Case solution for one of the interviews

1. Display Advertising for KFC
Proposal Document
Jaya Prakash Jain
Internal Use1

2. Background and Objective
Internal Use2
 Background
 Recent shifts in consumer behavior is forcing marketers to rethink
on their advertising strategies to be competitive in the market.
 These shifts are driving higher digital media usage leading to
companies like KFC to make changes in their digital media
strategy as well.
 Objective
 To help KFC leverage the untapped potential of display advertising
using Media IQ expertize.

3. USA Digital Landscape
eMarketer 2015
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4. The landscape for digital activities (USA)
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Instagra
m
24% of
Pop. Pinteres
t
15% of
Pop.
Twitter
16% of
Pop.
Digital Video Viewers
63% of Population
Social Media
Facebook
49% of Population
Smartphone Users
57% of Population
Tablet Users
45% of Population
Smart TV Users
18% of Population
Source: eMarketer 2015

5. 2015 Media Time Spend (USA)
Internal Use5
Digital
5.46
TV
4.33
Radio
1.28
Print*
0.26 Others
0.14
Major Media Time Spend (hh:mm)
Mobile
2.51Desktop
2.12
Others
0.43
Digital Media by Type (hh:mm)
Americans spend 12 hours and 28
minutes per day with Media
Of which
46% (5 hour 46 min) is spent on digital media
Source: eMarketer 2015

6. 1.1%
15.5%
50.0%
Traditional Digital Mobile
USA Media Spend Growth Rate
(2016 vs. 2015)
Growth Rate (2015-2016)
Digital Media $ Spend and Growth (USA)
17.5 21.7
26.4
31.1
5.3
5.7
5.9
6.320.3
23.3
26.3
29.7
17% 18%
16% 15%
25%
28%
31%
34%
2013 2014 2015 2016
USA Digital Ad Spending (US$bn)
Search
Classified
Display
Total Digital Ad Growth
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Source: eMarketer 2015
43.1
50.7
57.6
67.1

7. QSR Industry Overview
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8. QSR Industry at a glance (USA)
Key Statistics
Snapshot
2014 Revenue
$ 225bn
2014 Advertising
Spend
$ 27bn
Annual Growth 12-14
2.5%
Annual Growth 14-16
4.2%
Annual Growth 14-16
5.5%
Annual Growth 12-14
3.4%
19.6 19.4 19.7 19.8
6.5 7.6 8.8 10.2
2013 2014 2015 2016
USA QSR Advertising Spend Breakup
(US$bn)
Offline Online
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2.6 3.3 4.0 4.70.8 0.8 0.9 1.03.1
3.5
4.0
4.5
2013 2014 2015 2016
QSR Internet Ad Spend by Type (US$bn)
- USA
Display Classified Search
Source: Online sourcesDummy data for illustration

9. Latest shifts driving QSR marketing
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Recent years have seen transformative changes in how people interact
with technology, how content evolve the new media paradigm, and how
businesses develop through digital advertising and commerce. These
are majorly driven by 4 shifts
Platform
• Higher
engagement with
digital media
platforms
• Growing
acceptance of
mobile as a
medium
• Increase in multi-
platform users
(56% of total digital
media users by
end of 2014)
Content
• Rapid change in
the way content is
consumed
• Development of
newer ways of
content sharing -
Whatsapp,
Snapchat,
Pinterest etc.
Demographic
• Millennials have
become the
driving force in
terms of
technology
adoption - social
media, mobile and
video
• Tracking their
behavior gives
important insights
into the future
Marketing
• Marketing dollars
following eyeballs
to mobile
platforms
• At the same time,
new ad and
campaign
measurement
capabilities are
reducing waste
Source: comScore

10. How to create brand presence during
such shifts  Display Advertising
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 What is Display Advertising?
 One of many Internet marketing strategies, that uses the Internet as an
advertising medium to show promotional messages.
 Formats:
 Important Metrics
Banner Ads Pop-up Ads Text Ads
Reach
Engagemen
t
Increase in
site visit
Conversion ROI

11. Advantages of Display Advertising
 Visual Dynamics: Have an impact at each level of marketing funnel,
that may lead to
 Capturing attention
 Engaging audience
 Influencing decision
 Branding
 Creates audience connection by reaching the
right audience at the right time with right content.
 Direct Response
 Drives conversion
 Generates leads
Internal Use11
Awareness
Education
Evaluation
Proposal
Purchase
Display advertising caters to
all levels of marketing funnel

12. Display Advertising in QSR & KFC’s
performance
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Advertiser Total Display Ad
Views (000)
Share of
Advertising
Voice*
Ad-Exposed
Unique Visitors
(000)
Average
Frequency
McDonald's 295,884 33.6% 51,897 5.7
Quiznos.com 98,041 11.1% 16,390 6.0
KFC.com 84,974 9.6% 12,620 6.7
PapaJohns.com 82,298 9.3% 17,115 4.8
Subway 78,150 8.9% 15,478 5.0
Dunkin' Brands, Inc. 71,713 8.1% 23,240 3.1
PizzaHut.com 60,327 6.8% 15,366 3.9
SonicDriveIn.com 45,064 5.1% 7,070 6.4
Wendy’s International 43,344 4.9% 11,280 3.8
Burger King 21,493 2.4% 3,494 6.2
Source: comScore Ad Matrix
2008
Dummy data for illustration
KFC
• 9.6% of share of advertising voice
• No. of display ads are way less than that of leader McDonald’s, however average frequency of ads
per unique visitor is 6.7 on the higher side

13. What KFC should do?
Internal Use13
Awareness
Education
Evaluation
Proposal
Purchase
What KFC should do?
• Increase no. of ads across different
media
• Target multi-platform users
• Focus on mobile ads
• Relevant content in the ad talking about
KFC as a brand
• In the content, help customers with
benefits and comparison against
competitor
Create a buy from ad option which drives
online users to KFC App or website
Increase retargeting with clear
understanding of customer demand

14. How <company name> can help?
Internal Use14
 Media IQ is an UK based analytics technology company that is unlocking
insights to help drive business growth
 Our proven model (mentioned below) can help KFC drive market traction
meeting the aforesaid targets.
Identify the segments
to be targeted
Create a test market
Generate a cross-
platform campaign
Run the campaign in
the test market
Understand, analyze
and improve test
market campaign
Implement across all
markets
Revisit the metrics and
improve

15. Thank you
Internal Use15