Improving Marketing Spending
Yum! Brands, which is home to popular fast-food brands such as Taco Bell, KFC, and Pizza Hut, expects the deal to help improve its marketing spending and give it an edge over competitors in the fast-food industry. The number of deals in the restaurant industry has significantly risen over the last decade, including acquisitions and buying technology to boost sales growth.
“Technology strategies that elevate the customer and employee experience and lead to smart, data-driven marketing decisions are critical to keeping our brands R.E.D. (relevant, easy to access and distinctive) and delivering growth for our franchisees and shareholders,” said David Gibbs, CEO of the company, in a statement.
Consumer and marketing analytics company Kvantum has already collaborated with Yum’s international markets.
“Kvantum is an innovator in data analytics and marketing optimization and has a proven track record of delivering significant value to several of our international markets by enabling data-driven marketing decisions to increase sales and better leverage media budgets,” said Yum’s Chief Digital and Technology Officer Clay Johnson.
In 2015, Yum bought consulting company Collider Lab, which recruits sociologists and anthropologists that offer consumer insights. The food business now wants to combine the strengths of its new AI-powered business with Collider Lab’s data.
The company believes that the two approaches of Kvantum and Collider Lab will provide it with even deeper customer and brand insights.
Kvantum’s AI business unit will continue to consult with customers outside the restaurant sector once it becomes a part of the food business. The deal will be finalized at the end of the first quarter while the company didn’t reveal financial details of the takeover.
A few days ago, the company announced a deal with Beyond Meat.
Shares of the company have recorded a 13% surge year-to-date (YTD). The fast-food company currently has more than 50,000 restaurants across over 150 countries and territories.
Yum! Brands, the owner of Taco Bell, Pizza Hut, and KFC brands, is taking over Kvantum’s AI-based business unit that offers consumer insights and marketing performance analytics to help optimize its marketing spending and gain an advantage over fast-food rivals.
About the Author
Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.