“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 YumYum, a spin off of PepsiCo, began in 1997 Yum  Yum was forced to go global, due to domestic fast-food sales only growing 2% annually.

Alone we’re delicious…together we’re  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

 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 Pizza Hut India Pizza Hut India

 Profits from China, Taiwan, and Thailand popped 37% in 2006  A new KFC opened nearly everyday in China in 2007 China  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), Retrieved March 8, 2008, from Academic Search Premier database. Duncan, Tom (2005). Principles of Advertising & IMC. New York, NY: McGraw-Hill.