Wednesday, 9 May 2012

Yum Brands Targets India

Yum Brands--which owns Pizza Hut, KFC and Taco Bell--sees India as the next big growth market, after its ongoing success in China. KFC was among the first fast-food chains to enter China, and now it sees India as a market where it can expand and profit from changing demographics and increased demand for fast/casual food.

Already, Yum has more than 450 outlets in India and plans up to 1,000 units by 2015. One reason for Pizza Hut's popularity in India is its introduction of small 'snack' pizzas with small prices--the lowest price, in fact, of any major pizza brand. Pizza Hut Delivery (the Indian pizza unit of Yum) has more than 650,000 Facebook likes (its profile photo is at left).

The KFC India Facebook page has nearly 1,000,000 Facebook likes...and the chain's menu items are spicier than in other markets, to appeal to Indian tastes. From 2010, Yum's Taco Bell Mexican food chain has also been represented in India.

One priority is increasing and defending Yum's market share for long-term competitive strength. Another is building profits to fuel product development and future growth. Meanwhile, some local businesses are planning new fast-food chains, even as Starbucks and other U.S.-based competitors are working with local partners to enter the Indian market. Yum will have to clearly demonstrate what each of its fast-food brands stands for and consistently deliver on those brand promises in the years ahead.