BSB126 Marketing Plan (Final) PDF

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BSB 126 MARKETING PLAN

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I. SITUATION ANALYSIS Taco bell is a fast food restaurant founded in Irvine, California and a subsidiary of Yum! Brands, Inc. Taco bell by many is now considered a juggernaut within the fast food industry. In the Australian market Taco Bell are in close competition with fast food chains like Mad Mex, Zambrero and Guzman Y Gomez, in contrast to USA’s market the Australian fast food Industry is a lot less saturated meaning the industry isn’t as competitive within Australia. Taco Bell’s Goal is to Re-stablish and grow their brand in Australia. To understand things like the strengths, weaknesses, opportunities and threats a SWOT analysis is often used. SWOT frameworks will allow businesses to visualise a clearer display of how the company may doing in contrast to their opposition. A SWOT analysis of Taco Bell can be viewed down below. SWOT: Strengths: 1. Household Name with loyal customers. 2. Acquire a unique recipe (trans-fat free formula) and competitors don’t yet have this. 3. International recognition 4. Hygienic and Quick service 5. Employs over 170, 000 people

Weaknesses: 1. Health conscious people shy away from purchasing from taco bell due to high fat and high calorie food

2. Fast food is a highly competitive market, so this results in limited growth for Taco Bell

Opportunities: 1. Possibly Incorporating a home delivery System can help aid growth within their business can aid growth 2. Pushing more advertising will trigger more brand awareness 3. New food that isn’t necessarily fast food can be introduced (sauces, dip, soft drink etc.) 4. Activities and Events about social justice dilemmas can be held Threats: 1. Other fast foods chains 2. Newfound Information that could cause the public to be more suspicious about purchasing form Taco Bell 3. Incorporating new ideas could be labour intensive and costly 4. Risk involved with incorporating new ideas PESTLE is a method that’s used to analyse the macro-environmental factors that play a part within a corporation and its performance. PESTLE is often used with analytical tools like SWOT, this helps people reach a clear and vivid perception of a company’s situation and relating factors that may play a part. This framework is best used when either starting a new business or entering foreign markets. PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental. Down below is PESTLE analysis of Taco Bell displaying the more significant factor relating to the business. PESTLE: Political: 1. Settings and Policies 2. Political Lobbying 3. Geo-Political Nature and Political Stability Economical: 1. Upwards or downwards swings in prices of raw material 2. Risks involved with foreign entities 3. Reliable H & R team 4. Economic Indicators and Policies

Social: 1. Health consciousness 2. Factors that social media play 3. Values and Beliefs of the cultures and demographic Technological: 1. To achieve results being innovative is imperative 2. Supply chain and Keeping up to date with technological advances 3. Data analytics and Utilizing marketing knowledge 4. Social Media Legal: 1. International laws 2. Domestic Laws Environmental: 1. Weather and Climate 2. Environmental Consciousness and legislation

II. MARKETING GOAL By 2021 the company Taco Bell is expected to increase its market share by approximately 25%. III. MARKETING STRATEGY Taco Bell’s Target market are middle to upper class adults from varying from ages 20-29 and middle to upper class teenagers from the ages of 13-19. Both these segments of the market fit under the Gen-Y and Gen-X (millennials) and only 7% of millennials consider themselves to be brand loyalist. They often enjoy different products from different brands especially in the fast food market. Businesses like McDonald’s and Nando’s have recognised this so they’ve released sauces and spices that are sold by retailers like Costco & Walmart. Selling the spices and sauces that are used in their recipes allows the customer to customize meals of their choice. Introducing a similar product for taco-bell would allow brand growth, taco bell is new within the Australian market while also being recognisable, so anything new coming out of Taco-bell is going to gain traction just based of the curiosity from the Australian market. Segment 1 (Teenagers/Gen Y):

Geographic Segment: Australia Explanation/Description: Taco Bell is easier to access in demographics such as the USA due to the fast food chain being there for an extended amount of time in contrast to Australia. It’s more difficult accessing taco bell in Australia due to the limited amount of stores existent within Australia. Demographic Age: 13-19 Explanation/Description: according to (LINK 1) High school students have tendency to eat of out more due to teenagers being a lot busier in this era so many of them make fast food the way to go. Gender: Male & Female Explanation/Description: ( LINK 2 ) Both genders consume a considerable amount of fast food, although males are more likely to eat fast food as meal and females are more likely to have it as a snack. Although according to (LINK 3) men consume 11.8% of their calories from fast food where as women consume 10.9% of there calorie intake through fast food meaning the caloric intake is close to the same. Income: Middle to upper class Explanation/Description: Both middle and upper-class teenagers spend a large proportion of their income on food, majority of it going towards fast food. According to (LINK 4) 20% of there income goes towards food with another 20% going towards clothing and the remaining 60% shared amongst shoes, cars, electronics, video games, music, movies, events etc. Psychographic Self-concept: Rebellious, Extraverted, Independent, emotional Explanation/Description: According to (LINK 5) from around about the ages of 13-19 people develop a more defiant behavioural attitude as well a rapid change in mood. It is believed that teens form a self-concept by establishing independence from their parents. Self-values: Social acceptance, Respect Explanation/Description: Speaking to teenagers the way you would speak to adults is important due to respect being something they value. Speaking to teenagers in a condescending manner will automatically turn them off ( LINK 6). Social acceptance is something that’s also held to high value so social influences on eating are powerful and persuasive (LINK 7) Benefits

Convenience: Healthy, Quick, Aesthetically pleasing Explanation/Description: Teenagers are a lot busier this generation so fast food restaurants are obviously required to be quick. Teenagers are seeking convenience but not compromising health. Behavioural Loyalty: Customers enjoy a range of food from different fast food chains Explanation/Description: With customers enjoying a range of different products from different fast food chains and with the fast food market being such a competitive market it results in the high price elasticity thus meaning a lack of loyalty within the customer base. Segment 2 (20-29/ Millennials): Geographic Segment: Australia Explanation/Description: Taco Bell is easier to access in demographics such as the USA due to the fast food chain being there for an extended amount of time in contrast to Australia. It’s more difficult accessing Taco Bell in Australia due to the limited amount of stores existent within Australia. Demographic Age: 20-29 Explanation/Description: Millennials seek convenience but don’t disregard health. It is said that millennials spend more on dining than they save up for retirement (LINK 8). Gender: Male/Female Explanation/Description: According to ( LINK 2 ) both genders consume a considerable amount of fast food, although males are more likely to eat fast food as meal and females are more likely to have it as a snack. Although according to (LINK 3) men consume 11.8% of their calories from fast food where as women consume 10.9% of their calorie intake through fast food meaning the caloric intake is close to the same. Income: Middle/Upper class Explanation/Description: Both middle and upper-class millennials spend a large proportion of their income on fast food in contrast to other generations. According to (LINK 12) middle to upper class millennials spend around 41% of there income dedicated to food on eating out. Psychographic

Self-concept: Family-Centric, Team-Orientated Explanation/Description: Most millennials participated in team sport and other grouporiented activities growing up. So, teamwork and affirmation from others is something they value. It’s also stated that millennials value a good work life balance ( LINK 9) Self-values: Buying experience, Health and Wellness Explanation/Description: Companies have begun to offer healthier solutions due to millennials wanting to know more about what’s going on with their food. ( LINK 10) According to (LINK 11) 78% of millennials have claimed to rather spend their money on an experience they have over an item they desire. Benefits Convenience: Healthy, Quick, aesthetically pleasing Explanation/Description: This Generation is obviously a lot busier than in contrast to other and millennials are the ones that are currently pioneering and pushing everything. With that being said fast food restaurants are required to be quick while also not compromising health when trying to appeal to millennials. How things are displayed to millennials is also important. Behavioural Loyalty: Customer enjoy a range of food from different fast food chains Explanation/Description: With customers enjoying a range of different products from different fast food chains and with the fast food market being such a competitive market it results in the high price elasticity thus meaning a lack of loyalty within the customer base. Perceptual Map

Proposition statement

Taco bell’s new sauce is the best sauce to add flavour to your favourite meals while also watching out for your calories. Taco Bell’s new tasty sauce for university student and workers on the go provides flavour to your favourite meal without compromising your health. This is because of trans-fat free formula that’s exclusive specially to taco bell. Above is a perceptual map outlining where taco bell sauce is aimed to be when introduced to the market and in that perceptual map it shows where it’s competitor currently stand. IV. MARKETING TACTICS PRODUCT

Taco bell currently sells product that are inspired by the Mexican culture, Taco Bells sells Nacho’s, Burritos, Sauces, Flat Bread etc. Taco Bells ingredients cater towards healthy eating. Utilizing the Ansoff matrix the target goal would be to create a new product that could be sold not only in the existing markets but through other retailers.

There’s Three different needs a customer requires of a product; these are the core benefit; the fundamental need accomplished when the product is purchased. The second being the physical product (the design, features etc.) and the final being the augmented product, the non-physical attributes such as warranty and delivery.

Benefits that would arise from this product: -

Staying healthy, while still enjoying meals

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Versatility with meal preparations

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The added value of feeding yourself

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Eating food

The Physical product would contain: -

Organic ingredients like fresh chilli, onion, tomatoes salt, water etc.

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Packaged in a container

Augmented product: -

Delivery

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In-store experience PRICE

The five C’s of market allow for adequate pricing policies for businesses to approach the market in the most suitable way. The 5 c’s stand for Company objectives, customers and channel members.

Each pricing model has its strengths and weaknesses. In this product “Taco Bell Sauce” it’s most suitable to use value-based pricing. Value based pricing gives a clear estimate of how willing customer are to pay for what’s being offered. Value based pricing can also give businesses a depiction of what customer want from a product. If a discount is applied on this product it’ll not only boosts sales amongst current consumer it’ll encourage new consumers to purchase the product. This will support the Taco-bell in reaching its goal.

PLACE (DISTRIBUTION) In Australia Taco Bell is still rather small, the current marketing channel is assumed to be indirect, utilizing Collin’s Food group distribution centres as the intermediary between the taco bell manufacturer. It would be recommended that Taco Bells keeps this business model while also entering talks with retailers like Woolworths, Coles and Aldi to distribute their sauce.

PROMOTION The AIDA model will be followed throughout the promotion of this product. There will be an advertising campaign launched and ran displaying Taco Bell’s new sauce. Challenges will be running free samples will be given out in store and this should boost the market share by 2-5%. Doing the campaign will spark interest for the not only the product but the brand in its entirety. This campaign will be ran annually to keep it exclusive and exciting for on looker and participants. It’s no secret that Facebook advertising is effective especially amongst millennials. It’s a form of advertising that is most often utilized by companies. Taco bell can direct towards university student, gym members and people that are located near a taco bell store. Sampling has proven to be to be helpful in achieving brand growth GYG has done this on multiple occasions and it’s helped customers understand the product that’s being sold to them. Companies can expect a spike in customer attendance when free sampling is existent. Table

Social Media advertising: Online Marketing ( Estimated daily reach (1,900-5,100) people Ads will be place on Facebook to increase awareness of the brand Price: $10,000 at $7.19 cost per thousand Impressions Sales Promotion: Offering free samples of sauce to potential customers Price: $35,000 Competition: Take a photo wearing a Mexican inspired outfit best outfit wins $5000 Price: $5000

V. REFERENCES April 2019, YUM Brands SWOT & PESTLE analysis Retrived from: https://www.swotandpestle.com/yum-brands/ Heather McNeill, March 22, 2017, Many Students enjoy fast food despite knowing it’s Unhealthy, Retrived from: https://kearsleyeclipse.com/32765/student-life/many-students-enjoy-fast-food-despite-knowing-itsunhealthy/ 2019, Men and Women don’t have the same fast food habits-see the key difference Retrived from: https://www.eatthis.com/men-women-fast-food-habits/ Cheryl D. Fryar, M.S.P.H, Bethene Ervin, Feburary 2013, Caloric Intake from Fast Food Among Adults Retrived from: https://www.cdc.gov/nchs/products/databriefs/db114.htm Hayley Peterson, October 8, 2014, Everything you need to know about how teen are spending money, what they like and where they shop Retrived from:

https://www.businessinsider.com.au/how-teens-are-spending-money-2014-2014-10 Amy Pearson, September 26, 2017, 10 typical characteristics of teenagers Retrived from: https://howtoadult.com/10-typical-characteristics-teenagers-12960.html Josh Seides, Feburary 20, 2015, Understanding the Teen Market and how to maximise your “ SWAG” Retrived from: https://www.business2community.com/marketing/understanding-teen-market-maximize-swag01163996 Suzzane Higgs, Jason Thomas, June 2016, Social Influences on eating Retrived from: https://www.sciencedirect.com/science/article/pii/S235215461500131X Heidi Orpilla, 2019, Feburary 2019, Millenials Eating Habits: How they’re changing the food industry Retrived from: https://www.starmicronics.com/blog/millennials-eating-habits/ Lindsay Hogan, August 2018, Food Demands In Australia: Trends and issues Retrived from: https://apo.org.au/sites/default/files/resource-files/2018/08/apo-nid188236-1196716.pdf...