Article

El Pollo Loco, KFC carry on chicken fight

El Pollo Loco has challenged KFC to a taste test, but KFC's own failed giveaway may be all El Pollo Loco needs to win with consumers.

May 7, 2009

"We wanted to make sure we gave an extra incentive," said Mark Hardison, vice president of marketing for El Pollo Loco. "We strategically decided to do it after the competitor's giveaway in a way that would make sure that we reminded folks if they thought that the competitor's product was OK, that they have a better option of the best tasting grilled chicken in the marketplace."

El Pollo Loco's 400-plus stores gave away 1.1 million pieces of chicken systemwide, surpassing its goal of serving a quarter-million customers two free pieces of chicken.

Hardison said word-of-mouth advertising was the company's long-term return on investment as customers called and sent text messages to friends about the promotion from the stores.

"Word of mouth is one of the most important components of a giveaway like this. It both helps the success of the day, and it builds equity in our brand because you've got individuals to individuals, friends to friends, talking about the great things El Pollo Loco is doing," he said. "The quality of word-of-mouth recommendation is much higher than what we would get out of any paid advertising."

El Pollo Loco also challenged KFC to a Taste the Fire Challenge taste test.

El Pollo Loco did not get a direct response from KFC executives about the Taste the Fire challenge; however, KFC launched a second giveaway promotion, scheduled to run May 5-19, excluding Mother's Day, that featured two pieces of chicken and two side items. The giveaway turned into a national debacle as the "The Oprah Winfrey Show" endorsed the giveaway and then featured the KFC coupon on its Web site, initiating a national frenzy that resulted in a public relations nightmare for the KFC brand.

El Pollo Loco also began airing a TV ad campaign that features CEO Steve Carley challenging KFC to a taste test to prove that chicken cooked over an open flame is the only way to enjoy grilled chicken. Carley even created a designated toll-free hotline for the competitor to call to set up the showdown at 1-877-EPL-STEVE and posted a video on YouTube highlighting KFC's lack of response.