Concerning the task to launch Taco Bell in Hungary, we found good reasons
to introduce it in Hungary. The research showed, that the Hungarian fast-food
market is with a market size of 33.6 billion HUF big enough; for example,
Hungarian families go out once a month in average. Furthermore, Hungarians
have already an image in their minds of Mexico and Mexican food, like spicy food
in general and Mexican food particularly. Additionally, we have the infrastructure
of our brand -family “YUM” already in Hungary. This is a tremendous advantage,
because we can use the experience and the network in the Hungarian market.
On the one hand, we want to maintain the global character of the brand. But
on the other hand we want to emphasize, that we recommend some changes to
adapt Taco Bell to the Hungarian conditions and the market.
We will position Taco Bell in the Hungarian fast-food segment, but we do
know that eating out of home is something really special for them; they are not
only concerned with time and money saving, but also they are looking for a good
sensation and experience. This is interesting, because in many Western
European countries it is exactly the opposite.
Our target group consists of students, business people and families, who
take part in the new middle class. Their income is increasing and they are worldopen,
so they want to try out new things, for examples from Latin America.
We try to fulfill this Mexican image. But to adjust on the conditions, we want
to offer beer and paprika-based sauce as an additional option, design the store
like the Hungarian image of Mexico and use home-delivery-service and one
24h-restaurant.
The promotional-mix emphasis sales promotions in dating -partys, because
we can catch trails and try to find channels like the “Pestiest” to reach our target
group. Furthermore, we want to stress the image of being new, world-open and
Mexican.
Concerning the price we want to orientate on the competitor-conditions and
undercut it, because the Hungarians are very price-sensitive.
Finally, the product will be profitable, because with eight stores and 5%
market share we can reach the average sales for a Taco-Bell-store. Furthermore,
the about necessary 500 customers per day are reachable.
Table of Contents
- Executive Summary
- Introduction
- The Given Environment
- Our Target Market Hungary
- History
- Geography
- Demography
- Economy
- Legal Regulations, Especially Franchising
- YUM and Taco Bell
- Market and Competitors
- The Positioning
- Taco Bell's Marketing Mix in Hungary
- Product Adjustments
- Location
- Promotional Mix
- Price
- Distribution
- Profitability
Objectives and Key Themes
The main objective of this work is to assess the feasibility and potential success of introducing Taco Bell into the Hungarian market. This involves analyzing the Hungarian market environment, identifying the target market, and developing a suitable marketing mix to adapt Taco Bell to the local conditions while maintaining its global brand identity.
- Market Analysis of the Hungarian Fast-Food Industry
- Adaptation of Taco Bell's Product and Marketing Strategy to the Hungarian Market
- Assessment of the Competitive Landscape in Hungary
- Development of a Suitable Marketing Mix for Taco Bell in Hungary
- Profitability Analysis of Taco Bell in the Hungarian Market
Chapter Summaries
Executive Summary: This chapter provides a concise overview of the findings and recommendations regarding the introduction of Taco Bell in Hungary. It highlights the significant size of the Hungarian fast-food market, the existing positive perception of Mexican food among Hungarians, and the advantage of leveraging the existing infrastructure of the Yum! Brands family. The summary emphasizes the need to balance maintaining the global brand identity with adapting Taco Bell to the specific characteristics of the Hungarian market, including potential product adjustments, promotional strategies, and pricing considerations. The chapter concludes by stating that profitability is achievable with a strategic approach.
Introduction: This chapter introduces the central challenge of introducing Taco Bell into Hungary, emphasizing the need to avoid an ethnocentric approach and instead adopt a market-oriented strategy. It highlights the importance of adapting the product and marketing mix to the Hungarian context, considering both controllable (the four Ps: product, price, place, promotion) and uncontrollable variables (geographic, cultural, political, legal, economic, and competitive factors). The chapter emphasizes the need for a centripetal marketing mix, where all elements are harmoniously integrated, to ensure a successful launch.
The Given Environment: This chapter delves into a comprehensive analysis of the Hungarian market context. It examines various aspects of Hungary's environment including its history, geography, demographics, economy, and legal regulations—specifically focusing on franchising. It further analyzes Yum! Brands and Taco Bell's position globally and in relation to existing competitors in the Hungarian fast-food market, laying the groundwork for strategic decision-making.
The Positioning: This chapter details the strategic positioning of Taco Bell within the Hungarian fast-food market, defining the target group (students, business people, and families from the new middle class) and highlighting their characteristics and preferences. It elaborates on how Taco Bell will differentiate itself by acknowledging the specific preferences of Hungarians and adapting its approach to emphasize Mexican flavors while also catering to local tastes.
Taco Bell's Marketing Mix in Hungary: This chapter details the marketing mix strategy devised for Taco Bell's Hungarian launch. It outlines proposed adjustments to the product (including potentially adding beer and paprika-based sauces), identifies strategic locations for restaurants, describes the promotional mix (emphasizing sales promotions and reaching target audiences through relevant channels), and sets pricing strategies based on competitor analysis and Hungarian price sensitivity.
Distribution: This chapter focuses on the distribution strategy employed to bring Taco Bell to the Hungarian consumers. It discusses the establishment of multiple locations, including a 24-hour restaurant, and explores the implementation of home delivery service to reach the target customers effectively.
Keywords
Taco Bell, Hungary, fast food, market entry, international marketing, marketing mix, product adaptation, cultural adaptation, market analysis, competitive analysis, pricing strategy, promotional strategy, Yum! Brands, franchising, profitability.
Taco Bell Market Entry Strategy in Hungary: Frequently Asked Questions
What is the main objective of this document?
This document assesses the feasibility and potential success of introducing Taco Bell into the Hungarian market. It analyzes the Hungarian market environment, identifies the target market, and develops a suitable marketing mix to adapt Taco Bell to local conditions while maintaining its global brand identity.
What are the key themes explored in this document?
Key themes include market analysis of the Hungarian fast-food industry, adaptation of Taco Bell's product and marketing strategy to the Hungarian market, assessment of the competitive landscape, development of a suitable marketing mix, and profitability analysis.
What is the target market for Taco Bell in Hungary?
The target market includes students, business people, and families from the new middle class. The strategy acknowledges their preferences and adapts to emphasize Mexican flavors while catering to local tastes.
How will Taco Bell adapt its product to the Hungarian market?
Potential product adjustments include adding beer and paprika-based sauces to the menu to appeal to local preferences.
What is the proposed marketing mix for Taco Bell in Hungary?
The marketing mix includes strategic location selection for restaurants, a promotional mix emphasizing sales promotions and reaching target audiences through relevant channels, and pricing strategies based on competitor analysis and Hungarian price sensitivity. Distribution will leverage multiple locations, including a 24-hour restaurant, and home delivery service.
What is the competitive landscape in the Hungarian fast-food market?
The document analyzes existing competitors in the Hungarian fast-food market to inform strategic decision-making regarding Taco Bell's positioning and marketing mix.
How does the document address the cultural aspects of market entry?
The document stresses the importance of avoiding an ethnocentric approach and adopting a market-oriented strategy. It emphasizes adapting the product and marketing mix to the Hungarian context, considering cultural factors alongside economic, political, and legal aspects.
What is the profitability analysis of Taco Bell in the Hungarian market?
The document concludes that profitability is achievable with a strategic approach, considering factors like product adaptation, marketing strategies, and pricing.
What is the role of Yum! Brands and franchising in this strategy?
The document highlights the advantage of leveraging the existing infrastructure of the Yum! Brands family and examines Hungary's legal regulations regarding franchising as they relate to Taco Bell's market entry.
What is the overall conclusion regarding the feasibility of introducing Taco Bell to Hungary?
The executive summary suggests that introducing Taco Bell into Hungary is feasible and potentially profitable with a strategic approach that balances maintaining the global brand identity with adapting to the specific characteristics of the Hungarian market.
- Citar trabajo
- Daniel Hess (Autor), Jenny Ochoa (Autor), Adriana Ortegam (Autor), Daniel Fisberg (Autor), Eduardo Alvarado (Autor), 2004, Introduction of Taco Bell to Hungary, Múnich, GRIN Verlag, https://www.grin.com/document/27095
