Professional Documents
Culture Documents
In 1962, Glen had opened the first restaurant of Taco Bell in Downey, CA by
serving their customers with taco, but called tay koh by them. Taco Bell had
opened their 100th restaurant on 1967 at 400 south Brookhurst in Anahelm. The
growth of Taco Bell is very fast because only within 5 years, they had opened 100
branches.
In 1978, Taco Bell had been sold to Pepsi co by Glen and he had become
one of the PepsiCo shareholders. In 1984, Taco Bell had replace its original
mission-style restaurants, and in 1988 they had installed drive-thru windows to
make the consumers easy to buy their product without need to queue up at the
counters if they lack of time. Next, in 1990 Taco Bell had launched new express
business that provides hungry people on-the-go products.
While in 2001, Taco Bell had changed their slogan for their advertising by
using think outside the bun. Following the currents trends in technologies, Taco
Bell had launches their website to make their customers easier to buy their
product.
So, today in 2015 I had been asked by the Chief Executive Officer of YUM!
Brands Inc.
Malaysia.
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1.1
Various element of the marketing process
Definition of marketing process
Marketing process is define as The process of (1) analysing marketing
opportunities, (2)selecting target markets, (3) developing the marketing mix, and
(4) managing the marketing effort (Kotler & Armstrong, 2002)
Figure 1
Figure 1 shows the flow of the marketing process. This is very important
because through this process the company can get some feedback when they
doing the marketing research and can alter it to make sure their product can be
adapted by the country. Besides, the company also can target their own customer
when doing segmentation and the products price can be created. In the same
time, the product will receive modification to make sure it will suit the countrys
taste. Last but not least, they can make sure their product can stay in the market.
Situation analysis
First of all we need to do market analysis. Usually company use SWOT to
evaluate their strength, weaknesses, opportunity and threat. This is important in
helping the managers understand the company. Strength and the weaknesses are
under the companys control.
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STRENGTH:
Strength of a company is a feature that makes you operate effectively
compared to the competitors. Taco Bell strength is they have the resources and
expertise in producing the fast food service because they are under YUM!
Restaurants. YUM! Restaurants own KFC and PIZZA HUT. The experience
conducting KFC and PIZZA HUT give a lot of benefits to Taco Bell. Taco Bell is also
recognised as the best Mexican fast food restaurant. Besides, the starting price
attracts the customer very well. The price for a taco is only 1. In the same time,
they are offering a healthy food, it is advantage to them, because their
competitors which are the other fast-food restaurant still providing the unhealthy
food although they know that Malaysia had been announced having the highest
obesity rate in Asia on June 2014. Serve the customers with hygienic food and
quick service automatically wins the customers heart. Hygiene factors strongly
emphasized because people feel comfortable to buy hygienic food. Hygienic food
can prevent various diseases that can be harmful to health such as having
salmonellosis, listeriosis and cholera.
Weaknesses:
Weakness is certain areas that need to be improve in order to gain
customers attention. So, the weakness for Taco Bell is during November 2006,
twenty two of its customers were hospitalized due to traces of E.Coli bacteria.
(19 taco bell swot analysis). This automatically decreases the level of trust of
customers toward the brands. In the same time, they are using franchise
management it is difficult to control over the activities because the owner of the
franchise will manage by themselves without having interruption by the
management of the company and the growth is slower compared to the merges.
It is high risk to allow the other company use their brand because the company
may decrease the reputation of Taco Bell when the company did not follow the
specific rules that had been made.
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Opportunity:
Opportunity is a circumstance of a company to improve their system and it
need to make sure that they are in trend and can gain some advantages based
on what they are doing. Introduce home delivery service will give a huge
advantage to Taco Bell, they could reach more customers because not all of the
residents in Malaysia have vehicles to go to the restaurant to have the delicious
food. Next, Taco Bell can add new flavour and new recipes to adapt with the
environment in Malaysia. Introduce the new product to the market will make Taco
Bell can target wider on consumer range and it will increase the number of
customers. The increasing of the demand for healthier food in Malaysia could
make Taco Bell introduce more healthy food choice and it will make them become
competitive advantage towards their competitors such as McDonald and KFC.
Threat:
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be
drawn
from market
research and
focus
on
mix in order to achieve the maximum profit potential and sustain the business
(Marketing strategy).
Marketing segmentation:
A process to focus on certain group of customers which having same need,
want and demand. Segmentation is important because through the targeting
customer we will know what product suit with them. Besides, it is an advantage
to Taco Bell because they will study more about the competition in the market. In
the same times, when they are doing market segmentation they will received
response rapidly in order to meet changing of the markets demands. As an
example, Coca Cola do some market segmentation after start their company with
mass market. They start to divide their consumers into some segments such as
conscious drinkers who care about their health, Coca Cola had provided them
with Diet Coke. There are 4 basic segmentations which are
behavioural,
usually need to spend very well on the time and in the other side for working
people, they mostly having meeting with the clients which require a cosy place
and delicious food to have a very pleasant meeting.
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Positioning:
After decide which segment they want to enter, they must do the
positioning to make sure that they can beat the other products in the mind of the
target customers. Through their mission We take pride in making the best
Mexican style fast food providing fast, friendly, & accurate service (taco bell's
mission statement), it shows that they could serve their customer with fast,
friendly and accurate services. I had found one positive comments from their
customer which is 5 stars because of the customer service always.friendly and
always greet you with a smile at the register even though they seem short staff
they you get your food in a decent time BrainFreeze R. from Oakland, CA.
Based on my experience, I had bought foods from KFC and McDonald, they can
serve us with quick service but the outcome is very bad such as I order for Big
Mac but I get doublecheese burger. Usually I will buy using one of their way to
make the customer who run out of time easier which is drive thru. I had use it but
regularly I need to wait about 10 minutes to get my order. Drive thru does not
help me in this case. If Taco Bell could give their service same as in America, the
customers will get Taco bell when they think about fast service and very
important is Taco Bell provide healthy food such as Fresco Steak Burrito
Supreme plus black beans; 430 calories, 10.5g fat (3g saturated) and Fresco
Chicken Soft Taco plus Pintos 'n' Cheese; 330 calories, 10.5g fat (4g saturated)
(healthy fast food).
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Marketing mix
Marketing mix will be needed when the company had decided to open their
branch. Marketing mix is referring to how the company promote their brands
using 4Ps which are product, place, price and promotion to the markets.
PRODUCT:
Product means the service or goods that offer to the market by the
company. Thus, Taco Bell provides various type of product to the market such as
tacos, burritos and salads. Besides having the variety type of product, Taco Bell
also provides for
The vegetarians people and the customers may ordered any product and
can customize it by themselves. The packaging of the Taco Bells product is also
attractive and easy to bring along such as box with holder and the colour is so
attractive and cheerful such as purple, orange, and red. Figure 2 show some of
the Taco Bells product with their packaging.
Figure 2
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PRICE:
Price is the value that needs to exchange with the product or service. Price
is very important to attract the consumers. It is the centre of the attraction of the
consumer because it is how much they need to spend to have the products. Most
of the customers are having sensitive issue about the price. So, it is hard if Taco
Bell start with higher price because there is a lot of fast-food competitor in
Malaysia. Based on my interview with Nur Fatin Afiqah bt Mohd Akbar, I choose
to buy at chicken rice stall rather than chicken rice shop because the cost is
more cheaper even though there is lack of services provided but they serve the
same main product which is chicken rice. I think it is worth.
Nowadays in Malaysia, the lowest residents salary is RM900. So based on
my research about Taco Bell their price range is 70 to $10. After convert to
Malaysian Ringgit, the lowest cost for Taco bells product is RM 2.53. So, after
added with 6% of government tax, it starts with RM 2.68 for a taco. The lowest
price provide by McDonald is RM 5.95 for a set of value meal while KFC lowest
price is RM 3 for a burger which does not contain any vegetables. Both of these
prices did not add with 6% of government tax. So, Taco Bell had the lowest price
product if they entered Malaysia. This gives the best opportunity to them to
attract their customers.
PROMOTION:
The next of 4Ps is promotion. Promotion is how a company attract and
persuade their customers to buy their product. There is a lot of ways to do
promotion. First, Taco Bell can join one of the famous shows for women on the
television which is Wanita Hari Ini. This shows become womens favourite shows
because they give a lot of information needed by women whether they are
careers women or housewives. So, by doing the promotion in this show it will
attract the careers women and in the same time it indirectly attracts the other
housewives and anybody who is on their diet because Taco Bell did provide
healthy fast-food. Besides getting into the famous shows, they can promote their
product through using promotional banners. The most effective place to paste the
banners is by put it on billboard at the packed roads. This is because usually
people who are stuck in the traffic jammed getting bored at start to look around.
So, they will recognize the Taco Bells banners. Through this, the banners will be
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seen by most of the working people. Next, is the sales promotion. In America,
Taco Bell gives free Doritos Tacos Lato with every mobile purchase. Indirectly,
they will attract the customer to buy their product because of the free gift.
Besides giving free Doritos, they also can give free drinks named freeze on
certain time. This is because their competitors Subway serve their customer with
every day value. Every day value is they can buy certain product only at RM 6.90.
So, to attract the customer I suggest that Taco Bell make a promotion during
lunch hour and dinner hour because if make a promotion all day long it will
impact the sales of the restaurant.
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PLACE:
Lastly for 4Ps is place. It is advised the restaurant to be open at a place
with not much of competitors. The first restaurant must open at a place where
the residents easy to get there, love to try a new thing and the most important is
a place with full of attraction. To open the first restaurant Taco Bell need to
penetrate the market first. This is because they must shares the market and start
to attract their customer after launch the product. So, I think it is suitable for Taco
Bell to open their first restaurant at the Kuala Lumpur City Centre (KLCC).
Although they need to spend a lot of money but the place is very good for a new
product to enter the market. First of all, KLCC is the heart of Kuala Lumpur and
many people make bee lines there. This is because there is a lot of multinational
company and local companies such as PETRONAS, Tabung Haji and McKinsey &
company situated around the area. Besides, tourists usually hanged out in Kuala
Lumpur during their vacation between June to September because of summer
holiday. Mostly only foreigners can enjoy their breakfast with carbonated drinks,
and most of them cant have heavy breakfast because usually in their home
countries they will eat heavy breakfast during lunch and dinner. There is a lot of
expatriate in Kuala Lumpur, surely they will hunting for their home countries food.
Taco Bell can grab this opportunity by providing Mexican food because it is tastier
and according their tastes. In the same time, it is also a place which is very
accessible because there is a lot of LRT, taxi, bus and other public transport stop
at the area. This is very important things to customers because time is valuable,
they will try to minimize the time to get all their products they need. If the place
is hard to access it wills become disadvantage to the business.
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1.2
There is a lot of advantage that can be gain if Taco Bell doing marketing
approach. One of the advantages is adaptability. Through doing marketing
approach Taco Bell can gain fast responses from the customers, and it is very
good because Taco Bell can dismisses products that the customers do not want to
buy and the product that cant enter the market. In addition, Taco Bell can make
some improvement towards their product after getting some feedback from
customers to make sure they can fulfil the needs of their customers. Most of the
companys focus on their product and start to believe their product can enter the
market successfully but they still need to know the desire of their customers to
make sure that their product can be sold.
Next is responding to the demands of the customers. By doing the market
approach customers will tell what they will buy and what they wont buy. It makes
Taco Bell become easier, they needs to take this opportunity to provide product
that will buy by the customers to avoid losses. There is a lot of product that will
buy by the customers in Malaysia. In terms of food, they will buy foods that have
reasonable price, the tastes of the food and the good services that can provide by
the seller. Nowadays, most of residents in Malaysia are educated person, so they
will keep comparing the advantage if they have two choices to buy the same
product they want. So, Taco Bell needs to be careful during selling their product in
the market to make sure they can enter and stay at the market in Malaysia for a
long time.
Lastly is they can gain profit for the long-term profitability. As stated above,
Taco Bell can provide what the customers will buy and through that the
customers will keep repeating buying the products and services provided by Taco
Bell. So, Taco Bell can stay for a long time in the market in Malaysia this
automatically can bring Taco Bell to long-term profitability because they had
understand and what Malaysians wants and willing to buy. After the customers
become loyal to the products they will keep buying in large volumes and did not
concern about the price. It shows that Taco Bell will success in long run.
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TASK 2
2.1
Macro
and
micro
environment
factors
which
may
influence
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MICROENVIRONMENT:
Microenvironment is defined as a forces that close to the company and it
will affect the customers such as the company, suppliers, and competitors. There
are three main factors of microenvironment that need to be concerned by Taco
Bell which are customers, publics and the company itself.
Customers:
Customer is the person who buys Taco Bells product and services. They
are the keys to sell, if Taco Bell did not have them, Taco Bell cant sell anything.
Taco Bell needs to study the customers in details to know how their taste and
through this Taco Bell can meet the demands that had been made by the
Malaysians. As I had mentioned above, Malaysians residents prefer having spicy
food. But, nowadays there is a lot of food that had been transformed in order to
fulfil the customers needs and wants. There are some traditional food had
transform to become another food such as kerepek nangka, pisang goreng
cheese and keropok lekor cheese. In order to stay in the market, Taco Bell
needs to study their customer demands closely to make sure that Taco Bell can
provide foods that can adapt with Malaysians taste. Besides providing spicy
sauce for the customers, Taco Bell can provide rice which is the staple food in
Malaysia. Usually there are a lot of festive that will celebrate by Malaysians such
as Hari Raya Aidilfitri, Chinese New Year, and Deepavali. During this three main
festival occur, Taco Bell can sell their main dishes during the seasons such as
during Hari Raya Aidilfitri they love to eat rendang, while during Chinese New
Year they prefer to have food that show the fortune and lastly when Deepavali
take place they can sell candy or sweet dessert because Indians love to eat
sweetmeat.
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Publics:
A public is any group that has an actual or potential interest in or impact
on an organisations to achieve its objective (Kotler & Armstrong, 2002). Media
publics are very important because they carry the news and start spreading any
article which may get attention from the people. There are a lot of media publics
such as magazines, television and newspapers. Taco Bell can advertise their
restaurant in Malaysians Business Magazine, this magazine can be found mostly
at newsstand and at the popular bookstores such as MPH, Popular and
Kinokuniya. Taco Bell need to have a very good relationships with the media
publics this can give advantage to Taco Bell because they can review Taco Bell
restaurant. Next is about government publics. Taco Bell needs to keep updating
on the current laws and regulation which can affect Taco Bell business. On 1 st
April 2015, Malaysians government had made a rule that all business only can
charge their customers with 6% which is for government tax. Any business cant
charge higher rate or any other tax which might burden the residents in Malaysia.
Competitors:
All of firms will have their own competitors. So they need to gain a
competitive advantage to beat their competitors and enter the markets. Besides,
they need to do more than their competitors by satisfying their target market,
and make sure the consumers satisfy with what had been produce and sell by the
firms. As I stated above, Taco Bell had a lot of competitors such as KFC, PIZZA
HUT and DOMINOS PIZZA. Taco Bell provides healthy foods while the other fast
food restaurant still lack of healthy food in their menu. Other than that, Taco Bell
can provides high speed Wi-Fi because nowadays, people keep surfing anywhere
and everywhere most of them have their own smartphone it is very important for
them to get free Wi-Fi that can make them surf the internet. Other fast food
restaurants had provide Wi-Fi, but the users are very limited. So, Taco Bell can
take this opportunity to come up with unlimited users and high speed internet to
the customers.
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Taco Bell
working
people
women
Vegeteria
ns
Meat
lover
Diet
people
Figure 3
Concentrated targeting also known as niche marketing is an organisation
that concentrates their marketing only to some segments it is different with
undifferentiated marketing which the company hopes that they will gain a lot of
consumers to buy their product. There are some advantage that could be gain by
Taco Bell if they use concentrated marketing such as they can specialize their
products and it have lot of opportunity to explore the needs and the
characteristics of the consumers. They can satisfy their customers need directly
with all efforts they can give. There are many companies who success by using
this concentrated targeting market such as NIKE. They make athletic gear for
basketball, and soccer but in the same time they also focus on biking and street
hockey which is smaller niche.
The reasons why I choose concentrated marketing to use by Taco Bell in
Malaysia because it gives opportunity to Taco Bell to against their competitors by
serve their customers and concentrate on using the limited resources that Taco
Bell have such as skilled workers. It is a good way to use concentrated marketing
strategy to get into the markets and against the other successful company. Taco
Bell will obtain high reputation and start to attain strong market position due to
the understanding of Taco Bell towards the customers.
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As I stated in task 1, I think Taco Bell should target on working people and
women. From both of this group they can go further with vegetarians, meat lover,
and those who are on their diet. For vegetarians, they can eat the entire product
but they need to tell the cashier that they are vegetarians, and the person in
charge can take care about them. But there is also some specific menu for
vegetarians such as Bean Burrito without cheese, seven layer burrito without
cheese and sour cream, and Veggie Cantina Burrito without Cilantro Dressing.
Next for the meat lover, there is a lot of product that can be ordered such as
combo buritto there are two seasoned beef in the food. Dieters always jealous
when the other people keep getting having scrumptious food but they cant. So,
Taco Bell can make a move in Malaysia by providing healthy food for the dieters.
The example of meal that can order by the dieters are Fresco Steak Burrito
Supreme, Fresco Chicken Supreme Burrito and cheese-and-sour cream.
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There are many categories that may affect the buying decisions process.
For Taco Bell, the psychological and social might influence the buyers.
First of all is about psychological of the customers. The main point is
motivation and need of the consumer itself. Customers need affect their buying
behaviour. As an example, people will start to buy house when they need a place
to stay and they will buy the expensive and brand product to look stylish. Based
on Abrahams Maslow hierarchical pyramid needs I had learned in organisational
behaviour, they will start to increase their preference to buy things that will meet
their criteria because they want to increase their own self-concept. So, if Taco Bell
can persuade the customers that their product can meet the specific criteria
which will make the customers look special and have their own value, indirectly
consumers start to buy Taco Bells product. A lot of ways that can be done by
Taco Bell to relate the product and the specific criteria that need by the
consumers such as by doing advertising the products.
Second is the social factor. Usually people easily get influenced by their
surrounding such as opinion leaders, persons family and reference group.
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Mothers and wives are the highly influential women in the family. So, Taco Bell
target on them not only because they lack of time to prepare meal due to settle
down all the house chores but their power to influence the family to have the
products and services they want. People who are in reference group are very
important to Taco Bell because they can guide the other people to follow what
they say. So, Taco Bell need to serves their customers in a very good services and
products because if they had serves for the reference group, it will make them
easier to gain more customers because the reference group can provide a lot of
reasons why the other people need to have meals at Taco Bell.
Next is about the culture. The habits of the people itself affect how they
purchasing the products and the services. People in Malaysia prefer to have rice
over burgers and it definitely affects the buying pattern of the product. As an
example, Subway is a very famous fast-food restaurant but after they venture
into Malaysia the response from the residents in Malaysia is low, this is happen
because Malaysian would rather to have rice for their lunch over sandwiches. So,
when Taco Bell can offer a special menu for Malaysian such as cantina power
bowl, and black beans & rice. This kind of food will attract the consumers to buy
the product because they had provide one of staple food in Malaysia which is
rice.
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CONCLUSION
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RECOMMENDATION
As the recommendation, Malaysia is the best choice for Taco Bell to open
their next branch. This is because Taco Bell is the best Mexican fast-food
restaurant in America. In the same time Taco Bell did provide their customers
with all the products that demand by the customers such as healthy food,
vegetarians meal, and fast service. This shows that their customers will be loyal
to them.
Next, Taco Bell products are very affordable because it start with RM 2.63
after been charged with government tax. The location of the restaurant at the
centre of Kuala Lumpur is very suitable because it is easier to get there and it is
easy to be seen and search. Appear in Wanita Hari Ini shows, pasting attractive
poster on the billboard at the packed road and having Groupon account are very
good types of promotion it is easy for their target markets which are women and
working people know about the existence of the shop.
The factors that will affect Taco Bell had been recognized and it does not
harm Taco Bell in long run. From the strategies that had suggest Taco Bell can do,
it can be a very good way for them to beat their competitors in the market share.
The research which had been done by Taco Bell in Malaysia, it shows that Taco
Bell has the best plan to be in the Malaysia market.
However, it is important for Taco Bell to balance the quality and the
quantity of the products. As Taco Bell products, the product is tasty and in the
same time the quality is very good. This will make the consumers keep repeating
on buying it. So, to make sure Taco Bell can stay in Malaysia market they need to
keep changing their products in order to meet the consumers demand and satisfy
all the need and want that require by the consumers. This is because, if Taco Bell
did not updating their consumer it might bring Taco Bell in bad condition because
customers is everything, if they did not buy the products that had been
produced, there is no sales occur and it will drag the company to bankruptcy.
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REFFERENCES
Works Cited
19 taco bell swot analysis. (n.d.). Retrieved March 7, 2015, from
http://www.freeswotanalysis.com/: http://www.freeswotanalysis.com/fastfood-companies-swot-analysis/19-taco-bell-swot-analysis.html
demographic profile. (2014, July). Retrieved February 7, 2015, from
http://www.indexmundi.com/malaysia/demographics_profile.html
Akbar, N. F. (2015, March 11). Why you choose to buy at nasi ayam stall rather
than at the chicken rice shop? (N. I. Zaini, Interviewer)
healthy fast food. (n.d.). Retrieved february 6, 2015, from
http://www.fitnessmagazine.com:
http://www.fitnessmagazine.com/recipes/healthy-eating/on-the-go/healthyfast-foods/
Kotler, P., & Armstrong, G. (2002). The marketing process. In Principle of
Marketing (p. 63). New Delhi: Prentice Hall of India.
market approach. (n.d.). Retrieved March 19, 2015, from
http://www.investopedia.com/:
http://www.investopedia.com/terms/m/market-approach.asp
Marketing strategy. (n.d.). Retrieved March 11, 2015, from
http://www.businessdictionary.com/:
http://www.businessdictionary.com/definition/marketing-strategy.html
Nor Khalidah , A., & Yusniza, K. (2009). Macroenvironment. In Principle of
Marketing (p. 18). New York: Oxford University Press.
taco bell's mission statement. (n.d.). Retrieved February 6, 2015, from ask.com:
http://www.ask.com/business-finance/taco-bell-s-mission-statement2285d486706b9a86
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APPENDICES
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