Yum! Brands Marketing Strategies and Practice

Yum!Brands Marketing Strategies and Practice


MarketSize/ Growth

Yum!Brands are fast food companies that have outlets in many countries inthe world. The fast food industry is growing at a rapid rate due tothe high demand of the quick foods. People have become so busy andthey, therefore, need quick food. Fast foods shops are nearly onevery corner in the United States. They are found at the airports, inthe malls, and at every rest stop. This clearly indicates that theindustry has got a lot of potential that people can invest in. It isestimated the fast food sector generates an average of around $ 560billion (Hitt et al., 2013). Most nations in the world cannot affordto have such an economic value. Thirty years ago, the industry wascapable of raising revenue of around seven billion dollars.Currently, the sector earns the United States revenue ofapproximately two hundred billion dollars. This is an enormousgrowth. It is estimated that there are around two thousand fast foodrestaurants in the United States that are estimated to be employingabout four million Americans. The fast food shops are expected to bemaking sales that are about fifty percent of the total sales that areachieved in the hotel industry in the United States (Hitt et al.,2013). The fast food shops are preferred because they areinexpensive, simple, and consistent. Many people like the fast foodsjoints because they can get meals quickly. As a result, the demandfor meals from the joints has increased thus boosting the growth.



Theuse of technology is now common in the fast foods industries. Fastfood outlets have developed an application that is utilized by thecustomer to order and pay for the food. It has become possible for acustomer to order food in the comfort of his or her room.


Theoutlets in the fast food sector are now dealing with the real foodsbecause some customers are curious to know where the foods that theyorder have come from and possibly how they are grown. As a result, itis possible to find vegetarians or free range chicken in the fastfoods, but this was not the case in the past.

StrongFlavors Profiles and Micro-Cuisines

Fastfoods joints are now offering cuisines from other countries likeHawaii. This is a strategy to make the foreigners feel welcomed andbe proud of their kitchens. The new flavors are also intended to lurethe customers to try them. In the process of trying the flavors, thesales will be boosted.

PositiveEffects of the Trends in the Fast Food Industries

Thetrends have helped the industry to realize huge revenues over a shortperiod. The incorporation of different foods from various parts ofthe world has assisted in attracting people from different regions inthe world. As a result, the profit margins have also increased.Besides, the use of technology in the fast food industries hasenhanced efficiencies. People are now in a position to request lunchor dinner by just clicking a button on their phones. The applicationshave made food serving to be more convenient.

AdverseEffects of the Trends in the Fast Food Industries

Someof the trends are too expensive to keep up with as well as implement.For example, it is often costly to employ chefs who are capable ofcooking different types of cuisines especially those from the MiddleEast. Therefore, some trends are likely to be expensed in theindustry instead of adding to revenues.

Yum!Brands Competitors

Thefast foods industry is very competitive and Yum! Brands facecompetition from major companies like McDonalds Corporation that isbelieved to have a market share of about nineteen percent of therestaurant industry. McDonald`s is the leading company in the fastfoods sector. However, McDonald`s leads with only the market sharebut Yum! Brands are making bettersalesthan McDonald`s. Yum! Has approximately nine percent of the marketshare (Smith, 2012). The other fast food companies that compete withthe Yum! Brands include Domino`s Inc. that has around one per cent ofmarket share Wendy`s International Incorporated, Doctors Associateincorporated that holds about ten percent of the market share, BurgerKing Corporation, and Jack in the box incorporated.



YumBrands is an established company that has been in the food industryfor a long period. It has been able to serve its customer well andwith consistency. The products are in the maturity stage making thecompany a top notch business. Yum Brands deals with various types offast foods such as fish and chips, mashed potatoes, salads,sandwiches, pizza, French fries, chick nuggets, hot dogs, ice creams,and onion rings among others.All these products have reached thematurity stage of their life cycle. However, there are new productsthat are still in the growth stage. These products include themicro-cuisines that are introduced from various parts of the worldand new flavors.


Themost commonly used method for pricing by the Yum Brands is theeveryday low pricing style. The company uses the method so as to gainextra confidence from new customers and maintain loyalty to theregular ones. Customers do not like dealing with enterprises thatkeep on changing their prices day in day out. Clients are morecomfortable with a company that has predictable prices. Therefore,Yum Brands uses the volume pricing technique so as to maintain thecustomers’ trust.


YumBrands Company is popular because it uses the exclusive distributionmethod. The company employs the technique primarily because it hasstores in various countries like the Republic of China. Relocationhas also saved the company millions of money because some productsare prepared in the foreign countries where the corporation ownsjoints instead of being exported. Besides, Yum Brands has invested inthe online food selling. Customers can order food from Yum Brandsfrom any point.


Thecompany uses advertisements to promote its products. Yum Brands makesan excellent use of the media to publicize the foods that it providesto customers. Television, social media, and the print media are theones that are used by the company. The adverts also come on a regularbasis such that customers both the ordinary and potential ones, keepon being reminded of the enterprise. As a result, the Yum Brands hasbecome a public figure, and it is at the back of the mind of manypeople.

InternationalMarket Entry Strategies

HostCountry Analysis

Chinais the country being preferred as the host nation. Yum Brands hasgreat potential for business if it lands in a state that has a highpopulation and especially when the community composition mostlyconsists of working age. Working people are the greatest customersfor the fast foods companies. Most citizens in China belong to aworking class, and thus there is a lot of potential in China.Besides, the people of China like eating ready food because freshfoods are scarce due to the scarcity of cultivation land. This willbe advantageous to the company. Furthermore, the huge population inChina will act as a source of labor. The availability of cheap laborwill increase the profit margins of the enterprise.

Modeof Entry

Thebest strategy that a firm can use to gain entrance into theinternational market and catch up quickly is through a joint venture(Turnbull et al., 2013). Therefore, Yum Brands will look for a jointventure in China so that it can take advantage of the local companyto be able to navigate the local market appropriately (Turnbull etal., 2013). Furthermore, it will be wise to use a joint venturebecause the market restrictions by the government will be avoidedsince Yum will not be registering as a new company in the Republic ofChina. This will help in reducing the risk of being denied a tradingpermit. Moreover, when a foreign company chooses to use a localcompany when entering an international market, it is betterpositioned for the cultural differences navigations (Turnbull et al.,2013). The local company will help Yum Brands understand the cultureof the people of China easily. Culture is a very important factorbecause it can affect the way the business will progress.


Topof Form

Hitt,M. A., Ireland, R. D., &amp Hoskisson, R. E. (2013). Strategicmanagement: Competitiveness &amp globalization.Mason, OH: South-Western Cengage Learning. Bottomof Form

Topof Form

Smith,A. F. (2012). Fastfood and junk food: An encyclopedia of what we love to eat.Santa Barbara, Calif: Greenwood.

Bottomof Form

Turnbull,P. W., &amp Valla, J. P. (2013). Strategiesfor international industrial marketing.London: Routledge.