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.

Extrait

Table of Content

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

Appendix 1: Questionnaire

Appendix 2: Results of the Questionnaire

Appendix 3: Qualitative Interviews

Bibliography

- Budapest Sun (2002): Burger chain gets bigger. 11.04.2002, p.7

- Ernst&Young (1993): Doing business in Hungary. Ernst&Young International, New York.

- Fraser, Allan (2002): fast food franchises jostle for slice of piece. In: Budapest sun 17-23 Jan 2002, p.3

- Gruber, Ruth Ellen (1998): BUDAPEST'S FIRST GOLDEN ARCHES. In: New Leader, 06/01/98, Vol. 81 Issue 7, p13, 2p.

- Központi Statisztikai Hivatal (2003):Statistical year book of Hungary.

- Oláh, Péter (2001): New restaurant boom targets locals, not tourists. In: Budapest Business Journal, Nov 5-11, 2001, p.6

- Reuvid, Jonathan (2003): doing business with Hungary. Kogan Page, London.

- www.cia.com

- www.yum.com

1. Executive Summary

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 world-open, 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.

2. Introduction

People like “Taco Bell” because of its spicy food in a Mexican style. Also the Hungarians are used to eat spicy food. However, they don’t have Taco Bell in Hungary – at least until now.

Our work is concerning with the introduction of Taco Bell into Hungary. Or more specific: We want to estimate, IF and HOW Taco Bell can be successful in Hungary. Our first impression was, that it can work, because Taco Bell delivers spicy food and Hungarians love spicy food. This was the first reason which comes in our minds and through the research we found more.

To achieve this destination, we will use the methods of a questionnaire, informing about the company taco bell through Internet, did a qualitative research of Hungarian students, library research and observation in the field of the existing competitors.

What we are doing is one of the typical challenges in International Marketing: We want to introduce a product, which is given in one country to another market. But we should avoid the fault that we manage the foreign customers in the same way as the domestic ones. We should avoid to simply copying the product Taco Bell from America. Its called ethnocentristic approach in opposite to an appropriate international marketing approach.

Rather we should adjust our product to the target market. That must not mean to develop a total different product, like the polycentric approach suggests. The right way will be in the middle. Therefore we will take basic elements as well as adjustments to the market.

To reach a successful launch, we have to consider foreign uncontrollable variables like geography and infrastructure, cultural-, political-, legal-, economic-, and competitive- forces as well as the structure of distribution. We can’t influence non of these variables, we can only adjust to them. The instruments to adjust are the four P’s, product, place, price, promotion. These are our controllable variables.

But not only the controllable variables have to fit to the uncontrollable variables, there is also an another task. The marketing-mix elements as well as their sub-elements have to fit to each other. In other words: They have to be centripetal.

To sum it up: To introduce Taco Bell to Hungary, we have to answer following three points: We will mention strengths and weaknesses to introduce Taco Bell in Hungary. Furthermore, we have find the right connection to the existing environment of Hungary. Finally we have to find the right connection between the Marketing mix elements of Taco Bell. So: Let’s start.