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
1. Executive Summary
2. Introduction
3. The Given Environment
3.1. Our Target Market Hungary
3.1.1 History
3.1.2 Geography
3.1.3 Demography
3.1.4 Economy
3.1.5 Legal Regulations, Especially Franchising
3.2. YUM and Taco Bell
3.3. Market and Competitors
4. The Positioning
5. Taco Bells Marketing Mix in Hungary
5.1. Product Adjustments
5.2. Location
5.3. Promotional - Mix
5.4. Price
6. Distribution
7. Profitability
Objectives and Topics
The primary objective of this study is to evaluate the feasibility and strategic approach for introducing Taco Bell into the Hungarian fast-food market. The research explores the economic, cultural, and competitive landscape to determine how the brand can successfully adapt its global identity to meet local preferences while maintaining profitability.
- Market entry analysis within the context of the Hungarian fast-food industry.
- Evaluation of consumer behavior and the potential of the new Hungarian middle class.
- Strategic adaptation of the marketing mix (product, price, place, promotion) for the local market.
- Logistical and infrastructural assessment leveraging existing "YUM" brand networks.
- Financial forecasting and profitability modeling based on target market share.
Excerpt from the Book
3.3. Market and Competitors
Our family brand YUM! is already in Hungary, named by our “brothers” KFC and Pizza Hut. The company is called “Kentucky System Kft” with Managing Director Alex Hemingway (Fraser 2002). This is a tremendous advantage for us. Not only, that we can use their infrastructure like trucks, office buildings or computer labs. Furthermore, we can use their knowledge in the Hungarian fast-food-market, for example about special regulations and we can use their existing networks to suppliers, press people or politicians.
The Hungarian’s life style is good to the company’s objectives, because, in average, families eat out of their homes once a month (Budapest Sun 11.04.2002) and, as a result of that, there is a huge market to make an action. The market is estimated in 33.6 billion HUF/year or around €135 million/year (calculation out of Budapest Sun 11.04.2002: Mc Donald’s has net sales of Ft20.85 billion and 62% of the total fast food market).
Taco Bell will introduce in the market a new concept: Mexican-style fast food. We are in direct competition to the fast-food-chains like Burger King and Mc Donald’s and also Chinese and Gyros. An indirect competitor is the Iguana, a fancy, Mexican restaurant.
Summary of Chapters
1. Executive Summary: Provides an overview of the research findings, identifying strong market potential for Taco Bell in Hungary based on industry size and consumer preferences.
2. Introduction: Outlines the research intent to assess the "if" and "how" of a successful market entry by balancing global brand standards with local adaptations.
3. The Given Environment: Analyzes Hungary's history, geography, demographics, economy, and legal framework, while examining the existing YUM! infrastructure and current competitors.
4. The Positioning: Explains the strategy of targeting the emerging Hungarian middle class, focusing on their desire for new culinary experiences.
5. Taco Bells Marketing Mix in Hungary: Details specific adjustments for product, location, promotion, and pricing strategies to align with local consumer sensitivities.
6. Distribution: Discusses the logistical implementation, including the utilization of existing support centers and supply chain networks.
7. Profitability: Presents a financial assessment, calculating necessary daily customer volume to achieve target market share and profitability.
Keywords
Taco Bell, Hungary, International Marketing, Fast-food Industry, Market Entry Strategy, Marketing Mix, Consumer Behavior, Positioning, Pricing Strategy, Distribution Logistics, Profitability Analysis, Franchise Management.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the strategic requirements and feasibility of introducing the fast-food brand Taco Bell into the Hungarian market.
What are the central themes covered in the study?
Key themes include market environmental analysis, positioning strategies for the local middle class, marketing mix adjustments, and financial sustainability.
What is the primary goal of the authors?
The primary goal is to determine whether Taco Bell can be successful in Hungary and to provide a roadmap for an effective market entry.
Which scientific methods were applied during the research?
The authors utilized quantitative methods through consumer questionnaires, qualitative interviews with students, library research, and field observations of competitors.
What does the main body of the work address?
It addresses environmental factors, competitor benchmarking, the development of a unique value proposition, and the logistics of setting up distribution channels.
Which keywords characterize this work?
The work is characterized by terms such as market entry, international marketing, consumer behavior, and financial forecasting within the fast-food sector.
Why is the "YUM!" brand family mentioned so frequently?
The authors highlight that being part of the YUM! infrastructure in Hungary provides a significant competitive advantage in terms of logistics, regulatory knowledge, and supplier networks.
Why do the authors specifically avoid the tourist areas for store locations?
Based on their research, the authors concluded that targeting local residents near business centers and universities is more sustainable than relying on tourists, who are fewer in number and exhibit different spending patterns.
- Quote paper
- Daniel Hess (Author), Jenny Ochoa (Author), Adriana Ortegam (Author), Daniel Fisberg (Author), Eduardo Alvarado (Author), 2004, Introduction of Taco Bell to Hungary, Munich, GRIN Verlag, https://www.grin.com/document/27095
