Yum! India Replicates China Model

Running head: YUM! INDIA REPLICATES CHINA MODEL

Yum! India Replicates China Model – The Next China in Fast Food Market

Nguyễn Phước Đại

dnguyen0191@student.bristoluniversity.edu

Bristol University

BUS 510: Marketing Management

11/22/2013

Abstract

Yum! Brands, the owner of KFC, Pizza Hut, and Taco Bell, is seeking to import the model it has successfully employed in China as the firm endeavors to drive growth in India. The growth of India, in both a population and socioeconomic factor is one that certainly ensures itself as a highly potential area to expand to. India is one specific country, which can prove to replicate the success in metrics that occurred over the years in China. Yum!’s success in China has been built through a combination of factors such as tailored product offerings, the use of a local management team, effective franchise control and favorable store locations. By applying these strategy factors to its growth strategy in India, Yum! hopes to build a strong position in the country and enjoy similarly robust growth as it did in China.

Yum! India Replicates China Model – The Next China in Fast Food Market

Behind the incredible success in China, Yum! Brands is now looking to India to be its the next major growth engine and profit miracle. In India, most people still eat home-cooked meals and where lentils and rice are staples. However, Western-style fast food chains increasingly are gaining a following and changing old dining habits. In India cities today, pizza and burgers are gradually becoming staples and are gradually replacing lentils and rice. Yum! Brands is hoping this Western fast food phenomenon reaches millions more Indians as it tries to mirror the success story of China, which now contributed half of its operating prohit1. Yum is targeting Indian students and young office workers with adaptions of popular Western fast food products designed to appeal to their unique tastes....