Monday, November 11, 2019
Taco Bell Marketing
08 Fall Introduction Hong Kong is known as being a very multinational and diversified city not only in Asia but also in the world. Not only is Hong Kong a paradise from a financial perspective, but it is also a great country in terms of the standard of living. As Hong Kong has a very diversified culture and a mix of various ethnicities, there isnÃ¢â¬â¢t a lack of food options and results suggest that 1 to 4 Hong Kong respondents prefer to dine out and prefer to spend up to HKD$1500 a month.Which looking at the results creates the ideal opportunity in opening a relatively new fast food concept, which provides a different cuisine from the current trends in a fast food format into the Hong Kong market. Environmental Analysis SWOT Analysis Strengths| Weaknesses| 1. Established a huge brand awareness and loyalty. Tremendous amounts of consumer satisfaction. | 1. Local consumer tastes need to be adapted towards Mexican cuisine. | 2. High Quality products, at relatively reasonable prices. | 2. Property prices are relatively expensive, high operating costs. | 3.Quite new concept could create attention and buzz. | 3. Not a very health conscious menu could be unappealing to target users. | 4. Sole Mexican cuisine fast food concept chain. | | Opportunities | Threats| 1. Introduce Home/Office delivery services. | 1. Existing well established fast food chains, e. g. McDonalds, KFC, Subway, Cafe de Coral etc. | 2. Experiment with local needs/taste, incorporate local flavors and delicacies. | 2. May not be appreciated by the Hong Kong public. | 3. Possibility to develop drive through, to create ease of accessibility for consumers. 3. Existing Mexican restaurants that have established brand loyalty amongst Hong Kong customers. | 4. Establish chains where students and working people can easily access. E. g. office buildings, university campuses, shopping malls etc. | | PEST Analysis Political: The political condition in Hong Kong is relatively stable, hence introducing an Ame rican based fast food chain, wont have any impacts or create any problems from a political aspect. As Hong Kong isnÃ¢â¬â¢t facing any political distress or disturbances domestically or internationally. Economical:There are several economical impacts that will incur as Taco Bell starts its operations in Hong Kong. First of all, starting a new fast food chain would create domestic employment, as jobs will be opened up towards the local citizens. Furthermore everyone earning will then pay taxes that will result in an increase in government revenue as the company gradually starts to increase its operations within Hong Kong premises. Social: The social factor also goes on to play a huge role when establishing a new fast food chain, as this acts upon the consumersÃ¢â¬â¢ values and beliefs.Many people are known to be relatively health conscious, hence therefore an aspect that Taco Bell will have to consider is the quality and the healthiness of the food that will be served to the local consumers. If the quality of food is compromised it could then impact the demand for the food and could hinder the company growth. Furthermore besides the food element, Taco Bell will also have to consider its Corporate Social Responsibility factors of treating their employees in an adequate manner and rewarding them with what they deserve, and also the environment factor and to maintain the clean environment Hong Kong stresses, nd to reduce waste and place heavy emphasis on packaging their food with recyclable and biodegradable materials. Technological: Technology is shown to be developing and rapidly changing all around the world. Hong Kong is known to be a very technology based country, where majority of the business is done all over technology, hence therefore there are some technological factors to which Taco Bell could adapt to in order to bring positive impacts to the chain. One method would be to adapt company websites on which the menu and other promotional services can be placed, in order to increase convenience for users.Besides websites we are currently living in the Smartphone eras, hence developing apps based on the website and possibly exploiting the opportunities of providing services on-the-go and the ability to deliver from the apps can definitely produce positive growth to the firm. Therefore seeking these technological methods can definitely increase the company value. Hong Kong Fast Food Industry Trends Marketing Analysis As Taco Bell enters the Hong Kong fast food industry, it will have to create immediate effects, due to the existing competitors that have already established themselves within the market.Franchises such as McDonalds and KFC, have established themselves as the pioneers of bring western food to Hong Kong in the late 70s and 80s. Which has triggered further foreign investors such as Ã¢â¬ËPizza HutÃ¢â¬â¢ Ã¢â¬ËBurger KingÃ¢â¬â¢ to name a few. Alongside local entrepreneurs who have obtained a significant market share w ith Ã¢â¬ËCafe de CoralÃ¢â¬â¢, Ã¢â¬ËMaximsÃ¢â¬â¢ and Ã¢â¬ËFairwood. Ã¢â¬â¢ McDonalds and KFC are shown to have the top shares in the HK fast food industry at 22% and 14% respectively. Whereas the local franchises combined have only managed 10%.The rest is accumulated with the other foreign franchise chains, which each have market shares below the 10% mark. Which will not significantly impact Taco Bell. Besides fast food, bringing in a Tex-Mex cuisine wonÃ¢â¬â¢t be something new to the Hong Kong public, as there are a few Mexican restaurants that provide similar products and caters to the public needs. However Taco Bell tends to hold competitive advantage with the fact that it has an established brand name and the ability to serve quick, good quality and reasonable food items which correlates with what the restaurants serve. Target MarketThe main target market of this fast food chain is mainly aimed at the working population, students and teenagers of Hong Kong. As the f act that it is a fast food chain, its main objective is to provide quick serviced food at reasonable prices, hence incorporating working and student budget people, rather then the high-end consumers of Hong Kong. Besides the financial element, the population who are keen on a different cuisine of food, targeting the diversified population of Hong Kong, and not only to one specific ethnicity but the citizens who are on a certain budget is the main target market.Marketing Mix Variables Price: It will also have to consider the budget levels of the chosen target market. As setting an optimal level would then result in a demand, whereas if the price is placed too high, it could hinder demand and if price the price is placed too low, although it may create a large demand, however operating costs might not be covered and could result in financial losses. Product: The product will be the standardized menu that has been set all around the world. This will include the food items which taco be ll is known to be most famous for.Although it will serve the standard types of food items, in order to suit the Hong Kong market it could also then explore the tastes and trends of the local population and their eating habits, which could be incorporated within the restaurant menu. Place: The perfect locations to reach out to their consumers, would be to open their branches within our minutes away from local university campuses, this would result in easy accessibility for the students who would be able to pick up and go, or have the option to eat within the restaurant premises.Besides catering to the students, to make it convenient for the working population of Hong Kong, the best locations would be opening stalls and restaurants within an office building premise or shopping malls which are placed around the commercial areas of Hong Kong, in order to create ease of accessibility to the working population of Hong Kong. Promotion:Methods such as advertising is a great opportunity, as Taco Bell is already a well established fast food chain, hence posting advertisements on local newspapers and magazines can immediately create effects as the reports show that 1 in 7 people in Hong Kong read some sort of newspaper or magazines on a daily basis. This method is the most appropriate in terms of creating brand awareness within Hong Kong. Furthermore, through the aid of promotional websites such as www. groupon. com. hk and www. beecrazy. com. hk that promote upcoming products, services and offers can definitely help reach out to their potential consumers and create demand.These methods can definitely bring positive results, once the promotion period starts. Conclusion To conclude by implementing the correct marketing mix methods and taking account of the various factors which was looked through in the PEST analysis, it can be drawn to conclusion that although Taco Bell will enter the market with relatively high competition, however due to the already well established br and name and the fact that its products tend to differ quite significantly in comparison to the leading competitors, it can gain from being diverse.