Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Yum Brands

No description

Sarah Colichet

on 22 March 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Yum Brands

Largest restaurant company
with 40,000 restaurants in more than 125 countries
3rd fast-food chain with 10.61Bn € revenue
March 2014 | Marie Carpenter
International Business
Maral Armoudjian

Sarah Colichet

Jay Cortes

Iris Nguyen

Vic Wang
Expansion Scenarios for YUM Brands
Objectives & Implementation
Stage 1: US Expansion
Stage 4: India
Success of Pizza with
vegetarian food
=> 30 % of vegetarians
2012: About

Pizza Hu
t restaurants
New: entry of Taco Bell
=> Mexican food trial:
chicken replaced by beef
- Opening 1,000 KFC, Pizza Hut and Taco Bell outlets by 2015 in more than 100 cities
- Investing 80m € over the next 3 years
new company-owned units
Stage 3: China
=> Regulatory Obstacles and Market Entry

1987: 1st KFC Store in Beijing
=>Casual dinning introduced in China with Pizza Hut

Chinese Success
Chinese success
Source of know-how for the emerging markets
=>Direct control on 89,8% of its 5,066 units

Share of revenues from 36,5% to 50,6% in 2010-12
2010: China more profitable than the US
Chinese success
February 2012: Acquisition of
Little Sheep
=> Chinese company specializing in restaurants and food processing
=> increasing its ownership to 93%
= 4,5% of Yum! Brands of 2012’ sales
Chinese success
Pizza Hut in China or a way to
have a Western casual diner lifestyle

40 pages, contains more than 120 items organized into 9 categories.

After nearly 24 years in China
=> S
trategy based on

Chinese consume
r rather than the novelty of American food
Need of variety

China different than USA: the Chineses spent on average
50 min and $20
Delivery and take-out
=70% of Pizza Hut’s business

“Tea Time” menu
Chinese success
KFC or a meal into the daily life

Breakfast :
some porridge named “congee”, dough sticks and soy drinks.
Economies of scale : contracts, equipments are the same worldwide
PESTEL: Developing countries

PESTEL: Developed countries

Yum! Brands BCG Matrix
Yum! Brands driving forces analysis
Yum! Brands Competitors analysis
Strategy Value Curve
Yum! Brands top strategic advantages analysis
Turnover Shares by regions and type of restaurants
Shares by regions of the restaurant brands
KFC founded by Harland Sanders
=>"Kentucky Fried Chicken" franchise
opened in Utah in

KFC popularized chicken in the fast food industry
By branding himself as "Colonel Sanders", Harland became a prominent figure of American cultural history
=>his image used in KFC advertising

KFC sold to PepsiCo and in 1997becomes
Tricon Global Restaurants, now Yum!Brands

KFC's original product: pressure fried chicken pieces,seasoned with Sanders' recipe of
11 herbs and spices (secret recipe)
Developed countries
United Kingdom=1,406 stores:
772 KFC, 631 Pizza Hut, 3 Taco Bell
France=257 stores:
152 KFC, 124 Pizza Hut (29% company stores and 71% franchise stores)
Stage 2: Europe
Germany=159 stores:
93 KFC, 66 Pizza Hut
Spain=98 stores:
68 KFC, 21 Pizza Hut and 9 Taco Bell (94% franchise stores)
Stage 2: Europe
Emerging countries

Poland=219 stores:
168 KFC, 51 Pizza Hut (100% franchise stores)

Turkey=106 stores:
66 KFC and 40 Pizza Hut (100% company stores)

Competition & Competitive Advantage
External Analysis
Current situation
South America
South America
Yum China’s business took off with KFC
GDP/capita +610% in last 20 years after 1st KFC
=> More than 700 units during year 2014
Option 3: globalization objectives
Option 3: Implementation
Option 3: Implementation

Option 3: Africa & India
- Balanced presence
between products
- Tapping opportunities of
both markets
- Generating revenues from
different segments and countries
- Opportunity to adjust prices
based on the demand

- Very high cost of entrance
- Require high number
of employees
- Might impact income and
ability to advertise
- Difficult to find good stores
locations on good prices
- Complexity in dealing
with governments

Option 1: India
- High number of growing
youth population
- Religious standpoint support
YUM vs McDonalds (Vegetarians)
- Higher profit in Pizza products vs KFC
- Reasonable prices
- One political system
- High impact of CSR activities

- Large initial capital investment
- Lack of brand name awareness
- Indians prefer home food (culture)
- High level of poverty
- Difficult to present the full portfolio
- Low meat consumption

Option 2: Africa
-High level of meat consumption
- Could sell more than one product
- Good economy growth
- Several cultural and meal habits (variety)
- Closer to suppliers (farms)
- High opportunity for KFC

- Large cost of entrance
-Dealing with more than one government and import rules
- Diversified culture difficult to build local menu
- Lack of healthy choices
- KFC has lower profit
versus Pizza

India +1%
International +6%
Focus on:
- More Pizza Hut in India
- More KFC in Africa
- No more store opening => focus on retaining & attracting customers in current US restaurants

Local Tastes overview
Option 3: Implementation
Increase of Owned Stores => Same strategy than China
Get the local knowledge through franchise and when High profit => Owned Stores
Option 3: Implementation
Future questions
What about Pizza Hut in Africa?

Taco Bell unsuccessful in India? Africa?

Franchise or Owned Stores for the long term?
Option 3: Implementation
=>Same store growth
=>Store opening growth
=>Following of trends
- US: recovery by attracting & retaining customers through new advertizing campaign
- India & international:
High growth
- China: Steady growth
Option 3: Africa & India
KFC in Africa & Pizza Hut in India

Emerging markets will drive future market growth
Growing urbanisation will favour stronger demand for fast-food
Global growth will continue to be driven by emerging countries
Focus on several countries with KFC franchise stores according to:
- Size of the population
- Fastest growth
- GDP per person
Population bigger than 40 Million:
Nigeria, Ethiopia, South Africa, Tanzania and Kenya
Full transcript