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YUM Restaurant

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New 'economic model' which reduces Investment cost for each restaurant by 30 ... Textiles and garments. Agricultural processing ... – PowerPoint PPT presentation

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Title: YUM Restaurant


1
YUM Restaurant
  • Brian Mason
  • Cassandra Simmons
  • Group 2 Feb, 6 2009
  • International Marketing

2
Overview of article
Yum Restaurants ups budget for store expansion,
marketing
  • Yum Restaurants International (YRI) Thailand
  • Plan to invest Bt1.8 billion (51M USD) in store
    expansion and marketing (KFC Pizza Hut)
  • Create an estimated jobs between 3K-4K
  • Adding 90 KFCs and 20 Pizza Huts
  • New economic model which reduces Investment
    cost for each restaurant by 30

3
YUM Overview
  • YRI
  • US/Russia/UK/Australia/China (Thailand Taiwan)
  • KFC Pizza Hut
  • Only restaurants outside the U.S.
  • Opening Taco Bell Internationally soon
  • International Competitors
  • McDonalds
  • Burger King
  • Domestic Restaurants
  • All competitors
  • McDonalds
  • Burger King
  • Wendy's
  • Papa Johns
  • Domino Pizza
  • Popeye's

4
YUM Restaurants
5
Expected Growth
YUM Financials, 2007
6
Menu
7
Commercial Environment of the Kingdom
  • Constitutional Monarchy
  • Legal System
  • Based on Civil Law
  • Population 65,493,296
  • Male to Female ratio 11
  • Median Age
  • Male 32 years
  • Female 33 years
  • Average life span 73 years
  • Language
  • Thai
  • Religions
  • Buddhist 94.6
  • Muslim 4.6

8
General Info
  • One of East Asias best performers from 2002-2004
  • Avg. more than 6 annual GDP growth
  • GDP has fallen sharply from 2005-2007
  • Avg. is now 4.8
  • Political Problems
  • Stalled infrastructure projects
  • Eroded investor and consumer confidence
  • Damaged the countrys international image
  • Industries
  • Tourism
  • Textiles and garments
  • Agricultural processing
  • Light manufacturing (electric appliances,
    circuits, plastics)

9
Culture
  • Cuisine
  • Blends five fundamental tastes
  • Sweet, Spicy, Sour, Bitter, Salty
  • Rice is the staple food, usually some variety of
    jasmine rice.
  • Most fast food restaurants have changed their
    menu to use less beef and more chicken and fish.
    This is due to local preferences.

10
Investment
  • 51 Million USD investment
  • Why is this potentially a good idea?
  • Advantage over competitors menu.
  • Thai prefer chicken over beef
  • Popular with teenagers
  • Thai teens feel its fashionable
  • If they can build a strong customer base with
    teens, they may have customers for life.

11
Bad Idea
  • Why is this potentially a bad idea?
  • Thai economy is already slipping, current world
    economy slow down will only have more negative
    effects.
  • When the economy is bad, people typically eat at
    home, rather than at restaurants.

12
Analysis
  • After weighing the pros and cons of this
    aggressive expansion, we feel that this is a good
    move for long term growth.
  • Yum will take losses in the short term, but once
    the economy picks back up, this will secure their
    future in Thailand.

13
  • Any Questions?
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