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YUM!

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

• “Build leading brands in China in every significant category.”


• Main goal is to expand and grow regardless of all weaknesses and threats.
• The strategy will carry out the expectation because it is specific to China. 
                Since, it is transitioning to a consumer-based economy thus giving
rise to the middle-class segment which is the company’s main customer base.
How?
              by opening more branches in China.
Second strategy
• “Drive aggressive, international expansion and build strong brands everywhere.”
• 4 divisions: YRI (Yum Restaurants International), China Division, US Division, India
Division.
• To set up a strong brand recognition along with even more branches.
• Implementation:
                India: Treated as a separate division due to expected future forecasts of India
being the largest consumer market in 2030.Russia: Bought Rostik’s business (Russia’s
leading chicken chain)
Africa: First-mover advantage.
Third strategy

• “Dramatically improve US brand positions, consistencies and returns.”


Reversed negative same-store sales of KFC by investing in product
innovation and Improving franchise relations.
Implementation:
           Expand Taco Bell branches from 5,000 to 8,000 units and Pizza Hut
from 6,000 to 8,000 units.
KFC Foundation provides hundreds of
 Taco Bell Foundation for teens thousands of dollars in scholarships
has provided education & job and grants to hundreds of deserving
training support to more than 2 students across the country – ($11.5
million people though Public- million since 2006) • Since 2012,
Private-Partnership in nearly $1.5 million of that was awarded
association with organization to 808 KFC Team Members via the
like Get Schooled & Boys & “REACH Educational Grant Program” 
Girls Clubs of America

Reach
Taco bell Pizza hut-
KFC education
foundation book it
foundation grant
for teens program
program

 In its 30th year, the Pizza Hut


BOOK IT!® program is the longest-
The ‘REACH Educational Grant Program’ helps lasting and largest children’s literacy
KFC restaurant hourly Team Members and Shift program in the United States • Each
Supervisors pursue their educational dreams • These year, the BOOK IT!® program
$2,000 grants help Team Member recipients attend makes reading fun for more than 14
accredited four-year and two-year educational million children in more than
institutions, as well as trade/vocational schools  630,000 classrooms 
• Strength
1. Quick responds to shift in demand
2. Strong brand recognition
3. Management

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 

• Looking forward, Yum! Brands is in a strong position to keep foreign


expansion and capture a large share of the international market. Despite
certain challenges it faces in the domestic market, the company is
financially healthy and should be able to sustain a stable position within the
global Fastfood industry.
Submitted by:- Stuti 1915981040
                                 Yashika1915981042
                                  Deepali1915981045
                                  Naman 1915981050

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