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Executive Summary

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Taco Bell in Nepal
Background: Taco Bell is a subsidiary of Yum! Brands, is the well-established Mexican-style quick service restaurant across the globe. They have just started few restaurants in India. The business in India is still at its starting phase. The other subsidiaries of Yum! Brands are KFC and Pizza Hut. KFC and Pizza Hut are already there in Nepal and are doing successful business there. I am planning to open Taco Bell at Bluebird Mall, Durbar Marg, Tirpureswor, Kathmandu.
Overview: Taco Bell is a Mexican fast food chain. Lifestyle of young people in cities are changing and so are the eating habits. Nuclear families are a norm now as both spouses are working. Eating out has become convenient, not just on special occasion Nepalese have become more experimental in their taste; they are eager to try new cuisines.
Segmentation: The population can be divided into following segments. Population is 27.8 million(2013 census) out of this 19% lives in Urban area. Few citizens live in other countries as well, they must be aware about the Taco Bell brand. These people could be our brand ambassadors, so our primary target will be to convert them in to consumers.
Target: Our target customers are active consumers between ages of 16-50 and people who like to try tasty food. Especially single men or college going women who don’t have time to cook or married working parents who like to be associated with high quality products but are not willing to pay a premium price. Household income from Rs. 14,000+

Positioning: We are planning to position this brand using 4P’s
Product: The product line includes the usual Taco Bell products like burritos, Chalupas, Tacos, Burritos, Nachos, Quesadillas, veggie chalupas, apart from traditional Burger and fries and so on with a little change in menu that includes Potato and Paneer variations flavored with Mexican seasoning and spices. There will be some new products introduced such as and menu will be changed, all beef containing products will be removed instead of that more veg items will be introduced.
Place: Location is the prime aspect of opening a Taco Bell in Nepal. We are trying to obtain a location that is at prime position. This location is close to Kathmandu International Airport and
Price: Taco Bell products are priced with the competition in mind. Since its products will be new to Nepalese customers, We will use the penetration pricing strategy for setting its prices (setting the initial sales price far lower than what the normal selling price would be in order to infiltrate the market)
The goal behind penetration pricing is to appeal to a broader audience and increase market share.
Later the price will be set equivalent to Indian Rupees (as Taco Bell) already has a line of products in India.
Promotion: Taco Bell will communicate with consumers and suppliers about its products in a variety of ways. The company as well as its products will be available via the Internet, and direct mailings. The company's promotional efforts also seek to differentiate its products from those of its competitors. The promotions aspect of the marketing mix covers all types of marketing communications (signage, advertising and promotion). Taco Bell will use Yum!’s support on promotion and advertising as well
Marketing Promotion, Billboard advertisement, Distribution of pamphlets, Newspaper Adv. (Kantipur, Himalayan Times), Commercial on local cable channel, Banners and small posters in various sectors.

SWOT Analysis:
Strengths:
1. Huge popular brand name and brand image, International brand. 2. Mexican food has some similarities with Nepalese food so chances of its being accepted by people are high. 3. Yum Brand! Already has customers in Nepal because they have successfully launched KFC and Pizza hut there. 4. Taco Bell has a healthy trans-fat free formula which is a key competitive advantage over other competitors who has not yet switched to the healthier recipes. 5. Hygienic food and quick service. 6. Good advertising and marketing.

Weakness: 1. High fat and high calorie food not good for health conscious people 2. Franchise management 3. New in the Market, needs lot of research and advertisement. High cost involved. 4. It could take time to attain Break-even point.

Opportunities: 1. Introduce home delivery 2. Could easily attract middle class and high class customer 3. New flavors and new recipes specially focused on health friendly ingredients can be introduced.

Threats: 1. Threat from other eating joints/restaurants 2. New researches and the raised awareness among the public about the harmful health impacts of fast food consumption is a threat to Taco Bell’s fast food menus. 3. Lack of proper infrastructure in Nepal could affect transportation and can cause a problem in Supply Chain Management 4. Mexican food is introduced into market for first time convincing consumers to eat Mexican food is difficult task.

Financials:
Investment Tables:
Initial Investment
Traditional Units and Power Pumpers Name of Fee | Low | High | Application & Background Check Fee | $300 | $600 | Initial Franchise Fee | $45,000 | $45,000 | First Unit Construction Services | $25,000 | $25,000 | Optional Real Estate Services | $0 | $15,000 | Permits, Licenses, Security Deposits | $74,000 | $74,000 | Real Property | $175,000 | $1,400,000 | Building/Site Construction | $524,000 | $676,000 | Equipment/Signage/Decor/ POS | $271,500 | $290,000 | Initial Inventory | $7,000 | $10,000 | Grand Opening Expense | $5,000 | $5,000 | Additional Funds - 3 months | $40,000 | $60,000 | ESTIMATED TOTAL | $1,167,300 | $2,600,600 |

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