Sample Critical Thinking Paper on Market Analysis of YUM Brand

Market Analysis of YUM Brand

Yum Brand is a strong, fast food company that operates more than 37,000 operational units globally. The company owns renowned global fast-food chains such as KFC and Taco Bell (Yum Brand, 2019). The entity has been successful in building a strong, most respected, and trusted brand in the world. Yum Brand’s target market is the Louisville Metropolitan Area. Some of the important segments that make up the company’s target market include household income, household composition, population by age, and population by race and ethnicity.

The segments that make up the company’s target market

Households Income

Household income describes the combined income levels of consumers sharing a specific residence. It includes salary and wages, cash transfers, and retirement income, among others (Rouse, 2018). Yum Brand can rely on information about household income to design its pricing model and other critical marketing strategies. In the case of the Louisville Metropolitan Area, the majority of households are in the income category of $35-50k and $50-75k. The income levels are comparatively high, and Yum Brands will benefit greatly. In particular, the stipulated income level implies more disposable income and higher consumption and purchase levels. Accordingly, the firm’s targeted operations in the Louisville Metropolitan Area will generate viable outcomes and profitability.


Similarly, from the table above, a significant portion of the population in the targeted market segment are in the low-income category between $15-25k and below $15k. The company can use this statistical data and information to strategize its market operations.

Household Composition

Household composition describes unique characteristics that can determine the consumption patterns of a particular population (Gichuru & Limiri, 2017). The household composition in the Louisville Metropolitan Area will also help Yum Brand to market and sell its commodities. For instance, the majority of households comprise families or couples with no children. The household composition implies that Yum Brand will have an expanded base of consumers in the target segment. Households with no children are likely to rely on fast food products and other dining services offered by Yum Brand. The company can rely on such consumption patterns to strengthen its market performances and operations in the Louisville Metropolitan Area.

Population by Age

The population characteristics and composition in the Louisville Metropolitan Area will also help Yum Brand to design its market operation. In this case, the majority of the citizens are aged between 24-34, 35-44, 45-54, 55-64, and above 65 years. Yum Brand can target a high percentage of the youthful population in the target market with its fast-food products. Moreover, the high percentage of older adults implies that Yum Brand may focus on producing healthier snacks to attract and retain this important consumption group.

Population by Race and Ethnicity

The state has a higher population of whites, African-Americans, and Hispanics. Yum Brands can rely on different consumption patterns of the demographic groups to deign appropriate market strategies and decisions. For instance, most African Americans and whites have higher preferences for fast food products. Moreover, most white-dominated households love unique dining experiences. However, Hispanics are more conservative and prefer home-cooked food products. Yum Brand will use such consumption data and information to determine the type of food products and marketing strategies that it will employ in its proposed operations in the Louisville Metropolitan Area.

Opportunity and Threat Analysis for the company in the industry

Five Company Opportunities

  • Investment in research and development to leverage its market performances
  • Localization and expansion of the company’s brands
  • Increased focus on emerging market
  • Efficient operations in its franchises
  • Online ordering of food products

Five Company Threats

  • The increase in health-conscious consumers
  • Increased market competition from other global brands, such as Starbucks

Identify and recommend at least three growth opportunities

  • Strategic transformation of the company’s franchises
  • Maintaining robust earning and operational trends
  • Expanding digital and delivery service

Compare and contrast the growth opportunities

  • Strategic transformation of the company’s franchises: The Company should consider enhancing the physical attractiveness of its chain stores to attract high-end consumers (Ong, 2019). Additionally, it should introduce a self-service model to increase efficiency and reduce customer wait time. Lastly, the firm should offer free WI-FI services to attract younger consumers or the millennial population.
  • Maintaining a robust earning and operational trends: The firm should consider expanding the amount of product and service offered. For instance, it can consider offering healthy snacks such as fresh fruit juices. It can also consider opening more franchise stores within the target market segment.
  • Expanding digital and delivery service: The Company should enhance the efficiency of its online order and delivery services. Yum brand can attain this milestone through the development of mobile-based apps to facilitate the order and delivery services. Lastly, the firm should employ more physical delivery personnel to enhance its operation in the targeted segment.


Claritas. Louisville Metropolitan Area-Code 40216. Retrieved from

Gichuru, M. J., & Limiri, E. K. (2017). Market Segmentation As A Strategy For Customer Satisfaction And Retention. International Journal of Economics, Commerce and Management. United Kingdom Vol. V, (12), 544-553.

Ong, K. W. (2019). The Effects Of Internal Factors And External Factors On Yum! Brands, Inc Performance.

Rouse, T. (2018). Analysis of marketing strategies and advanced retail sales processes to improve Company A’s position in the segment (Doctoral dissertation, Kansas State University).

Yum Brand, (2019). About the Company. Retrieved from