A ppt on how tacobell has been successful over the years

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Taco Bell - The
Breakfast
Opportunity
Group 9

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BACKGROUND
Taco bell is a subsidiary of Yum! Brands which
includes KFC, Pizza Hut and WingStreet
Californian Glen Bell
founded Taco Bell, which
served a variety of Tex-Mex
style foods, including tacos,
burritos, quesadillas, nachos,
and other specialty items
He built the first Taco Bell
in 1962 in Downey,
California, after which it
expanded rapidly to 100
restaurants by 1967.
In 2013 Taco Bell had five
restaurants in India, 279 in
other countries, and 5,769 in
the United States,9 about 15
percent of which were
company owned

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FINANCIALS
In 2012 net income
reached $1.6 billion, or
11.5 percent of revenues.
Growth was a top priority
for the company

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TARGET CUSTOMERS,
PRICING AND ADVERTISING
 Taco Bell’s core customers were single young men. Young people
between the ages of 18 and 24 were a key group for all quick-
serve restaurants, Taco Bell was particularly dependent on this
group for sales and revenue.
 Value proposition: tasty, inexpensive food
 Value was a key part of Taco Bell’s proposition. The brand
featured items priced at $0.59, $0.79, and $0.99. These low
prices resonated well with its core customers.
 They also use creative marketing like using a Chihuahua in its
advertising campaign, which included some of the company’s
most memorable ads. The dog delivered the campaign’s signature
phrase, “Yo quiero Taco Bell” (“I want Taco Bell”)

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BREAKFAST
OPPORTUNITY
 Breakfast was a key opportunity in the quick-serve restaurant
world. NPD, a market research firm, estimated that breakfast
accounted for 12.5 billion restaurant visits in 2013, or 21
percent of all restaurant visits. In addition, the breakfast
occasion was growing—up 3 percent compared to the
previous year.
 Taco Bell decided to launch its breakfast line to give
McDonalds (market leader) a hard time
 They developed several breakfast menu items, including the
Waffle Taco, AM Crunchwrap, Cinnabon Delights, coffee,
and others to enter the breakfast segment and try and open
doors to more revenues.
 Value meals would be offered at prices ranging from
$4.29 to $5.40. A dollar menu included a Cinnabon
Delights two-pack and an AM Taco.
This Photo by Unknown author is licensed under CC BY-NC-ND.

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RISKS AND BENEFITS-
BREAKFAST OPPORTUNITY
Benefits
• Revenue Growth: Entering the breakfast market could significantly increase
Taco Bell's revenue and market share, especially during the morning
daypart.
• Competitive Edge: Successfully capturing a share of the breakfast market
would give Taco Bell a competitive edge and diversify its revenue sources. It
can outmanouver others and can challenge McDonalds
• Customer Diversification: Attracting breakfast customers could help
diversify Taco Bell's customer base beyond its core demographic of young
men aged 18-24.

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Risks
• Consumer Habit Change: Convincing consumers to switch from their
existing breakfast routines to Mexican food in the morning may be
challenging
• Franchisee Support: Ensuring franchisees' commitment to the breakfast
initiative is crucial, and weak results could lead to their loss of support.
• Sustaining Advertising: Sustaining heavy advertising support for the long
term is costly and may be necessary for success in the competitive
breakfast market.

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DORITOS LOCOS
TACO EXPANSION
 Taco Bell typically drove growth by introducing new
menu items, which created excitement that drew
people to the store and, if priced at a premium,
boosted margins. The primary driver of 2012’s
improved results was the launch of the Doritos
Locos Taco. The new taco incorporated a crispy
shell made of Doritos brand tortilla chips. It was
described as “Two commonly ridiculed ‘junk’ foods
the Doritos chip and the Taco Bell taco being rolled
into one. The concept immediately resonated with
customers;100 million were sold in the ten weeks
following the launch.

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RISKS AND BENEFITS-
DORITOS EXPANSION
BENEFITS:
 Low Risk: Expanding a successful
product line is a lower-risk option, as the
product already has an established
customer base.
 Easy Win: Doritos Locos Tacos have
been well-received, and expanding the
line could provide an immediate boost
to sales.

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 RISKS:
 Limited Growth: Expanding the Doritos Locos
Taco line may not generate substantial
incremental growth, and the market for this
product could become saturated.
 Missed Opportunity: Focusing on existing
products may mean missing out on the
potentially lucrative breakfast market. This is
kind of an opportunity cost which the company
will have to bear as it can focus only on one
product.

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STAKEHOLDER
ANALYSIS
High
High​
Low
Low
Power​
Interest​
Customers​
Franchisees​
Suppliers​
Employees​
Parent Brand​
Government
Regulatory
Bodies
(Eg: FTC,USDA)

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STAKEHOLDER ANALYSIS: BREAKFAST
OPPORTUNITY
Customers:
If Taco Bell enters the breakfast market: More menu choices during breakfast hours. ​
They have High Interest but Low to Moderate Power because:
•Directly affects their dining options
•Collectively, their purchasing decisions can impact business
Franchisees :
Increased revenue during breakfast hours offsets their initial investment and long-term commitment
concerns.
They have Vested Interest and Moderate to High Power because:
•Directly involved in operating Fast- Food Chain's outlets
•Can impact the brand's performance and have contractual agreements

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Taco Bell Employees:
 They may need training and adjustments to accommodate breakfast
hours, which impacts their work routines.
 They have Limited Power and Moderate Interest because:
 Can influence operations only collectively
 Focused on job security and potential career growth
Yum! Brands Shareholders:
 The parent brand has a High level of Power and Interest in the
expansion because:
 It represents the overall brand strategy and reputation
 The breakfast opportunity might increase revenue and market share for
Taco Bell, in turn benefitting Yum! Brands as a whole
 Their decisions significantly impact expansion plans