Recent Developments Competitive Moves – for first time breakfast menu; Strategic Alliances – NBA and Taco Bell; Challenges for the future – To double Taco Bell’s sales;
Geographical Expansion Yum! Brands goals: - hit the 8,000 restaurant mark in the U.S; - To double Taco Bell’s sales by 2022; Taco Bell struggled to maintain the China restaurants; The lack of competition shows that Taco Bell has global potential;
Total expenditure of households by expenditures groups Bulgarians spent about half a billion levs on fast food; The fast-paced lifestyle of the Bulgarians, helped raise the total spendings on fast food despite the economic/ financial crisis;
The customer’s preferences of Fast food restaurants
Customer’s needs How we answered those questions? Reasons the new customer will buy your products/services: How your products/services differs from your competitor’s? Do customers currently use your products/services? Do customers have a need for your products/services? What would customers be willing to pay? What other products/services would they be interested in?
Survey Monkey 100 surveyed people Not enough representative, but still objective sample!!! The only fast food chain offering Mexican food! Current Use of your products/services? -(58.89%) never tried Taco Bell Why would you choose Taco Bell before other fast food chains if you decide to do so? -(68.67%) stated that they would choose it, because it is different!!!
Current population trends of your targeted customers The population is shrinking Bulgaria's birth rate has decreased significantly over the past few years Migration processes have also contributed to the country's decreasing population very low fertility and substantial emigration the UN projected a Bulgarian population of a mere 5.4 million in 2050 Bulgaria has the most negative natural growth rate of all countries in the world
What do your customers prefer? Low prices Fresh and home cooked products Healthy Products Most people prefer to cook for themselves or if the family decides to go out for a dinner it rarely will be a place like MacDonald’s or KFC.
Suppliers’ assessment What kind of suppliers would you need? What is the suppliers’ concentration? Is there differentiation of supplier inputs? What are the switching costs of firms in the industry? Is there an existing practice for forward integration? Overall, what does the bargaining power of suppliers in the industry look like?
Market entry assessment Barriers to entry Do you want to consider an alliance partnership, engage a third-party distributor/franchising, or sell your products/services directly? Do you plan to hire new management for the country you enter or will you rely on your home country management or another country management?
Results assessment Can you make a decent profit? Can you sell your products/services at a competitive price and still make a profit in this new market? What do you expect to be your sales and associated costs? How will you determine success?