Social Media MC -- Monitoring Project Post 2

Social Media Approach to Image Rebuilding

1.General Information


KFC pioneered Western-style fast food in mainland China when it opened its first outlet in Beijing in 1987.Since then, it has been doing successfully in China.







KFC is the largest restaurant chain, with 4,200 branches, and China is one of the only countries in the world where McDonald's is not the dominant fast food chain.

Updated by 11:56 AM January 27, 2013

2.Website

KFC believes it has been successful in China because it has adapted its menu to suit local tastes. Since 2006, Yum! has also operated the East Dawning chain, which incorporates Chinese cuisine alongside the traditional KFC menu items. Its website is bright, colorful and delightful, which match their idea of being healthy and young. With many sections, KFC China gives visitors an impression that we are not only making food, but also caring about you. All kinds of food in the picture look so good, and KFC also provides offers which are healthy and price-reasonable. On the right side, a lot of updates from different social medias are rolling. 

3.Incident Review

In December 2012, the chain was hit by allegations that its suppliers injected antiviral drugs and growth hormones into poultry in ways that violated food safety regulations. This resulted in the chain severing its relationship with 100 suppliers, and agreeing to "actively co-operate" with a government investigation into its use of antibiotics. KFC China sales in January 2013 were down 41 per cent against the previous year.

                                 KFC Launches "Operation Thunder" To Fix Image in China

4.Trends and Analytics

Following the launch of "Operation Thunder" and a chicken-themed poetry contest, fast feeder KFC appears to be recovering from a food safety crisis in its most important market. Parent company Yum Brands announced this week that same-restaurant sales in China were down 20% in January and February 2013, better than the 25% plunge previously forecasted. KFC China sales were flat in February, after sliding 41% in January. The news sent its stock price soaring.

Operation Thunder 

KFC China Official Website

Chicken-Themed Poetry Contest

started on February 27, 2013 

KFC Sina Weibo

(The little chicken in the picture cries and says:"I'm innocent." Expert pointed out that we should blame on the drugs instead of chicken. )

a. Yahoo!

I captured this image on Yahoo! Finance. It shows Yum! stock prices varies from February 27th to March 25, which is getting better. Just right after they launched the two activities.

b. Google Trends

KFC China Crisis

As you can see, there are two red-marked points in the captured picture. The first peak shows the Sudan Red Incident which happened in 2005. The second peak is the recent "45-day chicken" food safety scare.

KFC Chicken

c. Social Mention

By searching Social Mention and changing key words, I could tell positive sentiment are getting stronger from last December to this March. Especially the duration from February 27th to March 25th.

d. IceRocket

e.Addictomatic

I used the Addictomatic again this month, and there is a big difference from last month. There are more reports or news showing that KFC is doing quite well on image rebuilding, and that it is having many interactions with consumers.

5.Social Media Use

a. Official Website
KFC's official website releases very serious and formal news which can be used in reports or in interviews. They are more like statements and announcements.  In recent weeks, KFC has begun unfolding a campaign to reinforce its food safety bona fides. Dubbed "Operation Thunder," it includes a mini-site detailing steps the company will take to ensure the safety of its chicken, including working with only the best suppliers and stepping up coordination with regulators. It also pledged to better inform consumers about product safety issues.

KFC China News Center

It immediately releases any trends about KFC.

Mini-Site Of Operation Thunder

b. Sina Weibo and RenRen

Sina Weibo

RenRen

KFC started a poetry contest on social media. The company asked fans to pen poems that include the phrase, "The chickens are innocent," laying the blame on illicit drug use at the farms. Best poem wins an iPad mini. After a slow start in reacting to the crisis late last year, KFC has taken on a more active approach to social media to face the issue directly. They have increased activity on their own Weibo and RenRen accounts, including responding to many of the comments about the crisis and by engaging media key opinion leaders. They will share news articles about the crisis on their Weibo account which in turn creates more buzz. Instead of giving more details about the story behind chickens, KFC keeps saying on their social medias that we are taking action to protect our customers, that you can join us to witness our progress.

Sina Weibo

RenRen targets on students. KFC's main job on RenRen is to introduce new products to audience and to give health tips to students.

c.

KaiXin

6.Tone, Message and Feedback

a.Tone

No matter it is Weibo or RenRen, KFC acts like your neighbor or friend in your daily life. It says things in a very nice and friendly tone. Also, it talks about such daily things as weather, holidays, or current events, which generates a feeling that KFC always stays with you and KFC is part of your life. 

b. Message and Feedback

KFC updates very quickly on Weibo and RenRen on daily basis, and it response almost every comment. Some of comments were very negative, and others are positive, and KFC or Little K- its nick name- responded kindly. 

7.Conclusion and Recommendation

This kind of incident happened few times to KFC China, and it seems that there exists a fixed procedure for KFC to solve the crisis. Issue bursts out, statement, apology, clarification, being honest and humble to give a promise, and finally having interactions with customers. Now, the difference is that social media plays a more important role of solving crisis.  As I mentioned in last blog, rebuilding reputation is really hard, and especially people in China are really sensitive about food safety recently. Plus, the peer competition is quite fierce. 

I think that KFC could establish some philanthropic organizations to help kids living in rural areas, by doing charity to rebuild brand image. Regaining trust from consumers is important, but I believe that the priority is to establish a strict self-examining system to ensure future products.