1. Nobody’s Unpredictable S11-D18C / TN130909January 2009 Qualitative Study Value Understanding Kingston, Jamaica

2. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 2 Index 1. Project Introduction3 2. Conclusions and Recommendations6 3. The Economic Crisis11 4. Fast Food13 5. Image of KFC16 6. Other Fast Food Restaurants 20

3. Nobody’s Unpredictable 1. Introduction to the Project

4. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 4 Warning It is important to keep in mind that the results of this research were drawn from an analysis of everything that was produced by group participants. This implies that, even though at times we may hear a determined opinion during a group discussion, the analysis may show that other factors were really at play in determining the target’s actions. (their wishes, their purchasing behavior, etc) “The consumer says what he or she thinks, but does what he or she feels“ These “feelings” are what qualitative analysis takes into account.

5. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 5 Target & Sample GroupGenderAgeSELCharacteristicsCity 1 Men 35-55D Light consumers (last 3 months) / Ex heavy consumers (6 months) of KFC Kingston, Jamaica 2 320-25 C2 Men without children. Eat at KFC at least once a week 4 Women 30-40 Mothers with at least one child 13 yrs old or younger. Eat at KFC at least once a week. 5 620-25 Women without children. Eat at KFC at least once a week This qualitative study was developed on the basis of 6 focus groups of a 2 hr duration in the city of Kingston, Jamaica, segmented as follows: All of the groups were moderated and analyzed by a team of analysts who specialize in qualitative research techniques. All groups could be observed through a special two-way mirror facility provided for that purpose. Fieldwork dates: January 14, 15, 22 and 27, 2009. Moderators: Karl Anderson and Oretia Peart.

6. Nobody’s Unpredictable 2. Conclusions & Recommendations

7. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 7 Conclusions & Recommendations KFC is the Fast Food leader in Jamaica. However, the image currently held of the brand is not uniform. Participants find many positive aspects but also manifest many complaints:  The main advantages have to do with the appreciation they have for the flavor of the food and the brand’s tradition;  The main disadvantages have to do with problems in the functioning and the service offered at the restaurants. According to participants, in the past, KFC’s image was very positive but, little by little it has changed. There is a sensation that the brand has begun to deteriorate. Recommendation: work to consolidate KFC’S image so that it does not lose its leadership in the Jamaican fast food market:  Solve operational issues and customer service. Particularly those aspects that are easily noticeable by customers: cleanliness, homogeneity in the quality of food and friendliness of the personnel;  Maintain brand presence in mass media. Participants consider that the brand is not as present as it used to be in the past.

8. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 8 Conclusions & Recommendations There are important differences among the participant sectors  The mothers: this is the sector that concentrates more on the positive aspects, particularly because for KFC is important to their children.  Among male ex heavy users a very positive image of KFC as brand prevails. KFC continues to be their favorite fast food restaurant; however, the consumption frequency has decreased as a result of the economic crisis they are facing. At the same time, this population showed particular sensitivity to the increasing price hikes in the market.  Men: stand in a balance between their appreciation for the positives and their complaints.  Women without children: are more centered on the negative aspects. This is the sector that is drifting away fastest from KFC.

9. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 9 Conclusions & Recommendations Recommendation: solidify spaces with each of the targets. Establish differentiated strategies for each sector.  For mothers: capitalize on and continue working on the bond with children. Nevertheless, it is also important to work towards creating direct bonds with the mothers, to solidify their preference for the brand.  For men (ex heavy users): they expect the brand to have an attitude of solidarity towards them offering them discounts, promotions and other options that will allow them to keep being loyal to the brand without having their budgets deeply affected.  For men: the main attribute that focuses their attention is the amount of food, more so than other attributes:  Create menu options with large amounts of food at an affordable price.  For women without children: create strategies to recuperate this sector’s trust. They currently feel KFC is not offering them options:  “healthy / light” options could create these spaces. However, it is worth pointing out that they are not willing to spend a lot of money.

10. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 10 Conclusions & Recommendations In the case of KFC, participants are not focused on price  With the exception of women without children, who do assign price greater importance.  The ex heavy users, despite the fact that they do manifest their sensitivity to the country’s economic crisis, they don’t explicitly complain about KFC’s prices, they complain about prices in general.  Nevertheless, in all groups participants state that the quality/ price relationship is changing considerably.  They know that KFC’s prices are increasing, but they intuitively believe that these are increasing proportionately with the rest of the prices.  However, they do perceive a continuous decline in terms of quality, which is what is making the quality/ price relationship not hold up.  It is within this scenario that the prices begin to be perceived as disproportionate for the service being offered. Recommendation: improving the service quality (in terms of both the operation and customer service) is indispensable so that KFC’s prices are not perceived as exaggerated.

11. Nobody’s Unpredictable 3. Economic Crisis

12. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 12 The Economic Crisis La muestra incluyó 2 segmentos socioeconómicos: NSE C2 It is perceived and experienced as a feeling of anger and distress Up to now, they have only taken measures and strategies to suppress some luxuries such as, for example: ”I eat more at home instead of going out to eat” They are : Mothers with children under 13 yrs old Young women, without children Young men, without children.  In general terms, the crisis is perceived as generating feelings of distress and concern regarding the inflation of prices and the stagnation of salaries. However, it is experienced differently in the two segments: C2 and D FEARS SENSATIONS PERCEPTION SEL C2 Here, too, feelings of distress and concern are perceived However, they take other types of more basic measures that have to do with supporting the home’s basic expenses such as, for example; ” now, I work more” “I have to leave my car at home and use the bicycle” They are Men 35-55 yrs old Men, main household earners. SEL D

13. Nobody’s Unpredictable 4. Fast Food

14. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 14 Food in General In all segments, fast food restaurants in general are associated to: “There must be enough food”“One has to fill up”“You can pay if the amount is worth it” Being able to feel SATISFIED in a QUICK manner and with A LOT of food emerges here as a strong functional motivation This is more intensely present in the men without children segment Being able to feel SATISFIED in a QUICK manner and with A LOT of food emerges here as a strong functional motivation This is more intensely present in the men without children segment

15. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 15 Specific Occasions for Visiting Fast Food Restaurants Main moments of consumption “When the children get good grades” “I don’t cook on Fridays” “No need to clean up afterwards” “Special occasions such as birthdays” “When you’re so tired you don’t want to cook” “If I’m late and I have to get going” “When I want to treat myself” Rest Time savings As reward Special Occasions

16. Nobody’s Unpredictable 5. Image of KFC

17. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 17 Image of KFC “KFC is the first that comes to your mind” “it is a tradition” For all segments is the fast food leader It has a strong functional and emotional base, Yet many negative aspects are pointed out Positive Aspects Negative Aspects “It is delicious” “if you have kids, KFC is the best” “It is good for sharing”. “You can buy the chicken and go back home. It won’t be stale when you get home” “There is always a KFC close to wherever you are” VS. Taste Yield Accessibility Convenienc e “We’re talking about KFC, we’re expecting something from them” “The lines are horrible” “Right now, it is too expensive” “It’s raw sometimes” “The bucket used to be huge, now I don’t feel as full at the end” High expectations High prices Size Inconsistency in the restaurants such as: long lines, dirty tables, bad service, errors in the order, quality of food

18. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 18 Image of KFC Mother’s Segment Youth Segment “The kids love it and all you want is for them to eat something”  They value the positive aspects a lot and seek to please their children  Within this segment, women without children are the ones that focus most on the negative aspects “It is so full of fat that it is not worth what it costs” For ex heavy users, KFC continues to be their favorite brand, it is the brand they consume when they have money available. SEL D Ex-heavy users Segment SEL D Ex-heavy users Segment “I love the taste, the seasoning, It is always wonderful” “The quality is good, if I have money in my pocket I spend it at KFC” SELC2 Segment This segment is more demanding in terms of the price-quality relationship, the service and the food “I think they don’t give me the amount I am paying for” “It is expensive rather than economical” “They are very nice, but it is not excellent” “It is very tasty but sometimes the chicken is not even well cooked!”

19. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 19 Image of KFC Advertising recall: They don’t recall specific advertising. They mention that KFC is not making advertising at present. “They’re not doing any advertising now” Yet, they have the impression that KFC was quite present in terms of advertising in the past. Consumer profile: Everybody “Everybody eats at KFC” Partially, among women without children: “People who have no responsibilities” Brand Personification: The Coronel. Highlight: The positive aspect of experience The negative aspect of not being “updated” Promotions: They do not recall specific promotions.

20. Nobody’s Unpredictable 6. Fast Food Restaurants

21. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 21 The Second Option They assign it a varied menu “You can have more than chicken, even cheese” They highlight the “ hamburgers ” “You eat one and you get totally filled up” Good prices “It’s accessible” Women with children see it as a second option Price is lower (than KFC) “It’s still expensive but not as much as KFC” Important brand for women without children They hold to it meets the needs of students like them “On campuses they have very good menu options” High price “It is not just for any moment” They see it as targeting men “They are very friendly” Accessible restaurants “Wherever there is a KFC, there is also a BK ” Perception that the quality of the food is inconsistent “Sometimes the food is not well prepared” In the view of participants, there are 3 restaurants that compete for second place (after KFC, which is first): None of these restaurants produce emotional reactions among participants, while KFC does.

22. Ipsos Dominicana – Focus Groups QSR JamaicaJanuary 2009 © 2009 Ipsos 22 Other Fast Food Restaurants They refer to Chinese food in general. No mention is made of specific restaurants. The main attribute associated is the large amount of food “You always leave full with Chinese food” “Chino” They view it as high quality food “It’s quality” The place (the coast) is liked “The decoration is spectacular” Port Royal Local food “ It’s Jamaican food, one feels like at home” It appears more intensely among men, mainly due to the size of the portions served “ They give you a lot of food for what you pay” Partially mentioned by women without children “They have salads” Island Grill Though it is mentioned, it’s positioning is not clear With the exception of women without children, among whom it is an interesting option given its salad bar and light, low cal menu options “it is a healthy fast food restaurant” Wendy’s