Taco Bell Trying Too Hard?

Last week, the Mexican fast-food chain, Taco Bell, was sued on claims that the chain "falsely advertised its products as 'beef.'" The suit, filed by an Alabama law firm, alleges that Taco Bell's meat only has 35% beef, doesn't meet USDA requirements, and contains binders and extenders. The suit has since been found to be "bogus" because a) Taco Bell's beef contains 88% USDA-inspected beef and no extenders or binders, b) "the lawsuit cites U.S. Department of Agriculture guidelines for labeling ground beef, which don't apply to restaurants", and c) the lawyers would have to prove that customers are expecting something different than Taco Bell claims, which most customers know they're not getting 100% beef.

Today, Taco Bell placed full-page print ads in over 3 major newspapers in order to "set the record straight." Putting ads in national newspapers is no inexpensive task, but is it necessary? Are Bell’s ads, titled "Thank you for suing us," followed by a counter to the suit helping their business, or hurting them? Sometimes, when companies participate in comparative advertising by putting down the other product, customers are put-off and think that the company placing the ad is too pre-occupied by justifying their product in comparison to competitors. Taco Bell shouldn’t focus on the suit filed against them, but should focus on their quality products/beef and move on from there. Many Americans are unaware that there was even a suit, and knowing more about the beef than previously wanted may hurt them instead of help. Yes, Taco Bell needs to face the brutal facts that they were put in the public eye in an unpleasing way, but they need to do so by focusing on the facts of their product, not the problem that someone else may seem to claim. Like my dad always told my brother who was easily provoked by his siblings, “Don’t let them win, don’t let them get you to react, because that’s what they want.” So to Taco Bell, I say the same thing.

Quotes and analysis pulled from the article, "Taco bell fights back on beef lawsuit with ad push."

Google Moves to Promote Growth

As of late, Google has been implementing many different strategies in order to increase their growth. Last July, Google's shares were priced $433.63 and has since risen to $625.69 today. How will Google continue to grow in 2011? By focusing on their profit pool products and services, namely Youtube and Android, as well as getting the right people back into the company. Google will need to keep an eye on competitors like Facebook and Twitter, but because they provide products appealing to more people, they need to strive to differentiate from those two competitors in order to stay in the game.

Yesterday, Google announced that co-founder, Larry Page, will be replacing Eric Schmidt as CEO. Page is passionate about Google and will add to a "new team structure that ... could result in faster decision making" (JP Morgan analyst, Imran Kahn). The core team will remain the same, but Page will help things get rolling with their current products and services as well as helping to head up new projects that will help Google differentiate and grow.

Google has already found that their complementing products, Youtube and Android, will substantially help growth in 2011, but they need to continue to capitalize on these products in order to widen the gap of this competitive advantage before others enter into the same product lines.

Many are concerned about Google's future growth, but they are doing the right things to not only to help out their own company revenue, but to continue to soar above their competitors.

Analysis on YahooFinance article "Google investors worry about future growth."