ByRoneeta Banik

Vocabulary of Strategy

Taco Bell Corp., (Taco Bell) based in Irvine, California, is a subsidiary of Yum! Brands, Inc.(200outlets in India) and America’s leading Mexican inspired quick service restaurant chain.

Taco Bell contributes around 66% of Yum Brands’ profits globally and surely 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 262 units 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’s general manager.

 Menu in India includes a variety of vegetarian and non

vegetarian Tacos, Burritos, Signature Quesadillas, Grilled Stuft Burritos, Nachos, and other specialty items. Taco Bell also offers several combos to satisfy your craving for 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 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: To provide wherever and whenever people are hungry

True to its Brand promise of providing craveable tastes and unbeatable value, Taco Bell offers a wide range of products to mesmerize the Indian consumer.

Company Objectives:“Taco Bell works with its suppliers to deliver great tasting, high quality food. Our food is topped, layered, loaded, melted, and grilled fresh for you, right when you order it. This means two things. First, you get your food prepared exactly how you want it. And second, it always tastes fresh.”

Operational Strategies Taco Bell has defined itself by its quest to lower

costs. It introduced its K-minus program in the 1990s, “K” standing for kitchen and “minus” standing for subtracting as much of it from a restaurant as possible. After all, when your economy scales across 5,600 stores, 175,000 employees, and millions of tacos, a penny saved is millions earned. So cooking is a corporate-level concern: food is prepared at centralized processing facilities and delivered to restaurants in forms engineered to limit on-site labour to unpacking, heating, or assembling.

Strategies Customisation in the market - Following in

the footsteps of McDonald's, beef is off the menu in this culture-sensitive country. Taco Bell offers chicken instead. Half the menu is vegetarian, including potato and local cheese (paneer) variations flavoured with Mexican seasonings and spices. Prices start low: a taco costs 18 rupees and a cheesy tortilla 20 rupees – Almost the same as a dosa or paratha in the street-corner food outlets.

 

Marketing strategy with mobile – iPhone app – Shaker

Created by the Hyperfactory, Taco Bell launched the "Why Pay More Shaker" iPhone application, which calculates the various 79, 89 and 99 cent items on the restaurant's value menu. To use the app, users just need to enter the prices of the value menu items they are buying. Then, they have to shake their phone to trigger calculation.The application is meant to show consumers that Taco Bell is dedicated to helping consumers save money during this tough time.Customers with a limited amount of money in hand can enter the amount they have and the app will show them what combinations of menu items they can 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 them electronically through their website http://www.tacobell.com/.  The website has multiple tabs. The first tab is shows the menu of the foods and the calories they have. Then there are the legal notices, which show Taco Bells Legal Terms.The contact tab is one of the most important as it helps customers share their experience at any of the Taco bell restaurants. Customers can give compliments, complaints and they can also make requests.Frequent Taco Bell customers also have the option of creating an account online so they can receive discounts and know about any special promotions in their neighbourhoods.If a customer wants to speak directly with a representative the restaurant offers a direct customer service line.

 

FacebookFans of Taco Bell can post their thoughts on different food Taco Bell has to offer.Can receive feedback from fans on what types of deals Taco Bell should include on their menu.Restaurant Locator Feature.

TwitterAnnounce new location openingsAnnounce new deals and coupons

Taco Bell launched an advertising campaign to fight back against a lawsuit charging its taco filling isn’t beef. Taco Bell placed full-page print ads in the Wall Street Journal, USA Today, New York Times and other papers as well as online ads to “set the record straight,” company President Greg Creed told The Associated Press.The print ads say, in huge letters, “Thank you for suing us. Here’s the truth about our seasoned beef.” They go on to outline the meat’s ingredients. The chain did not say how much it is spending on the campaign, but such ads in national newspapers 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 advantage over 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 consumers try out Taco Bell. 

Weakness -1. Lost goodwill when some of customers were hospitalized due to traces of E.coli bacteria.2. Not much awareness about Mexican food in India. Tacos , burritos, quesadillas and 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 serving what is foreign to the Indian palate is a big draw.3. New flavors and new recipes specially focused on health friendly ingredients can be introduced.4. Taco Bell has a huge opportunity to position itself as a healthy eating joint. Taco Bell has a unique concept of unlimited refills of the entire Pepsi soft drinks range for Rs 49 called Freefills. Small things like these will help the chain to get the attention of the cost-conscious Indian consumers.

Threats -1. New researches and the raised awareness among the public about the harmful health impacts of fast food consumption is a threat to Taco Bell’s fast food menus.2. Threats International coffee chains like Starbucks, in association with Tata Coffee and Dunkin Donuts, in association with Jubilant foods (owner of dominos pizza) will set up shop in India soon.  We will have to wait and watch whether the Indian consumers will “think out of the bun” .

Global Competitors

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