• Ad Age, Tuesday, April 20, 2010 12:30 PM

"Cheap marketing stunts" such as moving the secret recipe and offering a 500-calorie sandwich that replaces bread with chicken breasts has generated a lot of ink and buzz for KFC, Emily Bryson York reports, but the sizzle hasn't translated into sales. Not only that, but the tomfoolery shows a lack of consistent brand positioning, she writes, which has contributed to a loss of six points in market share since 2005 to 30% in 2009.

"They don't have a clear identity anymore, and I think that's hurt them," says branding consultant Denise Lee-Yohn. The NPD Group's Harry Balzer observes that hamburger chains selling chicken sandwiches, as well as supermarket chains, also pose a threat to KFC's core business.

Yum Brands chairman David Novak admitted last week that "we still have our work cut out for us" and said KFC is focusing on "balanced" options such as grilled chicken, "portable product innovation" such as the Double Down, and "improved operations."

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