Taco bell - Vocabulary of strategyPresentation Transcript
Vocabulary of Strategy By Roneeta Banik
Taco Bell Corp., (Taco Bell) based in Irvine, California, is a subsidiary ofYum! Brands, Inc.(200outlets in India) and America’s leading Mexicaninspired quick service restaurant chain. Taco Bell contributes around 66% of Yum Brands’ profits globally andsurely will get all the support from the parent company.First Taco Bell restaurant was opened in 1962 by Glen Bell in Downey,California. Taco Bell operates in 21 countries and territories throughout the world. Serves more than 2 billion consumers each year. As of year end 2011, there were 5,634 Taco Bell units in the U.S., and 262units outside of the U.S.
The first Taco Bell in India was launched at Mantri Square Mall,Bangalore, in March 2010. Second is at Gopalan Mall, Bannerghata road.The plan is to grow to 100 by 2015, according to Ashok Bajpai, Taco Bell’sgeneral manager. Menu in India includes a variety of vegetarian and non vegetarian Tacos,Burritos, Signature Quesadillas, Grilled Stuft Burritos, Nachos, and otherspecialty items. Taco Bell also offers several combos to satisfy your cravingfor Taco Bell food at lunch, snack and dinner. Unlimited refills on the entire Pepsi beverage range!
Taco Bell mission: “We take pride in making the best Mexicanstyle fast food providing fast, friendly, & accurate service. We are theemployer of choice offering team members opportunities for growth,advancement, & rewarding careers in a fun, safe working environment. We areaccountable for profitability in everything we do, providing our shareholderswith value growth.” Vision: To provide wherever and whenever people are hungry True to its Brand promise of providing craveable tastes andunbeatable value, Taco Bell offers a wide range of products to mesmerize theIndian consumer.
Company Objectives:“Taco Bell works with its suppliers to deliver great tasting, highquality food. Our food is topped, layered, loaded, melted, andgrilled fresh for you, right when you order it. This means twothings. First, you get your food prepared exactly how you wantit. And second, it always tastes fresh.”
Operational Strategies Taco Bell has defined itself by its quest to lower costs. Itintroduced its K-minus program in the 1990s, “K” standing forkitchen and “minus” standing for subtracting as much of it from arestaurant as possible. After all, when your economy scalesacross 5,600 stores, 175,000 employees, and millions of tacos, apenny saved is millions earned. So cooking is a corporate-levelconcern: food is prepared at centralized processing facilities anddelivered to restaurants in forms engineered to limit on-sitelabour to unpacking, heating, or assembling.
Strategies Customisation in the market - Following in the footstepsof McDonalds, beef is off the menu in this culture-sensitivecountry. Taco Bell offers chicken instead. Half the menu isvegetarian, including potato and local cheese (paneer) variationsflavoured with Mexican seasonings and spices. Prices start low: ataco costs 18 rupees and a cheesy tortilla 20 rupees – Almost thesame as a dosa or paratha in the street-corner food outlets.
Marketing strategy with mobile – iPhone app – ShakerCreated by the Hyperfactory, Taco Bell launched the "Why Pay MoreShaker" iPhone application, which calculates the various 79, 89 and 99 centitems on the restaurants value menu.To use the app, users just need to enter the prices of the value menu itemsthey are buying. Then, they have to shake their phone to trigger calculation.The application is meant to show consumers that Taco Bell is dedicated tohelping consumers save money during this tough time.Customers with a limited amount of money in hand can enter the amountthey have and the app will show them what combinations of menu items theycan afford to buy.The app also has a store locator link that helps find the nearest Taco Bell.
Taco Bell has a way for its customers to interact with themelectronically through their website http://www.tacobell.com/. Thewebsite has multiple tabs. The first tab is shows the menu of the foodsand the calories they have. Then there are the legal notices, which showTaco Bells Legal Terms.The contact tab is one of the most important as it helps customers sharetheir experience at any of the Taco bell restaurants. Customers can givecompliments, complaints and they can also make requests.Frequent Taco Bell customers also have the option of creating an accountonline so they can receive discounts and know about any specialpromotions in their neighbourhoods.If a customer wants to speak directly with a representative the restaurantoffers a direct customer service line.
FacebookFans of Taco Bell can post their thoughts on different food Taco Bell has tooffer.Can receive feedback from fans on what types of deals Taco Bell shouldinclude on their menu.Restaurant Locator Feature. TwitterAnnounce new location openingsAnnounce new deals and coupons
Taco Bell launched an advertisingcampaign to fight back against a lawsuitcharging its taco filling isn’t beef. TacoBell placed full-page print ads in theWall Street Journal, USA Today, NewYork Times and other papers as well asonline ads to “set the record straight,”company President Greg Creed told TheAssociated Press.The print ads say, in huge letters, “Thankyou for suing us. Here’s the truth aboutour seasoned beef.” They go on tooutline the meat’s ingredients. The chaindid not say how much it is spending onthe campaign, but such ads in nationalnewspapers can cost more than$100,000.-- Reported on Jan 30th, 2011
Strength – 1. Huge popular brand name + high brand loyalty2. Adopted a healthy trans-fat free formula which is a key competitive advantageover other competitors who has not yet switched to the healthier recipes.3.Hygenic food and quick service4.Good advertising and marketing5.Attractive pricing (Rs 18- 79) will make sure that a large number of consumerstry out Taco Bell. Weakness -1. Lost goodwill when some of customers were hospitalized due to traces ofE.coli bacteria.2. Not much awareness about Mexican food in India. Tacos , burritos, quesadillasand the other offerings are virtually unheard of.It does not have a exceptional variety of Desserts.
Opportunity - 1. Introduce home delivery2.Venture into newer markets. A Western fast food chain servingwhat is foreign to the Indian palate is a big draw.3. New flavors and new recipes specially focused on healthfriendly ingredients can be introduced.4. Taco Bell has a huge opportunity to position itself as a healthyeating joint.Taco Bell has a unique concept of unlimited refills of the entirePepsi soft drinks range for Rs 49 called Freefills. Small things likethese will help the chain to get the attention of the cost-consciousIndian consumers.
Threats -1. New researches and the raised awareness among the publicabout the harmful health impacts of fast food consumption is athreat to Taco Bell’s fast food menus.2. Threats International coffee chains like Starbucks, inassociation with Tata Coffee and Dunkin Donuts, in associationwith Jubilant foods (owner of dominos pizza) will set up shop inIndia soon.We will have to wait and watch whether the Indian consumerswill “think out of the bun” .