Alternative strategy in case of failure

Alternative strategy in case of failure - 1. The company...

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Alternative strategy in case of failure Some of the possible reasons for failure could be: 1. Inability of target market to adapt taste to fast food variety of sea food 2. Unfavourable price points for customers 3. Inability to generate enough brand equity 4. Failure of marketing campaign If the latter three pose a problem, a possible solution can be to revamp the marketing strategy, restructure price points and control costs to meet customer needs. However, if there is a basic issue of adaptability, then continuing with the chain will become a loss making proposition for Yum Foods. Hence, the alternative strategy that the company would use is as follows:
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Unformatted text preview: 1. The company begins the operations with only 3 restaurants in 3 cities. And further expansion will not be conducted until these become sustainable. 2. The company will use locations which target urban middle class with sophisticated consumption patterns. 3. The restaurants will be at locations where other outlets of Yum Foods such as KFC, Pizza Hut etc do not exist. 4. Hence, since target market is the same, there is nothing similar close by, in case of failure of LSJ, the company can convert these three outlets into either KFC or Pizza Hut which are profitable brands of Yum Foods, and thus minimise its start up costs....
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