Nicolas Boudet, Yum! Brands International CDO, Offers Insights on Going Global
Guest blog by Tesla Martinez
Tesla recently spoke with Nicolas Boudet, chief development officer for Latin America and the Caribbean Business Unit of Yum! Brands. These are some of the highlights of that conversation. More can be found at the website of Terra Nova Insights LLC.
Martinez: What advice do you have for companies in choosing the right brand to launch into a new market?
Boudet: First, know the competition level in the market you want to expand into. Secondly, support it with evidence from a consumer study. Actually test your brand to determine consumer acceptance/consumer interest into your company brand. The competition and the findings gained from a test of consumer acceptance/or expectation of the brand that you are likely to introduce are the two key factors that will determine your choice. Be very attuned to the market place – good or bad – and master the art of responding quickly. Those two key elements supported with solid and sustainable consumer insights is my first piece of advice. Also, since there are very few industries that are as competitive as quick-service restaurants (QSR), consumer studies are constantly changing; therefore, I don’t believe a one-size approach fits all market situations. My second advice is to adapt your approach to new operational complexities. That applies to us, at Yum! Brands, where we force ourselves to sometimes think like start-ups because of the space and speed by which consumer tastes are changing as well as the increasing levels of competition. Businesses need to be very agile and nimble. Lastly, learn about local tastes and customers in every market you attempt to enter. Once you crack the code, be prepared to invest on a large scale. This is a business where scalability is important. Once you know the consumer composition, what consumers expect and are confident you are delivering on that expectation, than go big to reach a certain scale. That is why we performed well in China. Martinez: With regard to international franchising, how do you find partnerships in other markets? Boudet: Since Yum! Brands enters into long franchisee network relationships, we put a lot of attention on selection and screening; we take our time. We rely extensively on our existing network of franchisees and pay close attention to recommendations and referrals. At times, we keep tabs of certain entrepreneurs in various markets and evaluate who we might feel comfortable with teaming up with. But in the end, we ensure the individual is either referred or comes with a strong recommendation and a track record of success in previous businesses. These individuals are well-capitalized, know how to attract talent within their own organization and are people who will respect the franchise or franchisee relationship. Tesla Martinez is the president of Terra Nova Insights LLC. To read more of her exclusive interview with Nicolas Boudet, visit Terra Nova Insights’ website. The firm supports international growth strategy for a wide array of consumer foodservice multinationals. For more information, email email@example.com. Please join Tesla in her webinar, “International Business Skills for Communications Executives,” on Thursday, Aug. 2. You can participate at http://dld.bz/bAnnx and use the discount code “TeslaMartinez” to receive 50 percent off future purchases. Food & Drink magazine is pleased to present the points of view of many different industry stakeholders. If you would like to contribute your own guest blog to our site, please contact the editor at firstname.lastname@example.org.