Taco Bell and Chipotle Food Company - Essay Example

Taco Bell and Chipotle Food Company Taco Bell is a firm that has several fast food restaurants in Mexico and the U.S. The company serves a diversity of tex-mex foods such as burritos, nachos, and quesadillas. In addition, the company serves more than two billion consumers annually in its 6500 restaurants. Most of the restaurants are operated and managed by autonomous franchisers. Taco Bell Inc was established in 1950 (Moskin n.p). The founder Glen Bell first opened Bell’s Hot Dog and Hamburgers, which specialized in selling Mexican food. . In 2001, the company received a blow when its foods were recalled from supermarket shelves because it was believed as unsuitable for human consumption due to high synthetic hormones. The company’s net sales for the third quarter of 2014 increased by 15 percent. The net income for the company for the third quarter 2014 was 404 million dollars. Chipotle Company is a fast food firm that specializes in tacos and burritos. The chipotle is a Mexican Spanish name, which implies dried and smoked fast food. The company mission statement and marketing strategy is based on philosophy of food with integrity, which depicts its efforts in utilizing organic ingredients and serves natural food than other established companies such as Taco Bell. Chipotle Company was established in 199 with the intention to serve quality and good food with an experienced that redefined and exceeded fast food experience (Shambora n.p). It is significant to note that the company source locally produced organic food. They utilize dairy ingredients raised in absence of synthetic hormones. In order to show its growth and success, the company ended its third quarter in the year 2014 with a whooping net income of more than 57 percent. The net sales of the company increased to nineteen percent during the third quarter, which the company said it was because of system wide menu price hike. Compared to the Chipotle’ strategy, the Taco Bell strategy revolved on maintaining the current customers and ensuring that they are able to obtain the preferred flavors and taste. The strategy did not consider the impact of the dynamic change in customer preference. The change in the taste and preference of the consumer market affected Burger King Profits and sales, which is an indication of the failure of the strategy (Moskin n.p). In fact, the strategy by Chipotle was different and involved the development of products focusing on the entire market, while Taco Bell focused on super fans for long leading to serious challenge and reduction in the market share. In addition, Taco Bell focused on short-term strategy rather than long-term strategy, which led to failure in the long-term. The target market of Taco Bell was the children because of the toys given to them during their visits. The strategy did not capture the issues associated with the products and service globally. Chipotle on the other hand focused on product consistency through developing of a sophisticated supplier network operation and intensive distribution system (Shambora n.p). Coupled with the reluctance to change with the changing market, Taco Bell marketing strategy failed to address consumer preference, which in turn led to a gap between customer expectation and organizations’ products. The change in consumer preference was not identified by management, which in turn led to serious challenge in the marketing process. Chipotle franchising model ensured faster collection of feedback and strategy change, which encouraged success and diversity (Moskin n.p). The inclusion of Cadbury in the products ensured the attraction of Cadbury consumers. Therefore, the company was able to increase its market share and encouraged profitability. The success of Chipotle can be pegged to the operation model, marketing strategy, and the quality of products and services. Product consistency helped in the maintenance of customers, which encouraged the development of brand loyalty. In conclusion, the strategy employed by the two organizations was different in terms of focus and duration. However, the focus of the two organizations was different leading to different approach in product and service delivery. Chipotle approach is better than the strategy employed by Taco Bell Inc. Competitive advantage Chipotle Company has established a signature brand and made a name for itself among stakeholders in the fast food industry around the world. The company needs to utilize its branding advantage to enter into new markets while at the same time maintain and improve its accessibility and operations in existing markets. Chipotle has strength in its service delivery as a beacon for people who love dried and smoked food. Most natural meat lovers insist on Chipotle food because it is a guarantee they will get genuine, quality service, and an inviting atmosphere while having an excellent cup of skillfully smoked and dried. In addition, the company endeavors to offer more than just fast food but also seeks to provide a rewarding, exciting, and unique experience to its consumers that come with a coffeehouse experience. Unlike Taco Bell, the artistic and appealing choice of music played in Chipotle stores attracts many natural food lovers, both young and old. In order to maintain customer preference and ensure continued growth within the corporation in various restaurants, Taco Bell’s leadership introduced a business strategy based on maintaining the current customer and ensuring that these customers are able to get the preferred flavors and taste in all Taco Bell restaurants. This strategy saw the increase in the Company’s profits and sales (Shambora n.p). The company also introduced a new strategy that involved product development focusing on the entire market, which in turn increased the company’s market share, as many people preferred Taco Bell products. This strategy focused on consistency of the company’s products via development of sophisticated supplier network operation and intensive distribution channel. By establishing a sophisticated supplier system and distribution channel, the firm has been in a position to attain product consistency and quality across the countries globally. Recommendation Taco Bell should look forward to maximize on the potential of the customers will to buy my products. To some extent, these paths will rely on how my market mix will be. This is because customers are influenced by the quality and the price of the product when purchasing products in a competitive market. The cost leverage concept is used though caution is taken to ensure that the volumes of the do not increase to the extent of affecting the profits. The modernization segment is the effective in such a scenario. Chipotle Inc should focus on branding its products, as this will help in making quick sales, as it will win the trust of my customers. Branding is a powerful way of making sales out of the products in a competitive market. Works Cited Moskin, Julia (2012). "How the Taco Gained in Translation". New York Times, 2012. Shambora, Jessica. "Chipotle: Rise of a fast-food empire". CNN Money, 2010. Read More