This is an exciting time at YUM as we separate into two powerful, independent companies — Yum! China — with unique investment profiles, capital structures, and compelling growth potential.
Jun 25 Finding the balance between standardization and localization of the web content is one of the preeminent dilemmas that companies face when tapping international markets. Rationales for standardization strategy are many including1: Standardization can also lead to development of single and unified brand and corporate identity Business strategy yum brands.
This can lead to better global recognition and provide global competitive advantage over competitors. Standardization can lead to having a rationalized product line which includes only a few core global brands instead of multiple localized brands and brand extensions.
This could lead to a better allocation of resources, higher efficiencies, consistent marketing, and higher profits When implementing a standardization strategy, companies assume homogenized consumer needs. Thus investments in international market research related to modifying the marketing mix are minimal.
Product, Price, Place distributionand Promotion.
Companies following a standardized approach to marketing tend to have a centralized global marketing program, and thus the need for coordinating, managing, and controlling local subsidiaries for local marketing strategy is minimized. However, both research and business experience suggests that standardization strategy may not be the most effective way to meet international market demands.
The complex nature of the international marketing environment promotes diversity in terms of physical environment, political and legal systems, cultures, product usage conditions, and economic development.
For example, Intel ads promoting a microprocessor experienced severe backlash in the US for showing black men bowing in front of a white man; this imagery evoked feelings of the dark practice of slavery. Localization strategy is geared toward understanding local consumer preferences and other locale-specific requirements and then adapting the marketing mix and other business strategies to best satisfy consumer needs and wants.
Several companies have created standardized products and communications that have offended people in international markets. There is a long list of companies, including Pepsi, Electrolux, Chevrolet, Colgate, and Gerber, whose non-localized messages were misinterpreted in various countries.
While several of the publicized marketing blunders came from US or other developed-country multinationals, we are now seeing multinationals from China, India, Brazil, and other countries making the same mistakes.
The Chinese automobile industry is growing fast and is poised for global expansion, but the industry faces international barriers related to poor quality perceptions of Chinese cars. Even the Chinese car brand names seem to be less global.
I asked my students what they thought of Chinese car brands such as Geely or Cherry; they responded that they sound too feminine.
The lack of localization strategy can mean missing the consumer sweet spot or, even worse, making costly errors that result in sanctions, product recalls or even consumer boycotts.
Proper localization can save a company millions. Because the cost of offending a group of consumer by insensitive marketing messages can be very expensive and in some cases permanent, leading to costly efforts in terms of re-positioning.
Localizing brand names into other languages without compromising brand identity is a crucial international marketing challenge for many companies. This becomes more of a problem when brand names need to be localized for languages wherein phonetic and semantic issues pose a challenge. The most common example is when companies use transliteration strategies to localize their English brand name to a completely different writing system, as in the case of Chinese script.Yum!
Brands, the company that operates KFC, Pizza Hut, Taco Bell and East Dawning, was having a stellar run in China. But not anymore. What went wrong? Ahead of meetings with management in Shanghai this week, securities analysts noted that the two biggest Western brands in China, Yum!
Brands Inc. and McDonald’s Corp., cannot simply count on. The company’s restaurant brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories. Worldwide, the Yum!
Worldwide, the Yum! Brands system opens over seven new restaurants per day on average, making it a leader in global retail development.
Yum Brands Inc and KFC. The case is best understood after a class discussion of environmental analysis and business strategy.
|Yum! Brands, Inc: A Corporate Do-Over [10 Steps] Case Study Analysis & Solution||It focuses on international business risk assessment and develops a model of country evaluation that students can use to analyze international business and market entry decisions in a variety of industries, regions, and countries. Develop skills in industry analysis 2.|
It is also helpful if students have been introduced to the concept of corporate strategy. By , Yum! Brands, Inc. had refocused its strategy on seven highly profitable markets outside of the United States.
Brands, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a ˚ view of the company.
Part One Building Competitive Advantage Chapter1 Chapter2 Chapter3 Chapter4 Chapter5 The Basis of Strategy The Strategic Management Process Business and Corporate Strategies tive restaurant business.
Although Yum! Brands is not a familiar name to most customers, its restau-.