Upon deciding whether or not to enter the Indian market, YUM! Had to consider a lot of factors and on top of that list is religion. It’s important to note that majority of the Indians are religious, and are very strict when it comes to their religious obligations. These can be reflected in the way the Indian consumer market behaves, the way they buy, consume and repurchase. And of course, they also had to consider how they were going to price their products.
Now, you may ask, how is it possible to marry Taco Bell, a food chain that serves a lot of meat-based Mexican food, and India’s culture? Easy. Through glocalization. They need to think globally and act locally. This part then becomes the critical part as the pressure of adapting it to the Indian culture while maintaining the standardized Mexican feel.
The case presented us with these main alternatives. So we’ll go into each of these one by one.
The first alternative would be to cobrand with KFC. If we explore the pros and cons of this option, it can be seen that KFC is still just growing so partnering up with it may just slow down Taco Bell’s growth. Another thing is that KFC is priced based on the costs of production, and since the ingredients of it are not readily available in India, they are sold at a premium and this concept may not work well with taco bell. Another option would be to co-brand with a well-established chain of Pizza Hut stores, but then the main problem raised here is the possibility of hurting the already good image of Pizza Hut.
Another alternative would be to enter India as a stand-alone brand, that is, as a brand that is independent of any connections from KFC nor Pizza Hut. Doing this would keep both KFC and Pizza Hut from any chances of being damaged. Also if its entrance is successful, the future will definitely be brighter. There are some downsides to this, however, as they will have to start from scratch, thus making it more costly for the corporation as a whole.
Thinking Outside the Country: Taco Bell expands to India
Thinking Outside the Country Taco Bell expands to IndiaAQUINO, DEGAND, HENRYON, MAZGAJ, RELLAMA, ZIARNOWSKI
Overview of the SituationMARKET SHARESO Domestic profit has been decreasing (US)O International profit has been increasingOPPORTUNITIESO Success of KFC and Pizza Hut in IndiaO Growing appreciation of mexican foodO Strength of YUM! brands
PROBLEM STATEMENTShould Taco Bell enter theIndian market? If so, how?
Factors of Consideration Religion Consumer attitude/behavior Consumer preferences (taste/habits) Purchasing power of the people
Standardization / Localization « Glocalize » Taco Bell’s menus • Vegetarian menus (rice…) • Vegan menus • Meat menus (Chicken, fish) • Use of spices for taste
AlternativesCo-brand with existing KFC storesCo-brand with existing Pizza HutstoresEnter as stand-alone Taco BellstoresNot to enter the Indian market
Co-branding KFC Pizza Hut Possibility• KFC is still just of brand • Pizza Hut is already growing in India. damage well established• Difference in the • Affordability. target markets. • Good brand image.
As a Stand-Alone Brand Harder to Less riskyStart from enter the for Pizza Hut scratch market and KFC More costly Bright future for YUM! if successful
Recommendations Enter the Indian market as a stand-alone brand with a menu that is well adapted to India’s culture.