Wednesday, May 6, 2009

Will Kentucky Fried Chicken Coupons Hurt Company's Bottom Line?

Oprah Winfrey, KFC coupons a dynamic duo

Did KFC aim too high?

Did KFC aim too high?

Word of the coupons at Oprah.com/kfc for a free meal has spread like wildfire. In my opinion, Kentucky Fried Chicken should have known that using “The Oprah Winfrey” show, web site or anything affiliated with Oprah mean a huge response.

KFC has been lagging behind other fast-food chains in terms of sales, and apparently it has decided to go for broke. Through Oprah’s site, anyone can download a coupon for a free meal including two pieces of Kentucky Grilled Chicken, two sides and a biscuit. Actually, anyone can download four coupons.

Too much, too soon?

The goal, of course, is to get people hooked on the new product and boost future sales. However, some financial analysts are worried that this giveaway will end up hurting the company. Jay Hancock from The Baltimore Sun says:

History is replete with examples of companies that offered giveaway or discount promotions only to have them become a bit too successful.

Is KFC going to need short-term loans to stay afloat after this giveaway?

A ton of free food, perhaps literally

Add up every household in the U.S. that has a working computer, internet and a printer, subtract vegetarians, a few thousand people in the “other” category and the two people in America who haven’t heard about this, multiply that number by four, and add an additional four per person who uses multiple computers. That’s how many free meals KFC will potentially be giving away before May 19. ... click here to read the rest of the article titled "Will Kentucky Fried Chicken Coupons Hurt Company's Bottom Line?"

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