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Taco Bell Brand: Account Plan

Spring 2015
Warren Abrahamsen, Vanessa Wong

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Table of Contents

Brand Overview

..3

Situational Analysis

..3

Restaurant Overview

..4

Competitive Media...

..7

SWOT Analysis

..7

Storytelling Summary

..8

Consumer Perceptions

..8

General Perceptions

..9

Marketing and Advertising Issues

..10

Insights

..11

Segmentation

..12

Brand Positioning

..13

Creative brief

..15

References

..16

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Brand Overview
Taco Bell was founded by Glen Bell.
The first Taco Bell was opened in 1964 in Downey, California.
Taco Bell quickly spread across the country and became the

popular brand that it is today.

Taco Bell has 5,600 restaurants, 350 franchisees, and 150,000
employees across the United States.
In 1978, PepsiCo purchased Taco Bell from Glen Bell, and
currently, Taco Bell is part of Yum! Brands.
More than 80% of the restaurants are owned and operated by
independent franchisees.
Annually, Taco Bell serves over 2 billion customers around the
world.

Situation Analysis
Current Users
Age: Millennials, 18- 34 years old
Gender: Males make up a total of 53% of the total consumers and females make up the other
47%
Income: No income or part time / full time positions. $0 - $60,000.
Education: High school and college level
Race: Hispanic, Caucasian, African American, and Asian
Marital Status: Single or married
Social Class: The cool group People that are rebellious and want to try new and exciting
products
Lifestyle: Live in the moment lifestyle
Personality: Free-spirited, care-free, adventurous
VALS: Experiencers Consumers who are young, enthusiastic, and impulsive. They seek variety
and excitement, savoring new, quirky, and risky products. Their purchases reflect the emphasis
that they place on looking good and having the cool stuff.

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Restaurant Overview
Geography
Taco Bell has 6,500 stores in the United States, with a few stores located overseas in United Kingdom,
Spain, and India. Most restaurants are located on the east coast, the west coast, and in the Mid-west
of the United States.

Past Sales Information

In 2013, Taco Bell had $1.41 million in sales per restaurant, which has been steadily increasing since
2010. Taco Bell serves over 2 billion customers per year around the world.

Brand Development Index (BDI)

Taco Bell is located in all 50 states, including Alaska and Hawaii. Taco Bell is prominent in urban
centers, like New York City and Chicago, and not so prominent in the west.

Seasonality
Taco Bell is popular all year round, but mainly, people are more interested in purchasing Taco Bell in the
summer rather than the winter. This is due to the lifestyle of Taco Bell users they enjoy living in the
moment. During the summer time, most students are out of school and have more time to spend with their
friends and therefore, go out to Taco Bell. When looking at monthly sales, Taco Bell users tend to
purchase more of the product in the spring and summer months.

Purchase Cycle
How often does the target group Purchase the Taco Bell brand?
The average Taco Bell customer goes to Taco Bell about 4-6 times a month.

How much media weight is needed?

Taco Bell utilizes social media often to connect with their customers. Also, they recently launched
a Taco Bell App for their customers to order food, look up nutritious facts, and Q&A. Television
and radio is very popular advertising platform for Quick Service Restaurants, so Taco Bell needs
a higher frequency than its competitors to have a higher share of voice.

How the brand should be advertised?

The Taco Bell brand is advertised through social media, digital, radio, and television
advertisements. Most of the Taco Bell target market watches television, goes on the internet, and
listens to the radio in their car while driving to school or their job.

Creative Requirements
Opportunities: Global expansion is a great opportunity for Taco Bell because there are only 3
Taco Bells located overseas. By expanding, theyll gain more profits due to their unique Mexican
products. Flavor is a great opportunity as well. Taco Bell should continue to create new flavors
and options to maintain the variety and excitement of the brand.

Needs: An important need for Taco Bell is creating a healthier menu option to keep up with the
evolving health trend, while still maintaining their brand personality.

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Competitive Sales
Sales History: In 2011, Taco Bell climbed to the sixth most profitable fast food chain in the US
and made Taco Bells parent company, Yum! Brands, Inc., around seven billion dollars in sales.
When it comes to Taco Bells Mexican food dominance in the United States, no other food chains
come close. An average Taco Bell store makes around $1.3 million in sales. With over 6,500
Taco Bells in the US, the total generated profit comes to $451 million in 2013.

Tracking Change: Taco Bell has evolved their company throughout the years to appeal more
to the younger demographic.

Doritos Locos Tacos: In March of 2012, Taco Bell released the Doritos Locos Tacos,
which features the nacho cheese Doritos
taco shells. In ten weeks, Taco Bell sold
an estimate of 100 million Doritos Locos
Tacos, making this product the most
popular product launch in Taco Bells
history. Due to this success, Taco Bell
rolled out other Doritos products, including
cool ranch Doritos in March 2013, and
Fiery Doritos in August 2013. These new
products, however, had a less of an
impact on total sales as compared to the
original Doritos Locos Taco.

Breakfast Menu: In March of 2014, Taco Bell expanded its menu, as well as its hours
of operation, and launched into the $30 billion fast food breakfast market, which is mostly
dominated by McDonalds. New Taco Bell breakfast products include the Waffle Taco,
the Breakfast Burrito, and the AM Crunch Wrap. In response to Taco Bells breakfast
launch, McDonalds began to give out free coffee to customers, which shows McDonalds
concern the new competition in the breakfast market. Even though the Taco Bell
breakfast launch had a rocky start, breakfast sales generated six percent of the total
sales at Taco Bell by October 2014, which was higher than expected.

Healthier Options: In July of 2014, Taco Bell launched new products that are higher in
protein and lower in calories, without compromising flavor. This new platform was
created to reflect the evolving lifestyles and dietary needs of consumers looking for great
tasting options that are high in protein. The higher protein meal options, which include
Cantina Power Bowls and Burritos, add healthier options to the menu and appeal to Taco
Bells demographic.

Taco Bell App: Taco Bell launched its mobile app in

October 2014 for mobile orders and payment. Customers
can customize their order using the app and pick up their
order via the drive thru or inside the store on a separate
line. This new app will provide customers with a quick and
easy online method to order Taco Bell.

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Competition: Taco Bells main competitors include McDonalds, Burger King, and Wendys,
which are all national American fast food restaurants. Taco Bell is also in competition with
Chipotle Mexican Grille, which is a higher quality Mexican restaurant.

McDonalds: Taco Bell is in direct competition with McDonalds

over the breakfast market, as well as being in competition with other
fast food companies. In 2011, McDonalds made a total of around
$34 billion in revenue, and each restaurant makes about double as
much money as an average Taco Bell, or $2.5 million in profits per
restaurant.

Burger King: Burger King is a main competitor in the fast food

market and makes slightly more in total sales ($8.4 billion) and
makes slightly less in sales per restaurant ($1.2 million) compared
to Taco Bell.

Wendys: Wendys makes more in total sales ($8.5 billion) and

slightly more in sales per restaurant ($1.4 million) compared to
Taco Bell.

Chipotle: Lastly, Chipotle Mexican Grille, which is another

popular Mexican restaurant, makes around $2.3 billion in total
sales and roughly $2 million in sales per eatery.

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Competitive Media
Market Share
Based on 2010 market share data in the fast food industry, McDonalds controls 12.7%, Yum! Brands,
Inc. controls 9.7%, Wendys controls 6.6%, and Burger King controls 5.1%. This shows that McDonalds is
the strongest competitor that Taco Bell will need to face, whereas Wendys and Burger King are
substantially lower than McDonalds, and thus, not as big as a threat.

Advertising
Taco Bell spent $327.5 million in advertising in 2013 while Taco Bells main competitor, McDonalds,
spent roughly $988 million. In the first quarter of 2014, McDonalds spent $191 million on television ads
(primarily on NBC, ABC, and NBC Sports) and Taco Bell spent $94 million, which was mostly spent on
FOX, ESPN, and Comedy Central. Taco Bell spends about 70% of its budget on TV ads, 20% on digital
ads, and 10% on radio ads.

SWOT Analysis

Strengths

Affordable cost
Unique product
Fast service
Good marketing/advertising
campaign
Late hours
Breakfast menu
More than 5,000 stores in the US
Vegetarian, vegan, and gluten
free options

Opportunities
Global expansion
New flavor opportunities

Weaknesses
High calories
Health and wellness problem

Threats
Other fast food companies (ex.
McDonalds, Burger King,
Wendys)
Environmental factors (ex. E.coli
outbreak in lettuce and tomatoes)

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Storytelling Summary
Matt is a 20 year old college student who loves to work out, hang out with friends, and is very tech savvy.
He just got out of class and wants to grab something fast for dinner with his friends. They all wanted
something different than just a regular burger or plain old sandwich. With only a part-time salary, they
wanted something that is inexpensive, but is still somewhat healthy and satisfying at the same time. They
all decided on going to Taco Bell, because Taco Bell offers a variety of unique food options that satisfies
different meal preferences. They all decided on different entrees for dinner. Matt suggested using the
Taco Bell App to order their food for an even faster, easier, and convenient service. Matt, who loves to
workout, decided on the Taco Bell Cantina Chicken Power Bowl, which is high in protein. His friend, Chris
who is a vegetarian, decided on the Taco Bell classic Bean Burrito and his other friend, Jake who is very
adventurous decided on the Taco Bell Doritos Locos Tacos fiery flavor. After submitting and paying
their order on the Taco Bell App, they quickly drive over to Taco Bell to pick up their order. When they
arrived, Matt quickly went into the store, and picked up his order. Then, they raced back to campus in
time for their next class. When they got to class, they were glad with their decision to go to Taco Bell
because now they all have a hot meal to enjoy with time to spare.

Consumer Perceptions
Typical Customer - Marc Johnson

Marc is a 20 year old college junior who lives with 4 other roommates at Rutgers
University, in New Brunswick, NJ. Marc tends to stay away from early classes and
activities because hes a night owl. Marc likes to play videogames and watch Netflix
with his friends. Marc drives a hand-me-down car from his father, a black 2001
Honda Accord - where he listens to a mixture of todays hits and rap music from his
phone, using Pandora. Marcs phone never leaves his hand and he is always on
social media checking up on his friends. Going out and grabbing a midnight snack is
a regular activity that Marc and his friends do.

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General Perceptions
Taco Bell Purchase Funnel Analysis
1. Awareness: When people think of fast food, Taco Bell is a brand that comes to mind. Theres
an unaided awareness for Taco Bell, when consumers think of fast food, Taco Bell is in their mind
along with other popular chains.

2. Consideration: I consider Taco Bell when I want fast food. Consumers think of Taco Bell
when they crave for a convenient and affordable Mexican fast food. Also, consumers may think of
Taco Bell when they want something different than the average burger and fries.

3. Purchase: I have bought a product from Taco Bell. 20% of American adults chose to have
Taco Bell when choosing a fast food restaurant.

4. Purchase Again: I get Taco Bell more than once a month. Most consumers decide to
purchase Taco Bell 4-5 times a month on average.

5. Loyalty: I only choose Taco Bell as a fast food choice. Taco Bell as a brand has not achieved
complete loyalty from their consumers yet, due to the competitive fast food market.

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Marketing and Advertising Issues

Benchmarking Research
Brand Awareness: There is an unaided awareness of the brand Taco Bell, because when the
word fast food is brought up, Taco Bell is one of the top restaurants that come to mind among
consumers.

Advertising Awareness: When a consumer sees a Taco Bell commercial, they immediately
know what brand it is. Especially at the end of the commercial, where Taco Bells famous ding
sounds, our consumers link it back to Taco Bell even if they are looking elsewhere (such as their
phones or computers). Also, in their commercials they show pictures and videos of their products,
such as the taco, burrito, quesadilla, etc., and consumers know its a Taco Bell commercial
because of their unique products compared to other fast food restaurants.

Attitude: Consumers usually associate Taco Bell with the word - unhealthy. However, Taco Bell
is trying to counteract this belief by promoting its vegetarian, vegan, and gluten-free products.

Usage Measures: After our consumer purchase Taco Bell once, they usually repeat their
purchase again. Even though they repeat their purchase, they are still not completely loyal to just
Taco Bell as a fast food option.

Consumer Mindset
Qualitative Research: The research team would use a focus group to uncover additional
information about our brands consumer. They will conduct two different focus groups, both with
female and male participants. In the first focus group, the participants will be between the ages of
18 and 25. In the second focus group, participants will be between the ages of 26 and 34. The
researchers will then ask them specific questions about their interest and perceptions about Taco
Bell as a brand. They will also conduct an in-depth interview with the same group of participants.
By conducting private one-on-one interviews, the participants wont be influenced by other
peoples thoughts and be able to express themselves more clearly.

Research Objectives

To find out the differences in perceptions of the heavy and light users.
To compare the perceptions of the two different age groups - (18-25) vs (26-34).
To find out the main fast food competitors that Taco Bell consumers purchase.
To find out which products are the most popular and why.
To find out what our consumers think when they hear - Taco Bell.
To find out the perceived brand characteristics.
To find out why they choose Taco Bell comparatively to other fast food restaurants.
To find out the customers perception of the average Taco Bell user.
To find out how the average Taco Bell consumer will react in a specific scenario
relating to Taco Bell.
To find out the current problems of Taco Bells products.

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Insights
Brand Insight
History of the Product
Taco Bell has evolved into one of the best Mexican fast food restaurant in US. In the beginning,
Taco Bell used the slogan Think Outside the Bun to advertise to their customers that theyre
different than the usual fast food chain. They serve very unique fast food, such as: tacos,
quesadillas, burritos, etc. and this reflected in their slogan. The slogan Think Outside the Bun
came from the saying think outside the box, and its a clever way for Taco Bell to express the
attitude and positioning of the restaurant.
In order to turn the history of Taco Bell into an effective
communications campaign, we can focus on how they changed
their whole image around and remained successful as one of the
top Mexican fast food chains in the country.

Consumer Insight
How Users See Themselves
Taco Bells consumers see themselves as fun,
adventurous, thrill-seekers; which is exactly Taco Bell
wants their consumers to see them. Since they began in
2000, Taco Bell sponsors the annual Taco Bell All-Star
Legends and Celebrity Softball Game. The game
essentially involves both celebrities and all the Major
Leagues baseball stars together for a fun and relaxing
game. This helped the company to develop their image into
a serious, yet fun company. By creating a communications
campaign around this event, it can inform their consumers about their image.

Barriers to Using the Brand

What if more consumers knew about Taco Bells healthier menu options? Many people avoid fast
food chains, like Taco Bell, due to their negative perceptions of their unhealthy products.
However, Taco Bell has evolved their menu to include healthier options, such as their vegetarian,
vegan, and gluten-free tacos and quesadillas. One of the main problems Taco Bell is facing is the
fact that consumers who have never purchased their product are unaware of the healthy options
on the menu (due to their perception that everything on the menu is unhealthy). Taco Bell can fix
this perception by creating a communications campaign and informing the public about their
healthier products.

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Segmentation
How Users See Themselves
Dedicated Eaters (35%) - Heavy users who get Taco Bell very often.
These users are very dedicated to Taco Bell and their food options and like to get the product at
least once a week.

Sports Enthusiast (25%) - Users who like to buy in bulk.

These users like to throw sports parties, such as Super Bowl parties with their friends and enjoy
the party deals that Taco Bell offers.

Adventurous Eaters (20%) - Users who purchase the more unique products.
These users like to get the more crazy options of the menu, such as: Sriracha Quesarito,
Doritos Tacos, and other adventurous items.

Once-in-a-While Cravers (15%) - Light users who get Taco Bell once in a while.
These users only go to Taco Bell when they crave something different.

Healthy Eaters (5%) - Users who are health conscious about their weight and diet.
These users dont like to eat out often, especially in fast food restaurants, because of their food
preferences.

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Brand Positioning
Brand Positioning Statement
To all the young adults, Taco Bell is the brand of Mexican fast food that offers a wide range of Mexican
style food that fits every type of consumer needs because they have a variety of options from healthy to
crazy flavored food.

Brand Positioning Map

Expensive

Chipotle

Wendys
Modern

Traditional

Taco Bell

McDonalds
Cheap

Brand Personality
The brand personality is adventurous, fun, and unique.

Big 5 Personality
Doesnt Explain

Adventurous
Dedicated
Active
Sophisticated
Healthy

Somewhat
Explains

Explains

Explains Very
Well

X
X
X
X
X

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Brand Essence
Functional to Emotional Benefit:
Brand- Taco Bell
Functional benefit- Quick way to satisfy Mexican-style food cravings.
Emotional benefit- The great smell of spices in the air

Benefit Ladder
Emotional Benefit

Excitement of consuming unique foods

Functional Benefit

Tasting unique foods

Product Attribute

Satisfy your Mexican-style food cravings,

without burning a hole in your wallet.

Target

Young adults who are cost-conscious.

Brand Wheel
Attributes:
Unique taste

Benefits:
Satisfy cravings

Consumer
Values:
Rebellious

Personality:
Fun

Brand Essence:
Adventurous

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Creative Brief
Who are we talking to?
We want to sell Taco Bell to both females and males that are between the ages of 18 - 34 who are also
college students or recent college grads. They are the adventure seekers who enjoy going out with their
friends without burning a hole in their wallet. When they are not out with their friends, they tend to be on
their phone 24/7 connecting with their friends through social media.

What product are we advertising?

We are selling low cost Mexican style food thats off the beaten track. Taco Bells food is a unique,
exciting and adventurous experience that is different than any other fast food restaurant. Taco Bells
menu offers a wide range of flavors that will satisfy nearly everyone, from health conscious customers to
flavor risk takers.

Why should they believe us?

Taco Bell is the only widespread Mexican fast food restaurant that sells a variety of great food, at a low
cost compared to other Mexican and fast food restaurants.

What do we want our advertisements to show?

We want our advertisements to show that our brand sells low-cost Mexican fast food that targets a variety
of people. Since our consumers range from health conscious consumers, to flavor risk takers; we carry
different food options that appeals to them.

What do we want people to think, feel, and do?

The desired response that we want from our target market is for them to think and believe that Taco Bell
is not only exciting, wild and fast, but also not as unhealthy as people think. We want them to come to the
restaurant to purchase the product and have a great time doing so. We also want them to feel that Taco
Bell created a variety of food options to accommodate their needs and wants.

What is the long term feeling we want to invoke?

We want our consumers to feel in the long term that our brand seems fun, exciting, and adventurous. We
want them to come to the restaurant to socialize and enjoy the moment.

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Street Journal. 2014. Feb. 22, 2015.

The Waffle Taco is a Sign of Weakness. Quarts. P & L, 2014. Feb. 22, 2015.
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Bloomberg Business. Bloomberg LP, 2014. Feb. 22, 2015.