Taco Bell in Switzerland

Shklqim Grxhaliu
2/15/2013

Table of Contents
Executive Summary ...................................................................................................................................... 2 Company Description ................................................................................................................................... 2 Cultural Analysis Of Switzerland ................................................................................................................. 3 Brief History Of Switzerland .................................................................................................................... 3 Geographical Settings ............................................................................................................................... 3 Social Institutions...................................................................................................................................... 4 Religion And Aesthetics ........................................................................................................................... 6 Living Conditions ..................................................................................................................................... 7 Language ................................................................................................................................................. 10 Economic Analysis ..................................................................................................................................... 10 Population ............................................................................................................................................... 10 Economic Statistics And Activity ........................................................................................................... 11 Developments In Science And Technology ............................................................................................ 17 Channels Of Distribution ........................................................................................................................ 18 Media ...................................................................................................................................................... 19 Market Audit And Competitive Market Analysis ....................................................................................... 20 The Product ............................................................................................................................................. 20 The Market .............................................................................................................................................. 20 Preliminary Marketing Plan ........................................................................................................................ 21 Marketing Plan ........................................................................................................................................ 21 Pro Forma Financial Statements And Budgets ....................................................................................... 28 Resource Requirements .......................................................................................................................... 29 Conclusion .................................................................................................................................................. 30 References ................................................................................................................................................... 31

Executive Summary
This five-year project has been created with the aim to make an investment in Switzerland by bringing a Taco Bell franchise to that country. This franchisee will operate as a single-brand, a traditional Taco Bell Unit offering inexpensively priced, which offers a high quality Mexican-style food for take-out and on-premises eating. Although this kind of food is a traditional Mexican food, it is very popular and preferred by Americans. This kind of food with its delicious taste can also be liked by Europeans, in particular by Swiss people who are going to have the opportunity to have this fast food restaurant in their own country. However, there are some challenges that should be considered for brining Taco Bell in Switzerland. The legal requirements from Switzerland, the standards of the quality of food, the skilled staff, and some other requirements must be met for having a Taco Bell open in this country.

Company Description
Taco Bell Corporation is a California-based fast service restaurant chain that specializes in Mexican-style fast food. Taco Bell, with 2004 combined company and franchisee sales reaching $5.7 billion dollars, holds the largest share of the Mexican-style restaurant market in the United States. More than 35 million consumers visit a Taco Bell each week and over 80 percent of its 6,500 locations are franchised. The company, with restaurants in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Hawaii, Asia, and Europe, operates as a subsidiary of YUM! Brands Inc., the largest restaurant company in the world.1

Tacobell.com.ph (2008) Taco Bell Philippines. [online] Available at: http://www.tacobell.com.ph/company.htm [Accessed: 8 Feb 2013].

Cultural Analysis Of Switzerland

Brief History Of Switzerland
Switzerland industrialized rapidly during the 19th century, becoming the second most industrialized country in Europe after Great Britain in 1850. During World War I, tensions developed between French, German, and Italian speaking groups in Switzerland. During World War II, there was a high pressure from the fascist powers, which after the fall of France, surrounded the whole country. The Cold War improved the neutral position of Switzerland. It integrated itself into the American-led Western postwar order. Switzerland did not join the European Union and it still remains out of the European Union.

Geographical Settings
Switzerland is a small country which is located in the heart of western Europe. It is the land of the Alps with some of the highest mountains in Europe and it has a plateau and many lakes. 60% of Switzerland are in the alpine region. 30% are hills and relatively flat valleys. 10% form a chain of old mountains called Jura. Switzerland does not have access to the sea, but it has many water resources. It is rich of large lakes such as Lake Geneva, Lake Constance, Lake Lucerne, Lake Zurich, Lake Lugano, etc. Some of the largest rivers of Switzerland are Rhone, Rhine, Limmat and Aar. Switzerland enjoys an almost Mediterian climate.2

History of Switzerland Jud. (2000) History of Switzerland. [online] Available at: http://history-switzerland.geschichte-schweiz.ch/swisshistory-summary.html [Accessed: 2 Feb 2013].

Social Institutions
Family
People in Switzerland marry relatively late. They focus more on training and their careers. A Swiss family usually consists of 3-4 family members. Most of the couples have 1 to 2 children.

Education
Switzerland has a decentralized education system. Decisions about running primary and secondary schools are taken at the cantonal level. Cantons also provide the bulk of financing. A head of education is elected for each canton. The heads of cantons make up the Swiss Conference of Cantonal Ministers of Education. About 25% of Swiss adult population hold a diploma of higher learning. According to the CIA World Factbook data for 2003, 99% of the Swiss population aged 15 and over could read and write, with the rate being identical for both sexes.3

Political System
The governance system of Switzerland is stable. It is consensus-based and it is designed to direct democracy. Switzerland is a Federal State with 26 cantons. As a decentralized confederation of states, political and administrative responsibilities are divided among the federal, cantonal and municipal levels of Swiss government. . Each canton has its own constitution, code of civil procedure and parliament chamber. The Constitution provides for the separation of the three branches of government: the Federal Assembly, the Federal Council and the Federal Tribunal. Being located at the heart of the European

Aecsworld.com (2000) AECS WORLD | Abroad Education Consultancy Services World Study Abroad Services Study Abroad Consultants For Germany, USA, Finland, Norway, Denmark, Sweden, Netherlands, France, Australia, New Zealand, Canada, Singapore, Switzerland, UK, Ireland, Cyprus etc. [online] Available at: http://www.aecsworld.com/view.php?id=49 [Accessed: 7 Jan 2013].

Economic Area (EEA) there is a well-established Swiss-EU relationship mostly focused on trade, labor and transport issues.4

Legal System
As a brief overview, legislation in Switzerland is approved by Parliament and adjudicated by the Swiss Federal Supreme Court or, in insurance-related cases only, the Federal Insurance Court. The Federal Supreme Court has a comparable role to the U.S. Supreme Court, however the court in Lucerne is the only federal court. In adjudicating cases, the Federal Supreme Court cannot normally overrule federal statutes unless these are deemed to be in direct violation of human rights, but can call legislation set by cantons into question. However, there are periodic reviews of legislation, with many new laws having come into force on 1 January 2011 concerning a variety of issues ranging from privacy to war crimes, and from minimum wages for cleaners to the prevention of marriages of illegal immigrants in Switzerland.5

Social Organization
Switzerland is a place of tradition and respect for values of family, religion and homeland. This is more evident in rural areas. Social rules govern behavior of people, promoting a society that is respectful for others. However, there is low tolerance for behavior that is contrary to the good of the community. Switzerland is known as an efficient and well-ordered society. Glacial lakes and snowy landscapes help to promote the image of a clean and proud country which ensures high standards. Switzerland has high life expectancy . Zurich and Geneva are ranked respectively numbers 2 and 3 in the top cities worldwide for quality of living.6

4 5

Fleiner, T. (2012) Swiss Confederation. [report] IACFS, p.1. Focus, E. (2010) Switzerland - Legal System | ExpatFocus.com. [online] Available at: http://www.expatfocus.com/expatriate-switzerland-legal-system [Accessed: 3 Feb 2013]. 6 Focus, E. (2010) Switzerland - Culture, Society and Religion | ExpatFocus.com. [online] Available at: http://www.expatfocus.com/expatriate-switzerland-culture-society-religion [Accessed: 15 Jan 2013].

Business Customs And Practices

Appointments in Switzerland should be arranged in advance, and the arrival should be prepared with detailed information relating the meeting. It is very important to build positive business relationships. Arriving at appointment five or ten minutes late is considered disrespectful to Swiss people. When you cannot avoid lateness, contact the meeting coordinator as early as possible. Efficiency is highly valued among Swiss. Swiss businesses operate with a clear leadership structure. The leaders tend to be modest and discreet in their exercise of authority. Most of the Swiss are generally courteous but reserved. Loudness, excessive enthusiasm, and over familiarity are all considered improper at the start of a business relationship. Giving gifts is not a part of the Swiss business culture, however, if invited to diner in a colleagues home, it is appropriate to bring flowers or high quality Swiss chocolate. When entering or leaving a meeting, it is traditional to shake hands and make eye contact with each person in attendance, beginning with the most senior in age or rank. It is also appropriate to distribute business cards during introductions. Professional relationships are quite formal, even amongst colleagues who have worked closely together for many years. Refer to Swiss colleagues using their formal title if appropriate, or Mr., Mrs., etc. and surname. Nonverbal communication and proper posture is important in professional situations. It is appropriate to cross legs knee-over-knee, however, crossing legs ankle-over-knee or extending legs out while seated is considered rude.7

Religion And Aesthetics

Religion

The major religions in Switzerland are Catholicism and Protestantism. 46% of the Swiss people are Roman Catholic, while Protestant followers are a close second at 40%. Muslims, Jews and Christians constitute 6%, while people with no professed religious following figure at 10%. There is total freedom of

Communicaid (2009) Doing Business in Switzerland. [report] p.1.

worship in this small country. The proportion of people belonging to other churches has risen since 1980. The Muslim community, representing over 2 percent of the population in 1990, is the largest religious minority in this country. The Jewish community has always been very small and often discriminated; in 1866, Swiss Jews received the constitutional rights held by their Christian fellow citizens. Even though the Swiss Constitution calls for separation of church from the state, churches are still dependent on the state. In many cantons, pastors and priests receive salaries as civil servants, and the state collects ecclesiastical church taxes. 8

Aesthetics

Switzerland has a very intense and diverse cultural life. The art and the esthetics in Switzerland also are part of the Swiss. Modernity and rationalization inspire the Swiss artists to create art. People are open to different cultures, arts, and fashion. However, they are mostly focused on the European culture, including arts and aesthetics.

Living Conditions
Diet And Nutrition

Switzerland does not have a great tradition of foods. They adopt the best recipes from German and French cuisine. Also similar to Germany, the Swiss tend to have a diet that is spicier and even sweeter than the diet of the British. They eat a lot of breads, cakes and other sweets, potatoes, and meats. Sausage is also popular in Switzerland. The people of Switzerland are known for being especially fond of cheese and chocolate. Fermented foods, such as sauerkraut and sour cream may help the body handle this higher-

UNHCR.org (2011) UNHCR | Refworld | World Directory of Minorities and Indigenous Peoples - Switzerland : Overview. [online] Available at: http://www.unhcr.org/refworld/country,,MRGI,,CHE,4562d8b62,4954ce045,0.html [Accessed: 23 Jan 2013].

fat, low-fiber diet. Fresh fruits are less available and the colder-climate vegetables, such as cabbage, cauliflower, and potatoes are used the most. Beer consumption is also high in Switzerland.9

Housing
Since Switzerland is rich of different cultures and has a variety of geographic settlement patterns, there are different types of traditional housing in different regions of this country. There are smooth stone houses in Engadin, small stone buildings in Ticino, combinations of houses and barns in Mittleland, shingled facades in Appenzen, and the wooden villages of the valleys of Valais canton. There is a relatively modern housing stock in Switzerland, two-thirds of which have been built since 1947.Since there is a high population density, about one-fourth of homes have more than five rooms.10

Clothing
All the various cultures have an influence on Swiss fashion, as does the nation's climate. Switzerland's climate is temperate, although temperatures vary according to the altitude. Temperatures in lower elevations range from cool to warm, with humid summers having occasional showers.

Sports And Recreation

Sports are an important part of Swiss life. The Swiss Olympic Association, the national clearinghouse for sports activities. There are 3.5 million members and more than 25,000 organizations that have been part of it since the beginning of the 21st century. Swiss people like Alpine skiing, Nordic Skiing, touring museums, drinking, fine dining, hiking, cycling, and fishing.11

Ianr.unl.edu (2011) People and Their Diet. [online] Available at: http://www.ianr.unl.edu/kendrick/411/peoples00.html [Accessed: 4 Feb 2013]. 10 All-history.org (2009) History of the World. [online] Available at: http://all-history.org/01un166.html [Accessed: 9 Jan 2013]. 11 Olympic.org (2012) Switzerland | Swiss Olympic Association | National Olympic Committee. [online] Available at: http://www.olympic.org/switzerland [Accessed: 3 Jan 2013].

Social Security
The social security system in Switzerland is based on state and occupational benefits. Contributions are made by both employer and employee. However, the contributions to the occupational pension fund only start when the employees turn 25 and they earn more that SFR 20,880 in wages per year from one employer. If the employer is changed, then the employee must arrange for his/her accumulated capital to be transferred to the new employers pension fund. Residents of USA also benefit from social security agreements with Switzerland. They are entitled to a Swiss pension based on contribution they made when working in Switzerland, even if they are no longer in Switzerland when they retire. Contribution reimbursements to the state social security system, are only possible for people from countries with no social security agreement. Expats may choose to keep or transfer their funds or request a pay-out, so called cash termination benefit. 12

Healthcare

There are high standards of the general healthcare in Switzerland. This is reflected in an above average life expectancy of Swiss population. Private and public hospitals meet and even exceed international healthcare standards. But, it is very expensive as well. It is on the second place in terms of cost (after U.S.) Private hospitals usually tend to specialize in certain treatments.

Everyone living in Switzerland is entitled to healthcare. All Swiss residents are required to register for basic health insurance. A large portion of health insurance cost is covered by the population and the insurance companies, rather than the state itself.

12

Internations.org (2002) Social Security in Geneva | InterNations.org. [online] Available at: http://www.internations.org/geneva-expats/guide/working-in-geneva-15511/social-security-in-geneva-2 [Accessed: 2 Feb 2013].

Language
Every country that surrounds Switzerland has a cultural influence on the areas of Switzerland that are close to them. This influence is mostly visible in language of Switzerland. There are four main languages spoken in this country: German, French, Italian, and Romanish. 60% of the Swiss population speak German. 20% of them speak French, 6% speak Italian and around 1% of them speak Romanish.13 In Switzerland, each region, town or village speaks their own dialect and nobody is willing to give it up and find a common written Swiss Language. People often identify themselves and their regions with their dialect. In the early 15th century the need for a uniformly written German came into reformation. Most Germans accepted the written form as their spoken language, but the others did not. So different dialects are used in private and business conversations, even in schools and universities.

Economic Analysis
Switzerland has the most stable economy in the world. As a country where monetary security and political stability, it has been a heaven for investors, by creating an economy that is highly dependent on foreign investment. Since Switzerland is a small country and has high labor specialization, then the keys of this country to economic life hood are trade and industry. There are low unemployment rates, and a high per capita income. One of the significant roles is played by the service sector.

Population
Population in Switzerland was recorded at 7.9 million in 2011. It was a 48% increase of population from 5.4 million. The population of Switzerland represents 0.11 percent of the worlds total population. Population growth was steepest in its growth in the period after World War II and it slowed down during the 1970s to 1980s and has since again picked up to 1% during the 2000s. The population density
13

Eda.admin.ch (2008) Population. [online] Available at: http://www.eda.admin.ch/eda/en/home/doc/infoch/chpopu.html [Accessed: 6 Jan 2013].

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(people per sq. km) as of 2010 was 195.65. More than 75% of the Swiss population live in the central plain between the Alps and the Jura Mountains and from Geneva to the Rhine River and Lake Constance in the north-east. About 20% of the Swiss population is made up from residents foreigners.

15.2% of the population is made up of people aged under 15. 67.8% of them is made up of people aged 15 to 64, and 17% of it is made up of people aged 65 years and over. 14

Economic Statistics And Activity

Switzerland had a Gross Domestic Product (GDP) of $635.65 Billion US dollars in 2011. The population of Switzerland enjoys a comfortable financial life. The capita income in this country is $59,880. It ranks sixth in the World Banks rankings. Its capitalist economy has many giant banks and multinational corporations. The average Swiss family income is 22,387 USD a year. 15

Distribution of Income or Consumption by Percentage Share: Switzerland Survey year: 1992 Lowest 10% 2.6, lowest 20% 6.9, second 20% 12.7, third 20% 17.3, fourth 20% 22.9, highest 20% 40.3, highest 10% 25.2 Note: This information refers to income shares by percentiles of the population and is ranked by per capita income.

Resources

14

Tradingeconomics.com (2011) Switzerland Population. [online] Available at: http://www.tradingeconomics.com/switzerland/population [Accessed: 13 Jan 2013]. 15 ymcamun.org (2013) Legal Country Reference Information. [online] Available at: http://ymcamun.org/wpcontent/uploads/2013/01/Legal-Country-Reference-Information.pdf [Accessed: 6 Jan 2013].

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With an area of almost 16.000 sq miles, Switzerland is one of poor countries of natural resources. There is no oil and there are not many gas reserves. There are a few ,omera; resources including salt and marble. Due to the absent of natural resources, Switzerland focuses on the deposits it has. Swiss exploit gravel, sand and clay together with the minerals they have. They produce ammonia, raw steel, gypsum, aluminum, etc.16

Transportation
The Swiss transport system is known to be one of the finest in the world. The dense network of railroads, bus and tramway lines together with systematic timetables allow one to reach any point in the country in no time. Annually many funds are invested into transportation infrastructure and road building. Highways and motorways across the country connect France, Germany, Italy, Liechtenstein and Austria. The International airports of Zurich, Geneva, Basel and Lugano receive flights from all over the world and have their own railway and bus stations directly connected to all major cities in Switzerland and neighboring countries.

Communication Systems In Switzerland

Communication in Switzerland is mainly made possible through telephone lines, cellular, radio broadcast stations, Television stations, and Internet. There are around 5 million users of telephone lines, 6 million users of mobile cellular. There are also around 115 TV stations and around 3 million internet users.17

Working Conditions
Switzerland is known for good working conditions and pays great attention to its monitoring and

16

Muse.jhu.edu (2004) Project MUSE - Whiteout. [online] Available at: http://muse.jhu.edu/journals/sais_review/summary/v024/24.1baron.html [Accessed: 3 Feb 2013]. 17 Pressreference.com (2010) Switzerland Press, Media, TV, Radio, Newspapers - television, circulation, stations, number, print, freedom, online, broadcasting. [online] Available at: http://www.pressreference.com/SwUr/Switzerland.html [Accessed: 12 Feb 2013].

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improvement. The employment contract is generally regulated by the Swiss Code of Obligations and can be concluded for a definite or an indefinite period, on a full or part-time basis. The salary may be calculated by periods of time or according to the work carried out From the legal aspect, there is no

minimum wage unless stipulated in a collective employment contract. The regular termination terms can vary between one and three months. It depends on the duration of the employment period. In case of termination of employment both contractual parties are protected by law from abusive employment termination. Maximum working hours vary between 45 and 50 hours per week and depend on the industry. For example, a 45 hour limit is applied to industrial workers and office staff. The legal standard for employment holidays is 4 weeks. However, holidays depend on the employer, the employment contract and age of the employee.18

Major Industries

The major industries of Switzerland include tourism, the provision of banking, insurance and financial services, watch-making, precision instrument manufacturing and chemical manufacturing.

Foreign Investments

Switzerland offers a good economy, stable politics, open trade policies, etc. In 2009, Switzerland got the first place on the list of the World Economic Forums Global Competitive Index. This has led to a higher interest of foreign companies to set up their global or regional headquarters in this country. According to a study conducted by the Swiss-American Chamber of Commerce, over the past decade. about 200 companies have set up their corporate headquarters in Switzerland. The Swiss government is constantly promoting the benefits companies can have for investing in Switzerland.

18

Invest in Switzerland (2012) Labor market and labor laws.. [report] p.73.

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Switzerland is highly dependent on export markets to maintain its large export sector and supply materials for the domestic manufacturers. Switzerland has very liberal trade and investment policies and it protects foreign investments in it by its domestic policies.

The main exports of Switzerland are machinery, metals, watches, agricultural products, chemicals, vehicles, etc. In 1998, 80% of the main partners of Switzerland were from the EU (Germany, France, Italy, Nederlands, and Britain), 6% from the US, and 3% from Japan. By 2000, exports to the U.S. increased by 15.9%. Exports also increased in Turkey, South Korea and China.19

Trade (expressed in billions of US$): Switzerland

Exports Year 1975 1980 1985 1990 1995 1998 12.958 29.632 27.433 63.784 78.040 75.431

Imports

13.305 36.341 30.696 69.681 76.985 73.877

SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.

General Import Restrictions

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Global Competitiveness | World Economic Forum (2012) Global Competitiveness. [online] Available at: http://www.weforum.org/issues/global-competitiveness [Accessed: 1 Feb 2013].

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The following items are not acceptable for carriage to any international destinations unless they are indicated in some other way.

1. Perishable foodstuffs and foods and beverages requiring refrigeration or other environmental control. 2. Plants and plant material, including cut flowers (cut flowers are acceptable from the U.S. to selected points in Canada and from Colombia, Ecuador and the Netherlands to the U.S.). 3. Money (coins, cash, currency, paper money and negotiable instruments equivalent to cash such as endorsed stocks, bonds and cash letters). 4. Shipments being processed under: A. Duty drawbacks claims unless advance arrangements are made. B. Temporary Import Bonds acceptable under the FedEx International Broker Select option, for initial import only. C. U.S. State Department licenses. D. Carnets. E. U.S. Drug Enforcement Administration export permit. F. Letters of Credit. Shipments subject to Letters of Credit are generally prohibited, with the exception of shipments subject to Letters of Credit calling for a courier receipt, as defined by Article 25 of UCP 600, shipped using the FedEx Expanded Service International Air Waybill. G. Certificate of Registration shipments (CF4455). 5. Shipments that may cause damage to, or delay of, equipment, personnel or other shipments. 6. Shipments that require us to obtain any special licenses or permit for transportation, importation or exportation. 7. Shipments or commodities whose carriage, importation or exportation is prohibited by any law, statute or regulation. 8. Shipments with a declared value for customs in excess of that permitted for a specific destination.

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9. Processed or unprocessed dead animals, including insects and pets. Taxidermy-finished hunting trophies or completely processed (dried) specimens of whole animals or parts of animals are acceptable for shipment into the U.S. 10. Packages that are wet, leaking or emit an odor of any kind.

Goods Subject To Import Controls

The following goods are restricted by law and subject to import approval and must meet other regulatory requirements but are acceptable for importation on FedEx Express International Priority Service:

Milk and dairy products including cheese Cereals and forage products Meat, game, seafood Foodstuffs Drugs and other chemicals Alcoholic beverages Precious metals, watches, jewelry Considering this, we must buy the products inside Switzerland and not consider to import them from the United States. 20

Labor Force
There are about 4.5 million workers in Switzerland. The employment rate in this country is 65.6 percent. 71 percent of workers are employed in the service sector, 25 percent of them in industry and trade and 4

20

Fedex.com (n.d.) Switzerland Country Profile. [online] Available at: http://www.fedex.com/us/international/irc/profiles/irc_ch_profile.html [Accessed: 1 Feb 2013].

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percent in agriculture. 45 percent of workers are women. About a fifth of the workers in Switzerland are foreign nationals. Over 65 percent of them come from the EU countries .21

Inflation Rates
The inflation rate in Switzerland was recorded at -0.40 percent in November of 2012. Inflation From 1956 until 2012, Switzerland Inflation Rate averaged 2.7 % reaching an all-time high of 11.9 % in December of 1973 and a record low of -1.4 % in June of 1959. The inflation rate in this country measures a broad rise or fall in prices that consumers pay for a standard basket of goods.22

Developments In Science And Technology

Leading role is given to the development and implementation of the forward-looking, innovative and sustainable ICT (Information and Communication Technology) solutions. The Swiss government and the private sector are important in developing and defusing ICT (Information and Communication Technology) for infrastructure, content and applications. According to the Economist Intelligence Unit, spending per capita on information and communications technology in Switzerland is one of the highest in the world and well above the Western European average. The IT intensive industries such as financial services occupy a large share of the economy.

Research And Development

Switzerland is one of ten top countries for expenditures in Research and Development. In year 2006, Research and Development contributed in Switzerlands GDP with 2.9%. Most of it comes from chemical, pharmaceutical, and engineering industries, and the remaining comes from the public sector. Universities are those who conduct the most basic research.
21

Expatica.com (2013) The Swiss labour market. [online] Available at: http://www.expatica.com/ch/employment/employment_information/The-Swiss-labour-market_16133.html [Accessed: 15 Feb 2013]. 22 Tradingeconomics.com (2013) Switzerland Inflation Rate. [online] Available at: http://www.tradingeconomics.com/switzerland/inflation-cpi [Accessed: 5 Feb 2013].

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Technological Skills Of The Labor Force

Within the professionals group in Europe Switzerland is the second country (43 %) for having the highest shares of scientists and engineers. Switzerland's advanced economy and highly skilled labor force make it a good location for licensing sophisticated products and processes. The country itself depends on exports of product and process licenses. It is one of the few nations with a positive balance in licensing transactions. Sectors that are particularly important include pharmaceuticals, watch-making and precision machining, food and drink.23

Channels Of Distribution
There are many food suppliers available in Switzerland and many of them are specialized in supplying certain food products. Agro Sierre company is well known for supplying fruits and vegetables. Bell Ag is specialized in meat and meat products. Taco Bell in Switzerland will be supplied by Aligro, a big food service dealer in Switzerland which offers different kinds of food ingredients, sauces, spices, flavorings, etc. These ingredients then will be transported to Taco Bell. Beverages will be supplied by Migros company. The warehousing will be done by Taco Bell itself where food will be kept cold. The inventory turnover will be less than 10 days since we have to do with perishable goods. The customers will be able to buy Taco Bell products in two ways: Drive-in method in which the customers will have the opportunity to order food while staying in car, and get the food within two minutes. The other method in getting food in Taco Bell will be by going in Taco Bell premises and order food.

23

Eurostat.ec (2013) Human resources in science and technology. [online] Available at: http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Human_resources_in_science_and_technology [Accessed: 2 Jan 2013].

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Media
There are different media types available in Switzerland such as TV, radio, newspapers, magazines, and internet. The daily coverage of these media in Switzerland is as follows: TV 72% , radio 91% which is the highest coverage of radio in all European countries, newspapers 78%, magazines 96% , and internet with 68%. When the price development of various media types and countries is considered, Switzerland generally shows a moderate increase, though at a high price level compared to other European countries. The most massive markdown in price is shown in Great Britain and Italy. In an international comparison of advertising expense per capita, Switzerland is in front, and in an EU comparison, Switzerland is ahead of Germany, France and Italy. Below we have the price development of advertising costs in Switzerland, comparing to some other European countries.24

One of the most well-known advertising agencies in Switzerland is Charles Cannon which offers different advertising services of a high quality such as website design development, photography and video, and many other great services.

24

Publicitas. (2009) Media Scene - Switzerland. [e-book] p.8-9. Available through: Publicitas.com http://www.publicitas.com/fileadmin/uploads/swisspress/Medienland_ENGLISCH_Verlinkt.pdf.

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Market Audit And Competitive Market Analysis

The Product
Taco Bell products are new products which currently do not exist in the fast food industry in Switzerland and in region. As Taco Bell is a well-known fast food restaurant chain with delicious foods, and it is based in United States, it gives people the feeling that this fast food restaurant will have a good place in a modern and well developed country such as Switzerland which is the home of diversity in terms of population, but also in terms of foods that come from different regions.

Major Problems And Resistance To Product Acceptance Based On The Preceding Evaluation
One major problem that would cause resistance to product acceptance is that fast food has created an opinion worldwide that contains different fats and are a cause of overweight. As a result of failures of many other fast foods in maintaining cleanliness and the healthiness of their food, has created the opinion that fast food is not clean and healthy at all.

The Market

The first Taco Bell restaurant will be based in Zurich, as the capital of Switzerland. Although German is spoken in that city, Zurich is the most diverse city, where populations from different cultures live in harmony. Taco Bell targets people of different ages and both genders. Since Taco Bell will be based in Zurich, it means that people from this city who travel by Taco Bell or live in this city, will have the opportunity to have Taco Bell more often, since location plays an important role on making the food of this restaurant available to Swiss citizens.

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Compare Products With Competitors

The Fast Food sector lacks variety and is dominated by McDonalds who have very little competition from international brands. Pizza Hut, Dominos, Subway and KFC are either not present in the market or have very little significance All of these restaurant offer fast food similar to the United States. However, what makes Taco Bell distinct from them are the final products as the main important part of this restaurant which are distinct in ingredients, taste and preparation from other fast food restaurants in Switzerland. There are also a few Mexican food restaurants such as LHacienda and Juanitos which serve Mexican food, but still, the great ingredients and preparation of Taco Bell food, as well as the availability of this food to consumers, make Taco Bell distinct from these small Mexican food restaurants in Switzerland.

Market Size
The food market in Switzerland is 32.29 billion euros, dominated by Migros with a total sales of food of 9,847 million euros. Switzerland ranks Number 7 in the Top 10 Western European Markets and Number 21 in the Global Market list (IGD, 2008). There are 207 companies involved in the food industry of Switzerland. While in fast food, the leader is McDonalds with 152 outlets and 45% value share. As a sole proprietorship of business, Taco Bell as a sole proprietorship business will not be regarded as a Tax Entity. However, it will have to pay a tax of 9% as a personal income for the owner.

Preliminary Marketing Plan

Marketing Plan

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Taco Bells Mission and Goals

Taco Bells mission is to be the leading producer and marketer of fast food in Switzerland. Taco Bell wants to give people an opportunity to have a tasty fast food that people on the other side of the world have been enjoying for a long time. Taco Bell strives to offer Swiss people food with natural ingredients that keeps people healthy while enjoying it. The Taco Bells mission statement is: We take pride in making the best Mexican style fast food providing fast, friendly, & accurate service. We are the employer of choice offering team members opportunities for growth, advancement, & rewarding careers in a fun, safe working environment. We are accountable for profitability in everything we do, providing our shareholders with value growth. During the next five years, Taco Bell seeks to achieve the following financial and nonfinancial goals: Financial Goals Obtain financing to expand manufacturing capabilities and make a broader product line. Increase revenues by at least 20 percent each year. Donate at least 20,000 eur a year for health campaigns.

Nonfinancial goals Introduce new products with new spices. Create loyalty among customers. Develop a successful Internet site, while maintaining strong relationships with suppliers. Organize and sponsor programs about offering the community healthy food.

Core Competencies
Taco Bell seeks to use its core competencies to achieve a sustainable competitive advantage, in which competitors cannot provide the same value to consumers that Taco Bell does. Taco Bell has developed core competencies in (1) offering a tasty food, which is the most popular in the United States; (2) creating 22

a sense of community among consumers who purchase the Taco Bell food; and (3) developing a reputation among customers that Taco Bells food is healthy for them. Taco Bell intends to build on these competencies through marketing efforts that increase the number of menu items offered. By forming strong relationships with its consumers and suppliers , Taco Bell believes it can create a sustainable competitive advantage over its rivals.

Situation Analysis
The marketing environment for Taco Bell represents overwhelming opportunities. It also contains some challenges that the firm believes it can go through them successfully. A SWOT analysis of the company conducted to highlight Taco Bells strengths, weaknesses, opportunities, and threats is shown below: SWOT ANALYSIS Strengths 1.Huge popular brand name and support from Yum! 2. Adopted a healthy trans-fat free formula which is a key competitive advantage over other competitors who has not yet switched to the healthier recipes. 3.Hygenic food and quick service 4.Good advertising and marketing Weaknesses 1.High fat and high calorie food not good for health conscious people 2. There is not much awareness about Mexican food in India.

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3. Lost goodwill when some of customers were hospitalized due to traces of E.coli bacteria on November, 2006. Opportunities 1. Few competitors 2.Introduce home delivery 3.Venture into newer markets 4. 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 Bells fast food menus. 3. Highly labor intensive which increases the subjectivity involved in the delivery of services

Collaborators of Taco Bell

Taco Bell will get supplier by Aligro company for the food ingredients. Aligro will supply Taco Bell once a week and Taco Bell will keep the supplies in its own warehouse. Another collaborator of Taco Bell will be Zidan Printing company which will supply Taco Bell with food packaging materials, such as paper boxes and paper bags.

Competitors Of Taco Bell In Fast Food Market In Switzerland

Until 2011, McDonalds remained the clear fast food leader. With 152 outlets by the end of 2011, the fast food chain operator held a 45% value share. The multinational has managed to create a strong network of 24

both company-owned and franchised outlets over the Swiss territory. Second ranked player, Burger King held a value share of 2% and operated 26 outlets in Switzerland in 2011. While all of the companies listed earlier can be considered competitors, none offers the kind of food that Taco Bell does, the well-known Mexican food prepared by a well-known chain restaurant established in the United States. In addition, most of these competitors sell pretty much the same products (hamburgers, fries, etc).

The Target Market

The target market for Taco Bells products is active consumers between the ages of 16 and 50people who like to eat tasty food, who do not have issues with over-weight, and who want to try new tasty foods. These consumers represent a demographic group of individuals; they are single or married. Household incomes generally range between 100,000 and 150,000 CHF. Despite their comfortable incomes, these consumers are price conscious and consistently seek value in their purchases. They like to be associated with high-quality products but are not willing to pay a premium price for a certain brand. Taco Bell targeted customers mostly live in Zurich. However, one future goal is to target consumers in the other parts of Switzerland.

The Marketing Mix

The following discussion outlines some of the details of the proposed marketing mix for Taco Bell products. PRODUCT. Food products of Taco Bell are a popular Mexican food rich of spices and sauces which give it a great taste. Taco Bell in Zurich in the beginning will offer food products such as Tacos, Burritos, Gorditas, Salads, and Nachos. Taco Bell products will offer the customers a unique taste that they cannot get in other fast food restaurants in Switzerland. After Taco Bell is introduced to Swiss people, then it

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will introduce new specialties of Taco Bell restaurants. The great taste of other food products, will be an incentive for people to try what Taco Bell is bringing in. PLACE. Taco Bell will be located in a convenient place, in the outskirts of Zurich, Switzerland. The franchise will be located near the main road, which is very frequent in traffic and people walking. This location would be convenient for both, customers, but also it would be convenient for the company, since it is easier and costs less to buy land in the outskirts of Zurich than in its center.

Location in which Taco Bell will be built (Zurich, Switzerland)[Google Maps] PRICE. As discussed earlier in this plan, Taco Bell products are priced with the competition in mind. Since its products will be new to Swiss customers, Taco Bell will use the penetration pricing strategy for setting its prices. Penetration pricing is the act of 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. PROMOTION. Taco Bell will communicate with consumers and suppliers about its products in a variety of ways. Information about Taco Bellthe company as well as its productswill be available via the Internet, and direct mailings. The firms 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. Taco Bell will use Yum!s support on promotion and advertising as well as will strive to 26

meet its requirements. Advertising of Taco Bell is conducted on TV, radio, cinema, online, poster sites and in the press (newspapers, magazines). There will be also sales promotions, games, loyalty schemes, etc. The purpose of the promotional campaign will be to increase awareness to people that a new popular fast food restaurant franchise is coming in their country which offers a tasty food that can barely be found in Europe.

Promotional Mix
1. Advertising - Advertising of Taco Bell in Switzerland will be done through television, radio, billboards, catalogues, in store displays, and web pages. Advertising will also be done by sponsoring campaigns for healthcare, which can give Taco Bell a positive image about their commitment for healthy food. 2. Personal Selling - When customers stop by in Taco Bell to eat food, as workers serve the food in their tables, they can ask the customers if they want anything else and show other food items in the menu that they can order. 4. Sales promotion Taco Bell will organize different contests where its product will be exhibited. For example, it will organize a music contest, and the winning team will win a prize. The audience, as well as the competing teams will get to buy and taste Taco Bell food items. Taco Bell will also give premiums to particular groups of people, for example to students. 6 Exhibitions: Taco Bell will organize exhibitions or tours where a Taco Bell truck will travel through Zurich and give samples of tacos or other food items for free for people to try.

Methods Of Payment
Payment in Taco Bell can be done in two ways: 1. Cash method of payment 2. Credit/debit cards method of payment

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Pro Forma Financial Statements And Budgets

Taco Bell Income Statement Proforma statement (000) As of December 31, 2013 & December 31, 2018 Revenue Sales Cost of goods sold Gross Profit Operating Expenses Advertising Expense Recuritment and Wages Expenses Rent Expense Electricity Expense Water Expense Insurance Expense Office Supplies Expense Salary Expense - Administrative Depreciation Expense - Office Furniture Depreciation Expense - Office Equipment Total Operating Expenses Other expenses Taxes (9%) Interest Expense Total other expenses Net income before taxes Net income after taxes 14,829 5,280 20,109 804,520 732,112.85 14,242 5,400 19,642 1,001,512 1,108,375.79 28 24,000 21,246 78,000 7,200 9,200 12,000 2,300 5,300 1,875 3,650 164,771 15,000 21,930 80,000 7,600 9,900 12,000 1,000 5,600 2,000 3,900 158,246 2013 1,455,000 465,600 989,400 2018 2,030,008 595,600 1,434,408

2,500,000.00

2,000,000.00

1,500,000.00 Net income 1,000,000.00 Sales/Revenue

500,000.00

0.00 2013 2018

As Taco Bell makes new customers and its sales increase, in five years, its net income after taxes will increase for at least 48%. The high revenue on the first year of operating, will come as a result of peoples interest to enjoy Taco Bell foods.

Resource Requirements
The franchise fee for Taco Bell is 350,000. Yum!
10% Bank loan (4% interest) Owner 30% 60% Friends & Family

requires the franchiser to have 520,000 of liquid cash available in order to launch and operate the business. So the total cash needed is 870,000. 60% of this cash will be taken as a bank loan with an interest rate of 4%. 30% will be provided by the owner. 10% will be

350,000 Franchise fee Liquid cash available

provided by friends and family.

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520,000

Human Resources Plan

Enter cost of benefits as a percent of salary Title 5.00% Position Salary

Monthly
Number of People

Manager Administrative assistant Hosts Servers Dishwashers Bussers

1,200 900 600 500 500 500

1 1 12 5 3 3
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As required by Yum!, Taco Bell will have 25 employees in total and the average salary will be 740 euros per month, plus 5 percent benefits. With this personnel, Taco Bell will have the capacity to make food very quick for its customers. Production capacity of Taco Bell will be 2.70 products per minute, which would be 1,400,000 units produced annually.

Conclusion
Taco Bell in Switzerland has the potential to become a the top fast food restaurant in the local and national fast food market. Due to the company's aggressive marketing strategy, establishment of the company as a "unique" type of restaurant in this country, Taco Bell has the potential to provide lucrative returns to the potential investor.

For Taco Bell to achieve status as a fast food leader, it must secure initial capital. This capital will be used for start-up costs, and to further develop the business, business infrastructure, internal systems, product development, and extensive marketing and geographic positioning. Providing that the company is able to acquire its funding requirements, Taco Bell should be able to achieve its operational success for many years to come.

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