Yum Brands is a global fast-food giant that operates some of the most popular quick-service restaurants in the world, including KFC, Pizza Hut, and Taco Bell. The company’s business strategy has been successful, and it’s worth analyzing how they achieved their current position in the market.
In this article, we’ll take a complete overview of Yum Brands’ business strategy by closely analyzing their mission statement, marketing tactics, and organizational structure to explore how they have been able to dominate the fast-food industry.
Mission Statement:
Yum Brand’s mission statement is “To build the world’s most loved, trusted, and fastest-growing restaurant brands.” The statement is ambitious, and it sets the stage for the brand’s leadership to take bold steps in innovating, partnering, and expanding their reach.
Marketing tactics:
The company uses various marketing tactics to promote its fast-food chains around the world. They use a combination of traditional and digital marketing channels, including TV commercials, social media, billboards, and experiential marketing campaigns to stand out from the competition. They also employ a “think local, act local” approach, which involves market-specific menus and promotions.
Organizational structure:
Yum Brand’s organizational structure is essential to its success. They operate on a franchising model, whereby they grant franchise rights to local business owners, who run the actual fast-food restaurants. This approach minimizes the company’s operational expenses, reduces risk, and gives them a more granular understanding of each market’s dynamics. Also, Yum Brands has a centralized menu and supply chain management approach, which ensures consistent quality across its global portfolio.
Overall, Yum Brands’ success in the fast-food industry can be attributed to its ambitious mission statement, integrated marketing approach, and franchise-based organizational structure. By aligning these three pillars, the company has been able to dominate markets worldwide and continue its rapid expansion while maintaining consistent quality across its various brands.
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