyndication.net/forum/viewtopic.php%3Ft%3D5846&usg=__8kJs2lj1u8qO3P7jjNrYF95CDak=&h=300&w=300&sz=38&hl=es&start=2&um=1&tbnid=5TlZpNZ0oufJDM:&tbnh=116&tbnw=116&prev=/images%3Fq%3D%2522KFC%2Blogo%2522%26um%3D1%26hl%3Des%26lr%3D%26sa%3DN


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KFC Image

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In all countries,

It emerges as a clear reference of the fast food category

“KFC is the first one that pops into my mind.” (Jamaica)

Prep. in Ecuador the inclusion of some “typical national foods” is valued.

With a clear tradition and long standing presence in the local market (prep. Jamaica and Ecuador):

“it is a tradition.”

“It’s a company that has been around for years and who doesn’t like to go to KFC.”

http://images.google.com.sv/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/thumb/b/bf/KFC_logo.svg/300px-KFC_logo.svg.png&imgrefurl=http://www.bestsyndication.net/forum/viewtopic.php%3Ft%3D5846&usg=__8kJs2lj1u8qO3P7jjNrYF95CDak=&h=300&w=300&sz=38&hl=es&start=2&um=1&tbnid=5TlZpNZ0oufJDM:&tbnh=116&tbnw=116&prev=/images%3Fq%3D%2522KFC%2Blogo%2522%26um%3D1%26hl%3Des%26lr%3D%26sa%3DN


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KFC Image

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Another essential attribute which is also pointed out is:

From which the following attractive elements emerge:

From these multiple aspects, the brand image that emerges is that of a brand that engages / involves.

“It’s a prestigious brand / a good brand.”

“Trustworthy” “Safety.” “Unique flavor.”

In addition, the mother’s and the women’s segments point out relevant emotional benefits:

“feels comfortable” “Cozy.” “The family environment.”


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KFC Image

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In this context, preponderantly in Ecuador, we detected …

Consolidates a close bond with the consumer which is reinforced through the perception of a proactive brand

which seeks to satisfy its consumers and this translates into a value equation:

• Increasingly higher quality services

• In the context of an accessible price

Offers healthy and varied products with a unique

flavor.

Typical national dishes and economical

Its tradition in the market

A close relationship


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KFC Image

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On the other hand, the tendency in Ecuador and, partially, in Jamaica and El Salvador, highlight is placed on:

“Economical products.” “Variety of promotions.”

Which work on closeness / accessibility due to price; a aspect which, added to the size of the portions …

Facilitate consumption for a large group

Makes sharing possible and, thus, make the brand an ally of the gregarious spirit and the need for saving


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KFC Image

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Then, in El Salvador (more partially) and with greater emphasis in, the following issues are brought up:

“I don’t think I am given the amount I am paying for.”

“KFC is expensive if you really want a full meal.”

We detected a clear sensation of loss which does not help them to escape the local reality /

economic crisis

In this segment, recuperating value is possible through the offer of proposals that collaborate to build the brand’s image as an ally In economic

as well as emotional terms.

It is important for the loss not to see itself reflected on reduced amounts

of the product.

Special discounts?

Coupons?

The sensation of possible loss of

the category generates hostility.


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KFC Image

42

At the same time …

Work on routes that make KFC a brand that is an ally

Not only as a tactical measure to help it maintain volume,

But also so that it…

results in a strategic opportunity for building brand values

CLOSE – UNDERSTANDS – STANDS BY YOU – CONTAINS


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KFC Image

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Therefore,

Partial:

The value equation …

Partial (More isolated)

• Satisfactory quality and portions

• Suitable price

• Low satisfaction due to portions

• High price

• With some sensations of low satisfaction aspects

“the chicken is raw.”


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KFC Image

44

In this context, an interesting aspect to be worked on arises:

Mothers Segment

Proposals that appeal to the gregarious spirit

• Groups of students

• Groups of friends

With emphasis on the possibility of sharing as a functional – emotional

benefit

Young Segment

Proposals that continue to strengthen the ally role

• Accessible amusement for children

• Proposals for mothers

Emphasis on the family.


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The D SEL Segment Jamaica

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A specific analysis was carried out with the D SEL segment of ex heavy consumers in Jamaica. We detected…:

Clear valorization of the KFC brand

“I love the taste, the seasoning, it’s always wonderful.”

The concrete obstacle they find is the reduction of their purchasing power

“if I have money, I spend it on KFC.”

• This lack of access is felt as the customer’s eroded power.

• KFC’s image has not been eroded


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KFC Personality

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Personality

“ The coronel.”

“Adult 50 – 60 yrs old.”

“Polite, courteous.”

“Clean, pulchritude.”

“Traditional.”

“Attentive.”

“Does not discriminate based on class.”

Ecuador:

“Gringo but has Ecuadorian habits.”

Presents clear values though it lacks aspects that would lend it dynamism – modernity.

They make explicit some desired optimizations:

“it needs to be more extroverted, expressive, creative.”


Thank You!!!!!

Buenos Aires, Enero de 2009

nobody’s unpredictable consolidated report: value understanding ecuador, el salvador and jamaica...

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