Advertising (Semester 1)

ACADEMIC PAPER

Of

ADVERTISING

Created By:

Adrianus Saputra

Ajeng Karina

Rahmi Siti Seyekti

Syafri Doini

Vanny Afrilia

The London School of Public Relation Jakarta

2006 / 2007

Advertising Of KFC

Profile of Yum Brands

Owner of KFC Corporation

While Taco Bell, Kentucky Fried Chicken, and Pizza Hut might not seem a natural fit, they are a winning combo for fast food conglomerate Yum! Brands. With more stores than McDonald's in 100 countries, Yum's corporate abuse has affected people on multiple levels of its operations from toy factory workers and farmers to store employees and managers. Yum! Brands and its fast food competitors strive to sell food cheaply, which comes at the expense of agricultural workers. The company's indifference to the poverty of growers and laborers led to a three-year boycott of Taco Bell headed by tomato farm workers from the Immokalee region of Florida. Under public pressure Taco Bell agreed to pay higher rates for tomatoes, modestly increasing the pay of nearly 1,000 workers who earn an average of $7,500 per year. This agreement, and the fact that minorities account for 43 percent of managers at Yum! Stores set important precedents but the company has the capacity to do more. Yum! Has been cited for sourcing toys from sweatshops, abusing labor standards in its stores and lacking transparency with regard to GMOs in its food.

Yum! Brands owns and franchises over 33,000 fast-food restaurants in more than 100 countries, including Taco Bell, KFC and Long John Silver's. In 2005 the company employed 272,000 people and reported revenues of $9.34 billion.

The US Securities and Exchange Commission filed two lawsuits against Yum Brands Inc. and subsidiary Taco bell Corp. for violating California’s wage and hour laws. The lawsuits were filed on behalf of current and former Taco Bell general managers employed from 2002 to the present, for unpaid overtime as well as meal and rest period violations. The lawsuits seek unspecified damages and penalties. Taco Bell denies liability in the cases.

Brands and Affiliates

Brands: Kentucky Fried Chicken, Long John Silver's, Pizza Hut, Taco Bell

Affiliates:
- KFC Corporation (Operating Division) - Louisville, KY
- Pizza Hut (UK) Ltd. - Borehamwood, United Kingdom
- Pizza Hut - Cumberland, MD
- Pizza Hut - Walkersville, MD
- Pizza Hut Cafe - Wichita, KS
- Pizza Hut Frederick - Frederick, MD
- Pizza Hut, Inc. - Dallas, TX
- Taco Bell Corp. - Irvine, CA
- Taco Bell Of California Inc. - Irvine, CA
- Taco Bell Royalty Company - Irvine, CA
- Taco Enterprises Inc. - Irvine, CA
- West Kentucky Fried Chickens - Charlotte Amalie, VI
- WMCR Co. L.L.C. - Alpena, MI
- YUM! Brands - Hagerstown, MD
- Yum! Restaurants International (Canada) LP - Vaughan, Canada
- Yum! Restaurants International - Dallas, TX

Competitors:

- Burger King
- Doctors Associates Inc. (Subway Restaurants)
- Mc Donald’s
- Wendy’s

Advertising Mascots - People

Colonel Sanders - Harland David Sanders (a.k.a. "Colonel Sanders") was a grandfatherly southern gentleman who opened what would be the first in a chain of Kentucky Fried Chicken restaurants in Corbin, Kentucky in 1932 in a lunchroom behind his gas station. In 1935 Kentucky Governor Rudy Laffoon so liked Sanders' food that he bestowed upon him the honorary title of a Kentucky Colonel. By 1937, Sander's Cafe seated 142 customers who often came for the Colonel's specially prepared southern fried chicken, which contained a "secret blend of eleven herbs and spices." His trademark formula (which the Colonel claimed could be found on everybody's kitchen shelves at home) became the most guarded one in history of advertising (outside of the Coca-Cola formula). In 1939, the Colonel's restaurant was listed in Duncan Hines (a renown food critic) guidebook Adventures in Good Eating. When a new interstate highway threatened to put Sander's chicken operation out of business, he sold his business. In 1952, using his monthly $105 social security check as his only capital, the Colonel traveled America making deals to sell his fried chicken on a franchise basis. Around the same time, the Colonel began to dress the part in his now famous white suit, black string tie and white goatee beard. On February 18, 1964 Sanders sold his franchised chicken business (more than 600 outlets in the United States and Canada) for $2 million to a group of investors but was retained on salary as spokesman for Kentucky Fried Chicken often appearing in television commercials. One such TV spot in the 1960s showed an angry housewife who kidnapped the Colonel, interrogated him in an abandoned warehouse and demanded he give up his secret recipe. Of course, he didn't. In 1975, Colonel Sanders was sued unsuccessfully for libel by Heublein Incorporated when he publicly referred to Kentucky Fried Chicken gravy as "sludge" and that it had a "wallpaper taste." He was being paid $250,000 a year to promote KFC chicken at the time. In 1976, an independent survey ranked the Colonel as the world's second most recognizable celebrity. When not representing KFC, the Colonel contributed money to a number of charities and community organization and at the age of eighty-seven, he testified against the mandatory retirement before a Select Subcommittee on Aging. Born September 9, 1890, Harland Sanders, died of leukemia on December 16, 1980 at the age of 90. He was buried in Louisville's Cave Hill Cemetery. His legacy has now been franchised worldwide to new generations who still find his chicken "Finger Lickin' Good." Heublein Incorporated, who purchased the Kentucky Fried Chicken franchise in 1971, sold the company to PepsiCo in October 1986 for approximately $840 million (later spun off as part of Yum! Brands in 2002).

KFC Franchise

In 1939, Colonel Harland Sanders first gave the world a taste of his most famous creation, Original Recipe® Kentucky Fried Chicken, featuring that secret blend of 11 herbs. In 1952, he signed up his first franchisee and thus began the legend that is KFC, the largest chicken fast-food empire in the world. Millions of people have come to love his one of a kind chicken, home-style side dishes and hot and fresh biscuits. Today, more than a billion of the Colonel's "finger lickin' good" chicken dinners are served annually. And not just in North America. The Colonel's cooking is available in more than 80 countries and territories around the world. And with Yum! Brands, you can bring one to YOUR city. KFC is just one brand owned by Yum! Brands, Inc. Yum! Brands also owns A&W All-American Food Restaurants, Long John Silvers, Pizza Hut and Taco Bell restaurants, and is the world's largest restaurant company in terms of system units with nearly 32,500 in more than 100 countries and territories.

Franchising with KFC and Yum! Brands

We believe there has never been a more exciting time to be a part of Yum! Brands and KFC! When we created Yum! Brands, we had the privilege of possessing a heritage of success established by the founders of KFC, Pizza Hut, Taco Bell, Long John Silvers, and A&W. Their leadership and innovation helped launch the quick service restaurant industry. The brands they created enjoy worldwide recognition and popularity. Yum! Brands is the biggest restaurant company in the world, and we are the worldwide leader in our product categories.

Multibranding and Markets of Opportunity

Yum! Brand, the leader in Multibranding, is looking for energetic new franchisees to share in our purpose and passion for Customer Mania by putting a Yum! On customers' faces around the world. You can leverage our foodservice and Multibranding experience to capitalize on market development opportunities.

Yum! Believes multibranding is the key to the future of the QSR business. Owning more than one brand allows you to "eliminate the veto vote" and give your consumers a "WOW" experience. Research shows that consumers prefer Multibranding restaurants six to one over single brands.

You become part of an organization with tremendous franchise support including advertising, business coaching, training, development and cooperative sourcing. We strive to work as "one system" because it's the best way to meet our customer's needs. You invest in us. We invest in you.

Advertising & Marketing

Yum! is committed to making KFC even bigger. Last year alone, Yum! And its franchisees spent more than $600 million in consumer advertising. National marketing news is communicated regularly throughout the year. Many markets have local advertising cooperatives to coordinate local marketing activity. Franchisees are encouraged, but not required, to participate in system promotions.

Unified Foodservice Purchasing Co-op, LLC (UFPC)

UFPC provides supply chain management services exclusively for all corporate and most franchise-owned A&W(r) All-American Food, KFC(r), Long John Silver's(r), Pizza Hut(r) and Taco Bell(r) outlets in the United States. Since March 1999 UFPC has saved Yum! More than $539.6 million by negotiating costs, making volume purchase commitments and assuming other procurement functions and risks that reduce suppliers' costs.

KFC burger advertisement banned

A TV adverts for fast food chain KFC has been banned for misleading people about the size of a burger.

The Advertising Standards Authority (ASA) upheld five complaints that the chicken fillet was larger in the TV commercial than in real-life.

It found the advertised bun was thicker than those it bought in a London outlet and that there was "more filling and the lettuce was a different type".

KFC said the advert burgers were within the "standard range of dimensions".

It suggested the women in the advert may have had small hands - thus making the burger appear bigger - and that the name of the burger indicated it was smaller than other burgers.

Size and presentation

In the advert in question, groups of people are eating KFC's Mini Fillet chicken burgers at a railway station.

"Advertisers are permitted to present their products in a favorable light but not in a way likely to mislead viewers," said the ASA.

"Even though the product was called a mini chicken fillet burger, we do not think this was sufficient to alert consumers to the fact the product was smaller than appeared in the advertisement."

KFC is owned by US fast-food conglomerate Yum Brands, which also owns Pizza Hut and Taco Bell.

Standardized Building Plans/Yum! Development Services

Yum provides franchisees with standardized building plans for all endorsed brand combinations, including typical site layouts, exterior and interior facility design, architectural specifications, standard equipment schedules, equipment cut sheets, and cost baselines.