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Case Study
Case Study
BRANDS
• Yum! Brands, Inc., based in Louisville, Kentucky, has nearly 43,000 restaurants in more
than 130 countries and territories.
• Yum! Brands is ranked #228 on the Fortune 500 List with revenues of over $13 billion
in 2015 and is one of the Aon Hewitt Top Companies for Leaders in North America.
• The Company’s restaurant brands – KFC, Pizza Hut and Taco Bell – are the global
leaders of the chicken, pizza, and Mexican-style food categories.
Worldwide, the Yum! Brand's system opens over six new restaurants per
day on average, making it a leader in global retail development.
India is the opportunity of a
Yum brands is investing big
lifetime. By 2030, India will
time in "KFC & TACO bell"
be Yum!
to ensure it becomes the No.1
the largest consumer market,
restaurant company in India.
ahead of US, China.
KFC Issue before 20 years which affected YUM
Brands
• When KFC Made its entry in India there were protests over Globalisation, small farmers
rights, environment & foreign investors were already at fever pitch when the entry of a
brand owned by PepsiCo
• The outlet was picketed & ransacked repeatedly & charges of unacceptable levels of
monosodium glutamate made consumers hesitate even as they turned up their noses at
the bland recipes & lack of add-ons in the menu.
After 20 Years Today YUM Brands is currently the world largest
fast-food company as well as fastest growing restaurant in India
Evaluation of Problem
• Yum had appeared with the spin-off of the three brands in which five were of PepsiCo.
With the acquisition of Pizza Hut, Taco Bell in the 1970s, afterwards KFC in 1986,
PepsiCo was worth$4.7 billion by 1997. All the three acquisitions appeared as Tricon
Global Restaurants. Moreover, it got hold of John Silver’s and A&W. However, this
Tricon appeared with the name of Yum to New York.
Due to multiple branding, Yum appeared to have intensive labor
force. Moreover, the customers were satisfied by the services, which is why the aim of the
management was to focus on its employees.
• Building leading brands in china in
every significant category.
• Drive aggressive, international
expansion and build strong brands
everywhere.
Value proposition of Yum’s
Customers
Analysis of yum After the company’s spin-off, the
company started growing rapidly. Due
to the differentiation, it offers two
brands in which customers prefer the
multi-branding over single branding,
and that is because the customers get
convenience and options both under one
choice.
First strategy
Reach
Taco bell Pizza hut-
KFC education
foundation book it
foundation grant
for teens program
program
Swot analysis
• Weaknesses
1. Underperformance and slowing of U.S sales
specifically with KFC and pizza hut brands
2. Suffer a setback in china following an
investigation into KFC china's poultary
supply which result in shape decline in
sales.
• Opportunity
1. Increase and keep growth in rapidly expanding China market.
2. Invest in India market.
3. Food options coinciding with religious beliefs Penetrate other new growth markets before competitors.
4. Target international youth consumer to build up brand awareness Increase number of health-conscious menu options
Opportunities.
• Threat
1. High reliance on China allows the company to be subject to any relevant changes in the Chinese market.
2. Changes in foreign currency exchange rates affect sales and profit.
3. Modifications in foreign government regulation
Conclusion