Taco Bell Marketing Chief: Yo Quiero Fannie Mae Job

Vada Hill, the Taco Bell Corp. executive largely responsible for making the chain’s talking Chihuahua a fast-food icon, is leaving the Irvine-based company for a top marketing post with the Federal National Mortgage Assn.

Hill, 39, will become chief marketing officer of the quasi-public outfit better known as Fannie Mae, a government-chartered company that buys home loans in the secondary market. The new job, Hill said in a statement, will allow him the opportunity “to make a meaningful contribution that comes straight out of politics, public policy and marketing--true passions of mine.”

It wasn’t clear Tuesday what direction Hill will try to take Fannie Mae’s marketing programs. He declined to be interviewed. Hill is a Harvard Graduate who previously worked for former U.S. Education Secretary Lamar Alexander on education reform.

Hill was appointed chief marketing officer of Taco Bell in 1997, the same year the popular pup first mouthed “Yo Quiero Taco Bell” in a television commercial, which immediately rejuvenated faltering sales. The chain, which has about 5,000 stores, has experienced consistent sales increases ever since.

Prior to Hill’s arrival and the Chihuahua promotion, Taco Bell was stumbling in large part because its advertising and marketing had lost touch with its most important customer: the hungry young male who drives fast-food sales.

Hill and the Los Angeles advertising agency TBWA/Chiat/Day are credited with reviving Taco Bell’s advertising in the hotly contested fast-food industry, where there is a restaurant on virtually every corner and competition comes from such powerhouses as McDonald’s Corp. and Burger King Corp.

The minuscule dog, with its permanent smirk and evocative voice, was given attributes of Taco Bell’s core customers: attitude and a love of fast food.

Randall Hiatt, an Irvine restaurant consultant, said the Chihuahua campaign undoubtedly raised Hill’s profile and attracted outside offers. “It’s going to be one of the most memorable campaigns,” Hiatt said. “I’d say it ranks right up there with [Burger King’s] ‘Where’s the Beef?’ ”

In a previous interview, Hill said it was his job to make sure the image of the Chihuahua remained “cool” and wasn’t overexposed. He believed that the character would enjoy a lengthy shelf life if the company did its job right.

Hill’s departure comes at a time when rival Del Taco, a Laguna Hills-based chain with 340 stores in 10 states, has hired a new ad agency and prepares to launch a major advertising campaign this month.

And, later this month, Taco Bell will head into a U.S. District Court in Michigan to defend itself against charges that the Chihuahua campaign borrows heavily from ideas generated by a small design shop in Grand Rapids. The suit, which is scheduled to go to trial June 29, seeks unspecified damages. Taco Bell and TBWA/Chiat/Day have maintained that there was no misappropriation of ideas.

The Chihuahua is a part of commercials for the new “Star Wars” film where the dog appears with KFC’s Col. Sanders and a new female character for Pizza Hut as they fight off bad guys. The three chains, owned by Louisville, Ken.-based Tricon Global Restaurants Inc., are running a joint promotion of the George Lucas-directed film throughout the summer.

Hiatt said that because Taco Bell will retain the same advertising agency, there shouldn’t be much short-term effect from Hill’s departure, but his creativity and direction could leave a long-term void.

“They’ve got the image of the dog and they know how to use it,” he said. “They’ve been able to use it creatively both on new products and for sustaining business and it’s now being integrated into ‘Star Wars’ commercials. It seems to be very flexible and people talk about it.”

TBWA/Chiat/Day officials declined to comment, referring all questions to Taco Bell.