Transcript Document
Dunkin’ Donuts Espresso Launch:
How Consumer Research Led to Success
Copyright 2004
1
WHAT IS MARKETING?
“Marketing is the process of planning and executing
the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges
that satisfy individual and organizational goals.”
--The American Marketing Association
“To deliver a higher standard of living…”
--Anonymous Marketer
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PAST, PRESENT AND FUTURE
1950
1961
1981
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1974
1970
2001
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WHY DO WE NEED MARKETING RESEARCH?
What need states
are driving consumers?
Does it
taste good?
Lots of ideas
Little information
How do we make the best go-to-market decision?
What should we
name it?
What will be
our sales forecast?
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Who is our
best prospect?
What overall
experience are consumers seeking?
4
WHY DO WE NEED MARKETING RESEARCH?
It is only through Marketing Research that
"Power Brands" -- brands that layer emotional
benefits onto rational product benefits to
create a magical marketplace presence -- can
be built
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DEVELOPING SUSTAINABLE ADVANTAGE
A Consumer-Driven Model…
Unique
versus
Competition
Key
Consumer
Needs
Competencies
Current
Equity
Mindshare
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Our Espresso
Research Road to Success
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THE ROAD TO SUCCESS
It was May 2000 when Dunkin' started down the path!
It all began with a Hot Coffee Attitude & Usage Study
Prompted discussion around our coffee messaging and platform
offerings
Showed that our customers were visiting various coffee
establishments
Identified differences in drivers between younger and older
consumers
Provided data illuminating which consumers purchase espressobased coffee products “most often”
Allowed us to examine espresso-based coffee consumers in terms
of habits, attitudes toward Dunkin’ and other brands, lid / cup
preferences, and much more
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IN THE BEGINNING….
Four Separate Pieces…..
1.
2.
3.
4.
Coffee A&U Results
CREST Trend Information (showing category & afternoon
occasion opportunities)
Datamonitor Market Sizing: Annual Report (showing growth)
National Coffee Association Annual Report (showing
growth)
Lots Of Discussion
Mixed Internal Feelings
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THE ROAD TO SUCCESS
Forward to January 2002 ... see Intense Exploratory Research
Explored consumer attitudes around a potential expansion of our
coffee platform: Boston and Chicago markets among Dual users
Qualitatively identified our position in the competitive arena
Identified critical cues around product themes, coffee process,
coffee knowledge
Illuminated which consumers purchase espresso-based coffee
products “most often”
Shed light -- very importantly -- on the challenges we would face!
Again, research led to additional, critical questions:
Does our brand have permission to enter this space?
Would we seem “me-too?”
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THE ROAD TO SUCCESS
July 2002 ... CREST Custom Overview
Custom analysis of espresso-based coffee drinkers
Confirmation of intense, continued category growth
Identification of regional, gender, age and income skews
Confirmation of daypart hypotheses
Confirmation of take-out percentages (carry out / drive thru)
Team still faced critical questions, but the most important one became:
What would be the opportunity cost of not entering the space?!
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THE ROAD TO SUCCESS
Summer 2002 ... It’s a GO
MAKE IT HAPPEN mode begins!
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THE ROAD TO SUCCESS
Learnings from all previous research projects were
brought to the forefront again with a new brand action
team
We not only
identified equipment (based on research that told us
about the appeal of push-buttons / speed versus the
appeal of restaurant quality cues) ...
and fine-tuned product flavor options (based on
what consumers told us they wanted!) ...
and trained crews ...
but also developed our all-important positioning
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THE ROAD TO SUCCESS
This was paramount! The one place we could not fall down was
during our construction of meaningful differentiators and the
expression of emotional benefits that would resonate with our
target audiences; thus, this learning phase involved even more
intense exploratory work ... in Boston, Atlanta, White Plains and
LA.
Our results guided us toward:
Cues ... New cups/graphics/POP to communicate coffee credentials
“Democratization"
Simple names ... not too sweet
“Taking the pretension out of Cappuccino”
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THE ROAD TO SUCCESS
We validated our belief there was / is! a real need
in the marketplace for a high quality, affordable,
faster line of cappuccino and latte products
without attitude (and high price tags)
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THE ROAD TO SUCCESS
Phase 1 Research: Hot Lattes -- September 2002
Identified ideal level of sugar
Identified optimal milk type
Measured flavor appeal
Phase 2 Research: Hot Lattes -- October 2002
Examined, for example, whether espresso shot or sugar
should be added first
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THE ROAD TO SUCCESS
Beta Test Exit Interviews with Callbacks: October 2002
Purpose was to:
Understand levels of trial / awareness generated in-shop
Highlight any service / operational issues
Gauge reactions to products in the "real world" setting
Platform Market Test Forecasting (2002 in Portland, 2003 in
West Palm Beach)
Exit interviews
General market phone survey
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THE ROAD TO SUCCESS
LAUNCH
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WHAT HAPPENED NEXT?
Communication Testing, to examine:
How well our advertising was breaking through
How well our advertising was resonating with key targets
The extent to which our advertising was conveying salience
and brand momentum
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THE RESEARCH ROAD NEVER ENDS!
And then what did we do?
Hot Espresso Barrier Focus Groups (March 2004)
Hot Espresso Adoption Quantitative Work (March 2004)
What will we do now?
Yet more intense communication testing ... around Iced Latte
Yet more research to understand:
All coffee occasions
Always changing flavor preferences
Always changing and new segments of consumers
Create new and improved customer feedback loops
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