Taco Bell Uses Doritos - Not Price This Time - to Save Its Future
Twenty-three years ago, in 1989, to everyone's surprise at Taco Bell, McDonald's was eating their lunch. The McDonald's numbers were so good at that time that Taco Bell was on the verge of going out of business. Completely.
They knew they needed to get their target demographic - the teens and twenties - back in, but how? Their decision was to lower their prices. To rock bottom. Like 29 and 39 cents per item - something unheard of until that time.
And, contrary to the executive team's expectations, it worked. In fact, from within the company came a tale of the then-new CEO (who was well aware that if he didn't effect a successful turnaround not only the company would go bust but so would his career), after making the decision in direct contrast to his team's recommendations, sent each executive (men and women) a small, brown paper bag with two ball bearings and a personal note. It read: We'll all have to have steel balls to make this a success.
(Full Disclosure: I had an employee reporting to me whose husband was on that executive team. That's how I know the story!)
Fast forward to 2012. McDonald's is, once again, eating Taco Bell's lunch. And, once again, the Bell has to do something different. Something innovative. Something that will get the next generation of the same demographic in their doors.
What's the answer this time? A Doritos-shelled taco.
Yes, Taco Bell has hit on a truly innovative form of incentive. They're going for our favorite bad habits.
Let's face it, Doritos - in all its flavors - is nearly irresistible for anyone who likes snack foods. In fact, it's second only to its potato-chip counterpart, Lay's, in popularity. So, going with Doritos was a good choice.
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