theSun | THURSDAY NOVEMBER 6 2008 œ 29

media & marketing

MAS set to save KFC eyes

younger market
with new strategy
MALAYSIA AIRLINES is set to save millions it,” he said.
of ringgit through simple yet highly effective Great fuel savings have
structural cost reduction measures initiated as part also been gained by using
of its business transformation plan since last year. a ground power unit (GPU)
Its executive director and chief financial officer which is powered by diesel Tengku Azmil
Tengku Datuk Azmil Zahruddin Raja Abdul Aziz to provide pre-flight air-conditioning on the plane ... simple
said the cost savings are to be achieved through while passengers are boarding, instead of using but highly
various structural cost reduction programmes the aircraft’s power unit which burns up expensive effective
without sacrificing safety aviation fuel, he said. structural
or quality. The KL- Another initiative cost
Such savings are China route is the introduction of reduction
derived from optimising dinner/ evolutionary lightweight measures Jamaludin (second from left) and
cost versus customer lunch menu plastic Unit Load Devices Wong Sooi Keong, president of
satisfaction in inflight (ULDs) with each KFC/Pizza Hut Division, during the
services, fuel consumption weighing 40kg less than official launch.
and rationalisation of its the traditional aluminium
facilities. ULDs for carrying cargo,
by Angela Sargunan to contribute a total sale of about
Giving local editors giving the plane fuel
newsdesk@thesundaily.com 10% of all the restaurant chain’s
an update on the second savings.
system during the promotional
phase of the airline’s Meanwhile, Tengku
KFC Malaysia, which is constantly period.
Business Transformation Azmil said substantial
developing innovative products Apart from launching four ma-
Plan 2 (BTP2) on Monday savings have also been
as part of it’s marketing strategy, jor promotions every quarter, he
night, Tengku Azmil said achieved through the
recently launched its Hot Rods for said, KFC also runs minor monthly
for example, the airline rationalisation of Malaysia
the younger market. promotions to keep it fresh and
found that for its Kuala Airlines facilities and
The new affordable hot-and- exciting for consumers.
Lumpur-China flights, offices overseas.
spicy boneless chicken on skewers Just for this promotion, KFC is
high-cost meals such For example,
are convenient and an easy snack spending RM1 million on adver-
as lamb briyani, deep consolidation of office
to have for those on the go. tising and promotion, inclusive
fried fish pollack or wild space from 340 sq m to
“Teens and young adults are of television, radio and press
salmon teriyaki yielded 103 sq m in Zurich led
always rushing for time and have advertising, outdoor, point-of-sale
less passenger satisfaction than lower-cost items to savings of RM450,000 in rental while relocating
no time to sit down and enjoy a materials and ambience.
like nasi goreng with satay ayam, chicken yakitori to cheaper premises and reducing office space
Changing meal at our restaurants. They can The a la carte of two skewers is
with leek or stir fried egg noodles with chicken. by 50% led to savings of RM550,000 in Paris and
from now grab a pair of KFC Hot Rods priced at RM3.95 while the combo
“So by providing lower cost meals that were RM450,000 in Istanbul.
traditional and enjoy it along the way,” said meal is priced at RM7.95, which
passenger favourites, the airline achieved higher Tengku Azmil said the airline is set to achieve
aluminium KFC Holdings (M) Bhd and QSR comes with one regular fries and
customer satisfaction at lower cost, and made cummulative annual savings of RM200 million this
unit load Brands Bhd managing director one Lipton ice lemon tea.
substantial savings,” he said. year, RM250 million next year and RM300 million
device (ULD) Jamaludin Md Ali. Jamaludin said despite the
The airline is also set to save millions of ringgit in 2010 through the cost-reduction measures.
(below He said the KFC’s market sur- economic situation, KFC has not
through better flight planning and identifying new Other officials who briefed the editors were
left) to the vey showed that more and more increased its prices, making it af-
and closer alternate airports, said Tengku Azmil Malaysia Airlines commercial director Datuk
revolutionary young people are now turning to fordable for consumers.
who explained that it was a requirement for every Rashid Khan and sales senior general manager
lightweight fast foods for quick, light, simple “There is no indication of a
flight to carry additional fuel to reach an alternate Datuk Bernard Francis.
material and affordable meals. slow down in terms of consumer
airport, just in case the airport of destination is
(right). “It’s a nutritious, convenient visitation to the outlets. On aver-
closed off and it had to be diverted.
and fun piece of snack which is age, a customer would visit KFC
He cited as an example the
on sale at all KFC restaurants for once a month but for a high
traditional use of Melbourne and
a limited period of two months,” frequency consumer, it would be
Sydney as alternate airports for
he said. twice a month,” he said.
each other in the past, meaning
Jamaludin said the new snack As of June, KFCH recorded
that a flight to Sydney had to
will attract more consumer visits revenue of RM1.025 billion, an
carry extra fuel to not only reach
to the restaurants and “turbo increase of 26% against the cor-
Sydney but also to be diverted to
charge” their snacking time responding period last year and
Melbourne, just in case.
sales. “Together with our other profit before tax of RM83.3 million,
“But by identifying Canberra
popular value for money snacks up 24.1% from the same period
as the alternate for Sydney, and
like KFC Jom Jimat, it puts us in in 2007.
Avalon as the alternate airport
pole position to corner an even This year, KFCH has opened
for Melbourne, our aircraft do not
bigger share of the fast growing 30 new outlets and is planning to
have to carry so much extra fuel,
snack food market,” he said. open another four by year-end,
which would also have caused
The new product is expected making a total of 434 outlets.
more fuel to be burnt in carrying