1. What factors contributed to Taco Bell’s early success?

2. Which of the promotional elements described in Figure 14-2 were used by Taco Bell in its Doritos Locos Tacos campaign?

3. How does Taco Bell ensure the continued success of the food chain?

The founder of Taco Bell, Glen Bell, started his career as a pioneer of the fast-food industry by opening a restaurant called Bell’s Burgers. One of his nearby competitors was a similar fast-food restaurant run by two brothers named McDonald, and eventually the competition between them convinced Bell to switch from hamburgers to tacos. Tacos and taco restaurants were new to American consumers, so Bell used his entrepreneurial spirit to develop the entire Taco Bell restaurant concept, including the crunchy taco shells, the mission-style buildings, and the unique logo (with the bell). Today Taco Bell is a subsidiary of Yum! Brands, and has more than 6500 locations and $7 billion in annual sales.

Taco Bell has a long history of creative promotional activities, including an offer of free tacos for everyone in the United States if a piece of the falling Mir space station hit a target Taco Bell placed in the Pacific Ocean. In addition, Taco Bell has developed many memorable advertising campaigns such as “Yo quiero Taco Bell,” “Get it at The Bell,” and “Think Outside the Bun.” As Taco Bell’s primary target customers (millennials) changed their perspective from “food as fuel” to “food as experience” Taco Bell managers recognized an opportunity to reposition the restaurant chain. The result was the “Live Mas” campaign which suggested a new mindset and not necessarily an age range or demographic.

Taco Bell also went through three years of development, and 45 prototypes, before launching its Doritos Locos Tacos. The product launch led to sales of 100 million tacos in its first 10 weeks.