1. talking about Background Data on Sales & Costs of Yum brand company. introduce KFC, Taco Bell and Pizza hut , For example what kind of people go to Kfc , how much profit that get in Taco Bell past a one year. Using date to support your foundation. Do around 3 pages. Dont mentation Any information outside of USA. The introduction only focus onUSA. introduce the Yum brands only sell fast food, however they are food is not healthy.
2. Read the file first. I was make a company which call nutrition express is a health fast food. ,Pls follow the attractant, Pls talking about this company, example,Customer target ,what kind of Customer they will go to nutrition express to eat. Maybe they want get healthy food.Using data to support. And Analyst the community of My company, for example how to make some Promote which make involved with customer, around 3 pages
2.1 Mission
Based on
Yum! Brands’ mission statement “We’re building the world’s most loved,
trusted, and fastest-growing restaurant brands in partnership with the best
franchise operators in the business”, YUM has taken an important position
in the global fast-food industry. According to Statista data, YUM’s sales in the global market reached
$20.32 billion in 2018. Yum! own three global brands – KFC, Pizza Hut, and Taco
Bell – which reached $4.43B, $5.53B and $10.36B sales individually in 2018.
However, McDonald’s is still the industry leader with $38.52B sales in 2018. In order to compete
with McDonald’s and broaden the customer base, YUM needs to focus more on
market segmentation and customer demand.
Theodore Levitt mentioned that companies
should build customer-centric products in the article “Marketing
Myopia” (1975). Based on data from Stat ista,
more and more young people are paying more attention to a healthy diet,
especially the absorption of organic food (2018). In addition, according to the
study by Snježana Gagić et al., organic food can not only bring benefits to
customer but also a way for a restaurant to increase its prices (2015). Under
this trend, YUM should build a new brand that targets an organic industry that
can expand its product line and better compete with competitors.
The new
brand, named Nutrition Express, will be built around the three elements –
nutrition, health and organic. Combined Yum’s years of experience in operating
and advanced cooking methods, Yum! Brands can capture the global market share
quickly. YUM can push the business to zenith because the industry is still a
blue ocean.
2.2 Financial and
Operation Objective
2.2a Financial
Objective
As
mentioned earlier, although YUM’s global sales reached $20.32 billion in 2018, according to the
report from Macrotreds, YUM’s annual revenue showed a downward trend in the
past three years. We hope Nutrition Express can reverse the situation and bring
competitive advantages to Yum.
2.2b Operation
Objective
We hope
that YUM’s new brand will become the leader in the global fast-food industry.
The marketing plan is divided into two stages. In the first stage, 100 global
direct sales stores will be built in one year to develop brand awareness of
Nutrition Express. In the second stage, the franchisee will be our focus in
order to expand the global market. In five years, Nutrition Express will open
5,000 stores around the world.
2.3 Target marketing
& positioning
Our
target group is students and business professionals whose age is between 18 and
35. Each store is between 0.5 – 1.2 Acres (management standards will operate in
accordance with KFC’s model to reduce development costs). We will highlight the
decoration to the deeper the brand image. Green would be our main color for our
logo and decoration. When the customer enters the store, the green wall and
green plants would be the first thing they notice. On the wall of both sides of
the entrance door, we will emphasize the importance of an organic diet with
nutrition experts’ quotes. All products and combos are made with organic foods
to emphasize the “organic” elements.
We
designed a new logo for Nutrition Express. Green is the main color since it
usually represents healthy (Kendra, 2019). We used green leaf and two hands as
a symbol of trust for the design of the middle part. The new green LOGO can
also distinguish the colors of other YUM brands such as KFC (red) and PIZAA HOT
(red) and TACO BELL (purple).
We also
designed a print ad for Nutrition Express. We want to emphasize the properties
of our products deepen our impression of our brand. We want to create the
connection between Nutrition Express and Health so we can be the top of their
list when they are looking for a healthy diet.
Product
The new brand Nutrition Express mainly
uses organic foods to meet the growing demand for healthy foods through
scientific nutritional methods and less oily cooking methods. The products
would be made with chicken, beef, fish, and vegan. 4 main combos with freshly
squeezed juices and vegetable blends would be our specialties. At the same
time, the customer can complete the order by APP and take out food to meet the
fast lifestyle pace. The brain image of Nutrition Express will line in with
Yum’s strategy.
In addition to the materials we use, we
will work with nutritionists to create a package that is scientifically
proportioned. For example, our main package A consists of 350g chicken, 300g
bread, 300g vegetables, and 200g fruit. According to Christian Nordqvist’s
article, It is exactly how much protein and carbohydrates an adult needs to
absorb in a day (2017). Moreover, we will also focus on developing healthy
cooking methods. For example, we will use steamed cooking instead of
frying to reduce calories.
Segmentation is also the focus of our
strategy. We will create different menus based on three factors: countries,
seasons and demography. First, we will adjust the package according to the
region. For example, according to data from the US Department of Agriculture
(USDA), Americans usually assimilate less potassium than they should (2016). In
order to balance the diet, the fruit will be added to the products because it’s
rich in potassium. Second, the Nutrition Express package will be adjusted
according to seasons. For example, in winter, more hot soups will be offered to
meet the demand. In reverse, more cold drinks and meals would be added to the
menu during summer. Lastly, we will also design a package for some special
requests. For example, we offer sugar-free and salt-free options. Which
can help people with hypertension and diabetes keep healthy.
Place
As a new brand, we want to expose our
stores to big cities to catch people’s attention. A city with a population no
less than 1 million such as New York, Los Angeles, Chicago is our first choice
for the launch of Nutrition Express. The location of the restaurant will be
chosen in urban areas, especially next to subway stations, shopping centers or
schools with high traffic. Our target customer would-be college students and
professionals. According to Stastia, the people between 16-35 have a greater
need for healthy food (2018). In addition, we will provide a nutrition guide on
our app along with the price and pictures of our products. Delivery will be
provided if the distance is less than 3 miles.
Promotion
We will hire well-known nutritionists
like Robin Vitetta-Miller, Gillian McKeith, Ellie Krieger to jointly develop
the menus. Except for their role as the nutritionists, they are also TV shows
host who can promote our brand.
Customers will be encouraged to “like”
our official website and share our products on social media. For customers who
do share our posts, a 10% discount coupon will be rewarded. The promotion will
be our focus in the first six months of the opening of new stores. We will also
introduce a membership system. Members can get coupons and join various
promotions from time to time, such as free trials of new products, free
products for members’ birthdays, etc.
We also plan to invite Instagram
celebrity Misty Copeland as a brand ambassador. She has more than 1.7 million
fans on Instagram. And also she is the first black female dancer of the
American Ballet and the spokesperson of the Under Armour. Her healthy and
energetic image matches the image of Nutrition Expresses. we expect Misty can
leverage her influence on social media into sales.
In addition to online promotion, we will
also hold activities and events. Within 6 months of opening, customers will
receive a 20% discount on a one-time purchase of 3 packages. Every employee who
works for Nutrition Express has one chance to surprise the customer with a free
meal each month. As Davies mentioned in the article “Reputation Gaps and
the Performance of Service Organizations”, improving employees’ perceptions
of the company’s reputation is one of the best ways to enhance future sales
(2009). We hope to increase employee perception of the brand’s reputation and
ultimately improve the customer’s impression of the company by giving employees
more power. In terms of events, we will set the first day of every month as
Nutrition Express DAY. Customers can get a special vegetable drink for free for
more than $10 purchase.
Price
According to Statista, Americans spend
between $9 and $16 per meal (2018). Based on our offers with healthy and
organic ingredients. We decided to price the package between $12.99 and $16.99.
The price of freshly squeezed fruit and vegetable drinks is between $3.99 and
$5.99. This pricing space allows us to use high-quality ingredients and ensure
that the nutrition of the package meets people’s needs. At the same time, we
will have a special breakfast and special lunch prices of $8.99 and $11.99,
respectively.
4. Financial Forecast
4.1 Breakeven point
Need more
data analysis to calculate the break-even point. Our plan is the break-even the
first 100 stores within one year (refer to KFC operations).
4.2 Cost Forecast
The size of the new restaurant will be
similar to existing KFC standards. The cost per KFC store is between $695,000
and $1.2 million including construction costs and equipment costs (Hayley
Peterson. 2015). In the first phase, we plan to open 100 direct chain stores
which is 50% of YUM Group’s 2018 profits (YUM 2018 Form 10-K) in major cities
around the world with 100 million dollars. We set our marketing budget to 100
million dollars which is 30% of YUM Group’s 2018 total advertising promotion
fee (YUM 2018 Form 10-K). Additional 50 million dollars will be used to
establish a special nutritional food research institute to develop new
products.
4.3 Sales Forecast
We plan to use the first phase to build
brand reputation and achieve breakeven. In the second phase, we hope franchised
stores can increase the sales to $15B in ten years. Through Nutrition Express,
YUM will become a global fast-food brand that can compete with McDonald’s.
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