TACOBELL business and strategy presentation

A ppt on how tacobell has been successful over the years

1. Taco Bell - The Breakfast Opportunity Group 9

2.                         BACKGROUND Taco bell is a subsidiary of Yum! Brands which includes KFC, Pizza Hut and WingStreet

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

4. 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”)

5. 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 .

6. RISKS AND BENEFITS- BREAKFAST OPPORTUNITY

7. 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.

8. 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.

9. 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.

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

11. 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 ​

12. 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