Tuesday, September 05, 2006
Wanted: Hispanics to eat at Taco Bell
AdAge reports that Taco Bell is struggling to attract Latinos. OK, let's think of the many natural jokes we can think of with their "Head for the Border" tag line and Latinos :-)
According to the article, Latinos have contributed just a half-percent to the company's same-store-sales gain of 7% in 2005, despite making up 20% of Taco Bell's core 18-to-34-year-old target market.
The article discusses whether the issue is the message or the product.
"It's not really Mexican food or food that unacculturated Hispanics know from their home country," Everett Hernandez, senior VP-general manager, diversity for market-research firm Synovate, is quoted as saying in the article.
Having traveled to Mexico, that is absolutely true. Then again, that's like saying Pizza Hut isn't really Italian. Of course, it's not authentic. It's American fast food. Period.
To me it is the product more than the message. Why Taco Bell would wonder why they are not appealing to Hispanics is beyond me. While I'm not Mexican, I can't imagine a Mexican who is craving a burrito having the Taco Bell $0.99 bean burrito top of mind.
Carl Kravetz, chairman-chief strategic officer of Cruz/Kravetz: Ideas, Los Angeles says it best in the article:
"If they want to broaden their Hispanic market ... their issue is authenticity, and they have a lot of years of not being perceived as authentic to break through ... If they say they deliver good Mexican food to [Hispanics] they won't be believed. If they say they have good, filling, cheap American food, they may have a chance."
Taco Bell is making strides to improve its product offering like adding carnitas, according to the article.
However, products alone aren't enough. Culturally, they need to appeal to a wide range of Latinos, not just Mexicans. Meal time is an important issue for Latinos and we tend to seek out a family oriented restaurant. This was supported in a Woelfel Research study released last October. In my Donde Vamos for Dinner posting, I wrote about some of the results of the study. Namely, Latinos view dining out as a family affair in which the menu variety, low prices and a friendly atmosphere for children are top-of-mind when deciding where and what to eat.
According to the article, Latinos have contributed just a half-percent to the company's same-store-sales gain of 7% in 2005, despite making up 20% of Taco Bell's core 18-to-34-year-old target market.
The article discusses whether the issue is the message or the product.
"It's not really Mexican food or food that unacculturated Hispanics know from their home country," Everett Hernandez, senior VP-general manager, diversity for market-research firm Synovate, is quoted as saying in the article.
Having traveled to Mexico, that is absolutely true. Then again, that's like saying Pizza Hut isn't really Italian. Of course, it's not authentic. It's American fast food. Period.
To me it is the product more than the message. Why Taco Bell would wonder why they are not appealing to Hispanics is beyond me. While I'm not Mexican, I can't imagine a Mexican who is craving a burrito having the Taco Bell $0.99 bean burrito top of mind.
Carl Kravetz, chairman-chief strategic officer of Cruz/Kravetz: Ideas, Los Angeles says it best in the article:
"If they want to broaden their Hispanic market ... their issue is authenticity, and they have a lot of years of not being perceived as authentic to break through ... If they say they deliver good Mexican food to [Hispanics] they won't be believed. If they say they have good, filling, cheap American food, they may have a chance."
Taco Bell is making strides to improve its product offering like adding carnitas, according to the article.
However, products alone aren't enough. Culturally, they need to appeal to a wide range of Latinos, not just Mexicans. Meal time is an important issue for Latinos and we tend to seek out a family oriented restaurant. This was supported in a Woelfel Research study released last October. In my Donde Vamos for Dinner posting, I wrote about some of the results of the study. Namely, Latinos view dining out as a family affair in which the menu variety, low prices and a friendly atmosphere for children are top-of-mind when deciding where and what to eat.
Miller boycotted again
In a classic example of "this company just can't win" Miller Brewing Company is now being boycotted by an organization that claims the beer maker supports illegal immigration by giving money to groups that support amnesty, marches, and benefits for illegal aliens.
You'll recall I wrote back in March that Miller was being boycotted by Hispanics in Chicago for the company's contributions to the political campaign of Sen. James Sensenbrenner (R-Wisc.), who is behind a bill that calls for strengthening U.S. anti-immigration laws and construction a wall along the U.S.-Mexico border.
According to a release sent out by MillerBoycott.com and paid for by Americans for Legal Immigration PAC, more than 100 organizations have joined the boycott of the beer maker and its parent company, SABMiller plc.
In the release, Congressman Steve King's office reports that "13 Americans are being killed by uninsured, drunk driving illegal aliens each day". They then point to the fact that Miller "plans to increase profits by marketing their beer to the Hispanic markets that are growing rapidly due to illegal immigration."
Not sure if they intend to draw a conclusion here that more marketing to Hispanics = more illegal, drunk driving Hispanics killing people on the roads, but if this were the case you could point to any demographic they market to and essentially say the same thing.
I don't mean to sound like I'm defending Miller. I just think if you're going to boycott the company for their alleged support of illegal immigration then that should stand on its own merit. Drawing conclusions that marketing more to the growing Hispanic population means more people getting killed is a bit extreme in my opinion.
You'll recall I wrote back in March that Miller was being boycotted by Hispanics in Chicago for the company's contributions to the political campaign of Sen. James Sensenbrenner (R-Wisc.), who is behind a bill that calls for strengthening U.S. anti-immigration laws and construction a wall along the U.S.-Mexico border.
According to a release sent out by MillerBoycott.com and paid for by Americans for Legal Immigration PAC, more than 100 organizations have joined the boycott of the beer maker and its parent company, SABMiller plc.
In the release, Congressman Steve King's office reports that "13 Americans are being killed by uninsured, drunk driving illegal aliens each day". They then point to the fact that Miller "plans to increase profits by marketing their beer to the Hispanic markets that are growing rapidly due to illegal immigration."
Not sure if they intend to draw a conclusion here that more marketing to Hispanics = more illegal, drunk driving Hispanics killing people on the roads, but if this were the case you could point to any demographic they market to and essentially say the same thing.
I don't mean to sound like I'm defending Miller. I just think if you're going to boycott the company for their alleged support of illegal immigration then that should stand on its own merit. Drawing conclusions that marketing more to the growing Hispanic population means more people getting killed is a bit extreme in my opinion.
