Taco Times Marketing Case Study

This document is a marketing case study on Taco Times, a fast-casual restaurant offering authentic Mexican food. It includes a situation analysis, marketing concept, strengths, weaknesses, opportunities, threats, research analysis, competitive assessment, the four P's, product life cycle, and recommendations.

Running Head: TACO TIMES 1
Taco Times Marketing Case Study
By
University Affiliation
Date

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Table of Contents
Part 1..........................................................................................................................................................3
Question 1: Situation Analysis..............................................................................................................3
Question 2: Marketing Concept...........................................................................................................3
Question 3: Strengths, Weaknesses, Opportunities, and Threats......................................................3
Question 4: Research Analysis..............................................................................................................4
Question 5: Competitive Assessment....................................................................................................4
Question 6: The Four P’s......................................................................................................................5
Question 7: Product Life Cycle.............................................................................................................6
Question 8: Comments and Recommendation....................................................................................7
Part 2..........................................................................................................................................................8
Question 1: Sales Promotion.................................................................................................................8
Question 2: Advertising.........................................................................................................................8
Question 3: Social Responsible Marketing..........................................................................................8
Question 4: Social Media.......................................................................................................................9
Question 5: Personal Selling.................................................................................................................9
References................................................................................................................................................10

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Part 1.
Question 1: Situation Analysis
Taco Time’s present situation is characterized by a sudden need for growth and market
penetration. Currently, it is operating as a Quick service restaurant (QSR) and it needs to
transform to a fast-casual restaurant offering authentic Mexican food. Fast-casual restaurants are
growing rapidly with some of the major fast-food franchises opening up fast casual outlets.
However, the presence of these competitors is a major challenge to the organization’s market
growth strategy (Hofer, Cantor, & Dai, 2012). Taco Time’s management believes that Cantinas
will be a major key in penetrating the urban market.
Question 2: Marketing Concept
The marketing concept is the philosophy that firms should analyze the customer’s needs and then
satisfy them better than the competitors (Gamble, Gilmore, McCartan-Quinn, & Durkan, 2011).
Taco Time has used the product concept by offering its casita platter when customers claimed
that foods served on a plate are better. Secondly, it has utilized the selling concept by highly
promoting its products through radio advertisement. For example the “Girl at the party” 30
seconds spot. Thirdly, it has utilized the marketing concept by focusing on offering Mexican
foods which are highly demanded by customers.
Question 3: Strengths, Weaknesses, Opportunities, and Threats
The major strengths of Taco Time are; competent management team which is able to make good
decisions. Secondly, a strong product promotion campaign through the use of radio spots.
Thirdly, market research capabilities which enable it to identify customers’ needs (Helms &

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Nixon, 2010). Fourth, limited competition in offering Mexican food since only Taco Bell
restaurant offers Mexican food. The major weaknesses include; low market penetration rate
which makes it be less popular than its competitor Taco Bell. Secondly, limited brand awareness
as a Mexican food restaurant, this makes it not be distinguished among other quick service
restaurants.
The major opportunities include; transformation from a quick-service restaurant to a fast-casual
restaurant. This will make it to easily meet the needs of the customers. Secondly, the use of
cantinas to increase market penetration. Third, product diversification which will enable it to
offer a wide range of Mexican foods. The major threats include; the threat of new entrants who
will bring new competition. Secondly, the bargaining power of customers which will limit its
ability to maximize returns (Helms & Nixon, 2010).
Question 4: Research Analysis
The company used a consumer focus group technique in its market research. This technique is
suitable since it provides direct customers’ view (Rollins, Bellenger, & Johnston, 2012). The
results obtained from the research include; Mexican food, sunshine, and tequila were among the
most desired things whenever customers thought of Mexico. Secondly, it was discovered that
food served on a plate rather than wrapped wax paper was more authentic and desirable. The
management used the research result to promote the company’s casita platter and also rebranded
and repositioned Taco Time as a Mexican restaurant serving authentic food.
Question 5: Competitive Assessment
The three major competitors are Taco Bell, McDonald, and Wendy. Taco Bell is the greatest
competitor since it offers Mexican foods just like Taco Time does. Taco Bell is also more

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popular than Taco Time. However, Taco Time stands a chance to overcome Taco Bell due to its
strong research and management capabilities.
McDonalds and Wendy surpass Taco Times in terms of brand strength, market penetration and
capital base. This makes them be more appealing to customers since many customers prefer to
buy from well reputable companies. From the case study, McDonalds and Wendy have also
joined the fast-casual business. This increases their competitiveness. However, according to the
case study, both McDonalds and Wendy are not currently offering Mexican food. This gives
Taco Time a competitive advantage since it opted to focus on Mexican foods. If Taco Times
focuses on offering Mexican foods it can highly leverage on its good management and market
awareness to become more competitive (Czepiel & Kerin, 2012).
Question 6: The Four P’s
i) Product:
According to Londhe (2014) a product refers to an item or a service that is offered to satisfy the
needs of a particular group of people. Taco Time’s products include authentic Mexican foods in
its restaurants and drinks in its Cantinas. Previously Taco Time used to offer fast foods as a
Quick service restaurant but now it has shifted to a fast-casual restaurant. After conducting the
market research Taco Time started focusing more on offering Mexican foods especially the
casita platter. This was as per the customers’ demands.
ii) Price
This refers to the amount a customer is willing to pay to get a particular product (Londhe, 2014).
According to the case study, Taco Time has maintained an inexpensive prices which makes their
products to be affordable. Price highly determines the profitability and survival of a firm. Taco

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Time’s current prices of products is attractive to customers and will highly promote its growth
objective. For example, the case study records that it is selling its Mexican Fiesta Platter at about
$6 which is very attractive to customers.
iii) Place
This refers to the location where the products are being offered for sale. The products must be
availed to locations which are convenient to potential buyers (Londhe, 2014). From the case
study, Taco Times has 112 outlets which stretch from Victoria to Thunder Bay. The company
has also ensured that the majority of its outlets are located in urban areas which are likely to
fetch a lot of people. Currently, as per the case study, the management is planning on how to
open about 50 to 75 outlets in Toronto.
iv) Promotion
Promotion refers to the concept of boosting brand recognition and sales. It involves concepts
such as public relations, sales organization, advertising, and sales promotion (Londhe, 2014).
Previously Taco Time was using billboards to advertise its brand. This later proofed to be
ineffective. Currently, Taco Time is using radio advertisements. The campaign is running for 48
weeks, with 30 seconds spots. The company is using different radio stations to reach out to the
target market. This promotion is more effective since it has wide coverage.
Question 7: Product Life Cycle
According to Stark (2015), the product lifecycle is a series of stages that a product goes through
in the market. It consists of 4 stages which are; introduction, growth, maturity, and decline. From
the case study, Taco Time can be classified in the decline stage. This can be justified by the fact
that Taco Time was previously operating as a quick service restaurant but now it is considering

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rebranding. It wants to change its business model to a fast-casual restaurant that offers Mexican
food. Rebranding and re-engineering are features of the decline stage.
Question 8: Comments and Recommendation
From the analysis of the case study, it is clear that the quick fast restaurants business line is
already saturated. Taco Time should continue with rebranding its self to a fast-casual Mexican
food company. This is justified by the fact that during the research as recorded in the case study
Taco Time’s management discovered two important things which are; quick-service restaurants
are losing preference among customers. Secondly, many customers desire to take Mexican food.
Armstrong, Adam, Denize, & Kotler (2014) records that satisfying customers’ needs should be
the primary objective of any business that desires success.
Taco Time’s promotion campaign which airs on the radio is good. However, it should also
consider taking its promotion campaign to a higher level. This can be achieved by using a
multimedia campaign such as a combination of television adverts, radio adverts, and print
adverts (Danaher & Dagger, 2013). The multimedia campaign has a wider outreach. This will
highly promote their products and brand awareness. Brand awareness highly leads to purchase.
Taco Times should also consider differentiating its products from those offered by Taco Bell the
largest competitor. This can be done in a variety of ways such as; changing product supplements,
customizing their products according to customer needs, among others (Evanschitzky, Eisend,
Calantone, & Jiang, 2012). This will make Taco Times’ products to gain preference over those of
the competitors. Taco Time can also improve service delivery to customers as a way of
enhancing customer satisfaction. This will attract customer loyalty and referrals which will, in
turn, give Taco Time a competitive edge.

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Part 2
Question 1: Sales Promotion
According to Allender & Richards (2012), sales promotion is the process of persuading a
potential customer to buy the product. The two elements of sales promotion that Taco Time can
use include; fair pricing of products, this involves charging affordable prices for various
products. This will attract more customers and build a wider customer base. The second
promotion element is customer loyalty schemes. These may take the forms of customer loyalty
cards, discounts, office delivery, among others. This will lead to increased customer loyalty.
Question 2: Advertising
Advertising can be defined as a means of communication with the users of a product or service
(Danaher & Dagger, 2013). The two elements of advertising that can be used include;
multimedia advertising which comprises of examples such as television, radio, and print adverts.
The expected result is that it will have wide coverage (Danaher & Dagger, 2013). The second
element is roadshow advertising which involves Taco Time offering its products outside its
premises to may set a temporally selling point in a park or a busy street. This will introduce new
consumers to the products being offered by Taco Time.
Question 3: Social Responsible Marketing.
Taco Time can use the following elements of socially responsible marketing as proposed by
Maignan, Gonzalez-Padron, Hult, & Ferrell (2011). First, disclosing crucial information about
their products. For example, informing potential customers about the health effects of their
products. This will make attract customers since they feel that the company is considering their

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health. Secondly, offering truthful marketing messages. For example, stating the right prices and
refraining from tarnishing the reputation of other competitors. This will make Taco Time to be
socially acceptable thus improving its competitiveness.
Question 4: Social Media
According to Ashley & Tuten (2015), branded social media plays a major role in marketing since
it reaches the target audience in a more convenient way. Taco Time can use social media
elements such as; Facebook to communicate about their products. This can be achieved by
creating a Facebook page account and inviting as many people as possible to like and follow the
page. The results of this are that the company will be known even outside Canada. The second
one is YouTube. The company can utilize it by posting videos about various products. This will
highly attract new customers.
Question 5: Personal Selling
According to Erevelles & Fukawa (2013), personal selling involves a direct conversation
between the prospective customer and the seller. The major personal selling element that the
organization can use is face-to-face selling. For example, an agent of Taco Time can approach
various potential customers in their offices or businesses and invite them to Taco Time
restaurants. Personal selling is good in the sense that it enables the sales personnel to evaluate
whether the potential customer likes the products or not (Erevelles & Fukawa, 2013). It also
creates a good room for persuading the potential buyer to buy the product.

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References
Allender, W. J., & Richards, T. J. (2012). Brand loyalty and price promotion strategies: an
empirical analysis. Journal of Retailing, 88(3), 323-342.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
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Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory
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Czepiel, J. A., & Kerin, R. A. (2012). Competitor analysis. Handbook of marketing strategy, 41-
57.
Danaher, P. J., & Dagger, T. S. (2013). Comparing the relative effectiveness of advertising
channels: A case study of a multimedia blitz campaign. Journal of Marketing
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Erevelles, S., & Fukawa, N. (2013). The role of affect in personal selling and sales
management. Journal of Personal Selling & Sales Management, 33(1), 7-24.
Evanschitzky, H., Eisend, M., Calantone, R. J., & Jiang, Y. (2012). Success factors of product
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Gamble, J., Gilmore, A., McCartan-Quinn, D., & Durkan, P. (2011). The Marketing concept in
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marketing review, 11(3), 227-248.

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Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now? A review of
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Hofer, C., Cantor, D. E., & Dai, J. (2012). The competitive determinants of a firm's
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Londhe, B. R. (2014). Marketing mix for next generation marketing. Procedia Economics and
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Maignan, I., Gonzalez-Padron, T. L., Hult, G. T. M., & Ferrell, O. C. (2011). Stakeholder
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Stark, J. (2015). Product lifecycle management. In Product lifecycle management (Volume
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