Analysis of business model of Yo China

1. Marketing Strategy
Team Introduction Of
YO! China
Group 10
Aditya Kandoi (10P064) Anirvan Sen (10P067) Esha Sharma (10P075)
Karthik V (10P083) Sambhav Ahuja (10P107) Puneet Bindlish (FPM)

2. Project: Marketing Strategy Of Yo! China
Evolution
Evolution • Started by 6 people in May 2003
• Promoted by Moods Hospitality
Vision
“ Our vision is to create a Rs 1,000-crore
Chinese food company. We want to do that
through different formats — kiosks, dine-ins
in malls, outlets in tech parks, international
airports and Railway stations ”

3. Project: Marketing Strategy Of Yo! China
Facts YO! China
Evolution
• Largest Chinese Fast Food Chain in India
Facts Yo! China
• 43 points of presence across the country
• Dimsum is their largest selling product
On a per month average
 About 600,000 guests visit their restaurants
 Deliver food to 200,000 homes/offices
 65% of guests are repeat

4. Project: Marketing Strategy Of Yo! China
The YO! USP
Evolution
Facts Yo! China • SuperFresh-Superfast-Trendy
The YO! USP
• Meal in Box
• Birthday Packages@ 75per child
– Includes cost of hosting, decoration,
prize etc
• Actively sponsors college Festival
• Present across India

5. Project: Marketing Strategy Of Yo! China
Positioning
To the consumer having inclination towards
Evolution Chinese meals ,YO! China offers high quality Dining
Facts Yo! China Service, excellent Delivery Service and Cart Service
Positioning
Life Goals
Values
Service
Features
Ingredients

6. Project: Marketing Strategy Of Yo! China
Marketing Environment
Evolution
Marketing Environment
Facts Yo! China Micro level
Marketing • Suppliers
Environment
• Company
• Target Customers
 Macro level
• Direct at the Store Level
• Substitute Products and Services

7. Project: Marketing Strategy Of Yo! China
Organization Structure
Evolution
Chairman Reporting:
Facts Yo! China
Bottom-Up
Marketing
Environment MD, Coo,
BD
Organization
Structure Regional
Head
Area Manager
Restaurant
Manager
Captains, Stew
ards, HK

8. Project: Marketing Strategy Of Yo! China
Business Segmentation
Evolution
Facts Yo! China
Marketing
Environment Dine-in
Organization
Structure
Business
Segmentation
Home
Carts
Delivery

9. Project: Marketing Strategy Of Yo! China
Dine-in
Model
Evolution Yummy chinese food in international style
Facts Yo! China Highly affordable price
Marketing
Environment
Location
Organization Front facades in malls
Structure
Prominent High streets
Business
Segmentation
Typical size
Minimum 1800 sq ft
75 seats
Investment
Upto Rs 90 Lacs per outlet

10. Project: Marketing Strategy Of Yo! China
Home Delivery
Evolution
Model
Special model for Home/Office delivery
Facts Yo! China
with the promise of delivery in 45 minutes
Marketing
Environment
within a catchment area of 3 km
Organization
Structure
Location
Business
Visible High streets
Segmentation
Typical size
Minimum 800 sq ft
Investment
Between Rs 50 to 60 Lacs

11. Project: Marketing Strategy Of Yo! China
Yo! Carts
Evolution Model
A concept of on-the-go chinese food which offers
Facts Yo! China Safety, hygiene, convenience and value pricing
Marketing
Environment Locations
Organization
Malls, Cinema Halls, Airports, Techparks, High
Structure
Streets, Universities, Metro, Railways, Schools
Business
Segmentation Size
Minimum 50 sq ft
Investment Minimum
Rs 20 Lacs for 5 carts

12. Project: Marketing Strategy Of Yo! China
The Kuàicān
Evolution
Facts Yo! China
Marketing
Environment
Organization
Structure
Business
Segmentation
The Kuàicān

13. Project: Marketing Strategy Of Yo! China
The Kuàicān
Evolution Yummy Chinese
Facts Yo! China A mix of authentic and signature dishes
Marketing
Environment Affordable Chinese
Organization
Affordable pricing all year Long
Structure
Business Super Fast Chinese
Segmentation
All day dining and a fast and friendly service
The Kuàicān
Trendy Chinese
An international dining experience with display
kitchens and cheerful interiors

14. Project: Marketing Strategy Of Yo! China
Target Customers
Evolution
Facts Yo! China
Marketing
Environment
Organization
Structure
Business
Segmentation
The Kuàicān
Target Customers

15. Project: Marketing Strategy Of Yo! China
Contd…
Evolution
Facts Yo! China
Marketing Rising Growth of Young Urbanization Increase in Increase in
Environment Income Middle Class Population •Spending on Nuclear Women
Levels •300mn by •65% eating out is Families Work Force
population population is more in urban
Organization •Grown from
below 35yrs areas
•Eating out •51% of eating
3.3% during the •Equal to becomes easier out population
Structure Ninth Plan population of •Majority of this •29% and more constitutes
(1997-2002) to US (the 3rd age group population is preferred women
Largest prefers eating urban
Business 6.1% during the
Population) out •Rising
•Prefer eating
Tenth Plan out than
Segmentation (2002-2007) expenditures cooking
on eating out
The Kuàicān
Target Customers

16. Project: Marketing Strategy Of Yo! China
Distribution/Promotion Policy
Evolution Distribution Policy
Facts Yo! China
• Direct Marketing
Marketing
Environment • Franchise
Organization
Structure
Business Promotion Policy
Segmentation
The Kuàicān
• Internet
Target Customers • Pamphlet
Distribution • Stalls

17. Project: Marketing Strategy Of Yo! China
Pricing Policy
Evolution
Facts Yo! China
Marketing
Environment
Organization
Structure
Business
Segmentation
The Kuàicān
Target Customers
Distribution

18. Project: Marketing Strategy Of Yo! China
Inspiration from Evolution of Fastfood
chains in US
Evolution
Facts Yo! China
Marketing
Environment
Organization
Structure
Business
Segmentation
The Kuàicān
• Decreasing skill level in cooking &
Target Customers household’s frequency of cooking &
Distribution eating at home
Pricing • Evolution of Delivery Formats &
The YO! USP
Increasing preference for Fast Food,
Inspiration
Home Deliveries, Drive Thru
• Product Differentiation Strategies

19. Project: Marketing Strategy Of Yo! China
Expansion Plans/Misses
Evolution
Expansion Plans
Facts Yo! China • 200 Outlets across INDIA by end of 2011
Marketing
Environment
• Aiming Tier II cities
Organization • Foreign Markets
Structure
Business
• Targeting Corporate Houses
Segmentation
Misses
The Kuàicān
Target Customers • Failure of Vegetarian outlets in
Distribution Hyderabad
Pricing • Common BPO operation
The YO! USP
Data Courtesy: Interview with YoChina Management
Inspiration Representative
Expansion Plans

20. Project: Marketing Strategy Of Yo! China
Conclusions/Learnings
Evolution
Facts Yo! China
• Importance of Target Markets
Marketing
Environment
• Importance of Business
Organization
Structure
Segmentation
Business • Positioning of the Brand
Segmentation
The Kuàicān • Reaching out to customers
Target Customers
Distribution
• Adjusting to the environment
Pricing
The YO! USP
Inspiration
Expansion Plans