The Marketing mix of Yum! Brands analyses the 4Ps of Yum! Brands, including the Product, Price, Place, and Promotions. Yum! Brands is an American company famous for fast food production, preparation, and marketing. Its headquarters is in Louisville, Kentucky, but it has branches worldwide. Yum! Brands Company runs several hotel brands in the fast food market, including KFC, Taco Bell, Yum Restaurants India, WingStreet, Pizza Hut, etc. In India, fast food companies are the most popular, ahead of even most local fast food companies. Founded in 1997, Yum! Brands have become a force to reckon with in the fast food industry.
About Yum! Brands
- Type: Restaurant Company
- Industry: Quick-service restaurant
- Founded: 1997
- Founder: David Novak
- Headquarters: Louisville, Kentucky, United States
- Area served: Worldwide
- Key people: David Novak (Chairman) and David Gibbs (CEO)
- Number of employees: 430,000
Table of Contents
Yum! Brands Product Strategy
Taco Bell is known for its tacos, Grilled Stuft Burritos, signature Quesadillas, Nachos, and Burritos, among others. Being of Mexican origin, the company is mainly associated with Mexican cuisine, though it is also rich with other cuisines. Taco Bell alone has at least 5,800 restaurants in the USA where it offers its customers fast food restaurant services.
On the other hand, Pizza Hut is predominantly known for its Italian foods, loaves of bread, pasta, and pizzas. To remain relevant in international markets, Pizza Hut also does some local cuisines depending on the market share of a branch’s location. On the other hand, KFC is a kind of chicken, burgers, and pizzas, among many other foods.
- KFC (Kentucky Fried Chicken): Known for its fried chicken, KFC’s menu typically includes a variety of chicken products such as original recipe chicken, extra crispy chicken, Kentucky Grilled Chicken, chicken sandwiches, and various sides like mashed potatoes, coleslaw, and biscuits.
- Pizza Hut: This Brand is recognized for its wide range of pizzas, including pan pizza, stuffed crust pizza, and thin ‘n crispy pizzas. Pizza Hut also offers pasta, wings, breadsticks, and desserts like the Hershey’s chocolate brownie.
- Taco Bell: Taco Bell serves a variety of Mexican-inspired foods, which includes tacos, burritos, quesadillas, nachos, novelty and specialty items, along with a variety of “value menu” items.
- The Habit Burger Grill: Acquired by Yum! More recently, The Habit Burger Grill is known for its charbroiled hamburgers, sandwiches, salads, and milkshakes.
Yum! Brands Place Strategy
Yum! Brands are available all over the world. The chain comprises at least 42,000 restaurants worldwide, about 9,000 company-owned. The rest are licensed, franchised, and unconsolidated affiliates.
In total, Yum! Brands are available in about 130 countries, making it the world’s biggest chain of fast food companies. Yum! Brands are marketed in several channels depending on the location. The company first studies the target market and analyses the consumer needs before deciding on the most appropriate distribution channels. As a result, almost all the market segments are attended to.
Here’s the place strategy of Yum! Brands.
- Global Presence: Yum! Brands have a significant global footprint, with restaurants in over 150 countries and territories. This extensive presence allows them to capture a diverse customer base and adapt to various cultural and regional tastes.
- Franchise Model: A large portion of Yum! Franchisees operate brands’ locations. This strategy allows for rapid expansion and local adaptation while reducing the company’s capital expenditure and operational risks.
- Multi-Brand Outlets: In some locations, Yum! Brands operate multi-brand outlets, combining two or more brands, like KFC and Taco Bell, under one roof. This strategy maximizes space and location efficiency and caters to broader consumer preferences.
- Strategic Location Selection: Yum! Brands focus on prime locations for their outlets, such as high-traffic areas, malls, and urban centers. This ensures high visibility and accessibility, critical factors in attracting customers.
- Digital and Delivery Focus: Recognizing the growing online ordering and food delivery trend, Yum! Brands have been enhancing their digital platforms and partnering with primary delivery services. This approach caters to the convenience sought by modern consumers and expands their market reach beyond traditional in-store dining.
Yum! Brands Pricing Strategy
Yum! Brands employs a multifaceted pricing strategy that reflects its market positioning, brand equity and value, and customer segmentation, all while remaining competitive in the fast-food industry. Here’s an expert breakdown:
- Competitive Pricing: Yum! Brands entities like KFC, Pizza Hut, and Taco Bell adopt competitive pricing strategies to match or undercut competitors in specific markets. This approach is crucial in the fast-food industry, where price sensitivity significantly influences consumer choices.
- Value Meal and Combo Offers: The brands frequently use value meals and combo offers to attract price-sensitive customers. These bundled offers provide perceived value, encouraging higher customer spend per visit and promoting the trial of new menu items.
- Dynamic and Localized Pricing: Pricing at Yum! Brands vary significantly across different geographic locations, reflecting local purchasing power, competitive dynamics, and operational costs. This dynamic pricing strategy ensures market relevance and profitability across diverse global markets.
- Psychological Pricing: Psychological pricing is standard, such as setting prices just below a round number (e.g., $4.99 instead of $5.00). It creates a perception of value and affordability, subtly encouraging higher consumer spending.
- Premium Pricing for Specialty Items: While generally maintaining competitive pricing, Yum! Brands also employ premium pricing for specialty or limited-time offerings. This approach caters to less price-sensitive segments seeking novelty and enhances brand perception by offering exclusive products.
Yum! Brands Promotion Strategy
There is one promotion strategy that is unique to Yum! Brands. This is a strategy that often transplants outrageous concepts across international markets. For instance, the introduction of a sandwich debut in the USA by KFC’s Double Down was received with attacks, especially from customer segments and the media.
This bun-less offering that featured two deep-fried chicken patties, a “secret” sauce, two types of melted cheese, and bacon was hit hard by many media houses, including the New York Times, which, through Sam Sifton, dismissed the sandwich as a “Stunt food” and “new low.” Surprisingly, even with such bad reviews, KFC sold 10 million Double Downs within just a month, which triggered it to extend the limited-time duration the product was to run.
The above strategy is a product development and sales-cum-promotion strategy that has put Yum! Brands at the forefront. True to this statement, Yum! Brands frequently develop new or even advanced products, as noted at KFC. The Double Down product created an internet buzz to the extent that KFC has to introduce it in South Korea, Malaysia, Philippines, New Zealand, Japan, and Australia. However, it had not planned to sell it outside of the USA. All the Yum has used such a strategy! Brands at some point.
Discounts and offers are frequently offered to the markets, especially during festivities. At the same time, discounts are commonly provided to corporate customers, with some brands, such as Pizza Hut, frequently doing several enterprise discounts. BTL activities such as digital marketing, newspaper inserts, lollipops, hoardings, and guiding potential customers to the outlets are also frequently used.
Some Recent Video Ads and Print Ads for Yum! Brands are:
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