43 America may be synonymous with fast food, but with several franchises going international, fast food is a growing global phenomenon. Several popular American fast food chains in Indonesia include KFC, McDonald’s and Pizza Hut. These three brands are among the Top 100 Brands in the US. As well, they are among the top brands in Indonesia as evident by their prominence in the foodservice industry. Yum! Brands Inc., which owns both Pizza Hut and KFC collected 1.7% of the total foodservice market share in 2012 and McDonald’s came in 3rd after Top Food Indonesia PT with 0.4% of the total market share (Agriculture and Agri-Food Canada, 9). We wanted to find out how loyal Indonesians are to these three brands so we at JakPat conducted a survey to measure people’s “likeliness to recommend these brands online to their friends.” The survey results come from 1000 respondents. Note: This survey has been re-conducted due to a revision in scale question type used in the survey. The previous survey is using 1-10 scale and this survey result is using 0-10. We decides to use 0-10 scale instead of 1-10 scale in this survey considering 0-10 scale is the most common and standard Net Promoter Score or NPS® Calculation method based on some articles below: http://www.netpromoter.com/why-net-promoter/know https://www.checkmarket.com/2011/06/net-promoter-score/ Net Promoter Score / NPS® One way to measure loyalty is through a Net Promoter Score (NPS®). The number is obtained by finding the difference between the percentage of promoters (those who answer with a 9 or 10) and the percentage of detractors (those who answer with a value 0 to 6). The higher the score, the greater the number of promoters which indicates greater loyalty. The Net Promoter Score is calculated as the difference between the percentage of Promoters and Detractors. The NPS is not expressed as a percentage but as an absolute number lying between -100 and +100. If you have for example 25% Promoters, 55% Passives and 20% Detractors, the NPS will be +5. A positive NPS (>0) is generally considered as good. Why NPS is important Promoters account for 80 percent of referrals in most businesses. (Net Promoter System, 2013) Detractors account for 80 percent of negative word-of-mouth. (Net Promoter System, 2013) Promoters generally defect at lower rates than other customers, which means that they have longer, more profitable relationships with a company. (Net Promoter System, 2013) On average, an industry’s NPS leader outgrew its competitors by a factor greater than two times. (Net Promoter System, 2013) From this JakPat survey, we got the following NPS – KFC: -59.52 Promoters 7.64% Passives 25.2% Detactors 67.16% NPS = -59.52 McDonald’s: -61.11 Promoters 9.23% Passives 20.43% Detactors 70.34% NPS = -61.11 Pizza Hut: -27.77 Promoters 16.57% Passives 27.77% Detactors 44.34% NPS = -27.77 What this indicates is that of the three, the full-service restaurant Pizza Hut has stronger loyalty among consumers followed by KFC and McDonald’s not too far behind. Coincidentally, this trend is also the case in the United States based on NPS Benchmarks’ reporting from 2013 – Pizza Hut (22), KFC (14), McDonald’s (-8). However, the biggest difference is that in Indonesia, there are not as many people who are strong promoters and loyal to these brands. It seems that for the most part, respondents are indifferent to the brands, meaning that they do not have strong loyalty, but they do not necessarily have strong rejection either. Generally speaking, most respondents gave a score of “7” on how likely they are to recommend the chain to a friend. What is really interesting though is that while a mid-score was most common, a score of 1 was not too far behind. It is a tough market to please because Indonesians know what they are looking for when shopping for food. Sources Agriculture and Agri-Food Canada – http://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/6523-eng.pdf NPS Benchmarks – http://www.npsbenchmarks.com/mcdonald’s#.VP34rnzF88I WOMI Top 100 Brands – http://wordofmouthindex.com/womi-scores/top-100-brands/ For more detail you can download XLS report at the button below. JAKPAT report consists of 3 parts which are 1) Respondent Profile, 2) Crosstabulation for each question and 3) Raw Data. Respondent profile shows you demographic profiles ( gendr,age range, locationby province, and monthly spending). Cross tabulation enables you to define different demographic segment preference on each answer. Click the icon to download XLS report If you’re interested to do survey on retail and consumer goods field toward our respondents, we have over 31,000 mobile respondents ranged from age 17-50 years old, smartphone active users, and located in all regions of Indonesia that has installed our app and readily answering your survey. Those 31,000 respondents has been verified, profiled, and continuously tracked to make sure you get the updated profiles of them. Our respondents has been profiled based on their demographic (age,gender,location, spending level, profession,religion), lifestyle habit (smoking/non, gamers/non, wearing glasses/non, frequent flyer/non, online shopper/non), and also brand consumption level ( brand A users, brand B users in FMCG, Retail, E-commerce,etc). If you want to do research toward our respondent, please signup here and directly create your survey there. Or directly contact our Bizdev – Chrisprastika at +62-878-3908-9833. To non-Indonesian client, we offer free translation from foreign languages includes English, Chinese,Hindi,etc.
