MARKETING CASE ANALYSIS

Marketing Case Analysis

EXECUTIVE SUMMARY

 Yum Brands develops, operates, franchises and licenses a system of restaurants, which prepare, package, and sell various food items.The company operates five branded restaurant concepts KFC, Pizza Hut, Taco Bell, LJS and A&W. It operates more than 37,000 restaurants in more than 100 countries. The company operates through six operating segments: KFC-US, Pizza Hut-US, Taco Bell-US, LJS/A&W-US, Yum Restaurants International (YRI) and Yum Restaurants China (China). However, for financial reporting purposes, it combined the four US operating segments into a single reporting segment (the US). The China segment includes China, Thailand and Taiwan, and the international segment includes the remainder of its international operations.

Some of the issues and challenges that company is facing nowadays can be categorized as:

increase in competition,

poor management,

bad marketing,

and lack of response to the changes in the needs of franchises and customers.

This resulted in the strategic issues that required to be implemented to carry on growing success for the company.

 

A. Environment

What is the state of the economy

Fast food restaurants represent one of the main segments of the food industry with over 200,000 restaurants and $120B in sales in the U.S. single-handedly. Fast food restaurants, also recognized as quick service restaurants (QSRs), are noted for their short food preparation time. Some of the main players in this group include international giants like McDonald's and Yum! Brands, national chains such as Wendy's and Burger King and regional players like Jack In The Box and Sonic.

What are the current trends in cultural and social values

Nowadays it has been seen that most of the organizations give importance to many values when they enter a new market or in the other like language and religious of that country. For example KFC in muslim country always use Halal food.

What are the current political values and trends?

Since late 2006, the fast food industry's growth has been slowed by soaring food and energy prices. The high prices of commodities, combined with the housing slump and a weakening job market are taking a toll on restaurant spending in the U.S. (the world's largest fast food market, by far). The same food and energy inflation that is corroding consumer spending is also taking a bite out of company margins.

Is there any pending federal, state, or local legislation that could alter the environment?

Economic situations are influenced by political plus government policy, being a main power affecting government decisions. The subject of whether European countries join, or remain outside, is a case in point.

The only organization that can alter the environment in the united states is American Public Health Association.

Any threats to the environment, and therefore the firm

Fast food restaurants have navigated this hard landscape with varying stages of success. International players such as McDonald's (MCD) and Yum! Brands (YUM) have had the most achievement as volatile growth in emerging markets has offset rising costs and a U.S. delay. Other companies like Sonic and Domino's have turned to new marketing campaigns plus product innovation ...