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Mass Customization Strategy
Week 2 Discussion Questions
Please review the follow video about Taco Bell – Eat Like You, build your own 5 Cravings Box (2021) (March 7, 2021 A. Verhoeven)
Also read the finance article, Taco Bell Launches $45 Cravings’ Box as Fast Food Races to Be “Competitive on Value”, By Brook Di Palma.
Then prepare a response to the following discussion topics:
1. Why Encourage customers to use their app for ordering?
2. How is this an example of mass customization?
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Mass Customization Strategy
1. Why encourage customers to use their app for ordering?
Encouraging customers to order via the Taco Bell app (or digital platforms) serves multiple strategic purposes:
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Data capture and personalization: By using the app, Taco Bell gains direct access to individual customer purchase behaviour, preferences (what items are selected in the “Build Your Own Cravings Box”), timing/frequency of orders, and location. That data enables more tailored promotions, offers, and cross‐selling.
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Digital ordering efficiency: App orders reduce friction (line waiting, manual order errors at drive-thru or counter). They allow the company to streamline fulfilment (pickup, delivery, or curbside) and optimise labour. For example, the campaign is explicitly “available across its digital platforms” and emphasises “exclusively to Taco Bell Rewards Beta members on the Taco Bell app” initially.
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Value-driven offers tied to digital channel: The “Build Your Own Cravings Box” is offered at a strong value point for digital orders. The article states Taco Bell launched the $5 box (digital) as the fast-food industry races to deliver “competitive on value”. By pushing the offer through the app, they direct users to the digital channel—and can better manage margin, reduce overhead associated with dine-in transactions, and leverage app-specific promotions (e.g., loyalty rewards).
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Upsell and loyalty: Once a user is in the app ecosystem (account created, payment info stored, personalised offers), Taco Bell can influence repeat behaviour via push notifications, exclusive deals, and loyalty points. This enhances customer lifetime value.
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Operational control and cost savings: Digital orders reduce variance in order taking (less human error), reduce cashier staffing pressures, and can integrate with kitchen workflows more cleanly. They also enable better forecasting of volume, digital queue management, and improved throughput.
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Competitive differentiation and modern brand image: The value box, paired with the campaign “Eat Like You – Build Your Own $5 Cravings Box… exclusively online or with the Taco Bell app.” positions the brand as contemporary, mobile-friendly, tapping into…