YUM Brands Target China, Register Euro Growth
As YUM Brands continues its focus on China and emerging markets, it’s ramping up advertising in France and Germany after expansion in both. With some 100 KFC locations
in Germany, the company said it can now “justify” national TV advertising for the first time there. In France, where the company has some 150 KFCs, plans call for expanding the TV schedule
from 20 weeks to 32 this year.
When national advertising began in France, sales increased more than 10%, said YUM President Richard Carucci on an earnings call. He did say the company
is aware that “we have a long way to go because McDonald’s has over 2,500 restaurants in these two countries.”
At YUM Brands, which operates the KFC, Pizza Hut and
Taco Bell brands, China remains a focus, although the company has experienced some significant trouble recently, due to health concerns with its KFC poultry supply, which will hurt results this
year.
YUM relies heavily on franchisees internationally.
In the U.S., YUM said its three main brands -- which include Taco Bell -- all experienced same-store sales growth in
2012. (The total for the company was 5%). A 60-second Taco Bell spot ran in Sunday’s Super Bowl and the company has worked with franchisees to shift some local advertising resources to the
national level, which Carucci said should result in a “more efficient” investment.
“While the (U.S.) economy is certainly not robust, it is strong enough to control our own
destiny,” Carucci said. “We believe that the U.S. is set up for success in 2013 because Taco Bell has momentum, because new units are now working in our favor, and because we have
meaningful innovation plans at all three of our brands.”
(Pizza Hut is launching “Sliders,” which will be sold in groups of three and nine.)
With China, the
company believes it will take time to win back customer confidence, and it will engage in some marketing efforts, but they may be relatively modest. There is a belief that while YUM has a large budget
in China, spending heavily may not be nearly as effective as just waiting things out.
Recent MediaDailyNews Articles
-
Dish TV Expands On-Demand May 20, 11:19 a.m.
Dish Network, which has allowed subscribers to watch live TV on mobile devices for some time, ... -
Former IPG Exec Pahade Named Poptent CEO May 20, 7:30 a.m.
Nick Pahade, the former North American CEO of Interpublic Group’s Initiative, has been appointed CEO of ... -
Traditional Radio Revs Flat, Digital Revs Up 9% May 19, 4:26 p.m.
Radio advertising revenues were flat at $3.5 billion in the first quarter of 2013, unchanged from ... -
Original 'Voice' Judges Return May 17, 5:41 p.m.
The original quartet of coaches for “The Voice” will return for the fifth season this fall. ... -
Van Wagner Partners With CineSport For Online Video May 17, 5:34 p.m.
Van Wagner Communications’ Sports and Entertainment division is joining forces with CineSport, partly owned by Van ... -
'Idol' Falls, 'Bang' Leads Thursdays May 17, 3:38 p.m.
The TV broadcast network environment is definitely shifting -- as evidenced by the last major night ... -
Sapient Revs Up 12%, Optimistic About 2013 May 17, 2:47 p.m.
Marketing services company Sapient reported first-quarter revenues of $292.6 million -- up 12% from the same ... -
KSE Finalizes Outdoor Channel Buy May 17, 11:08 a.m.
An entity controlled by sports entrepreneur Stan Kroenke has finalized its acquisition of the Outdoor Channel ... -
'Tonight' Still King Of Late-Night TV May 17, 10:49 a.m.
While NBC proceeds to set up its late-night changes for next year, "The Tonight Show with ... -
U.S. Open Going Cable-Only, Moves To ESPN May 17, 9:18 a.m.
After decades on the network that saw stars from Ashe to Navratilova to Federer win, the ...
Be the first to comment on "YUM Brands Target China, Register Euro Growth"
Leave a Comment