Doritos and Taco Bell have teamed up to deliver the Doritos Locos Taco. Why does this makes sense? I’m not exactly sure but, I can tell you that Taco Bell of Yum Brands has not been as successful as they have been in the past and they definitely needed a marketing program that will make or break them. What was the benefit to partnering with Doritos? Good question.
Aside from the need of a great marketing campaign, I feel that this cross-selling of product is a great way to accomplish a few things: creating awareness, stimulating trial, redefining the brand, and better understanding your consumer. I would not be surprised if research demonstrated that the consumers of both brands are similar in age, preferences, lifestyles, financial well-being, and most importantly new product adoption. On a side note, it appears that Taco Bell is doing the marketing aspect very well with a countdown, official day to start the program, and reaching out to many different categories with the Locos Taco options.
What can we learn from this example? John and I have trumpeted that understanding your consumer is vital for your success, but in addition to this, understanding your competition as well as other brands in similar industries maybe a token for new markets as this could lead to partnerships, cross-selling, and potentially more brand loyalists who were not aware of your brands and products. Only time will tell if Taco Bell and Doritos really hit it off well as they both gain awareness around the marketing campaign but a “win” from the campaign that they gain is trial of the product and bringing consumers into their stores – this is harder to do than you think.
Takeaway for a Small Business Owner
The executives at Doritos and Taco Bell both understand their consumer well and with this were able to cross-sell them without cannibalizing their own sales in new markets. Both created great marketing buzz around their brands. So what if you are not a big business? Well, here are a couple examples:
If you own a flower shop, you might partner with a local chocolate shop to deliver a combination of products for those I love you, I am sorry, congratulations, or get well moments. If you have a bicycle shop, think about offering a special to people who shop at the running store with a coupon or special promotional event with the respective shop. For specialty ice-cream shops, partner with a local elementary school or swimming pool to blast your message. The options are unlimited but creating free marketing buzz should not only be easy and fun but it can also help you grow your market.