Marketing Mix of Yum! Brands and 7Ps (Updated 2025)

The Marketing mix of Yum! Brands analyse the 7Ps of Yum! Brands, which include the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Yum! Brands. Yum! Brands is an American company famous for fast food production, preparation, and marketing. Its headquarters is in Louisville, Kentucky, but it has branches in strategic locations 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

Competitors

• McDonald’s Corp
• Subway
• Starbucks Corp
• Domino’s Pizza Inc
• Chick-Fil-A Inc

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 fast food 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.

The new Product Mix of Yum! Brand in 2024 is as follows (Source).

1. 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.
2. 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.
3. 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.
4. 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 Pricing Strategy

Yum! Brands employs a multifaceted pricing strategy that reflects its market share and positioning, brand equity and value, and customer segmentation, all while remaining competitive in the fast-food industry. Here’s an expert breakdown:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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 Place Strategy

Yum! Brands are available all over the world. The chain comprises at least 42,000 restaurants worldwide, about 9,000 of which are 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 growing demand and 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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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 Promotion Strategy

There is one product promotion and 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 chicken strips with 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 duration of the product.

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 innovative products, even advanced ones, 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 frequently increase sales.

Some Recent Video Ads and Print Ads for Yum! Brands are:

Yum! Brands People Strategy

Yum! Brands, Inc., a global leader in the fast-food industry, operates some of the most recognizable quick-service restaurant chains, including KFC, Pizza Hut, and Taco Bell. The “People” aspect of the Service Marketing Mix for Yum’s fast food restaurants! Brands play a critical role in their success, focusing on their employees and customers. Here are key points regarding the “People” element of Yum! Brands’ Service Marketing Mix:

1. Employee Training and Development: Yum! Brands invest heavily in the training and development of their employees. This includes comprehensive training programs for staff at all levels, from frontline workers to management, ensuring they possess the necessary skills to provide excellent service and maintain high food quality standards.
2. Customer-Centric Culture: The company fosters a customer-centric culture, emphasizing the importance of customer satisfaction in every aspect of its operations. Employees are encouraged to go above and beyond to meet customer needs, leading to a positive dining experience.
3. Diverse and Inclusive Workforce: Yum! Brands place a strong emphasis on creating a diverse and inclusive workforce. This approach not only enhances team dynamics and innovation but also ensures that the company can cater to its global customer base’s diverse tastes and preferences.
4. Recognition and Reward Systems: Yum! Brands have implemented various recognition and reward systems to acknowledge and incentivize outstanding performances by their employees. This strategy boosts morale and motivates employees to maintain high levels of service.
5. Leadership and Management Style: The company promotes a supportive leadership style that encourages open communication. Managers are trained to be leaders who inspire their teams, foster a collaborative work environment, and lead by example.
6. Employee Empowerment: Employees are empowered to make decisions that enhance customer satisfaction. This empowerment enables frontline staff to resolve issues promptly and efficiently, improving customer experiences.
7. Community Engagement and Social Responsibility: Yum! Brands and its employees actively participate in community service and social responsibility initiatives. This engagement contributes to societal well-being, builds a positive brand image, and strengthens customer loyalty.
8. Customer Feedback Mechanisms: The company has established multiple channels for customer feedback, including surveys, social media, and direct feedback at their outlets. This feedback is used to improve service quality and address customer concerns continually.
9. Global Workforce Adaptability: With operations in over 150 countries, Yum! Brands have a globally diverse workforce. The company ensures that its employees are adaptable and can cater to customers’ cultural nuances and preferences in different regions.
10. Safety and Health Standards: In light of global health concerns, Yum! Brands place a high priority on the health and safety of both their employees and customers. This includes strict hygiene and safety protocols across all its restaurants.

Yum! Brands Process Strategy

The “Process” element of the Service Marketing Mix for Yum! Brands that operate major fast-food chains like KFC, Pizza Hut, and Taco Bell encompass the methods and procedures used to deliver their services efficiently and effectively to customers. This element of marketing strategy is crucial for ensuring customer satisfaction, streamlining operations, and maintaining quality across their global outlets. Here are key points regarding Yum’s “Process” aspect! Brands’ Service Marketing Mix:

1. Standardized Cooking and Service Procedures: Yum! Brands have developed standardized procedures for cooking and serving their food products. This ensures food quality and service consistency across all locations worldwide, a key factor in maintaining brand reputation and customer satisfaction.
2. Efficient Order Taking and Fulfillment: The company employs an efficient order-taking and fulfillment process, utilizing both in-person and digital platforms. This includes point-of-sale (POS) systems in restaurants and online ordering through apps and websites to reduce wait times and improve customer experience.
3. Supply Chain Management: Yum! Brands have a robust supply chain management system that ensures the timely and efficient delivery of fresh ingredients to all its restaurants. This system includes quality checks and compliance with food safety standards to ensure that customers receive high-quality meals.
4. Customer Service and Feedback Loops: The company strongly emphasizes customer service and has established feedback loops through surveys, social media, and direct feedback channels. This allows Yum! Brands to continuously improve its processes based on customer feedback.
5. Use of Technology for Efficiency: Yum! Brands incorporate technology to streamline operations, including inventory management systems, digital ordering, and customer relationship management (CRM) systems. These technologies help optimize inventory levels, reduce waste, and enhance customer experience.
6. Training and Development: Ongoing employee training and development programs are critical to Yum! Brands’ process. These programs ensure employees are well-versed in operational procedures, food safety, and customer service standards.
7. Health and Safety Protocols: The company adheres to strict health and safety protocols in all its restaurants to ensure the well-being of both customers and employees. This includes regular sanitation, adherence to food handling standards, and compliance with local health guidelines.
8. Franchisee Support and Compliance: For its franchised outlets, Yum! Brands provide extensive support and ensure compliance with its standardized processes. This includes training, operational guidelines, and regular audits to maintain service quality and brand integrity.
9. Sustainability Practices: The company incorporates sustainability into its operations, from responsibly sourcing ingredients to reducing waste and energy consumption. These practices are part of Yum! Brands’ process to ensure long-term sustainability and reduce its environmental footprint.
10. Crisis Management and Flexibility: Yum! Brands have developed processes for crisis management and operational flexibility to quickly adapt to changing market conditions or challenges such as the COVID-19 pandemic. This includes pivoting to contactless delivery options and adapting restaurant layouts to ensure safety.

Yum! Brands Physical Evidence Strategy

The “Physical Evidence” element of the Service Marketing Mix refers to the environment in which the service is delivered, along with any tangible goods that facilitate the performance or communication of the service. For Yum! Brands, a global leader in the fast-food industry with well-known chains such as KFC, Pizza Hut, and Taco Bell, physical evidence plays a crucial role in shaping customer perceptions and experiences of excellent service. Here are key points regarding the “Physical Evidence” aspect of Yum! Brands’ Service Marketing Mix:

1. Branding and Design: Yum! ‘s distinctive branding and design! Brands’ outlets, including logos, colors, and interior decor, are immediately recognizable. These elements create a welcoming and appealing environment that aligns with the brand’s identity and values.
2. Cleanliness and Hygiene: Cleanliness and hygiene in restaurants serve as crucial physical evidence of the brand’s commitment to customer safety and quality service. Regular cleaning, well-maintained facilities, and visible hygiene practices reassure customers, especially in post-pandemic times.
3. Packaging: The packaging of food items not only serves practical purposes like maintaining food temperature and quality and acts as a marketing tool. Yum! Brands use branded packaging that is attractive, functional, and occasionally customized for promotions or seasonal offerings.
4. Signage and Menu Displays: Clear, attractive signage and menu displays outside and inside the restaurants facilitate easy navigation and ordering. Digital menu boards, in particular, allow for dynamic content adjustment according to time of day or promotional offers.
5. Seating and Layout: The restaurants’ seating arrangement and overall layout are designed for customer comfort and operational efficiency. This includes considerations for space, privacy, and the accommodation of different group sizes, enhancing the dining experience.
6. Website and Mobile Apps: Yum’s online presence! Brands, including websites and mobile apps, provide physical evidence of their service. User-friendly design, easy navigation, and the functionality of these digital platforms reflect the brand’s commitment to customer convenience and service accessibility.
7. Uniforms and Employee Appearance: The uniforms and general appearance of staff members contribute to the brand’s image and customer perceptions of professionalism and service quality. Uniforms are designed to be functional and represent the brand’s values.
8. In-Store Atmosphere: The atmosphere within Yum! Brands’ outlets, influenced by factors such as lighting, music, and temperature, is carefully curated to enhance customer comfort and prolong their stay, encouraging repeat business.
9. Point of Sale (POS) Systems and Technology: The visibility and functionality of POS systems, self-service kiosks, and other in-store technology are physical evidence of the brand’s investment in efficiency and modern service delivery methods.
10. Social Responsibility and Sustainability Initiatives: Tangible evidence of Yum! Brands’ commitment to social responsibility and sustainability, such as in-store recycling bins, information about charitable initiatives, and sustainable materials, can positively influence customer perceptions and brand loyalty.

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