Published on March 9, 2014
Consumers‟ response towards the advertisement of KFC Halifax 1|Page
Abstract: This study is about the advertisement and consumers‟ response towards the advertisement of fast food products. The quantitative approach of the research is used to do this project. The surveys has done to get data from the customers of KFC Halifax as KFC Halifax is being chosen as the case study for this research of people‟s response. The quantitative methodology helped to get the answers of people, this is the most appropriate for the survey strategy of gathering data. 150 survey questionnaires distributed to the customers at KFC. This was done in December 2013. The number of responses is lower than expected; it took a great effort to reach the number of 150. Having this in mind that people will answer difficulty, the form made for research is quite short but still it took a great time to complete the objective. There are 20 questions in the survey and participants have to choose the right answer according to them. A pilot testing project is also conducted to get the survey form right. The key findings of this project are: The radio campaign is not successful. TV campaign is the most successful campaign of KFC according to this study, but still 43.3% of the people are satisfies with it. TV is the most convenient way to reach the customers.Billboards advertisement is not going good as well. The results of internet viewers are also not well enough. The urge to buy products from KFC after watching advertisement is increased. A large number of people are using social media. Random visitors are the biggest potion of customers at KFC. The new customers are increasing at KFC. The advertisement attracting youth are more sufficient. Old people are the least buyers at KFC. Female customers are more than male customers. These are some findings of the research done. The recommendations made on the basis of findings. There are some drawbacks in the study as well. They are clearly stated out as well and future recommendations are made to deal with these. 2|Page
Table of contents: i. Title Page ii. Dedication iii. Abstract iv. Table of Contents v. List of Tables vi. List of Figures Substantive chapters: 1. Introduction and Context 2. Literature Review 3. Methodology 4. Data Findings and Analysis 5. Summary and Conclusions 6. References 3|Page
List of Tables: Table. 1 Age Table Table. 2 Analysis 1 Table. 3 Analysis 2 Table. 4 Analysis 3 Table. 5 Analysis 4 Table. 6 Analysis 5 4|Page
List of Figures: Fig. 1 Growth of KFC Fig. 2 Ratio of Gender Participants Fig. 3 New and Permanent Customers 5|Page
Introduction: Cross-Channel advertisements are very increased in recent times. There are lots of ways to reach to customers these days. In past time there was advertisement with newspapers or word of mouth or on radio and TV. TV advertisement is not a very old thing but now-a-days after the internet revaluation the whole world of business is changed. The internet is also used for advertising the products these days. “Industry reports have shown that main broadcast channels still garner the greatest share of advertising revenue, but many companies have started to allocate a larger portion to search-engine marketing (ZenithOptimedia, 2013).” This study is about the response of the customers on different advertising media. The response of the customers to the campaigns done by the organizations to sell their products will be analysed and survey will be done for that. The quantitative approach will be used to do this research and survey approach will be used to gather the data. The reason to choose this approach was because this was most appropriate approach to fit with quantitative research. The surveys will be conducted from 150 individuals and the result will be analysed after that. This will give the view point of people about KFC‟s advertisement. This will also show the impact of advertisement on buying of people. The segment will also show the percentage of people buying on KFC. As described above the organization used for this study was Kentucky Fried Chicken (KFC). The brief intro about the organization is given below. This will help to get the better understanding about the organization and their aims and objectives. This will also show the continuous progress of KFC in UK. Basically, this will give the necessary information about KFC. Kentucky Fried Chicken (KFC) is a restaurant chain based in Louisville, Kentucky, United States. The owner of KFC was Yum! Brand incorporation. Yum is a corporation that operates or issues licenses to Taco Bell, Pizza Hut, KFC Long John Silver‟s and A&W restaurants in worldwide. The founder of KFC named Colonel Harland Sanders, who was born on 9th September, 1890. When the Colonel was six, his father died and his mother forced him to go for 6|Page
work, he had to take care of his three years old brother and baby sister. He had to cook a lot for his family and by the age of seven, he was expert in several regional dishes. Colonel Harland Sanders founded the company as Kentucky Fried Chicken in 1952. He began actively franchising his chicken business when he reached the age of 65, and now currently KFC had become the largest quick service food service system in the world. More than one billion of the Colonels “finger licking good” chicken dinner is served every year and it is not only in America but also in more than 80 countries and territories around the world. KFC is a major competitor in the fast food industry and known for its fried chicken and other fast food offerings. It is interesting to mention that first fried chicken was offered in 1930 in the midst of Great depression at a gas station (KFC, online). KFC is a well-known restaurant and according to their annual report 2012 it has been rated as 60th well-known brand of the world. KFC is not only famous in North America but also very popular in Australia, New Zealand, Puerto Rico and China, and now has become the most popular fast food chain of the world. KFC is a brand of Yum Restaurant International (YRI) with more than 12,500 restaurants in 110 countries and different regions of the world. YRI‟s operational profit in the end of 2012 was more than $528 million and opened 928 new restaurants across six countries in 2012 (KFC, 2012). KFC came in UK in 1965 and the first store of KFC UK was opened in Preston (KFC, 2013). After that the franchises were increasing speedily in all over the UK. There are 800 KFC restaurants in UK right now and many are ready to open (KFC, 2013). KFC is doing a trial for Halal food products and that makes KFC different from his rivals and gives KFC a competitive advantage. KFC worked with Halal Food Authority (HFA) and got a license for halal food products in some stores (KFC, 2013). The Important competitors of KFC in UK are Subway, Burger King and McDonald, but there is a difference that KFC is focusing on chicken products. This is one more competitive advantage; KFC is getting in UK (The Marketing Society, 2012). KFC was going down in 2005; a very in-depth study was done to tackle with the challenge. “A fresh business strategy, rigorously implemented through all aspects of marketing, 7|Page
transformed the KFC brand from sharp decline to category-beating growth” (The Marketing Society, 2012). They changed the colonel logo of KFC as well. After the new strategy implemented, KFC did a marvelous progress and became the famous outlet of high street. The year-on-year growth for 2006 was 30%. The figure below is showing the progress of KFC after new strategy: Fig. 1 Growth of KFC This figure from a case study of The Marketing Society (2012), shows that KFC started to grow again in 2006. Right now KFC is one of the most famous fast food brands of UK. 8|Page
Literature Review: Research Objectives: Following are specific research objectives To critically examine the impact of advertisements of different media on KFC Halifax store‟s customers To vitally observe the impact of internet advertisings, commercial advertisings, and print media advertisings on KFC Halifax store‟s customers regarding different segments including gender, age, permanent customers etc. To make recommendations to the company as to how effective utilization of internet advertisings, commercial advertisings, and print media advertisings can leave positive effect on mind of its customers The specific research question to make a research strategy to reach these objectives could be: 1) Which type of advertising media of a KFC store in Halifax are people aware of? 2) Which type of advertising are customers in Halifax are more likely to respond to? 3) Is age, a factor affecting response to advertising for KFC in Halifax? 4) Is gender, a factor affecting response to advertising for KFC in Halifax? 5) Are there any other factors affecting response to advertising for KFC in Halifax? Background: Advertising is one of the most important aspects of marketing or promotion. Marketing on the whole have many tasks to accomplish and advertising is one of it. (Shah & D‟Souza, 2009). The subject marketing is too vast to write about in this small project. Advertising is being selected and impacts of it will be analyzed after the research. 9|Page
According to Vilanilam and Varghese, ( 2004), advertising is an organized way to sell the products or goods by giving information of them to the people with different sources. The word „advertising‟ came from Latin and it means „to attract attention to‟. This helps to understand the meaning and aim of advertising. According to Shah and D‟Souza (2009), “any paid form of non-personal presentation and promotion of ideas or products by an identified sponsor is called advertisement.” If this general definition is analyzed the characteristics will be that advertisement is always paid content, „non-personal‟ comes to the point that it is not about any personalized or individually presented, „Promotion‟ is indicated to the fact that promotion is the aim and objective of advertisement and lastly, „Identified Sponsor‟ again identifies that it is not personal, it will be about some brand about which the promotion is being done. The objectives of advertisement are „inform, Persuade, Remind and Reinforce‟. To understand it better; inform is to let the people know about the product, Persuade is induce people to buy, old products are reminded back and last is reinforce, in this current customers are convinced that they have chosen the right thing. The advantages of advertisement are informs, persuades, remind and reinforce mass audience about a product and builds the identity of a brand. On the other hand, the disadvantages are, it is very expensive and it is within cluttered media with a high noise level (Shah & D‟Souza. 2009). According to Kumar (2011) some other advantages of advertisements in customer‟s context could be: These advertisements update the customers about the quality of the product and price as well. In most of the advertisements the prices of products are already announced, that‟s why there is not any chance for consumers to be over charged. If the customers will be attracted to the different brands by the advertisement. This will increase the competition between different organizations and they will try to make their products better to convince the buyer. Advertisements help the customers to save their important time. They will directly buy the product because they knew the quality and features of the product and price as well. They knew that they can afford it or nor before going shopping. 10 | P a g e
This helps to increase the standard of living in people. It continuously provides information about the new designs of the cargos to customers and thus customers use those products and increase their living standard. The promotional needs in the world are increasing day-by-day. According to the study done by Shah & D‟Souza (2009) there is increase in the advertising budget of the whole world with the ratio of approx. 5% every year. There is different type of media being used for advertisement. According to Hackley (2005) the advertising messages could be spread with different methods; radio, T.V, social media, billboards, printed pens and other promotional thing, loud hailers and public transport could be used as well for promotion. Tellis (2004) described that print advertising such as leaflets, magazine and newspaper ads are another way to advertise specific product to particular audience, and it also includes larger display ads. Moreover, Grier et al. (2007) explained that advertising for fast food using all types of media including print, online, billboards, radio, newspapers and store promotions. As compared to the traditional means of advertisement, online advertisement is more attractive. Internet advertisement didn‟t even exist some 20 years before but now it is most important aspect of advertisement (Hua et al, 2011). Online advertisement is becoming more popular in this age of internet and it attracts consumers of almost every age and gender but young people are more likely to attract (Tellis, 2004). Almost all big fast food companies are advertising online, especially on social media websites. Glenday (2012) claims that KFC online advertisement especially on social media like Facebook, Twitter and also on YouTube is running successfully and proved useful to attract and connect with customers. KFC have 830,000 fans on its page on Facebook. KFC is also using paid advertisement on Facebook for promotion of its products. This is one example of using social media by KFC for advertisement. KFC is using all available media for promotion. They are doing a multimillion campaign which includes, online, TV, radio, billboards and print media. Cartere (2009) described that although there have been a lot of other new media for advertising in current era but TV advertising remains the most visible and significant 11 | P a g e
form of advertising. The advantages and disadvantages of different medium of advertisement could be different. Some important of them will be discussed below: Newspapers: Some advantages of ads on newspapers are: 1. The newspapers allow the advertisement to reach a huge people in a special area. (Wakolbinger et al, 2009) 2. The ad size and design of ad and also the placement of ad have a big flexibility in publishing in a newspaper (burns et al, 2006) 3. The advertisement could be as long as desired by the organization. 4. The exposure to ad is not restricted; readers can go back to your message again and again if so desired (Kumar, 2011) 5. The speed of advertisement publishing is very high. If you decide for an ad today. It could be in customers‟ hands in one or two days after that (Gallacher et al, 2001) Some disadvantages of ads in newspapers are: 1. The Ad space in newspaper can be expensive and it also depends on the size of ad. Sometimes price made ad a bit small than usual (burns et al, (2006) 2. The advertisement has to contest against the clutter of other advertisers, including the giants ads run by supermarkets and department stores as well as the ads of your competitors (Leong, 1998) 3. The Poor photo replica limits creativity of your ad (Wakolbinger et al, 2009) 4. The ad in newspaper has a very short life time because the newspapers are usually read once and then wasted (Wu et al, 2003) 5. The increasing attractiveness of the Internet also has an impact on the readership of printed newspapers. A large number of people 12 | P a g e
now read newspapers online and mostly they get news from other online media and don‟t read newspapers (Kumar, 2011) Radio: Some of the advantages of radio advertisements are: 1. Radio is a universal medium and people listen to the radio at home or work or during travel. It can access a large number of people (Leong, 1998) 2. The enormous range of radio formats offers to effectively target to your desired segment of the population (Hackley, 2005). 3. It helps to create your brand name by different campaigns (Gallacher et al, 2001). 4. The creative help is mostly freely available in the radio station. 5. The price of ads could be negotiated, as there are very few people involved in this process (Wu et al, 2003) Some disadvantages of radio advertisements are: 1. There is a possibility that the advertiser have to advertise on different channels at the same time because the listeners are spread on many channels and to attract them advertise needs to advertise on different channels (Burns et al. 2006) 2. Newspapers can be read again but if the ad is gone on the radio you cannot rewind it. 3. “Ads are an interruption in the entertainment. Because of this, a radio ad may require multiple exposure to break through the listener's "tune-out" factor and ensure message retention” (Kumar, 2011). 4. “Radio is a background medium. Most listeners are doing something else while listening, which means that your ad has to work hard to get their attention” (Kumar, 2011). Television: Some of the advantages of television could be: 13 | P a g e
1. The television advertisement reaches to a large numbers of people on international, national or regional level in a very short period of time (Carterre, 2009) 2. The new cable and Independent stations offer new chances to local audiences (Carterre, 2009) 3. Television as an image-building and visual medium offers the ability to deliver your message with sight, sound and motion (Kumar, 2011) Some of the disadvantages of television advertisement could be: 2. The preferred prime time ads are usually sold out far in advance. 1. Limited length of advertisement decreases the desired anount of information communication. 2. “Relatively expensive in terms of creative, production and airtime costs.” (Kumar, 2011) 3. The advertisement on TV is temporary. There is a chance that the viewer needs to watch it more than once to get understanding. Basically, the advertisement needs many exposures to rise above clutter (Scully et al, 2008) Internet: Internet is broader than any other medium of advertisement. The advantages of online advertisements are: 1. The usage of internet is growing day-by-day. (Vurro, 2009) 2. The appreciation of online advertisement is 5.2% higher as compared to other mediums of advertisement (Vurro, 2009). 3. The advertisement on internet is mostly for the young segment of population. (Chi et al, 2012) Some of the disadvantages of internet advertising are: 14 | P a g e
1. “Advertising delivery on sites deemed not appropriate for brand advertising due to objectionable content considered to be in violation of brand safety.” (Vurro, 2009) 2. Cookies are used mostly for the ads, and mostly cookies are deleted by most of the internet users, this decreases the viewership of ads and there is large number of errors in measuring viewership (Flossi et al, 2013) 3. It is not necessary that the viewer will click the ad and will see the full advertisement. (Chi et al, 2012) Moreover, TV is the most convenient way to reach an audience of millions, the audiences that respond more to TV advertisement of fast food are children and young generation in other words fast food companies deliberately attract these consumers (Scully et al, 2008). According to Arredondo et al (2008) fast food companies advertise directly to children as they know their spending power and the fast food industry is regarded as leaders in approaching the youth. Consequently children are more likely to recognize brand names of fast food companies as they see them on television and other media. The youngsters‟ market has developed considerably important to marketers (McNeal, 1998). A large number of organizations are spending millions to attract this segment of consumers (Jardine and Wentz, 2005). To stop the bad impact of advertisement in Europe, most of the organizations have established Self-regulatory measures to stop advertising junk food and helping to deal with child obesity (Wentz, 2006). According to Evans and Ebrary (2008) an operatively effective and systematic media strategy and planning are very important for the success of advertising. In addition, a promotional campaign cannot be operative if it is not seen by asatisfactory number of interested consumers. Hackley (2005) argue that: “The central task of the advertising media planner is to select, negotiate and buy media exposure for the campaign, to ensure that the ads will reach the largest number of desired consumers possible within the media budget.” Grier etal (2007) stated that the organizations who sell fast food 15 | P a g e
products always attract their customers by the simple and most effective promotional and marketing strategies of the convenience, low cost and taste of fast food. Tellis (2004) described that fast food companies attract people by advertising through convenience, ready to eat and readily available options. These organizations offer products for every age segment and mosylt they attract youth by their advertising campaign. Fast food organizations mostly, advertise on price and they offer a range of products on different price range and a large number of people can afford them. They choose the product they can afford from that long list of different products. Consumers also give a response to the advertisements of fast food on different kinds of media. Glenday (2012) claim that people response to online advertisements and it can be seen as in 2012 the numbers of Twitter followers of KFC were around 79,000 and on Facebook it got around 3.9m likes. This response of people on internet will be investigated in this research. A study done by Scully etal (2008) shows a direct relationship between commercial television viewing and fast food eating. The survey results done by Scully etal (2008) shows that, the respondents who spend three (3) hours per day viewing television are more likely to buy fast food once in a week as compared to respondents who spend one (1) hour per day watching TV. According to Bauer et al (2008), “eating at fast-food restaurants is common among adolescents. National data indicate that on any given day nearly 40 % of high-schoolaged adolescents report consuming food from a fast-food restaurant.” Mostly organizations use media to attract these young people. This study will also search that is there any increase in youth in buying fast food. What is the percentage on increase in this segment? Tellis (2004) described that working people with busy schedule respond to fast food as they face difficulties to balance work and life difficulties and also lunch and dinner occasions are becoming shorter. As a result, choice of food and drinks that consumer's purchase is dependent on convenience and working people do response to advertisements especially on internet and TV (Tellis, 2004). Jaworowskaetal (2013) stated that „A governmental report in the United Kingdom indicated about 22% of residents were found to purchase foods from takeaway outlets at least once a week and 58% a few times a month‟. 16 | P a g e
If on one hand „Advertising has helped to develop an international presence for the world‟s most well-known brands‟ (Hackley, 2005) and provide people with readily available, tasty food options. On the other hand there is a plenty of literature stating fast food and its negative impacts especially child obesity. Maree etal (2008) stated that the fast food companies are facing criticism for attracting and targeting young customers. Dhar and Bayliss (2011), claim that child obesity is growing because of bad eating habits and these habits develop due to constant exposure to fast food advertisements on various media especially on TV. Hackley (2005) argue that „Advertising tends to be blamed for many social evils, from eating disorders to the decline in public manners‟ (P.11). Cartere (2009) described that, countries like Australia have banned fast food advertisements during children programme hours because of growing obesity issues. “Advertising has been criticized for promoting materialism, persuading individuals to Buy things they do not need and providing false or misleading information” (Pollay and Mittal, 1993). The commercial promotion of unhealthy and unsafe products is a big concern for the policy makers (Austin &Nach-Ferguson, 1995). It is recommended that the promotion of fast food should have restrictions to advertise (Mosher, 1994; Signorielli&Lears, 1992). 17 | P a g e
Methodology: Introduction: In this chapter The aim of this Explanatory study is to know the point of view of people of Halifax about the advertisement campaign of KFC and what the impact of it is. For this a survey will be done from the consumers in Halifax. The permission is granted from the manager of KFC Halifax to do a survey in KFC premises. In this chapter the whole process of this research will be discussed and described briefly. Adopted approach: This study will follow quantitative methodology as it is more appropriate for investigating or answering the research question. Survey research strategies are most commonly associated with quantitative research (Saunders etal, 2012). Quantitative methodology allows collecting data from a large number of participants (Wellington, 2007) and is suitable for this project as it‟s impractical to obtain all qualitative data from a large sample (about 150 consumers); quantitative data is easy to obtain in that case. This methodology will somehow help to answer the research question that how people response to the advertisements and different advertising media of KFC. To know the aims and objectives of this campaign, an interview will also be conducted from Manager of Halifax branch of KFC. Than after research the answers will be compared to the aims and objectives to know the response. As Davies (2007) stated that the goal of the researchers is to quantify the participant responses and then to interpret them to make decisions and conclusions. According to Saunders et al. (1997) Experimental strategy is the classical form of any research. It includes the selection of sample and allocation of sample to different experimental conditions. This will be described in next section: Process: Following the quantitative methodological approach, the first objective will be to conduct a survey of structured questionnaire: a descriptive survey of detailed straight forward questions with one hundred and ten (150) customers regarding different advertisement 18 | P a g e
media of KFC and how the customer‟s response to them. This survey will be conducted during the time period of December 2013 with the customers visiting the store in Halifax. The details about sampling are described below. Studies show that in most of the cases the response rates are very low when people have to fill in long questionnaire, or has to give time for interviews (Davies, 2007). According to Firestone (1987), one of the best methods to enhance response rate of questionnaire or interviews could be offering some incentives to participants. It doesn‟t mean researcher has to spend lot of money, a small coffee mug or a pen can do a trick as stated by (Firestone, 1987). For this particular research, the participants will be offered a free drink: tea, coffee or cold drink after filling in the full questionnaire. In this research the questionnaire will not be too long. The option will be given to choose from. The survey strategy is chosen because according to Saunders et al. (1997), in management and business research, survey is the most common method. This method is justified with this project because it is about customers view. The view of customers couldn‟t be known without the help of taking surveys. However, questionnaires are not the only method to collect the data in the strategy of survey. According to Saunders et al. (1997), interviews are also very helpful to collect the data from audience. This method will also be used as described above. To collect data 150 questionnaire will be used. According to Saunders et al (2012) it is not possible to do the survey from entire population. The reasons behind these are low budget, less time and the quick need of results. In this work, it is not possible to survey the whole population of Halifax that‟s why a sample will be selected to reach on an understanding. Quota sampling technique is used for sampling the population. This is based on that sample will represent the population more accurately. It will help to segment the age factor and gender factor as well. Questions will be included in the form to get the information about the use of advertisement on the basis of segmentation. Quota sampling is totally non-random and can be set very quickly with very low cost. To take into this in mind that people don‟t have enough time to spend with you, the survey form will be very short and there will be options to choose from. This will give an ease to get the questionnaire done. The survey forms will be given to the customers with a request to fill them. After reaching the target of 150 questionnaires, the analysis 19 | P a g e
process will be started. The analysis will be based on every single question. The results will be divided on the basis of gender and age and on the use of different type of media. Than it will be analysed that which media is having a better effect on the people and which media is using the most by the consumers. The questionnaire used in this research is shown below: We appreciate your interest in our study, during which we will be asking you about your opinions on advertising campaign of KFC. This survey should take roughly 05 minutes to complete. This information is being collected strictly for research purposes. There will be no sales involves and the individual information you provide will never be shared to anyone else. 1. Gender? Male Female 2. Age Group? 18 – 20 21 – 29 30 – 39 40 – 49 50 – 59 60 or older 3. Do you use social media and TV? Yes No 4. Have you seen any advertisement campaign about KFC products? Yes No 5. On which media you have seen the advertisement? TV Social media Bill boards Newspaper 6. Where you have seen the advertisement most often? TV Social media Bill boards Newspaper 20 | P a g e
7. Does the advertisement give you an urge to buy stuff from KFC? Yes No 8. As we have 830,000 fans on Facebook and advertise continuously on Facebook. Have you seen any of advertisement there? Yes No 9. Have you seen the billboards of KFC in Halifax? Yes No 10. What do you think about the number of billboards? Too much sufficient Not enough 11. What do you think of our TV campaign? Very good Good Bad Very Bad 12. Did the TV campaign impress you to come here? Yes No We really appreciate your time and help for this study. Thanks. First of all these questionnaires will be pilot tested to ensure that they are right to get the answers needed. According to Saunders et al (1997), “before using the questionnaire to collect data it should be pilot tested.” As this research is not on a very big scale with limited resources it is not possible to get a lot of tests of questionnaires or include a large number of people to respond. As this research is extremely pushed for the time that‟s why questionnaire will be tested by some friends and family members. According to Saunders et al (1997), if you have a shortage of time, it is better to pilot test the questionnaire by using family and friends. This questionnaire will be distributed to some of the friends and will get the feedback about the problems faced in answering the questions and after that the questionnaire will be edited. According to Fink (1995), it is the responsibility of the researcher to ensure that the respondents don‟t have any problem in understanding and answering the questions. 21 | P a g e
There is one more important way to get information and that is by doing interview from manager at KFC in Halifax. The unstructured interview approach will be used for doing this interview. According to Saunders et al (1997) in this type “The interviewee is given the opportunity to talk freely about events, behaviour and beliefs in relation to the topic area” This will give the basic information about the advertising campaign and the aims and objectives of campaign. The results of survey and interview will be analysed to get the result. This will give the impact of campaign on the consumers. Changes being made in Questionnaire: After the pilot testing, there are some changes that need to be made in this questionnaire. Only 10 questionnaires were used for pilot testing. According to Fink (1995), the minimum number of questionnaires should be 10. These questionnaires were given to the work colleagues and friends. After getting the feedback, some changes were made in the questionnaire. The questions added are given below: Is this your first time at KFC? Have you seen our TV advertisements? Are you a permanent customer of KFC? Have you come after watching advertisement? Is there any advertisement in your local Radio? What do you think of that Radio Campaign? Did the Radio campaign impress you to come at KFC? Is there any advertisement of KFC on your local cable? After the changes suggested by the pilot testers, the new questionnaire were: 22 | P a g e
We appreciate your interest in our study, during which we will be asking you about your opinions on advertising campaign of KFC. This survey should take roughly 05 minutes to complete. This information is being collected strictly for research purposes. There will be no sales involves and the individual information you provide will never be shared to anyone else. 1. Gender? Male Female 2. Age Group? 18 – 20 21 – 29 30 – 39 40 – 49 50 – 59 60 or older 3. Is this your first time at KFC? Yes No 4. Are you a permanent customer of KFC? Yes No 5. Do you use social media or TV? Yes No 6. Have you seen any advertisement campaign about KFC products? Yes No 7. On which media you have seen the advertisement? TV Social media Bill boards Newspaper 8. Where you have seen the advertisement most often? TV Social media Bill boards Newspaper 9. Does the advertisement give you an urge to buy stuff from KFC? Yes No 10. Have you come KFC after watching advertisement? 23 | P a g e
Yes No 11. Have you seen our advertisement online? Yes No 12. Have you seen the billboards of KFC in Halifax? Yes No 13. What do you think about the number of billboards? Too much sufficient Not enough 14. Is there any advertisement of KFC on your local cable? Yes No Not applicable 15. Have you seen our TV advertisements? Yes No Not applicable 16. What do you think of our TV campaign? Very good Good Bad Very Bad 17. Did the TV campaign impress you to come here? Yes No 18. Is there any campaign of KFC at your local Radio? Yes No 19. What do you think of that Radio Campaign? Very good Good Bad Very Bad Not applicable 20. Did the Radio campaign impress you to come at KFC? Yes No Not applicable We really appreciate your time and help for this study. Thanks. 24 | P a g e
Analysis: The next chapter will be analyzing the collected data. According to Saunders et al (1997), after collecting all the data, it is ready to get analyzed. Every question will be analyzed according to the outcomes from customers. This will than compared with the aims and objectives given by the manager in the interview. This will give the clear insight into success or impact of advertisement campaign on the customer. The diagrams and tables will be used for analysis. This will give the clear percentage for every question. Limitations: There were lot of difficulties in collecting data and fulfilling the empirical research purpose: This review is limited because of lack of time and budget; it was not possible to do research on a vast level to include all relevant data about the study. This can‟t be said that this research is full and fledge and the view of all customers. If the different sample chosen the results could be totally different. The Manager at KFC just gave 15 minutes for the interview because of his busy work schedule. This time was not sufficient for this kind of study and bound the work to some limitations. The other most important difficulty was the health of the researcher. This made the already short time to the more difficult situation. 25 | P a g e
Analysis: To collect the data, the questionnaires were given to the customers at Halifax‟s KFC outlet. They were requested to fill them and get a free drink in return. The ratio of filling the forms was very low. People were not very interested in filling the questionnaires. It took 2 days to complete the target of 150 forms. The scope of the study was described to the participants and it was assured to them that their privacy will not be breached. The questions were straight forward that‟s why every participant has given the answer to every question. That was very encouraging. After completing the target of 150 questionnaires, the next objective is to analyse the data. The objective of which is to know the point of view of different customers on advertisement campaign of KFC. In this study 150 people participated. 67 of them were male and 83 were female. The ratio of female participants was 55.3%. The ratio of male individuals who took part in the survey was 44.6%. This shows that the female customers are more interested in KFC‟s products. The ratio of women is approximately 11% higher than male customers. the number of male participants was 67 and number of female participants was 83. Ratio of Gender Participants Female Participants 55% Fig. 2 Male Participants 45% Ratio of gender participants 26 | P a g e
The second question in the survey form was about the age group. The biggest age group participated in the survey was 21-29. The details about all the participated groups are shown in the table below. Age range Number of Participants Percentage 18 - 20 25 16.6% 21 - 29 36 24% 30 - 39 30 20% 40 - 49 24 16% 50 - 59 19 12.6% 60 16 10.6% Table. 1 Age table The questionnaires were given to the random customers in regarding to age. The research shows that the ratio of different groups of people is quite different from each other. The Youth are most likely the highest buyer of KFC products. The ration of age group 21-29 is 24%. This ratio is approximately 14% higher than the buyer of age group 60 or above. The ratio of this segment of age is 10.6%. This shows that old people buy less junk food. As everyone knows in this age there are lots of diseases and people can‟t eat junk food, this could be a reason for very low buying percentage of this segment. The segment on second number is 30-39. This was quite shocked for the researcher because researcher works there as well and the rate of young people come there was high in her mind but mid-age people also come there in a large number. This research shows that from 150 participants, 30 were from this age group. That is 20% of the 150. This is approximately 9.4% higher than segment of 60, and 4% less than 21-29 age groups. The segment which comes on third number is 18-20 years people. This 27 | P a g e
shows that KFC is very popular in this segment of age. The reason for this conclusion is that the ratio of this segment is 16.6%. The difference of this age group in this research is that this is only for young people from 18, 19 and 20 years old. Other segments are for 10 different ages. Still this segment is just 3.4% less than 30-39 age segment and 7.4% less than 21-29 age segment. On the other hand this segment is 0.6% higher than 40-49 age segment,4.6% higher than 50-59 segment and 6% high than the last segment of this research. This research shows that the advertisement to the youth is very important as described in the literature review. As Arredondo et al (2008) said that fast food companies advertise directly to youth as they know their spending power and the fast food industry is regarded as leaders in approaching the youth. This proves the point of view of Arredondo (2008) and many others researchers right. The segment which comes on fourth is 40-49 age group. 24 participants were from this group which is 16% of this research. This segment is 9.4% higher than 60 age segment, 3.4% higher than 50-59 years age segment. On the other hand this segment is 8% low than 21-29 age segment, 4% low than 30-39 and 0.6% low than 18-20 age segment. The second last segment is 50-59 age group. The participants of this segment were 19 with the ratio of 12.6% which is 2% higher than 60 years age segment. On the other hand this segment is lower than all other segments, the ratios are, 3.4% lower than 40-49, 7.4% than 30-39, 11.4% than 21-29 and 4% lower than 18-20. The next question was that “Is this your first time at KFC?” 122 participants said No in answer and 28 said yes. The table below will give a better understanding about the number of new and permanent customers. 3. Is this your first time at KFC? Yes No 28 Participants 122 Participants 4. Are you a permanent customer of KFC? Yes No 83 Participants Table 2 67 Participants analysis1 28 | P a g e
The ratio for first time customers at KFC was 18.6%. This was a sufficient amount in just 2 days but the problem is that all customers didn‟t take part in survey, that‟s why this cannot be the final percentage. The 122 participants were visiting KFC more than one time which is 81.3% of participants. The ratio of permanent customers at KFC was 55.3%. This shows that there is a difference in visitors and permanent customers. 25.9% of randomly coming customers were not permanent customers of KFC. This shows that these are the kind of customers who don‟t follow the brand. There could be other reasons for them to buy from KFC Halifax. These could be, passing near through, came with a friend etc. The customers which are not permanent are 49% of this sample. This is quite confusing, may be a pie chart will help to understand it better. New and Permanent Customers First time Customers Permanent Customers Random Visitos 12% 52% Fig. 3 36% New & permanent Customers This research shows that the number of random customers at KFC Halifax is the biggest portion of customers. These needs to be attracted, this will be discussed in recommendations. The new customers are just 12%, this segment could be developed. The next question was about usage of social media or TV. 147 participants said that they some social media or TV. Most of them were using TV and some of them were using social media as well (carterre, 2009). A large number is using both of the 29 | P a g e
mediums. Just 3 of the participants said that they don‟t use TV or social media. The percentage of users is 98% and 2% are those who are not using them. This means that the advertisement on social media or TV could be the mostly seen advertisements. The next three questions will be analyzed in this part. The table below shows the questions and number of respondents on each segment. 6. Have you seen any advertisement campaign about KFC products? Yes No 132 18 7. On which media you have seen the advertisement? TV Social Media 70 Bill Boards Newspaper Other 31 20 7 4 8. Where you have seen the advertisement most often? TV Social Media 70 Table. 3 Bill Boards Newspaper 31 20 7 Other 4 Analysis2 This research shows that 132 participants have seen the advertisements of KFC, Which is 89.3%. 12% from the total number of participants haven‟t seen any advertisement. This is sufficient amount of people who have seen the advertisement; the question is that advertisement has attracted them to come and buy the products. The total number of participants decreases to 132, because 18 didn‟t have seen any advertisement on any media. From them 132 participants, 70 have seen them on TV, which shows that TV is still the image-building medium (Kumar, 2011) and the large number of viewers watch TV (Carterre, 2009). The social media comes on the second number as 31 participants choses this medium which is 20% of this survey. This shows that the usage of social media is increasing day-by-day (Vurro, 2009). 13% of the participants have seen the advertisement on bill boards. This shows that the number of 30 | P a g e
bill boards in Halifax is not sufficient. The use of newspapers is going very low as just 4.6% of the participant‟s choses newspaper as their source of KFC‟s advertisement. 2% of the participants choses other as their source. After the feedback of question 7 & 8, this came to know that question number 8 is just waste of time because if that person has seen advertisement on TV obviously he had seen most often on the TV as well. This shows a mistake in survey process. The question raised above is that this advertisement attracts people to buy KFC‟s products? The next questions in this survey will answer this raised concern; details are shown in the table below: 9. Does the advertisement give you an urge to buy stuff from KFC? Yes No 105 45 10. Have you come KFC after watching advertisement? Yes No 85 Table. 4 65 analysis3 This research shows that 70% of the people were attracted after watching the advertisement. They wanted to buy the products but 30% were not attracted or the urge wasn‟t developed in them to buy that product. On the other hand, a same question was asked with different format and amazingly the answers are different from this one. In this, 56.6% of the people said that they came to KFC after watching the advertisement of some product but 43.3% said that they haven‟t come after watching advertisement. There is a difference of 13.4% in both ratios of question number 9 & 10. This needs to be investigated that why there is a difference of 13.4% in having an urge and coming to buy. The reasons could be that they already bought that product, or they can‟t afford or there could be any other reason. This is an unanswered question and needs to be answered. 31 | P a g e
Now the questions will not be analysed inline. Different questions of same sort will be analysed collectively in a table to reach on conclusion. 11. Have you seen our advertisement online? Yes No 38 112 12. Have you seen the billboards of KFC in Halifax? Yes No 49 101 14. Is there any advertisement of KFC on your local cable? Yes No 30 Not applicable 106 14 15. Have you seen our TV advertisements? Yes No 92 58 18. Is there any campaign of KFC at your local Radio? Yes No 44 Table. 5 106 analysis4 This research shows that just 25.3% of the participants have seen the advertisements online. 74.6% haven‟t seen them online. As this is the age of internet. Tellis (2004) argues that every second organization is advertising on internet now. To attract young people internet is the most effective way (Tellis, 2004). This shows that the views on the internet are not as they should be. This needs to investigate that why internet advertisement viewers are lower than expected. 32 | P a g e
Only 32.6% people have seen the billboards of KFC. The number is 7.3% higher than online advertisement viewers. On the other hand, 67.3% haven‟t seen any advertisement on the billboards in the area. As compared to the internet more people have seen the advertisement online. According to out of home (2013), 88% of adults views the billboard in every 30 minutes. The result in our research is not like that. 101 people from 150 haven‟t seen these billboards. The reason needs to be investigated. Only 20% of the participants have seen the advertisements on their local cable. This ratio is quite low as expected. 12.6% lower than billboards viewers and 5.3% than internet. 70.6% haven‟t seen any advertisement in the local cable, and 9.3% didn‟t knew about the advertisement on the cable as they said it doesn‟t applicable on them. 61.3% of the people have seen the adverts on TV. This is highest number got in this research as compared to the other mediums. 38.6% have not seen adverts on TV. The viewership is 40.3% higher than the local cable viewers, 28.7% higher than billboards viewers and 36% higher than online viewers. This shows that the TV is still the biggest source of advertisement seen (carterre, 2009). Scully et al (2008) also said that TV is the convenient way to reach millions of people. This research proves the point of these researchers right. The last question from this part was about advertisement on local radio. Just 29.3% of the total participants have listened these advertisements. 70.6% of the people have not listened any advertisement on the local radio of Halifax. Leong (1998) argues that radio can be accessed by a large number of people, but the research shows that the number of people listening radio adverts are very low. The reason needs to be investigated that people are not listening radio or advertisement of KFC is very low at radio. The questions left for analysis are all about the feedback of people about the advertisement in their point of view. 33 | P a g e
13. What do you think about the number of billboards? Too Much Sufficient Not Enough 0 31 119 16. What do you think of our TV campaign? Very Good Good Bad Very Bad 83 46 14 7 17. Did the TV campaign impress you to come here? Yes No 85 65 19. What do you think of that Radio Campaign? Very Good Good Bad Very Bad Not Applicable 18 10 12 10 106 20. Did the Radio campaign impress you to come at KFC? Yes No 22 128 Table. 6 analysis5 Only 20.6% of the people said that KFC is having sufficient amount of billboards in the city. Not a single person said that they are more than enough. 79.3% of the people said that the billboards are not enough for the city. This means people are not satisfied with the billboards‟ advertising campaign. This needs to be addressed. 55.3% of total people rated the TV campaign as very good and 30.6% of the total participants rated it as good. This means that 86% people were satisfied with campaign of KFC at TV. 9.3% rated it as bad and 4.6% rated it as very bad. This again shows that the KFC is focusing on his advertisement on TV. The point of view of carterre (2009) is 34 | P a g e
again endorsed after the result of this research. Overall, 13.9% of the people are not satisfied with TV campaign and 86% are satisfied. The TV campaigns always have an impact on the buyer and consumers. The 56.6% of the participants are impressed by the TV campaign. They stated that after watching TV campaign they came to buy products, this could be about new products with existing customers or existing products with new customers. The 43.3% of the people stated that they are not impressed with the TV campaign. That means they came to KFC because of some other reasons. This needs to be investigate as well. The results of KFC‟s radio campaign are very bad. Only 12% of the participants rated it as very good, and 6.6% as good. That means only 18.6% of the people are satisfied with this campaign. 8% rated it as bad and 6.3% rated it as very bad. This shows 14.3% are not satisfied with the campaign of KFC at radio. On the hand, the biggest disaster is that 70.6% of the people choses the answer as „not applicable‟, the reason for this needs to be investigated. The reasons could be that these are not listeners of radio, or there was not any campaign on their favorite radio station. The impact of this campaign is poor as well. Only 14% people got satisfied and they came to buy products. The other 86% have not came to buy because of radio campaign. Findings: The radio campaign is not successful. Mostly people said that there is no advertisement on their radio. TV campaign is the most successful campaign of KFC according to this study, but still 43.3% of the people are satisfies with it. TV is the most convenient way to reach the customers. Billboards advertisement is not going good as well. The results of internet viewers are also not well enough. The reason needs to be investigated because as stated by many researchers in the literature review that this is the age on internet. This needs to be investigating that why KFC‟s advertisement on internet is slow. 35 | P a g e
The urge to buy products from KFC after watching advertisement is increased. A large number of people are using social media. Random visitors are the biggest potion of customers at KFC. The new customers are increasing at KFC. The advertisement attracting youth are more sufficient. Old people are the least buyers at KFC. Female customers are more than male customers. Recommendations: The local advertisement at radio should be increased. There are a lot of people who said that there is no advertisement on their favorite radio station. As radio is the universal medium and many people listen it (Leong, 1999). This medium should be used more for advertisement than it is being used this time. The TV campaign is good but still it needs to be more improved. This is a segment where KFC can invest to get better and quick result. The local advertisement of KFC is quite poor. It was found that local radio advertisements are not enough same is the scenario with bill boards even worse. The 79.3% people haven‟t satisfied with the billboards campaign. According to them, the number of bill boards is not enough. The recommendation is to increase the billboards in Halifax and fix them on famous places to get better views. Random visitors are the biggest portion of KFC‟s customers. KFC needs to attract these people. If KFC will be successful to get these people as permanent customers 52% of the sales of KFC will be increased that is more than Half of KFC‟s current sales. The old people come least at buying products at KFC. This segment could be increased by attracting them. 36 | P a g e
The advertisement to youth should be increased. This is the segment where KFC is getting more customers than other segments. This could be increased by attracting more youth. The female customers‟ are more than male customers. Both segments could be increased by new advertisement approach attracting both. KFC Halifax should hire an advertising consultant to make a strategy for local advertisements. KFC Halifax is doing business in Halifax but the advertisement in the city is poor. Customers‟ feedback showed that Billboards and radio are not being sufficiently used for the local advertisement. 37 | P a g e
Summary and Conclusions: This research was about the advertisement and their impacts on customers of KFC Halifax. Advertising has essential aptitudes to become more effective because effective marketing communications have become an essential part of a firm‟s success in introducing and promoting products and services. This became more important in this age of internet and social media. Cross sectional advertisement are very important nowa-days to get a better promotion. The main thing in the advertising is that the targeted customers‟ segment must get better understanding and they should get attracted by the advertisement. This is the age of Brands, people prefer to buy branded thing. This research shows that branded customers of KFC at Halifax are low than they should be. These two things are contradictory. Advertisement is the source to make the brand successful. These days companies are running multi million advertising campaigns to get customers which show the importance of advertising and promotion. The mediums used for advertising also have a huge impact on result of advertising. Different mediums used for advertising are; print media, TV, Radio and online media. These all are analysed in this research and views of customers being taken on these. Online media is progressing speedily as compared to the traditional means of advertising. In last 20 years, the usage of internet increased very fast. More and more people are using internet these days. The way to advertise products changed with that as well. This is found that still the TV is the best rated medium for the advertisement. A large number of advertisements on TV are to attract children and youth. There is a direct relation of viewing of commercial TV and fast food products consumption. Policy makers are looking forward to make some laws for fast food advertiser‟s ti decrease child obesity. This investigation found out consumers of different age and gender coming to buy fast food and how advertisements urge them to buy it or just come because they want to have fast food. The rate of youth at fast food is increasing day-by-day. The age segment which comes last in buying fast food products are old people. The users of fast food are increasing every day. There is a lot of knowledge gained from this research but there are drawbacks on which further research needs to be taken. The research needs to be done on the users of 38 | P a g e
radio in Halifax. How many users there are and why there is low number of people listening to the radio. This research found that youth is buying more and more fast food products but this needs to be investigated that why youth is being attracted to fast food products that fast. There is a gap in this research for the number of internet users. There is no doubt in this that the number of internet using is growing day-by-day, but the respondents are not that much. This needs to be investigated that the rate of internet users is low in Halifax or KFC is not advertising effectively on internet. This research proved that the TV advertisement is most effective way to get new customers. There are many reasons for this but this needs to be investigated that in this era of internet, why people still prefer TV for their advertisement source. One more thing found was the number of radio listeners was very low. In future research this needs to be investigated that people are listening less radio now in UK or just in Halifax or the amount of advertisement at radio is not sufficient and what is the role of radio as an advertiser. The advertisement strategy of KFC Halifax seems to be failed. The local feedback of advertisement is not very satisfactory. Most of the people haven‟t seen or listened any advertisement of KFC at local sources. The reason for this need to be investigated as well. 39 | P a g e
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1. Consumers‟ response towards the advertisement of KFC Halifax1|Page. 2. Abstract: This study is about the advertisement and consumers‟ response ...
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