Yum! Brands Building the KFC Global...

Yum! BrandsYum! BrandsBuilding

the KFC Global Brand

Micky Pant YRI Chief Marketing Officer

KFC International – Strong ’06 Performance

KFC International – Strong ’06 Performance

5% SSS Growth

Nearly 300 More Traditional Restaurants

BYA UpdateBYA Update

Solid sales growth across the world, with renewed strength recently

Note: YTD same-store-sales growth above are estimates, including results from both company and franchise restaurants

N/ARussia

-1%Germany

FlatJapan1%India4%France4%U.K.5%Australia

5%Asia FBU6%Mexico7%Europe FBU8%Netherlands

9%Middle East17%South AfricaYTD

Australia – Contemporary Store Design Has Added to Brand StrengthAustralia – Contemporary Store Design Has Added to Brand Strength

U.K. Asset Base Has ImprovedU.K. Asset Base Has Improved

France — Record Unit Volumes Provide Model for W Europe

France — Record Unit Volumes Provide Model for W Europe

S Africa — Clear Brand Leader with Very Contemporary Asset Base

S Africa — Clear Brand Leader with Very Contemporary Asset Base

India – Intend to Capitalize on Explosive Retail Growth

India – Intend to Capitalize on Explosive Retail Growth

KFC India Poised for Long-Term Brand Leadership

KFC India Poised for Long-Term Brand Leadership

Now in 9 cities across the country

Growing sales momentum

Plan to invest significant marketing dollars in 2007

Chennai

Bahrain

IndonesiaJapan

Pakistan

Abu Dhabi

KFC — Contemporary Look and Feel in International Markets

KFC — Contemporary Look and Feel in International Markets

Strategy for Continued BYA GrowthStrategy for Continued BYA Growth

Clear Brand Positioning

Menu vision that creates “Global Brand with a Local Heart”

Rich pipeline of new ideas

Build Global Brand Stature that keeps brand young and vibrant

KFC Has Competitive Edge . . .KFC Has Competitive Edge . . .

% Markets where KFC Beats Principal Competitor

0%

20%

40%

60%

80%

100%

Taste Dinner Quality CompleteMeal

TieTie

WinWin

LoseLose

. . . Vs. Principal Global Competitor in Taste Attributes

Focused on Our “Taste” Heritage GloballyFocused on Our “Taste” Heritage Globally

When you add it all up, it’s all about tasty, finger lickin’ good food

and the sheer pleasure of eating it. No place understands that more

or does it better than KFC.

Local Adaptation of Global “Taste”Theme

Local Adaptation of Global “Taste”Theme

““The Taste Lives HereThe Taste Lives Here””Canada

MENA

Asia/India

CaribLA

Malaysia

““Its Finger Licking Good!Its Finger Licking Good!””™™

South Africa

““Taste the DifferenceTaste the Difference””France

““CanCan’’t beat the Tastet beat the Taste””Australia

““YouYou’’ve got Great Tasteve got Great Taste””UK

TASTE

Local Execution Combined with Global Essence Maximizes CreativityLocal Execution Combined with Global Essence Maximizes Creativity

Unified Taste Positioning Around the World Has Helped Give KFC a Solid Focus for Brand Building Strategies and Tactics

Unified Taste Positioning Around the World Has Helped Give KFC a Solid Focus for Brand Building Strategies and Tactics

““ThereThere’’s nothing like the s nothing like the irresistible tasteirresistible taste of KFC. of KFC. Only KFC is real chicken Only KFC is real chicken made with the Colonelmade with the Colonel’’s s

Secret Recipe.Secret Recipe.””

•Focused advertising•Improved food footage•Consistent tagline & VO

•Focused advertising•Improved food footage•Consistent tagline & VO

“Taste” at the core

•Focused Product Dev.•Better calendars•Focused Product Dev.•Better calendars

•Better Menu Boards•Enhanced Food Photography•Better Menu Boards•Enhanced Food Photography

•Clear Pipeline Direction•Easier to spot best practice•Clear Pipeline Direction•Easier to spot best practice

•Beginning to Translate to store décor and packaging

•Beginning to Translate to store décor and packaging

This Has Produced Big Ideas for Future GrowthThis Has Produced Big Ideas for Future Growth

Boneless Original Recipe - boneless white and dark meat fillets with OR marinade & breading

Hot Rods – whole muscle chicken pieces in spicy marinade and breading on a skewer

Boxed Meal – Taking a traditional lunch time sandwich and elevating it into a lunch/dinner meal proposition Famous Bowls –mashed

potatoes, layered with sweet corn, bite size pieces of crispy chicken, home-style gravy and shredded cheddar cheese.

Hot & Spicy Fish Sandwich - tender real fish fillet, marinated and breaded in Hot and Spicy flavor, served on a cornmeal dusted bun with Tartar sauce.

Veggie Bucket - fresh vegetables, coated in 11 Herbs & Spices and fried golden brown to seal in the flavors.

Summer DrinksCoffee sundae, modena real Raspberry Sundae, cyan Aloe Juice and a Yoghurt Drink

Move to the New Logo Punctuates “Taste”Move to the New Logo Punctuates “Taste”

Old Logo New Logo

Youthful energyApron to signal his passion for great tasting foodFriendlier, more welcomingPhased execution approach being developed carefully,but deliberately generating positive spin

Global PR Event Announced It to the World!Global PR Event Announced It to the World!

World Class Packaging with New Colonel LogoWorld Class Packaging with New Colonel Logo

All YRI markets involved in design brief and selection

Design is flexible to local market needs. (Text is localized.)

Phased introduction across YRI starting Q1 2007

Example: MENA

KFC Menu Boards Are Being Upgraded Using Industry Best Practice

KFC Menu Boards Are Being Upgraded Using Industry Best Practice

1. Harmonized Color Palette2. Larger Food Shots3. Scientific Layout4. Consolidated Prices

1. Easier Navigation2. Enhanced Taste Appeal3. Clear sub-branding

NewMenu

Started Stature-Building Activities for KFC with Global Sports Initiatives

Started Stature-Building Activities for KFC with Global Sports Initiatives

NBA Europe NBA Europe Live in FranceLive in France

ICC ICC Champions Champions

Trophy, IndiaTrophy, India

TwentyTwenty--20 20 Cricket, Cricket,

AustraliaAustralia

YRI Key Strength — Ability to Understand Local Culture and Advertise Accordingly

YRI Key Strength — Ability to Understand Local Culture and Advertise Accordingly

South African TV Advertising examples

We successfully market to multiple market segments.

Local management has developed deep insights into local culture.

The needs and aspirations of different social groups are widely different.

1. Global Brand EssenceGreat Taste

2. Menu VisionGlobal brand with a local heart

3. Brand Image and AssetsContemporaryAnd Youthful

Clear Brand Strategy for KFC and 2006 Results Point to “Finger Lickin’ Good” Future

Clear Brand Strategy for KFC and 2006 Results Point to “Finger Lickin’ Good” Future

4. Brand StatureUsing our globalscale

Pizza Hut – Same Marketing Principles Are Delivering Successful Growth

Pizza Hut – Same Marketing Principles Are Delivering Successful Growth

Clear Global Brand Positioning (Sharing Great Times)Clear Global Brand Positioning (Sharing Great Times)

Exploit rapidly growing Home Service opportunity worldExploit rapidly growing Home Service opportunity world--widewide

Menu Vision that creates Menu Vision that creates ““Global Brand with a Local Global Brand with a Local HeartHeart””

Build Great Restaurants that keep the brand Build Great Restaurants that keep the brand contemporary and vibrantcontemporary and vibrant

Pizza Hut – Broad Menu Principles Allow for Creative Local Adaptation

Pizza Hut – Broad Menu Principles Allow for Creative Local Adaptation

Cheesy Bites

Cheese Burst

Shawarma Pizza

Continual Asset Improvement Keeps Brand Contemporary and Vibrant

Continual Asset Improvement Keeps Brand Contemporary and Vibrant