Strategic Marketing Application and Direction

CASE STUDY Strategic Marketing Application and Direction of TACO BELL Corporation Taco Bell is an American fast food company selling Mexican food all over the world and is based out of California. Taco Bell is a subsidiary of Yum! Brands Inc. They serve the number of Tex-Mex foods that includes varieties like burritos, quesadillas, nachos, and tacos. Each year Taco Bell serves more than 2 billion consumers and has 7,072 restaurants spread all over the world among which over 93% is operated by independent licensees and franchisees. The company was founded by Glen Bell who started the restaurant with a small hot dog stands in the year 1948. Then the company was later acquired by Yum! Brands which owns brands like Pizza Hut, A&W, and KFC etc. Mission: We take pride in making the best Mexican style fast food providing fast, friendly, & accurate service. We are the employer of choice offering team members’ opportunities for growth, advancement, & rewarding careers in a fun, safe working environment. We are accountable for profitability in everything we do, providing our shareholders with value growth.” Vision: Taco Bell will grow into the largest fast food provider of Mexican style cuisine in emerging markets, such as Asia, South America, and Africa with restaurant locations being found within the top 25 major cities on these continents. Taco Bell aims to be the most recognizable Mexican food brand in the world. Segmentation, targeting and positioning in the Marketing strategy Taco Bell Market Segmentation: Taco Bell has segmented consumers between the ages of 15 and 35; students; and those who recently joined the workforce, with income below USD 3,500 per month. The target market are individuals who viewed fast food as an easy option for food and is not necessarily lazy but is not in the intention to go for grocery shopping. It caters to those who are price sensitive and see value in time-saving, fast, and makes decision totally based on convenience. Children and youth are the main targets of Taco Bell, especially those who eat out frequently. Taco Bell has started to experiment with a nutritious menu with healthy breakfast options, redesign their logo colors and utilize social media to attract its customers. BCG matrix of Taco Bell Taco Bell is one of the world’s most loved, fast-growing and trusted fast food chain and has the best franchise operators in the business. More than 350 franchise organizations operate in 7000 restaurants and serve more than 40 million consumers each week. For Yum! Brands which owns fast foods like KFC and Pizza Hut, Taco bell falls under the star category. In India, Yum! Brands aim to open more than 100 outlets in the coming 5 years. Taco Bell has become America’s No 1 favorite Mexican fast food restaurant. Since it has huge growth opportunities and Yum! Brands are investing in the growth of Taco Bell. Brand equity in the Marketing strategy Taco Bell Consumers associated Taco Bell brand as convenient, affordable, reliable food, consistent taste, good quality and various menu options. Hence, customers often return back to the store more often for enjoyable meals anytime of the day. In India, it used to give out soft drinks free with any purchase. It is because of its effective brand strategy that is so youth- centered, consumers look forward to having good, hearty food at Taco Bell. Competitive advantage in the Marketing strategy Taco Bell: Innovation: In 2019, Taco Bell has recorded an 8 percent increase in the system-wide sales, and this was attributed by its fresh innovation and new ideas implemented at Taco Bell. Taco Bell aims to expand to 1000 locations from the current 280 by the year 2020. They have also used digital apps and social media for orders and delivery. Taco Bell has developed a mobile app that has been downloaded close to 5 million times which allows customers to order and pay without queueing at the store. Effective targeting: Taco Bell understands that digital marketing has heavily influenced its consumers and has been able to capitalize on their appetite for easy and quick food and use of technology by implementing edgy and fun marketing initiatives. Taco Bell has been able to find the right audiences and has been able to target them effectively through social media campaigns. Good use of Social media: Taco Bell has been able to successfully build relationship marketing with its customers through social media and speaks directly to them building a personal relationship rather than building a business. Taco Bell understands that millennials lives and breeds social media and has created digital initiatives to stay at the forefront of the trends. Competitive analysis in the Marketing strategy of Taco Bell Chipotle is the latest Mexican food chain posing a big threat to Taco Bell. The food they serve is catered to a growing health-conscious consumers in the United States. The menu is simple without much variety serving authentic Mexican food. Other competitors of Taco Bell are KFC, Pizza Hut, Subway and McDonald’s. The competition is tough, so Taco Bell needs to keep innovating and using creative strategies to stay ahead of the competition. Promotion Strategy Taco Bell was one of the first fast food chains to get into the growing trend of short video ads such as Instagram and Vine. Their tweets like “Do you sell bells” alongside hashtags like “#10 ThingsIGetAlot” was very famous and it garnered a good amount of attention from their desired consumer base. Another Taco Bell strategy has targeted social media influencers/Opinion leaders is by providing them with free products before its release in the market to create hype about the new dish. 1. Outline and interpret the key components of Taco Bell’s Mission Statement and Vision. (40 marks) 2. Identify and discuss the relevant market segmentation base(s) and examine the extent of customer loyalty behavior towards Taco Bell. (40 marks) 3. Provide justifications on the location of Taco Bell on the BCG matrix. (20 marks) (Total: 100 marks) Appendix 2: Marking Criteria for ALTERNATIVE ASSESSMENT Questio Assessment Criteria Weight Marks ns No. age Allotted by Lecturer Key components of Taco Bell’s Mission Statement and a) Vision 40% b) Market segmentation base(s) and examine the extent of customer loyalty 40% d) Justifications on the location of Taco Bell on the BCG matrix 20% Total marks 100% Overall Marks 20%

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