Strategic Memo for Taco Bell Case 2-2 Essay

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Strategy Memo for Case 2-2, James S. O'rourke Date: August 24, 2014 To: Ms. Laurie Gannon, Public Relations Director Copy: Confidential to the file From: Esmira Gheisary, Consultant Backround: • Taco Bell is a quick-service restaurant concept and operates in a very competitive climate. Was founded in 1962 by Glen Bell. • Kraft Foods Inc., is the largest food and beverage company in North America and the second largest in the world. Was founded in 1903 by James L. Kraft. • On August 1, 1996, Taco Bell and Kraft announced the formation of a license agreement for Kraft to manufacture and distribute Taco Bell-branded taco shells in grocery stores. • Taco Bell branding may be damaged in public perception because…show more content…
Second, should Taco Bell continue to use approved genetically modified substances in its food? Third, which steps should Taco Bell take in order to communicate with Kraft? Fourth, what brand damage has been caused, if any? And how can it be mitigated? Fifth, should Taco Bell contact media outlets regarding this issue or allow Kraft to take the lead given that it manufactured the corn shells? Taco Bell branding may be damaged since nongovernmental organizations found «Cry9c» protein in Taco Bell branded products sold in grocery stores nationwide. Despite this, Taco Bell does not have any relationship to the production of these shells from genetically modified corn; these taco's are distributed by Kraft Food Inc., who has the right to use the Taco Bell trade name. Taco Bell, in order to prevent a decrease in demand for their products and retain customers, should assertively save their brand. Taco Bell should immediately contact Kraft to discuss the issue both companies are involved in and figure out what is the best strategy to address for each company. To ensure that Kraft manages the situation appropriately, the Marketing department of Taco Bell should call in to Kraft on a daily basis to see the process of taco shells removal from the market. Moreover, Taco Bell should follow the updated news from the media about

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