When Taco Bell announced it was dismissing both its chief executive and the advertising agency that created its talking Chihuahua, the media appeared to devote more attention to the Chihuahua’s fate than to Waller’s.
When Taco Bell announced it was dismissing both its chief executive
and the advertising agency that created its talking Chihuahua, the media
appeared to devote more attention to the Chihuahua’s fate than to
Waller’s.
As a result of management changes, CEO Peter Waller will be replaced by
Emil Brolick of Wendy’s and TBWA Chiat/Day will lose its dollars 200+
million account with Taco Bell in favor of Foote, Cone & Belding, which
engineered Taco Bell’s ’Run for the border’ ads in the late ’80s and
early ’90s.
Interestingly, The media’s coverage suggested that slumping sales were
the primary reason for the changes at Taco Bell. David Novak, CEO of
Tricon Global Restaurants, Taco Bell’s parent company, justified the
changes by saying, ’Last year, our sales (at Taco Bell) were flat, and
this year sales were negative. We are able to do better than that’ (The
Wall Street Journal, July 19).
Despite the stated desire for change, Novak indicated the dog might be
retained for future cameo appearances.
Nearly half of the analyzed coverage pointed out that Taco Bell’s
Chihuahua - whose catch phrase was ’Yo quiero Taco Bell’ - is still very
popular with the public. Tom Carroll, president and CEO of the outgoing
ad firm, noted people still like the dog and thought canceling the
campaign was a mistake. A few media outlets covered the suggestion by
Carroll and others that the ad campaign was being used as a scapegoat
for decreased sales at Taco Bell.
Industry consultant Ron Paul appeared to agree, telling The New York
Times (July 19), ’It’s increasingly difficult for the ’quick serve’
players to show the kinds of gains they enjoyed in the past, and
somebody has to be blamed. It’s not shoot the messenger, it’s shoot the
agency.’
Media reports reflected on the Chihuahua ads quite warmly, describing
how the public had taken to the bug-eyed, large-eared dog. Coverage
regularly referred to the ad campaign’s heyday in 1998, describing it as
a national phenomenon. CNN (July 19) referred to the dog as ’an icon’
and ’one of the most successful campaigns in history.’
However, the media provided coverage of comments suggesting the ads
starring the dog were effective in creating brand awareness, but failed
to translate that awareness into sales. And Novak made it clear which
was his priority.
USA Today (July 19) asked, ’Is Tricon worried that dumping the popular
Chihuahua will put Taco Bell in the doghouse with consumers?’ In the
same article, Novak responded, ’The concern we have is getting our sales
up.’ He outlined this specific challenge for Foote, Cone & Belding in
several articles.
A few media outlets quoted Novak on the decision to replace outgoing
Taco Bell CEO Peter Waller and change ad agencies. Novak explained, ’It
is an appropriate time to bring in a new, outside perspective’ (The
Louisville Courier-Journal, July 19). It will be interesting to see if
Novak’s plan works. In the meantime, the case of the chalupa-craving
canine serves as a lesson for advertising agencies: creating an ad
that’s memorable is not enough; one also has to get people to buy the
company’s products.
Evaluation and analysis by CARMA. Media Watch can be found at
www.carma.com.
