Yum! Brands, Inc.: A Corporate Do over Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Yum! Brands, Inc.:A Corporate Do over Case Solution

OVERVIEW OF THE CASE

The fast food industry has been growing rapidly since the past few decades and also several fast food restaurants have entered the market. Yum! Brand, Inc. is one of the largest fast food players in the market with over 42,500 restaurants in more than 130 countries and territories. The top listed restaurants Yum are "Pizza Hut, Taco Bell, and KFC". These are the international players of chicken pizza and Mexican-style food categories. Moreover, the brands of the company are further divided into sub-segments: Pizza chain, family restaurants chain, grills buffets chain, sandwich chains, and dinner concepts.
Due to the consumers’ trends, the company has seen its up and downs in the industry. During the War of Iraq, the company's demand declined due to the issues of economic stability, health problems, and food quality. On the other hand, the company has grown due to some other trends such as the increase in families' income, single households, and an increase in the number of immigrants.
Yum! Brand is the second largest fast food brand after McDonald’s. McDonald’s has captured the large segment of fast food industry due to its high brand strategies. It also achieved great success in the US market as it offers its products at low prices and maintains high-quality supply chain activities. Therefore, the market share of the company increased as well as it also maintained its position in the leading fast food industry.
This case illustrates the winning cycle of the restaurant company, Yum! After the spin off from Pepsi Co in 1997, the company become the leader of the fast food restaurant and earned 20% of profit outside of the United States in 2015. The biggest problem that is highlighted in this case is how the company maintains its leadership in the market and what the company does in term of multi-branding and establishing two brands in the one physical location.

Q1: What is the value proposition for YUM! Brands (Yum’s) customers? How well are Yum’s restaurant chains delivering on the value proposition?

Answer:

The value proposition includes the customers' perspective (more or less). The company follows the two fundamentals of creating the value, which are multi branding, and value pricing options. In addition to this, the company also focuses on its goals (both short term and long term) in order to generate the profit.
Novak joined Pepsi Co in 1986, as a marketing executive for Pizza Hut and he also performed his duties as the president and the CEO of KFC in 1994. During this period, KFC faced problems that reduced the market share of the company and also negatively affected the company’s contentious relations with its franchisees. In 1998, Novak made several strategies which increased the profit and market proportion of the KFC.

The philosophy of Novak was to involve the customers in the business as its help in the success of the company. Novak stated that the key big driver of the company is continuity in both people and process, but unfortunately, the company did not have both. Moreover, he guided the management team and took these drivers as an opportunity for the gigantic do-over. He believed that if they improve the system of their brand, then it would undoubtedly enhance its position in the market..........

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