S. market anticipated to deliver between 5 and 7% margin growth over the next five years. Further, the Chinese marketplace is also one marked by lower labor costs and a lack of the stigma associated with working in fast food establishments that exists in the United States and other westernized nations.
Looking at Table 2: U.S. Operating Profit Source by Brand for 2004 according to SEC filings (2004) clearly Taco Bell contributes the majority of profits followed by Pizza Hut at 34%, then KFC at 15%. Long John Silver's and A & W. have been continually losing share and profits relative to larger competitors.
Table 2: U.S. Operating Profit Source by Brand
Taco Bell
Pizza Hut
KFC
Long John Silver's/A&W
Contrast U.S. profit source by brand with International profit sources, and the critical role of KFC in any expansion strategy becomes clear. Table 3, International Operating Profit Source by Brand for 2004, shows the dominance of KFC overall.
Table 3: International Operating Profit Source by Brand
KFC
Pizza Hut
Taco Bell/Long John Silver's/A&W
From this analysis it's clear that KFC is one of the stronger brands with greater profit potential globally, yet key to making this possible is aligning this specific brand with a given geography. The next section of this analysis deals with the specifics of analyzing Latin American geographies in addition to China.
Geographical Assessment
Latin America is one of the slower growing markets that Yum! Brands participates in during the timeframe analyzed, with just $9M in incremental sales from 1999 to 2004, rising from $33M to $42M respectively. Yum! Brands however has done extensive analysis of the highest growth Latin American nations, and a short summary by nation of opportunities and...
According to Spring (2002), in 2002, YUM! Brands acquired a&W and Long John Silver's; at that time, the company reported that, "The acquisition allows us to accelerate our multi-branding strategy and...to be expanded international leaders...in chicken, pizza, Mexican and seafood" (quoted in Spring at 203). As noted above, the company's motto is, "Our passion is to put YUM on our customer's faces all over the world," and this marketing approach
Aspects such as weight reduction, disease reduction, and overall peak performance will be emphasized (Jeffery, 2006). Sponsoring many of Australia's more popular sporting events with the products would also be very beneficial. Placement of these products will occur within all of the Yum! Brands locations. As mentioned above, two strengths of the company are its global positioning in regards to its brand, and its overall depth of franchises (McGinley,
Financial Analysis of Mcdonald A financial analysis McDonald's Cor Company Overview McDonald Corporation is a global company that conducts business in 117 countries. McDonald operates 32,737 restaurants and 26,338 franchises in the highly competitive fast food industry. Since 1940, McDonald has built a loyal customer base by continuing dedicating to customer service and providing high quality fast food for customers. Presently, McDonald could boast of over 60 millions customers and the company
5% 2010 over 2009, indicating a major growth bounce back. What these figures indicate is that McDonalds may be priced at the high end of its range. The company is trading just off of its 52-week high and indeed is just off of its 10-year high. The market's growth assumptions are reasonable. China has not faced a strong economic downturn and is therefore going to continue to be a robust market
Organisational Marketing Objectives DEVELOPING ORGANISATIONAL MARKETING OBJECTIVES Developing Organizational Marketing Objectives Kentucky Fried Chicken (KFC) Executive / Management Summary Kentucky Fried Chicken (KFC) is a fast food venture specializing in serving its customers with the best products and services at all times. It is the aim of the venture to offer such products and services as part of the plan to have and dominate its market share. Through its mission and vision, the venture
Organisational Marketing Objectives DEVELOPING ORGANISATIONAL MARKETING OBJECTIVES Developing Organizational Marketing Objectives Kentucky Fried Chicken (KFC) Executive / Management Summary Strategic Direction Mission and Vision Kentucky Fried Chicken (KFC) is concerned with the production of fast foods, specializing in fried chicken. It is a worldwide restaurant with its headquarters in the United States of America. Current CEO is Roger Eaton. The revenue for the company is $9.5 billion as at 2012. The parent to this organization is
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