Read the case study regarding Yum! Brands and then answer the following questions:
- Yum! Brands is a highly diversified restaurant brand
(Pizza Hut, Taco Bell, Kentucky Fried Chicken [KFC], Long John
Silver’s, Allen and Wright [A&W], and Wing Street). How does Yum!
create marketing synergy despite this diversification? Compare its
marketing strategy with those of its main competitors. - What are some of the challenges Yum! faces in managing its various product lines?
- Give a brief account of the successes and failures Yum! has had with some of its new products.
- What are the steps Yum! must take when introducing new products to their consumer base?
Submit your answers in a 2- to 3-page Microsoft Word document. Cite sources using the APA format on a separate page.
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MBA6225 Consumer Behavior and Marketing within the Hospitality Industry
Case Study: An In-Depth Look at Yum! Brands
Introduction
Yum! Brands, Inc., based in Louisville, Kentucky, i
s the world’s largest restaurant company in
terms of system restaurants with over 37,000 restau
rants in more than 110 countries and
territories. Four of the company’s restaurant brand
s—Kentucky Fried Chicken (KFC), Pizza Hut,
Taco Bell, and Long John Silver’s—are the global le
aders in the chicken, pizza, and
Mexican-style food and quick-service seafood catego
ries respectively. Yum! Brands is the
worldwide leader in multibranding, which offers con
sumers more choice and convenience at one
restaurant location from a combination of KFC, Taco
Bell, Pizza Hut, Allen and Wright (A&W), or
Long John Silver’s brands.
The company and its franchisees today operate over
3,600 multibrand restaurants worldwide.
Yum! Brands is building a vibrant global business b
y focusing on key growth strategies: building
dominant restaurant brands in China, driving profit
able international expansion, improving its U.S.
brand positions and returns, and driving high retur
n on invested capital (ROIC) and strong
shareholder payout. Outside the United States in 20
05, the system opened about three new
restaurants each day of the year, making them one o
f the fastest growing retailers in the world.
Yum! Brands has a large, growing, profitable, high-
return international business and a strong
growth opportunity with two global brands, KFC and
Pizza Hut.
Company History
Yum! Brands was created on October 7, 1997, as Tric
on Global Restaurants, Inc., an
independent, publicly owned company, as a result of
a spin-off from PepsiCo, who had owned
and franchised the KFC, Pizza Hut, and Taco Bell br
ands worldwide. The chain continues to sell
PepsiCo beverages and other products.
David C. Novak became Chief Executive Officer (CEO)
of Yum!…
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