Beruflich Dokumente
Kultur Dokumente
Student Name
: Hasara Kulatunga
: A0083RGNRGN1115
Module Lecturer
: Anand Walser
Module Tutor
Date Submitted
Total Word Count
: Nilusha Gallage
: 17th Dec 2015
: 4433
Executive Summary
This market report is to explain why the Taco Bell franchise would be successful in SL. There is a Mexican
food gap in Sri Lankan fast food industry with little choice regarding Mexican cuisine. Taco Bell creates
the brand image through innovative products and good customer service. To market it in SL, brand
recognition will be done through advertisements, promotions, social media and WOM.
This market report is done using the primary research and secondary research. As for primary research, TB
was contacted through email, after which a form was sent regarding eligibility to own a franchise. Adding
more to the primary research, a manager from Pizza Hut been reached to find the business systems that
they use. As for secondary research newspaper articles, books and websites have been used.
TB identifies the 2 potential customer segments as the key consumers in SL and decides on the promotions
according to the consumer requirements. Pricing is offered with a psychological twist and according to the
competitor pricing to grab the consumers from the competitors as well. Taco Bell will be branded as a
healthy fast food company with the tag line of you are what you eat.
Taco Bell identifies the political, economical, legal and technological opportunities and threats that can
show the success of the company and the risks that the company will be taking. Taco Bell identifies the
internal environments that they can change to make the franchise launch a success, such as innovative
products, well trained employees, business systems that should be applied, the best locations to open the
outlets during the market research and uses the SWOT analysis for a successful marketing.
According to the findings of the market research taco bell will be taking the approach of launching their
products under Early Breakfast Meals and Happier hour segments to cater the chosen market segment.
There will be products tweaked to have the Sri Lankan taste to it with Sri Lankan names to make the
customers feel closer to the brand. Taking into account the upcoming healthy eating trend, all the products
will have the calorie visibility before the consumer purchase the product.
Taco Bell should launch their brand in Sri Lanka as there is a great opportunity to be a successful franchise
if the TB launch outlets at convenient, high traffic locations to the chosen market segment and promote it
while highlighting fact that its a healthy fast food option for the consumers.
Content
1.0 Introduction
5.3 Place
5.4 Promotion
Appendix
Abbreviations
TB Taco Bell
SL Sri Lanka
WOM Word Of Mouth
RRGM Regional Restaurant General Manager
RGM - Restaurant General Manager
MM Marketing Manager
PC Personal Computer
FB Face Book
1.0 Introduction
2
There is no doubt, fast food makes life easier, and however, nutritious fast food tends to be rare. What if
we were to introduce a product to the fast food industry that is nutritious and transparent about the
calorie intake at the same time? Taco Bell, is an American fast food chain which is under the parent
company, Yum! Brands Inc. TB is under the fast food powerhouse Umbrella which includes both KFC
and Pizza Hut, both of which are found Sri Lanka.
Taco Bell was started in 1954 and over the years it has grown to a successful fast food franchise that
provides products such as tacos, burritos, nachos and a fusion of Mexican cuisine. Taco Bell serves more
than 2 billion customers each year and they have more than 6000 restaurants in U.S alone.
TB restaurants can be found in Australia, Canada, India, Japan, Mexico, and 23 other countries. TB
gradually rose as a leading fast food restaurant in the world by creating innovating products and Hitting
on trends in the recent past. TB as a company not only provides fast food, but also provides charity by
carrying out programs such as:
1. TB Foundation - where committees motivate teenagers to graduate & become well rounded
&dynamic adults.
2. TB Grants - is an association that is focused on community building and hunger relief.
3. The Glen Bell Scholarship
4. World Hunger relief that has helped many hungry families through organizations like United
Nations World Food.
Next Chapter will be on situational analyzes. Marketing objectives will be discussed in the second
chapter and the third chapter will be on marketing strategy discussing further about growth strategy,
market segmentation, targeting and positioning which will lead to the fourth chapter that will study
about the marketing mix. Fifth Chapter will be on Customer Experience. Final chapter will be
concluding the market strategy for TB to be a franchise in SL
Primary and Secondary research will be carried out to acquire information to regarding this marketing
report on TB as a Franchise. As for Primary research will be communicated through mail with the TB
Live Mas to collect information on the criteria required to be a part of the franchise. There will be a
discussion done with the manager of a Pizza Hut outlet Mr. Gunawardana. Secondary information will
be gathered through websites, paper articles, and business reports and media.
Even though TB has a wide range of products to their business, I will be only focusing on Tacos,
Burritos and Nachos to limit this Market report.
Situational analysis is an important planning tool that is used to analyze an organization to make a
successful marketing concept that will drive the organization to greater success.
Marketing functions are usually divided into in two areas
1. Internal Environment,
2. External Environment
Situational analysis and forecasting is an important task for a marketing strategy as this will explain how
the organization should act upon the two above mentioned environmental changes for a better future
marketing structure to make more profits by identifying, anticipating and satisfying customer
requirements.
Hard
Ss
Soft Ss
Strategy
4
TB has implemented two changes to the brand in recent years to make TB be a better experience for
customers and to beat the competitors. TB is now looking into innovative products & hitting on trends.
TB has made changes to their ingredients to make the product quality better. With all this TB has
increased their business by 5% during the year 2013. During the introduction of TB to CMB, innovative
changes such as healthier food options and a Sri Lankan Product line can be introduced to satisfy the Sri
Lankan customers.
Brand has created an image of TB as a late-night destination by bringing in the concept of Happy
Hour in to the market strategy. Adding in products like Grilled Burritos and fountain Drinks for under
$1. CMB has a good night life but after 12am all the fast food joints are closed and the restaurants on the
road that are open at that time never have good quality products so Happier Hour will be a good
introduction to SL as well.
Systems
Systems are formal and informal procedures that will keep the company working towards these goals.
The systems presented below should be implemented in TB Srilanka
Innovation System
Financial System
Structure
TB is owned by Yum! Brands, one of the largest company that owns restaurant chains around the world.
Along with TB, Yum! Brands also own KFC, Long John Silvers and Pizza Hut. Among all of them TB is
the most profitable fast food restaurant.
Brian Niccol CEO, heads TB in Yum! Brands. Mellissa Lora is heading TB as the president and under
her you get Liz Williams as the Financial officer and Meredith Sandland as development officer.
TB SL will have a functional form of structure. There will be a Regional Manager for TB who will
report directly to TB head office on the progression of Taco Bell from day one. Under the Regional
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manager there will be Restaurant Managers who will be focused on the Production and a Marketing
Manager who will be focusing on marketing.
TACO BELL
PRESIDENT
REGIONAL
RESTURANT
MANAGER
RESTURAN
T
GENERAL
MARKETING
MANAGER
Shared Values
TB is always precise on providing good quality food for any income groups, therefore they are looking
at a range of low cost food products to be available on their menus. This becomes a very important
aspect when it comes to catering to third world markets.
Secondly the company is committed to offering exceptional customer service and the customer loyalty is
a driving force when it comes to long term success of the brand. Failing in any of these two aspects can
slow down the growth in new markets. In order for employees to follow the shared values of the
company, they are provided with opportunities to participate in training to keep them motivated. It is
likely that the franchises might have to implement slight changes to organization to fit into different
world cultures.
TB SL can be driven around above mentioned core values of the brand itself and to fit in better to the Sri
Lankan market and the delivery service will have to be extraordinary as it has become a very
competitive aspect in the fast food industry within the past couple of years.
Style
TB as a franchise shares values with Yum! Which consider the RRGM their number one leader. Each
RRGM is established not only to be adept in managing restaurants but to serve as leaders who are able to
create a better surrounding for their employees to work as a team to reach the best performance and
chase the annual goals as a company.
6
Lankan RRGMs will be the leader heading the franchise in Sri Lanka and after that, the next leader
would be the RGM who will be focused on operations of the restaurant and then the MM who will focus
on marketing. Under the RGM there will be three more managers as shown below. All of these leaders
will be skilled people leaders as well as operational leaders.
RGM
OPERATIONA
L MANAGER
HR MANAGER
FINANCE
MANAGER
Staff
Before opening the franchise RRGM will have to complete the eight weeks of quick serve training
program under TB Live Mass. RGM will also participate in one week immersion program conducted by
TB regarding the contract agreement with TB. RRGM and RGM will be responsible in passing the
knowledge they gathered from the training to the other employees under them. HR will be providing the
staff with hospitality trainings along with customer care training to make the employees fit into the
company shared values. According to a Pizza Hut outlet manager, they have a rewarding system of
treating their best employees with salary increments every three months which can be used as the reward
system for TB as well to motivate the employees.
Skill
TB as a company, enjoy accolades such being the best at customer care, and being innovative when it
comes to their products. It wont be difficult to make it a successful franchise in SL as there are hardly
any Mexican cuisines for a reasonable prices.
But at the same time, catering as a 24 hour fast food franchise, TB SL can out do competitors like KFC,
Mc Donalds, Pizza Hut and Dominos. By launching the Taco Bell mobile app to let the customers
customize their orders and check on the calorie intake, TB can definitely change the fast food industry in
Sri Lanka.
your organization
organization. When
bringing down a
franchise to a Sri
Lankan industry to
would be PESTEL.
Political
Sri Lanka is a democratic country that is governed by a semi presidential system along with a
parliamentary system. Sri Lanka went through a big Political change recently when the two main parties
came together to win the election. As the government changed this year its safe to say that the political
stability is strong for the next five years and it is the best time to start up a new franchise in Sri Lanka.
Stable political environment opportunity
Economic
Sri Lankan GDP in the first quarter of 2015 was 6.4% which was 912.534 billion and it was reported as
a steady economic growth. With the government change earlier this year, economy was assumed to be
steadier for many reasons. Three main sources to the economy of Sri Lanka is Agriculture, Industries
and Services sector. First quarter of 2015 the inflation rate was marked as 1.4 percent. Economy slowed
down in the last quarter of 2014 but the central bank is looking forward for a 7.0 percent growth this
year.
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NEGATIVE
POSITIVE
STRENGTHS
I
N
T
E
R
N
A
L
E
X
T
E
R
N
A
L
WEAKNESS
THREATS
Market Objectives- A time frame which a company needs to fulfill a given objective and reach a particular
goal. The main points of the market strategy is what the business needs to focus on to enter the market.
Below will be the marketing objectives that TB SL will be focused on for the next 5 years (2015-2018).
1.
2.
3.
4.
5.
Geographic
Demographic
Working
Students
Tourists/Visitors
Party
Locals Within
Colombo city limits
Locals Within
Colombo city limits
No age limit.
Psychographic
Convenience
Convenience
New food
experiences and or
old preferences
Behavioral
Benefit expectation
would be healthy
option of fast food
Price Sensitivity
Travelers
Average to high
class people with a
night life style.
Convenience.
Benefit
Working Segmentation is basically the 25-55 year olds who go to work in Colombo before 9am and get
off from work at 6pm. This market segment is attracted to convenient breakfast meals and dinner meal
options. Mc Donalds is the only fast food restaurant that has a breakfast meal option but that starts
around 9am which is inconvenient, not to mention the fact that Mc Donalds has a reputation for
unhealthy, high calorie foods.
11
Students are basically the market segment that dont earn but still have the ability to purchase. Similar to
the working segment, breakfast meals are important to them as schools in SL starts at 7.45am. College
students and tuition class students falls under the same category.
Tourist and visitors to the city would be a very general segment. This segment will come and try out TB
either because they are familiar with the brand or because of wanting to have new food experiences.
As for the competitors, we can consider all the other fast food restaurants and even local restaurant and
hotels as competition.
Party segment of market is active after 12am and they would be wanting food options after all the other
Fast food restaurants are closed, they are left with local shops on the road such as Pillawoos and Plaza
Hotel which is not exactly good quality food though they may be cheaper than fast food restaurants. So
Taco Bell will be a good option for this segment. (Refer 2.1)
3.3 Positioning
TB will be marketing to the Working crowd market segment and the Party Crowd market segment that
needs healthy food options early morning and late night at their convenience. TB is a Mexican food
provider that will serve the consumer at times that they need it the most and will make sure food is
healthy and in good quality. Because TB will have the early breakfast meal options and happier hour
(late night specials) meal option for their customers as TB is here to give the best customer service. Also
the calorie counts of all the food that they provide will be given to the consumer before purchasing their
order to be healthy and to be transparent to the consumer of the quality of TB food.
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4.1
Product
Product lines will be created around the very popular Tacos, Nachos and Burritos to bring the ultimate
Mexican food experience to Sri Lankans. SL (Refer 1.0)
TB is the
Mexican food
products are in their
maturity. Theres a
Fig
Tacos,
Burritos, Nachos (TacoBell 2015)
and 3:
when
these
product life cycle
start and it will build
below to Growth end
13
4.2 Price
International TB prices vary from $1.19 to $5.99 per product with any value meal promotions. Below is
a breakdown of minimum and maximum prices per product. Prices of the same product changed with the
extra ingredients that are added to it
Product
Minimum Price
Maximum Price
Tacos
$1.19
$2.79
Burritos
$1.19
$2.99
Nachos
$2.39
$5.99
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Currency rate of SL at the moment is $1 = Rs. 171.02. Due to the currency level and after comparing the
prices of other fast food joints in SL prices of SL TB will be as follows while making it a phsycological
pricing.
Product
Minimum Price
Maximum Price
Tacos
Rs. 199
Rs. 580
Burritos
Rs. 199
Rs. 480
Nachos
Rs.399
Rs.899
Pricing strategy is a psychological pricing as well as customer based pricing methods. Which is giving a
lower but profitable pricing than the competitors to make it relative to the customers and to feel like it is
more affordable than the competitors.
Price promotions can be given to the customers during the product introducing period and during
seasonal (holiday/christmas) times (see appendix)
4.3 Place
Placing a TB outlet in CMB Marine Drive will be the way of reaching the consumers when the business
being introduced to the market. Within the next 3 years there will be two TB outlets located in Mount
Lavina and Nugegoda. These three places were selected according to where the most working crowd and
the most party crowd roam. TB will be partnering with Quickee.lk as intermediaries to get the TB
delivery business started to reach more consumer with in CMB limits. Within the next 3 years there will
be a TB sale point located in Majestic City Mall to reach more consumers and other market segments.
By creating all these locations Intensity of Market coverage becomes a selective distribution but along
with convenience of consumers.
4.4 Promotion
3 months before starting the outlet and the first year to the franchise, push promotion strategy will be
used to communicate directly to the consumers. Since TB SL will be getting Quickie.lk to be the
delivery partner, 6 months into the opening, the pull strategy will be used to promote TB to the
consumers as well. Main focused promotional platform would be advertising in written media, audio
media and visual media. At the same time there will be promotions done on social media. During the
introduction stage social media quiz promotion can be done for consumers to win vouchers from TB and
with quiz promotions. Sharing TB FB page can be done to promote TB by WOM. Below will be the
marketing campaign posters that will be shared on the TB FB page. During the promotion, the points
below will be highlighted.
1. They will be open in the early morning hours Early Breakfast Option
2. They will be open late night Happier hour
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16
17
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5.1 People
Employees that are going to join TB will be the people who will be connecting with the consumers
directly. When hiring employees below points should be considered.
1.
2.
3.
4.
5.
6.
Since TB is trying to bring the ultimate Mexican experience to the consumers the employees should
greet the consumers in a simple Hola [oh-lah].
5.2 Process
Process is finding out how we can make the experience better for the customer. TB need to have a close
relationship with the consumers to better understand this. Steps below will be taken to build up a
relationship with the customer to make the process better at TB
1. To the diners have an ipad in every table to rate the dining experience.
2. To the callers send the consumer a message to rate the customer experience.
3. To the take away consumers get the consumers TP number during the exchange and continue as
below.
After collecting ratings there should be a group of employees who should call the unsatisfied customers
to know what TB can do to improve their process to make them satisfied.
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To create a physical environment to satisfy the customers there should be a great interior decorations
keeping with the Mexican theme. TB outlets will have the Mexican inspired interior with a modern look
to it. There will be a photo booth with Mexican props during the first 3 months for people to take
pictures and share it on social media.
5.4 Partnership
When handling a franchise Partnerships are important to give the greatest experience for the customers.
First partnership that TB SL will build up is the delivery partnership with Quickee.lk. Depending on
consumer feedback TB can bring in healthy beverage partner like Roots into the franchise for greater
customer satisfaction and choice.
6.0 Conclusion
Given the average Srilankans open mindedness and willingness to try new and exciting things, TB is a
great franchise to have in SL. There is much potential of making it a success due to the Mexican food
market gap and a fresh new option of food choice.
There are two market segments that can be catered in SL (refer 4.1) to be an innovative brand to cater to
consumers requirements by pushing boundaries by giving an Early Breakfast option and the Happier
hour option. Pricing can be made lower than the other competitors in the fast food industry which will
drive consumers to dine at TB (see 5.2).
TB SL will have the tag line You are what you eat as that will be the way to market TB to the potential
consumers because of the upcoming healthy eating trend in SL.
Promotion on the early breakfast & happier hour will let TB gather some early loyal consumers.
Advertising should be done using the Push and Pull strategy both. (See 5.4) TB should be located in
areas that consumers pass during their daily routines (See 5.3). There should be a product line that has
the Lankan touch to it to make the consumers feel comfortable with the Mexican food as this will be a
new experience to them.
There will be a risk of not knowing whether other customer segments would be like the Mexican food
experience but if the marketing is done in a way as mentioned in this report that risk can be turned into
an opportunity.
If the term healthy eating is not be marketed then TB might lose some health coconscious consumers.
If TB fails to give a good service during the happier hour and early breakfast hours it might damage the
image that TB is trying to create in SL. Pricing points should be at least RS50 lower than the competitors
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when entering the market as it will be good opportunity to grab consumers from competitors.
Promotions should be done wisely using the media that the consumers TB is try to cater uses (See 5.4)
Finally if TB franchise to be launched in SL it is recommended to find places that is convenient to the
chosen market segment as mentioned above and promote it while highlighting healthy fast food to grab
Reference
consumers from the competitors of the fast food
industry.
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Appendix
Burrito
Masala Burrito Spicy masala in a burrito
Kawalam Burrito Kawalam stands for mix in Sinhalese. This will be a burrito with mixed of
different
meat
Cheese Hatharak Burrito Hatharak means four in Sinhalese. This will be a burrito mixed with four
different cheese.
Vegetable Sarata Burrito This burrito is a vegetarian burrito with onions, capsicum, mushrooms and
cheese in it.
Nachos
Meat Ball Nachos Nachos served with meat balls and sauce
Scrambled Nachos Nachos served with scrambled eggs and sauce
Pumpkin Nachos Nachos served with pumpkin juice
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