CASE STUDY

TACO BELL: THE BREAKFAST

OPPPORTUNITY
 CONTRIBUTION BY EACH MEMBER
MITESH BADERA SAMIKSHA KALRA
SHUBHAM PRAKASH
NAVYA RASTOGI
STAKEHOLDER RISKS AND
CHANGES &
ANALYSIS INSIGHTS ABOUT BENEFITS LAUNCH PLAN
TACO BELL
IN 2013

KARTIKEYA MISHRA
KARAN KAPOOR KIRPAL SINGH
DILEMMA IN
2013 BREAKFAST
BACKGROUND
OPPORTUNITY:
OF THE CASE
CHALLENGES
BACKGROUND OF THE CASE
Jake Bonnar, Vice President at Lakewood
Consulting was leading the project of whether
Taco Bell should launch a breakfast line or expand
the successful Doritos Locos Taco line.
Yum! Brands Inc., a global leader in quick serve
restaurant business owned Taco Bell, KFC, Pizza
Hut, and other brands.
Taco Bell was the third-largest brand for the Yum!
brand and delivered about 2/3rd of the its total
U.S. profits.
INSIGHTS ABOUT
TACO BELL
MENU VARIETY POD CORE CONSUMER
Large menu of products that Its value proposition was Consisted of single young
included classic Mexican tasty, inexpensive food. As men between the ages of
dishes one former Taco Bell 18-24
Tacos marketer described it as
Burritos “cheap, fast, delicious, and ADVERTISING
Gordita messy”
Spent heavily on
Chalupa The brand featured items advertising majority of
Used same ingredients: priced from $0.59-$0.99 which went to traditional
cheese, seasoned meat, which resonated with its marketing.
lettuce, and tortillas core customers

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DILEMMA IN 2013
Taco Bell had done an enormous growth by creating excitement
and introducing new menu items. The prime factor was the launch
of the DORITOS LOCOS TACO in 2012

Now, Taco Bell was looking into adding to their business’

growth by introducing the breakfast line. However, the
company was torn between expanding its Doritos Locos Taco
line or to introduce the breakfast line. The management and
key executives of the company must come up with the right
decision for the overall growth of Taco Bell.

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CHANGES & LAUNCH
PLAN IN 2013
Development of several breakfast menu items:
Waffle Taco
AM Crunchwrap
Cinnabon Delights
Coffee

Serving hours for breakfast items were scheduled from 7:00am until
11:00am (three hours earlier than normal)
Consumers tests conducted on the same were generally positive but
seemed be difficult to bring young adults on board
The core of the plan involved an aggressive attack on the
Mc Donalds.
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BREAKFAST OPPORTUNITY:
CHALLENGES
ACCEPTANCE CONTINUOUS
BY CONSUMERS EFFORTS
To make the customers Maintain their USE SAME
change their breakfast advertising efforts INGREDIENTS TO
SUPPORT FROM
routines and create a for a long period of CUT COSTS
picture of Mexican food FRANCHISEES time to sustain in To utilize the same
in breakfast In case of weak the market ingredients for the
breakfast line,
breakfast line to cut
franchisees might turn
costs
their backs and
withdraw their support
BREAKFAST OPPORTUNITY:
RISKS AND BENEFITS
RISKS INVOLVED
High competition backlash from already
dominant brands like McDonalds.
Losing their core customers as they were all
young adults who started their day late.
In case of failure of the line, heavy costs
will be incurred (operational, logistical
and promotional)
If not backed up by franchisees’ support,
then the whole movement will lose its
hold.
BENEFITS
Challenging the existing leading
competitors and coming at par with them.
Introducing breakfast items could bring in
significant revenue and growth for the
company.
Increased profits will also comepnsate for
the declining lunch and dinner line.
Expand in the consumer base by
introduction of breakfast line.
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BREAKFAST OPPORTUNITY:
STAKEHOLDERS ANALYSIS
STAKEHOLDERS INCLUDE EMPLOYEES, FRANCHISEES,
CUSTOMERS AND SHAREHOLDERS

For Customers, introducing a new line of For employees, either new will be hired or
items will provide them with new varieties the existing ones will work in shifts during
of mexican dishes the initial stage

For Shareholders, sticking to expanding the For Franchisees, their support will be lost
current Doritos Locos Taco might be less in case of weak breakfast line.
risky and more profitable.

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THANK YOU