Taco Bell
has pulled off a major marketing coup in the midst of one of the oddest weeks
of the year. Taco Bell has a sports marketing sponsorship with Major League
Baseball for the World Series. Unfortunately, the World Series was over in four
games and was one of the least watched major sporting events in some time. As
it turns out, the games were played just a couple of weeks before the
presidential elections that were dominating the news. Then came Hurricane Sandy.
Who could get a marketing message out when the target audience was distracted
by the dominance of these two news items? It looked like Taco Bell was the
victim of rather bad timing. However, thanks to some very clever marketing and
a quick response to the times, Taco Bell came out a winner.
Taco Bell
announced during the World Series that if any player on either team stole a
base, they would give a free Locos Taco to everyone in America. Yes, you read
it correctly: every single person in America could request their free taco on a
specified day. The base was stolen during the second game by San Francisco's
Angel Pagan and this past Tuesday, October 30 from 2-6 p.m. was designated as
the date and time the giveaway would happen. Suddenly, you had a marketing
promotion that transcended the sporting event. This is significant. Most of the
time in sports marketing, the sponsorships are quickly forgotten. This
promotion went viral, with social media abuzz with the promotion. People who
cared not a lick for baseball stood in long lines on Tuesday to claim their
free taco. Now what the people behind the marketing at Taco Bell know is that
people are not just going to order the one free taco. They are going to
purchase more food and drink. This was a huge boon for their business on
October 30 and beyond. It was important for Taco Bell to get a big bounce out
of what has become their most popular product launch in many years. The Locos
Taco has been a big hit for Taco Bell, which has sold over 200 million of the Doritos
cheddar cheese shelled products in the five months since it hit the market. If
they can get more people to try the product, the trend is that they will be
back to purchase more.
But you
might have also picked up on the bigger issue Taco Bell faced. On October 30,
Hurricane Sandy came ashore and closed down commerce in a good portion of the
eastern seaboard states. It dumped torrential rains and deep snow as it made
its way through the upper Midwest. What do you do when your big event is rained
out? Again Taco Bell made a strategic move to keep their name and their
promotion alive. They made an announcement on their Facebook page that,
although their stores would be closed in affected areas, they would be giving
out free tacos at a later date. This story made an impact on customers. This
post was "liked" by over 19,000 people in less than 24 hours. When
stores opened back up on Wednesday, they began handing out free tacos to first
responders. Free Locos Tacos became part of the hurricane relief story.
How do you
make a sponsorship work for you? First, make sure you have something that
engages the customer. In Taco Bell's case, this was not the first time they
have promoted an all-America giveaway. They did the very same promotion during
the 2007 World Series as well. It's just now, they have a very popular product
brand that they are adding to the mix. The enormity of the giveaway - offered
to all of the 311 million people who live in the United States - and the
popularity of their branded Locos Taco made this promotion work. What would
engage your customer's interest? What would really make them stand in line to
get your product? Secondly, it is never a bad idea to let your customers see
you as more than just a business that wants to turn a profit. Getting involved
in humanitarian efforts or charitable causes speaks well of you as a company.
But Taco Bell was able to tie their product brand to their charitable efforts.
As long as this isn't seen as crossing a line of good taste and pandering for
business on the misery of others, do it. The reason we brand products is so
people will become aware of our products and remember them the next time they
want to make a purchase. This is a major task of marketing. Where you can push
the brand in good taste, do so.
There is a
third reason Taco Bell was brilliant in this promotion. Their regular
hard-shelled tacos are on their value menus. During our economic hard times,
the fast food industry has promoted its lowest priced items to keep customers
coming in the doors. Everyone has a dollar menu. The Locos Tacos sell for 30
cents more than a regular hard-shelled taco. You may not think that 30 cents
represents that big of a deal. But it increases prices by 30% by changing out
the shell. That's $58 million above what they would have sold those 200 million
regular tacos for in the five months I wrote about earlier. By increasing the
buzz around their product, they have quietly raised their prices and their
profits.
Product
specific marketing can be successful if you have a product people really want
and you can get them to try it for the first time. Keep an eye on Taco Bell
going forward. They found their big product and they know their market.
Expanding the market in a very competitive industry becomes the next challenge.
_________________________
SF Giant Drives Crowds Loco
at Taco Bell, The World Series Champion delighted thousands of people at the
Taco Bell on El Camino Real Tuesday, by Jennifer VanDerKleut, Palo Alto Patch, October 30, 2012
Photo by Anthony Seebaran