Access and read the three articles linked below. file:///C:/Users/Owner/Download
ID: 459072 • Letter: A
Question
Access and read the three articles linked below.
file:///C:/Users/Owner/Downloads/TacoBellCEOTakingPeopleWithYou%20(3).pdf
file:///C:/Users/Owner/Downloads/TacoBellYumBrandsBrandLoyalty%20(2).pdf
file:///C:/Users/Owner/Downloads/TacoBellYumBrandsHardShell%20(2).pdf
Answer the THREE questions below.
1. According to the article which discusses brand loyalty rankings, Taco Bell is ranked seventh on the list for quick serve restaurants. How can Taco Bell improve its ranking through advertising. In other words, how can they increase sales volume, patronage, etc., using the wide array of advertising tools that are available.
2. Taco Bell recently introduced a breakfast menu. Do you think this was a good idea. Will the idea be profitable in the future? How can advertising help with the new menu's success?
3. Chipotle is a major competitor for Taco Bell. How can Taco Bell better compete with Chipotle? Offer specific suggestions for Taco Bell and specifically address how they can communicate these ideas to their target audience using the promotion mix (advertising, sales promotion, personal selling, public relations, and direct marketing).
Explanation / Answer
1. Advertising will have a direct as well as an indirect impact on Taco Bell's brand loyalty. Advertisements will increase and enhance the knowledge that a customer has regarding the Taco Bell brand. This will help in improving the perception that people have about Taco Bell. The eventual result is increase in brand loyalty. Thus the use of wide array of advertising tools will help Taco Bell to increase the commitment from a customer to re-visit the restaurant. This will increase the sales volume and will help Taco Bell sustain it in the future as well by undertaking continuous marketing and advertising efforts.
2. Yes, i think that introduction of breakfast menu by Taco Bell was a good idea. This is because it will be able to attract new customers to its brand through this offering. Many consumers during the breakfast hours were consuming offerings of the rivals of Taco Bell (say McDonalds for instance). With the introduction of the new breakfast menu, Taco Bell will be able to attract these consumers. This will increase traction and patronage and will translate into higher sales for the rest of the menu as well (i.e. the regular menu).
For the idea to be profitable, the volume generated through sales should be high. This is because Taco Bell is offering items for a low price point of $1 and large volume of sales will be required to offset the thin margins.
Again, advertising will help Taco Bell to create and then enhance a perception about its menu. Currently, Taco Bell is using an advertisement where real people named Ronald McDonald are featured. The advertisement shows several Ronald McDonalds trying and appreciating Taco Bell’s new breakfast menu. This has helped in enticing the customers.
3. In order to compete with Chipotle, Taco Bell will have to start offering better ingredients. Chipotle is famous for using organic food that has been sourced locally. The items are full of flavors. Taco Bell, on the other hand, imports food items, leading to a compromise in flavors. Now this change in Taco Bell (use of fresh ingredients) will have to be aggressively communicated to the consumers through an optimal promotion mix. Taco Bell should rely more on advertising to educate and inform the consumers about the changes. This will help Taco Bell create a connect with the customers by trying to meet their requirements.