Tag Archives: Brand extension

Taco Bell’s New Hotel (for a limited time)

Taco Bell has very loyal customers. In fact, some customers love Taco Bell so much that they never want to leave! Unfortunately, there are store hours to maintain. But fear not Taco Bell loyalists – if you really want to live at Taco Bell, try its new boutique hotel called (appropriately) The Bell.

Yes, the Taco Bell Hotel and Resort opens this summer in Palm Springs! The resort is open for a limited time only, but promises a “destination inspired by tacos and fueled by fans.” According to the company, this will be the flavor getaway of the year as everything from the rooms, food, and cocktails will have a Taco Bell twist.

Feeling a little stressed? Then this is the place for Taco Bell lovers to relax. The on-site salon will offer nail art, fades, and a braid bar all inspired by the Taco Bell theme. Few details have been announced so far, but reservations open in June for the adult-only (18 and older) hotel.

This isn’t the only unique hotel in the new era of experiential marketing. There is also a Trivial Pursuit Hotel in Russia where guests get rooms, food, and more by correctly answering trivia questions!

Where do you want to stay?

Group Activities and Discussion Questions:

  1. Poll students: What are their hotel experiences?
  2. Discuss travel, hotels, resorts and what today’s young travelers are looking for in their hotels.
  3. Show the Taco Bell Hotel Web site: https://www.tacobell.com/the-bell-hotel
  4. Also show video for the Trivial Pursuit Hotel: https://youtu.be/TPLORyhEBGQ
  5. Divide students into teams: If they could design a new, experiential hotel, what would it be like?
  6. Have teams identify the target market and the marketing mix for their new hotel idea.
  7. Debrief the exercise and vote on which resort the class will visit!

Source: Griner, D. (16 May 2019). Taco Bell is opening a boutique branded hotel called the Bell. Ad Week.

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SiriusXM Buys Pandora

SiriusXM satellite radio provider is buying music streaming service Pandora for a $3.5 billion stock deal. The deal will create the world’s largest audio entertainment company. Why should SiriusXM buy Pandora? Because SiriusXM wants to gain people who listen to music but don’t want to pay for the premium SiriusXM service.

SiriusXM offers streaming without advertisements for $10.99 to $20.99 per month per car with up to 140+ channels, or streaming on any device for the same amount of $10.99 to $20.99 per month, or combine both options for all-access streaming. SiriusXM has 36 million subscribers in North America.

On the other hand, Pandora, which has 70 million active listeners (5.6 million who are paying members) can be used at no-cost as long as listeners don’t mind listening to advertisements. Or, listeners can buy monthly subscriptions at $4.99 or $9.99 per month for services that eliminate advertisements and offer personalized stations and create playlists, plus other options.

SiriusXM isn’t new to Pandora; it provided $480 million of funding to Pandora last year. Pandora faces stiff competition from other music services such as Apple Music, Amazon, Tidal, and Spotify.

The war to gain new listeners is heating up!

Group Activities and Discussion Questions:

  1. Poll students:How much music do they listen to each day? Where is their music coming from? How much do they pay each month?
  2. View SiriusXM: https://www.siriusxm.com/
  3. View Pandora: https://www.pandora.com/
  4. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  5. Which strategy is SiriusXM using? Why?
  6. Divide students into teams. Have each team research the different prices and packages offered by each music streaming company.
  7. Compare price structures. Which offers listeners the better deal?

Source:  Wall Street Journal, New York Times, other sources

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Crocs Launches High-Heels

Crocs casual shoes surround us. The comfortable, resin-based footwear comes in a wide variety of styles for women, men, and children. There are classic clogs, sandals, wedges, sneakers, boots, and more. But until recently, there were no dress-up Croc shoes for more formal and business events. Hmmm….. Is this a new market opportunity? The answer appears to be a resounding ‘yes’.

Crocs heard the need from its loyal female fans and recently launched a new high-heel Croc shoe. Crocs may have started as the shoe for casual outdoor wear, but were quickly adopted by people who are on their feet (such as restaurant and hospital workers) for long periods of time. Made with a closed cell resin called Croslite, the foot beds warm and soften with body heat, molding to the shape of each foot. The shoes use an orthotic heel, built-in arch support, and tarsal bar, making customers’ vocal fans of the comfortable shoes.

While fashion-forward consumers might not be fans of Crocs, the company has sold more than 300 million pairs of shoes in 90 countries, and reached $1 billion in revenue. The shoes have been featured in fashion run-way shoes, and been seen on the feet of Pres. George W. Bush and First Lady Michelle Obama, among others. The shoes have also been a frequent recipient of satire and “worst” lists.

Crocs – love ‘em or hate ‘em?

Group Activities and Discussion Questions:

  1. Poll students: Who has Crocs? What are the opinions of students about the shoes.
  2. Videos can be found on Croc’s: https://www.youtube.com/user/crocs
  3. Crocs’ website: https://www.crocs.com/
  4. Discuss the importance of clearly defining a target market.
  5. Divide students into teams and have each team develop a profile of a target market for Crocs high-heel shoes. Include demographics, psychographics, behaviors, values, attitudes, etc.
  6. Based on the target market profile, what makes this product unique for these customers?

Source:  Fast Company, USA Today, other news sources

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