3. Overview of the Situation
MARKET SHARES
O Domestic profit has been decreasing (US)
O International profit has been increasing
OPPORTUNITIES
O Success of KFC and Pizza Hut in India
O Growing appreciation of mexican food
O Strength of YUM! brands
5. Factors of Consideration
Religion
Consumer attitude/behavior
Consumer preferences
(taste/habits)
Purchasing power of the people
6. Standardization / Localization
« Glocalize » Taco
Bell’s menus
• Vegetarian menus (rice…)
• Vegan menus
• Meat menus (Chicken, fish)
• Use of spices for taste
7. Alternatives
Co-brand with existing KFC stores
Co-brand with existing Pizza Hut
stores
Enter as stand-alone Taco Bell
stores
Not to enter the Indian market
8. Co-branding
KFC Pizza Hut
Possibility
• KFC is still just of brand • Pizza Hut is already
growing in India. damage well established
• Difference in the • Affordability.
target markets. • Good brand image.
9. As a Stand-Alone Brand
Harder to Less risky
Start from
enter the for Pizza Hut
scratch
market and KFC
More costly Bright future
for YUM! if successful
10. Recommendations
Enter the Indian market
as a stand-alone brand
with a menu that is well
adapted to India’s culture.
Notas del editor
Upon deciding whether or not to enter the Indian market, YUM! Had to consider a lot of factors and on top of that list is religion. It’s important to note that majority of the Indians are religious, and are very strict when it comes to their religious obligations. These can be reflected in the way the Indian consumer market behaves, the way they buy, consume and repurchase. And of course, they also had to consider how they were going to price their products.
Now, you may ask, how is it possible to marry Taco Bell, a food chain that serves a lot of meat-based Mexican food, and India’s culture? Easy. Through glocalization. They need to think globally and act locally. This part then becomes the critical part as the pressure of adapting it to the Indian culture while maintaining the standardized Mexican feel.
The case presented us with these main alternatives. So we’ll go into each of these one by one.
The first alternative would be to cobrand with KFC. If we explore the pros and cons of this option, it can be seen that KFC is still just growing so partnering up with it may just slow down Taco Bell’s growth. Another thing is that KFC is priced based on the costs of production, and since the ingredients of it are not readily available in India, they are sold at a premium and this concept may not work well with taco bell. Another option would be to co-brand with a well-established chain of Pizza Hut stores, but then the main problem raised here is the possibility of hurting the already good image of Pizza Hut.
Another alternative would be to enter India as a stand-alone brand, that is, as a brand that is independent of any connections from KFC nor Pizza Hut. Doing this would keep both KFC and Pizza Hut from any chances of being damaged. Also if its entrance is successful, the future will definitely be brighter. There are some downsides to this, however, as they will have to start from scratch, thus making it more costly for the corporation as a whole.