Aspects such as weight reduction, disease reduction, and overall peak performance will be emphasized (Jeffery, 2006). Sponsoring many of Australia's more popular sporting events with the products would also be very beneficial. Placement of these products will occur within all of the Yum! Brands locations. As mentioned above, two strengths of the company are its global positioning in regards to its brand, and its overall depth of franchises (McGinley, 2004). With more locations than any of its competitors in emerging markets, the company has a distinct competitive advantage relative to its peers in the industry. By effectively utilizing this franchise to unveil its healthier product segment, Yum! Brands can capitalize on its location density. The locations are also very useful in regards to cross selling many of the newer health option that customers may not be aware off. By placing the new products in all of its location simultaneously the company ensures that its distribution network is running optimally (Schlosses, 2001). Therefore pricing should be in line with competitors (Levinstein, 2003).
One of the more contentious areas in regards to the marketing mix is that of pricing. As mentioned in the SWOT analysis above, pricing is a detriment to the industry. With very low barriers to entry, competitors can often arise without warning. As such, these competitors can be widespread and ubiquitous throughout the Australian region. These competitors may have a capital structure that allows them to charge lower prices and ultimately taking market share. To properly combat this issue Yum! Brands must price their products as reasonably as possible to avoid the possibility of alienating customers. Prices therefore should correspond to the overall market for health products in Australia. Due to ...
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Therefore pricing should be in line with competitors (Levinstein, 2003).
According to Spring (2002), in 2002, YUM! Brands acquired a&W and Long John Silver's; at that time, the company reported that, "The acquisition allows us to accelerate our multi-branding strategy and...to be expanded international leaders...in chicken, pizza, Mexican and seafood" (quoted in Spring at 203). As noted above, the company's motto is, "Our passion is to put YUM on our customer's faces all over the world," and this marketing approach
S. It is at a stage where it would be considered a cash cow. Yum is feeling out international expansion opportunities for Taco Bell, but there is little possibility that Taco Bell will supplant KFC and Pizza Hut as the key driver of economic growth. Those two firms have stronger product offerings for international markets. The role that Taco Bell plays, providing cash that can fuel global expansion of other
Many companies in this industry are no longer trying to expand the number of restaurant, but rather focus on other growth strategies, such as international expansion or product innovation. The last strategy is very suitable for the home market. The eating habit trends point to a change in the average American towards a healthier lifestyle. Yum! has a weakness point in this area as its products are not perceived
S. market anticipated to deliver between 5 and 7% margin growth over the next five years. Further, the Chinese marketplace is also one marked by lower labor costs and a lack of the stigma associated with working in fast food establishments that exists in the United States and other westernized nations. Looking at Table 2: U.S. Operating Profit Source by Brand for 2004 according to SEC filings (2004) clearly Taco Bell
Finance Flexible Budget for Yum Brands Inc. Flexible budgeting allows a firm to look at different potential scenarios, often this may be undertaken for an optimistic, pessimistic and most likely scenario. Firms will often undertake forecasting exercises; these may be based on complex approaches to assess likely demand, for example, considering past patterns of sales, the impact advertising they will have and other factors such as the influence of the economic climate,
Even the decor and layout of KFC and East Dawnings provide a connection to the typical Chinese life; "layouts are designed to resemble Chinese homes" (Case 7-2). Yum! provides visitors with a unique experience which is not dominated by American "young and hip" (Case 7-2), but pays respect to the home country. "A plaque at the entrance of one KFC describes it as "an exchange channel between KFC fast-food