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Executive Summary
Taco Bell, a fast food company is trying to enter its market into a country. The purpose of the report
is to analyze its target country, the suitable mode of entry, the opportunities and threats of entering
the market into a country, the International Environment Audit analysis were analyzed for Taco Bell,
the PEST analysis and the product strategy was discussed. Taco Bell had chosen to bring in its market
into Malaysia.



















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TABLE OF CONTENT
CONTENT
EXECUTIVE SUMMARY
INTRODUCTION
1.0 COMPANY BACKGROUND
2.0 INTERNATIONAL ENVIRONMENT AUDIT
2.1 OPPORTUNITIES AND THREATS
3.0 PEST ANALYSIS
4.0 RECOMMENDED MARKET ENTRY
MODES
5.0 RECOMMENDED PRODUCT STRATEGY
6.0 CONCLUSION
REFERENCES



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Introduction
International Marketing can be defined as the simple application of marketing principles to more
than one country. International marketing involves in making one or more marketing mix decisions
by firms across the national boundaries. But in its multifaceted level, the firms are involved in setting
up manufacturing facilities overseas and coordinating marketing strategies across the globe (Doole
and Lowe 2001). The purpose of the report is for Taco Bell a Mexican fast food chain to enter into an
Asian country and is targeting to enter Malaysia. In addition, the report is to find a possible market
from outside that have the potential to enter into a certain country with the conduct of its
environmental analysis which makes Taco Bell the attraction to the country which it decides to
enter. The identification of the mode of entry and product strategy of the targeted market can also
be defined as well as the recommendations in this report. The report is focusing on defining to
whether Taco Bell are able to enter the market and can it compete with the existing markets that
already are operating in Malaysia.















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1.0 Company Background
Taco Bell is one of the famous Mexican fast food chains in the American country. The word ‘Bell’
came from the founders name Glenn Bell introduced the sale of crunchy tacos to the world over 50
years ago. The first Taco Bell was opened in 14
th
March 1962. Glenn who was a former Marine aged
23 years old arrived in San Bernadino, California after the World War II opened a one man hot dog
stand at first but is interested in selling other alternative menus. He had chosen Mexican food as his
second choice after the hot dog stand. He sought after a quick way to grab Mexican food while on
the go (Foodimentarian). Glenn first started selling hot dogs which he paired with a sauce that had
become Taco Bell’s famous hot sauce. After discovering the interest in selling Mexican fast food, he
tried to find ways in preparing tacos efficiently and quick. He also discovered ideas of frying taco
shells ahead of time. Glenn experiment the tacos until he is satisfied with the ingredients and the
proportions. Then, the food manufacturers had used his ideas for commercially advertised the taco
shells. The business went well and Bell had decided to open his second stand and hired Ed Hackbarth
who then became the founder of ‘Del Taco’. The hot dogs were discarded from the menu to focus
more on the tacos (TacoBell.com)
1.1 Product Category
Taco Bell are selling Mexican fast food meals other than their famous Tacos, there are many other
products including their Burritos, Quesadillas, Salads, Steak, Tortillas, Nachos, Doritos and other side
dishes. Their recent product that they had released is called the ‘Quesarito’. The ‘Quesarito’ is
mainly a combination of the Burritos and the Quesadillas. The company are experts in introducing
new product to their fast food menu by combining two or more of their recent menus. Another
outcome which turned out to be a success for the company by combining two of their dishes is the
taco filling with the Doritos (Morran C). The report focuses on the main dish that Taco Bell is serving
and that is their famous Tacos.

1.2 Current Operations
Taco Bells are currently operating in 7022 locations, mostly from the United States and to name a
few are such as in Alabama, Alaska, California, New York, Florida, Hawaii, Texas, Washington,
Virginia, Ohio and also from Canada such as in Ontario and Ohio (Taco Bell locations 2014). In Asia,
there are few of Taco Bell fast food stands which are located in the Philippines, India and South
Korea.
1.3 Target Country
The total population of people in Malaysia are expected to reach 30 million in 2014 and the recent
Gross Domestic Product which had reached 5.1% in fourth quarter of 2013; it can be a great
opportunity for Taco Bell to enter into Malaysia. Even though it wasn’t a success for Taco Bell to
enter China and Singapore, It can be a success in Malaysia as there are many different religions with
different tastes and perceptions which can make Taco Bell a success in the country.

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2.0 International Marketing Environment Audit
2.1 Opportunities and Threats
2.1.1 Opportunities
Taco Bell is an American fast food company which is famous for their Mexican taste and cuisine.
They are famous for their tacos and their famous hot sauce. One of the advantages of bringing Taco
Bell into Malaysia is the different races and religions. With those differences, come people with
different taste and preferences. In Malaysia, the culture is different from other Asian countries and
Malaysian love to try something new and different. There are limited Mexican cuisines in Malaysia
which give Taco Bell the opportunity to take control of the market for that particular cuisine. There
are many people in Malaysia that loves to eat spicy food and as a result, it can be famous among
them. Besides that, the affordable prices and people who are hectic in work can buy the Tacos while
they are on the go as light snacks to keep them full.
2.1.2 Threats
With regrets, consumers may find that the fast food to be unhealthy and that the food may not
worth the price with the high imposed tax by the country. The price range of Taco Bell may be
slightly higher compared to other fast food chain in Malaysia and they would prefer to buy fast foods
which are slightly cheaper and more filling. Other than that, with having many religions in the
country; Taco Bell must make sure to certify its fast food chain with the ‘Halal’ certification so that
people aren’t reluctant and more consumers will purchase its product. To have the ‘Halal’ license is
complicated in Malaysia as it must make sure that all of their products are not against the Muslim
rules.
3.0 PEST analysis
3.1 Politic
Malaysia is a perfect country to go through in the food and beverages line. The reason is because
Malaysia has good international relationships with many countries. Good political ambiences of
multinational companies are important in entering into a country. As a result, they are no challenges
for the market to enter but with exception of the product must be certified as ‘Halal’. This is because
in Malaysia there are many different races including the Muslim where the certification of ‘Halal’ in
food and beverages are important to them. In addition, with different countries having different
taxes and tariffs it is important for Taco Bell to know the political factors of a country before making
a decision to enter into the market.

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3.2 Economic
Malaysia is one of the developing countries in Asia that has developed economy in which recent
years had successfully change from the exporters of raw materials to an expand economy (Trading
Economics 2013). With the current status that Malaysia are facing now, the penetration of Taco Bell
into the Malaysian market will not be a problem as the income will give advantages to both the
country and the company. The company can achieve their target market here in Malaysia. In
addition, Exchange rates play a big role for an International company as it give affects on the
company’s profit. Thus, the profit that Taco Bell will receive will depend on the currency of the
country.
3.3 Social
The total population in Malaysia were expected to be reaching 30 million in 2014
(Kanyakumari D). One of the advantages selling tacos in Malaysia is that it can be enjoyed by
all of the age range from children to adults. Malaysian love to try something new when it
comes to food and by selling Tacos in Malaysia, it would be something different to the
Malaysian food choices because of the Mexican fast food line that can be compete with
other fast food chains here and it is easy to consume for people who are on the go.
3.4 Technology
In 2014, Taco Bell has been preparing to revolve in the mobile ordering nationwide. This
strategy will most likely to increase a trend that will look forward to shake up the quick-
service world. Taco Bell make known of its primary demographic of the teen age groups in
particular will introduce what the chain assure will be a faultless integration of technology
that is already the centre to the smart phone-focused lives. 74% of consumers aged 18-34
preferred to order takeout/delivery on mobile devices according to research of the National
Restaurant Association.





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4.0 Recommended Market Entry Modes
After reviewing the international marketing environment audit, the market entry that is
suitable for Taco Bell would be strategic alliance. Strategic alliance is an arrangement of two
companies that share resources to undertake a precise and shared beneficial project. It is
also known as partnership between businesses with the purposes of achieving common goals,
while minimizing risk, maximizing leverages and gain benefit from those facets of their
operations that balance each other (John Whiley & Sons Australia Ltd. 2
nd
Edition). As a
result, Taco Bell can partner up with a brand that is originally from Malaysia to help reduce
its cost and ease its operation.
5.0 Recommended Product Strategy Standardization or Adaptation
The appropriate product strategy that is chosen to enter into Malaysia would be the
adaptation method. Product Adaptation strategy can be defined as the process of modifying
an existing product that can suit the different market and consumers (Linton I). Taco Bell
must registered its company with a ‘Halal’ certification when entering into Malaysia that
may result in changing the raw material supplies and also its menu where in the US they
may sell non ‘Halal’ meat but in Malaysia meat such as pork and alcohol beverages are not
allowed to be sell in companies such as the fast food company as it is prohibited. The
adaption method product strategy will make changes to the product to suit local marketplace.

6.0 Conclusion
As a conclusion, Taco Bell can be a successful fast food chain when entering Malaysia if it is
done the right way. It can give a great advantage to the company and the consumer. In the
near future, Taco Bell can expand its franchises in more Asian countries if entering Malaysia
brings success to them.




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References
Doole, Lowe 2001, Introduction to International Marketing, What is International Marketing?,
viewed 11
th
April 2014, < http://www.marketingteacher.com/lesson-store/lesson-international-
marketing.html>
Fatsecret, Calorie and Nutrition Information for popular products from Taco Bell, viewed 10
th
April
2014, < http://www.fatsecret.com/calories-nutrition/taco-bell>