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“When Eat Meets West” L. Cullen, B. Powell, & D. Mascarenas. By: Meaghan Germundson JerriLynn Goff. Yum Brands ( Located in Louisville, Kentucky). KFC Pizza Hut Taco Bell Yum , a spin off of PepsiCo, began in 1997
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“When Eat Meets West”L. Cullen, B. Powell, & D. Mascarenas By: Meaghan Germundson JerriLynn Goff
Yum Brands(Located in Louisville, Kentucky) • KFC • Pizza Hut • Taco Bell Yum, a spin off of PepsiCo, began in 1997 • Yum was forced to go global, due to domestic fast-food sales only growing 2% annually.
PepsiCo’s strong infrastructure has given Yum the foundation to successfully go global 10 years ago, Yum’s overseas profits were 20%, and now these profits have risen to 50% Yum is currently focusing on expansion in China, India, and Russia Alone we’re delicious…together we’re
Outside of the U.S. and China, Yum has opened over 700 stores annually • Their international profits have driven stock price up 82% over the last 10 years • Yum’s largest markets are Australia and the U.K. • Pizza Hut is seen as the most trusted food-service in India
Profits from China, Taiwan, and Thailand popped 37% in 2006 • A new KFC opened nearly everyday in China in 2007 • Sam Su, the operator of Yum in China says “The lifestyle is changing…people are getting more urbanized and busy with less time to cook at home”.
There are concerns about introducing high calorie foods to a thin population • Yum argues that it’s not exporting fatty foods, rather offering tasty options to a global public • “The answer to the nutrition issue is balance and exercise” CEO of Yum • KFC sponsored a basketball tourney in China and offered healthier alternatives like roasted chicken
Relevance to course • Although food products are considered difficult to sell globally, Yum has been successful incorporating fast food into global markets • Yum is aware of cultural differences and similarities within their international food chain • Yum is flexible with their marketing strategies An example of this is through their offer of healthier alternatives and promotion of active lifestyles
References Cullen, L., Powell, B., & Mascarenas, D. (2008, January 28). When Eat Meets West. Time, 171(4), 44-46. Retrieved March 8, 2008, from Academic Search Premier database. Duncan, Tom (2005). Principles of Advertising & IMC. New York, NY: McGraw-Hill.