Riding a Rage
KFC is trying on the halo of a phenomenon. The restaurant chain partnered with Nintendo of America for the $25 million launch of Pokemon, a videogame whose characters are all the rage in Japan. If they catch on in the U.S., KFC could end up looking pretty cool to kids and teens. That would sure help KFC’s effort to contemporize the brand while returning to its roots – chicken and Colonel Sanders.
KFC sales rose 2.6 percent to $4 billion in 1997, but U.S. outlet growth is flat at 5,115 stores. That means any sales increase must come from existing stores.
KFC broke a new campaign in September introducing a cartoon version of the Colonel, with voiceover by actor Randy Quaid. It also brought Popcorn Chicken back to the menu in a bid to capture snacking occasions, especially among teens and young adults.
“For those of us that remember the real Colonel, it’ll take awhile to get used to the cartoon version,” says Ron Paul, president of restaurant consultancy Technomic, Chicago. “KFC would like a promotion success” as it targets younger kids.
It makes sense, then, that KFC would seek out a hot property for its fourth-quarter, all-family push. The company approached Nintendo to collaborate on the Pokemon launch.
“We had a hot property, and they wanted to be on the leading edge,” says Nintendo director of advertising and promotions Erick Soderstrom. “We like the energy of where the KFC brand is going.”
From Nov. 9 through Dec. 20, KFC customers get one of four Pokemon character beanbags with a regular meal, or buy one outright. A Nov. 15 to Jan. 3 kids’ meal offer gives away six Pokemon toys, including coin purses, puzzle blocks, and tattoos. Nintendo will put demo units in many KFC stores nationally, and support the promo on its Web site www.pokemon.com. KFC will run 15- and 30-second TV spots and print ads, and created P-O-P materials for franchisees. All told, an estimated $13 to $18 million supports the promotion. Creative Alliance, Louisville, KY, handles KFC’s portion; Waylon Co., St. Louis, handles Nintendo’s.
By mid-September, Nintendo had U.S. retailer orders for 400,000 Pokemon games, more than double the average sales of 150,000 for a hot game. Pokemon has sold more than nine million Gameboy cartridges in Japan.
Nintendo is used to joint promos with QSRs – it tied in with KFC’s sister Taco Bell last year for Score 64 to hype Nintendo 64 hardware and games – but it’s delving further into less traditional retail promotions. For back-to-school, Nintendo put demo kiosks in Tommy Hilfiger sections of department stores.
Of course, consumers can sample games and hardware in electronic stores, but Nintendo wants more hands-on sampling outside the videogame aisle.
“We’re trying to reach consumers in their environment,” Soderstrom says. “Consumers are looking for brands that fit their lifestyle,” so Nintendo seeks out “lifestyle places like KFC and Hilfiger.”
Nintendo even brought demo units to four ski resorts as part of its snowboard event sponsorship with Hilfiger. “It was massive hands-on sampling,” says Perrin Kaplan, director of corporate affairs. “I haven’t seen videogames on top of a mountain before.”
KFC and partner Hasbro really stepped up to Nintendo’s elaborate Pokemon launch. When Nintendo unveiled the game in Topeka, KS (renamed “To-Pikachu” for the day in honor of Pokemon character Pikachu), KFC provided meals. Hasbro kicked in tchotchkes for Nintendo crews who toured 10 cities in decked-out VW Beetles with game systems in the back, giving away Pokemon premiums to passersby who tried out the game.
“People are very savvy about how they plunk down their money, and an interactive program [lets them experience] our distinct gameplay advantage,” Soderstrom says.
And if games in the store help KFC build its reputation with kids, there’s another distinct advantage right there.
