Yum! Brands, Inc. is a group which operates various big fast food companies across the globe. Yum! Brands or Yum! formerly was Tricon Global Restaurants, Inc. It is an American fast food company with fortune of 500 corporations. KFC, Pizza Hut, Taco Bell, WingStreet, etc. are some of the international fast food companies which are operated by Yum! across the globe except in China. In China, all these fast food companies are operated by a separate company as Yum China. IT was founded in 1997 and headquartered in Louisville, Kentucky, U.S. In terms of system units, it is one of the largest fast food restaurant companies with approximately, 45,084 restaurants. Amongst these 43,603 are franchised owned and rest are self-owned. These restaurants are operated in more than 135 countries and terrorises across the globe. Tricon Global Restaurant Inc. was created from PepsiCo’s fast food division as parent company of KFC, Pizza Hut, Taco Bell and other big multinational restaurant companies (Yum! Brands, 2018).
In relevance with expansion and growth of the company in the international market, marketing manager has been appointed to grab the opportunity in relevance with launching a new brand in fast food industry in Indian market. Indian market has been chosen by reviewing the growing fast food market. Apart from this, it is one of the largest consumer based market across the globe, thus, Yum! will easily be able to launch a new fast food company in the target market. In relevance with attracting the target customers, Cosmos Fast Food Company will be established as a complete new brand. Under this fast food company, all types of fast food items will be served to Indians. Along with this, Indian customer’s taste, preference and demands will be focused so that appropriate products could be made in relevance with fulfilling their needs and wants as well as to establish an effective brand image in the target market (Bennett, Coleman & Co. Ltd, 2018).
Under this report, business and marketing philosophies and concepts will be discussed in relevance with setting up new fast food brand in the target market. Along with this, organizational strategies and strengths will be determined so that desired goals and objectives could be attained. Apart from this, organizational functionalities will be discussed so that value propositions could be analysed with the view to set up an effective brand image of the new fast food company in the target market. Further, report will focus over the external marketing environment of the target market so that appropriate and relevant marketing concepts and strategies could be developed. The last part of the report will focus over key opportunities available in the target market with the objective of launching a new sustainable fast food brand so that the organizational business could be expanded along with enhancing its revenues and growth development. Apart from this, recommendations will be given with relevance to the brand building, segmentation, targeting and positioning so that the desired goals and objectives could be attained in an effective manner.
Marketing management
Marketing management is an approach which focuses over allocating organizational resources in relevance with developing appropriate strategies in order to approach the desired customer segment for attaining the desired goals and objectives along with enhancing sales, revenues and profitability. Apart from this, newly appointed marketing manager will focus over overseeing and planning for the new product development and developing marketing and promotional strategies so that day-to-day marketing and long-term marketing strategy of the organization could be developed (PR Newswire Association LLC., 2018). Following are responsibilities which will be followed by the new marketing manager in relevance with successfully establishing Cosmos Fast Food Company in the Indian market:
Apart from these responsibilities, marketing managers performs various functions in order to establish a new brand or product in the target market with the objective of expansion and attainment of desired goals and objectives. In the initial period, organization will focus over market research and analysis to determine the target market’s demand and preferences so that appropriate strategies could be adopted and developed with regards to the fulfilment of target audience’s demands and wants as well as to establish an effective brand image (Hollensen, 2010).
In this scenario, Yum! has planned to launch a new fast food brand in Indian market so that organizational revenues, profitability and sales could be enhanced along with expanding the market share in the international fast food industry. Yum! is one of the largest international fast food companies and to defend their acquired position, organization has adopted product expansion strategy. This is one of the most effective growth strategies mainly used for expansion of the business in the international market. In this strategy, organization launches a new products or services or adds some effective elements in its existing products so that it could be served in the new market. In this scenario, Yum! has decided to set up a brand new fast food company in the Indian market with the objective of attaining growth and development along with enhancing its market share in the international market (Mullins, et. al., 2010).
With relevance to setting up a brand image in the Indian market, Cosmos Fast Food Company will be launched under the brand name of Yum! so that the market share of the company could be enhanced in the global fast food industry along with enhancing the number of restaurants under the brand name. In the first phase of setting up the brand image, newly appointed marketing manager will execute market research and market analysis activities so that the target audience’s taste, preferences and demands could be analysed. Further, other motives for the organization will be developing the fast food items as per Indian taste in order to enhance the customer base along with establishing an effective brand image (Kotler, 2015).
Value proposition
Value proposition is the concept of adding unique and innovative features in the existing products or launching new products with some unique features in order to make product or service attractive for the target audience. In relevance with the establishment of new brand in fast food market, Yum! has decided to launch a complete new fast food brand as Cosmos Fast Food Company in Indian market. Under this brand name, all types of fast food items will be available along with the taste preferred by Indian consumers. In relation to determine the target audience’s taste, preferences and the latest trends followed in Indian fast food industry (Wilson & Gilligan, 2012). According to research, it has been evaluated that, Indian consumers’ preferences in relevance with fast food items are changing and in relation to these changes and diversified consumer behaviour, it is required for the Yum! restaurants along with the new fast food brand to adopt appropriate strategies so that an effective market position could be set up in the target market. Value propositions of the products served under Cosmos Fast Food Company will be basic items of fast food industry as per the demands and wants of the target audience (Armstrong, et. al., 2015).
Apart from this, Cosmos Fast Food Company has expanded their product offerings in order to attract the target audience along with enhancing the customer base. The new product offerings for Cosmos Fast Food Company will be healthy food items and energy drinks which will mainly be made from fruits without any artificial flavours. Reason for adding healthy items in the menu of Cosmos Fast Food Company is to make its unique and effective position in the target market, increasing customer base as well as to gain competitive advantage along with enhancing the growth and development opportunities for the organization in the global market. The healthy items which will be main attractions of the new fast food brand of Yum! Brands will be healthy food items and energy drinks. Healthy items such as heathy burger, healthy pizza, baked French fries; baked chicken instead of roasted chicken will be served in order to attract different customer segments. Organization will mainly focus over the fitness enthusiasts, health conscious people, children, old age people, etc. It will help the organization to enhance its customer base along with developing an effective brand image in the fast food industry (Ferrell, et. al., 2010).
Marketing management concept
The new fast food restaurant will be established in the target market so that growth, development, advertisement and sales for new products which will be served under newly established fast food brand. An appropriate marketing concept is required so that the he operations of the organization could be performed in an appropriate manner with relevance to enhance the customer base along with developing a unique and distinct image in the competitive business environment. Indian market is full of opportunities and it is one of the largest customer markets across the globe. Indian fast food market is expecting to grow at a CAGR of 18% by 2020. Major reason behind this growth is changing consumer behaviour and their needs. In other words, Indian fast food market is expected to be worth US$27.57 billion by 2020. These figures shows the opportunities for new entrants as well as for existing players of the fast food industry to enhance their market share along with boosting up their sales, revenues and profitability. Thus, Cosmos Fast Food Company will also be able to set up its effective position in the Indian market with its huge product offering. Along with this, customer base of the organization will also be increased with the help of these product offerings (PR Newswire Association LLC., 2018).
Market Orientation
It is a marketing philosophy which focuses over meeting the needs and desires of the target audience through product mix. This strategy is unique and distinct from traditional marketing strategies. Under market orientation concept, organization’s products are altered as per the target and potential customer’s needs. With the help of this concept, Yum! will easily be able to establish their new brand i.e. Cosmos Fast Food Company in terms of fast food industry in Indian market. This marketing concept includes customer centric approaches and in relation with gaining competitive advantage as well as to enhance the customer base, organization will focus over adaptation of strategies through which the needs and wants of the target and potential customers could be fulfilled in relation with developing a unique and effective image in the target market (Hult, 2011).
Holistic marketing concept
It is new approach to marketing and also treated as the latest marketing approach. Major focus of this approach is to analyse the current business and marketing environment such as demographic changes, hypercompetition, corporate social responsibility, globalisation, etc. With the help of this concept, Cosmos Fast Food Company will be able to design, develop and implement effective marketing concepts which will recognise the breadth and interdependencies. This marketing concept includes the combination of traditional as well as contemporary marketing approaches to target the customer segments. Thus, organization will be able to target all the possible customer segments with the objective to attain desired goals and objectives in relation to enhancing customer base, revenues and market share in the target market (Murray, Gao & Kotabe, 2011). There are four major parts of holistic marketing which are as follows:
With the help of these marketing concepts, newly established fast food brand will be able to establish its effective place in the fast food industry. Opportunity to establish an effective image in Indian fast food market is easy as Indian market is one of the largest consumer market and trend shows that food market in India is expected to be worth USD$27.57 billion by 2020. At present, Indian market is a large consumer market of approximately 1.32 billion people and amongst that approximately 70% is youth i.e. aged between 18-35 and the major target market for fast food market is youth. Apart from this, Cosmos Fast Food Company has enlarged their product offerings and have added healthy food items in order to target rest age groups so that customer base could be enlarged along with enhancing the revenues and profitability (PR Newswire Association LLC., 2018).
The idea of setting up a new brand in fast food market of India is unique as well as effective. Indian economy is showing positive trend in past few years and government of India has opened the doors for foreign companies in order to increase the FDI for increasing job opportunities for the local people along with increasing their purchasing power so that the GDP of the country could be enhanced. India is fast moving country towards development, thus, it provides various opportunities for the international companies to expand their business along with the expectations of higher returns. Yum! has decided to set up a new brand in fast food industry in Indian market under the name ‘Cosmos Fast Food Company’. This fast food company will focus on all customer segments and thus, they have introduced a unique concept of healthy fast food and energy drinks for targeting children, old age and fitness enthusiast people (Urde, Baumgarth & Merrilees, 2013). Apart from this, rest age groups will also get attracted towards this concept and it will help organization to determine and grab the available opportunities so that an effective and distinct brand image could be developed in the target market. Before setting up the brand image, environmental analysis is necessary for the target market so that appropriate set of strategies and marketing concepts could be adopted in order to acquire desired goals and objectives (Wright, et. al., 2010).
External environmental Analysis (PESTLE)
Despite the rising health conscious society, popularity of fast food has not ceased to increase. It has shown positive and healthy growth. Apart from this, another negative factor is rapid changing customer’s behaviour, trends and their taste and preferences; fast food industry has attained positive growth due to some important factors in Indian fast food market. Cosmos Fast Food Company is about to set up under the big brand name Yum! Brands in the Indian fast food industry and in relation with the positive establishment of the new brand, analysing external as well as internal business and marketing environmental factors is necessary (Homburg, Jozi? & Kuehnl, 2017). Following is the detailed PESTLE analysis of Indian fast food industry:
Political
Political factors which affects the fast food industry varies from country to country and in order to avoid glitches in operations, compliance with those factors is must. Political environment of India is highly stable, thus, there is no threat of overnight implementations of policies. In order to enter into Indian market, organization needs to select the most appropriate market entry options because certain percentage of FDI is allowed, thus, companies are required to collaborate with local companies of Indian market. There are numerous local fast food chains in Indian market, hence, Cosmos Fast Food Company could collaborate with any of them in order to set up their business in the Indian market along with gaining positive outcomes (Vazifehdust, Taghipourian & Gharib, 2011).
Economic
India is one of the emerging economies across the globe and this attracts multinationals to expand their business in Indian market. In relation to setting up Cosmos Fast Food Company in Indian market, Yum! Brands needs to consider certain economic rules and regulations of Indian government along with determining the trade barriers and relations with the United States as Yum! is U.S brand and to make their food items unique, attractive and to maintain the same taste across the globe, raw materials will be imported from headquarters only. Apart from this, purchasing power of Indians is low and still Indians buy products and consume service by seeing the price tags, thus, they are price centric. So, Cosmos Fast Food Company needs to determine these factors while planning their strategies and marketing campaigns for gaining positive outcomes.
Social
Lifestyle and health are the two most effective factors which influence fast food industry. Despite society is moving health consciousness, fast food industry is still growing. Media has played important role in spreading awareness amongst the society regarding disadvantages of consuming high calorie and high carbohydrate food. In order to avoid these factors, Cosmos Fast Food Company had added healthy food items and energy drinks made of fresh fruits in their menu so that distinctive market image could be developed along with meeting with the target and potential customer’s needs and wants (Fieldhouse, 2013).
Technological
Technological factors have great weightage in the fast food industry. Fast food industry majorly plays with two factors food quality and menu range whereas customer service and convenience are not adhered and both these factors plays vital role in boosting up and decreasing sales. Technological factors plays vital role in marketing and promotional campaigns and amongst these campaigns, social media has a big role. Online ordering is another significant factor through which organization could boost up its sales. Apart from this, Cosmos Fast Food Company will focus over adaptation of digital trending marketing channels so that customer engagement could be enhanced and digital strategies also plays vital role making ordering kiosk attractive and digital. With the help of these factors, organization could reduce the cost of labour along with acquiring desired goals and objectives in an effective manner (Aurand, 2013).
Legal
Legal aspects such as food quality, hygiene, labour wages, rights of labour, copyright, patents and packaging standards needs to be considered by about to establish the new fast food brand in the target market. Compliance with all these factors will help the organization to perform its operations in an effective manner along with gaining positive outcomes.
Environment
In terms of environmental factors, fast food companies are developing strict rules and regulations so that environmental aspects’ requirements could be fulfilled. Fast food industry majorly target children and youth and in terms of targeting, companies needs to ensure that no toxics ingredients are used for making their food tasty. Apart from this waste management approach and green approach could also be adopted by the Cosmos Fast Food Company in order to develop customer relations with the consumers along with developing an effective image in the target market (Srdjevic, Bajcetic & Srdjevic, 2012).
Segmentation, targeting and positioning
It is a crucial part of marketing functionalities and with the help of STP strategies; organization will be able to identify its target customers to which the products and services could be targeted. Market segmentation is the approach of segregating a big market into small segments so that appropriate marketing strategies, organization would be able to approach to its target customers in an effective manner (Fleischhacker, et. al., 2011).
In terms of targeting the selected customer segments, organization will mainly focus over digital media strategies. Along with this, organization would also use online ordering strategy so that organization could be able to enhance its customer base along with establishing an effective brand image amongst the target market.
Positioning
In order to make an effective brand image amongst the target customers, organization requires adopting appropriate marketing and branding strategies to develop an effective position amongst the target market. Main motive of implementation of positioning strategy is setting up effective brand image in the customer’s mind-sets. In relation with this, organization could use social media platforms to set up its effective brand image amongst the target customer’s mind-sets. Apart from this, Cosmos Fast Food Company will use traditional marketing strategy such as board hoardings on the busy roads to spread awareness amongst the target audience. Apart from this, television and radio marketing will also be used for promotion and marketing of the new business.
It has been recommended to the organization to modify its marketing and promotional campaigns so that their enlarged product offerings could be promoted so that target and potential customers could be targeted. Apart from this, it is essential for the organization to analyse its efficiencies in relevance with the external marketing environment. The major strategies which could be adopted by Cosmos Fast Food Company to build their marketing and promotional campaign so as to customer segments could be enhanced.
Organizational product offerings will be as per the requirements of target and potential customers, thus, organization could be able to set up an effective brand image in the target market along with attaining positive outcomes. Marketing mix strategies will be the major tool which is recommended to the organization to include in their marketing strategies along with the holistic marketing concepts and market orientation approach. It has been recommended to the organization to majorly focus over social media strategies and on the other digital mediums so that the goals and objectives could be attained.
With regards to the monitoring and controlling, organization should also appropriate and relevant evaluation techniques so that the implemented strategies by the organization could easily be analysed. With the help of evaluation techniques, organization will easily be able to determine its issues along with determining appropriate measures for rectifying those issues. Thus, organization will easily be able to uplift its performance along with gaining competitive advantage by enhancing customer base along with fulfilling their needs and wants.
Conclusion
From the aforesaid information, it can be concluded that growth strategy is important for every organization in relevance with business expansion in the international market. In this report, business expansion of Yum! Brands has been discussed. Yum! Brands have decided to launch a new brand in fast food industry in the Indian market with the objective to enhance their revenues and profitability. Cosmos Fast Food Company will be launched under Yum! Brands in Indian market. With regards to this, marketing management of Yum! has been discussed along with determine the external environmental conditions of the target market so that an effective brand image could be developed along with attaining its desired goals and objectives.
References
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