KFC Stunts Not Stopping Sales Slide

KFC is being eaten by its competitors, and it is struggling to figure out how to stop it.

[Kentucky Fried Chicken] changed its name to initials, then back to words, then back to initials. It's leaned on cheap marketing stunts such as moving the secret recipe, taking Colonel Sanders to the U.N. and, most recently, launching the 500-calorie Double Down sandwich, which replaces bread with chicken breasts. Even KFC's grilled chicken, which garnered a lot of attention and massive trial last year, failed in its primary objective: staving off additional share loss. While the series of stunts drove buzz and the introduction of grilled chicken spiked short-term sales, the moves also contributed to a lack of consistent brand positioning and a distraction from KFC's flagship product -- both of which have hurt the chain and allowed competitors to creep in and carve out share.

Although KFC remains the largest player in the growing segment of fast-food chicken, its share continues to drop, according to Technomic. KFC's market share tumbled six full points since 2005 to 30% in 2009, while the category grew from $14.5 billion to $16.1 billion. [via AdAge]

Yum Brands Chairman David Novak thinks product innovation like the Double Down and improved restaurant operations are the answer.