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
 Copyright 2004
2
PAST, PRESENT AND FUTURE
1950
1961
1981
 Copyright 2004
1974
1970
2001
3
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?
 Copyright 2004
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
 Copyright 2004
5
DEVELOPING SUSTAINABLE ADVANTAGE
A Consumer-Driven Model…
Unique
versus
Competition
Key
Consumer
Needs
Competencies
Current
Equity
Mindshare
 Copyright 2004
Our Espresso
Research Road to Success
 Copyright 2004
7
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
 Copyright 2004
8
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
 Copyright 2004
9
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?”
 Copyright 2004
10
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?!
 Copyright 2004
11
THE ROAD TO SUCCESS
 Summer 2002 ... It’s a GO
 MAKE IT HAPPEN mode begins!
 Copyright 2004
12
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
 Copyright 2004
13
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”
 Copyright 2004
14
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)
 Copyright 2004
15
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
 Copyright 2004
16
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
 Copyright 2004
17
THE ROAD TO SUCCESS
LAUNCH
 Copyright 2004
18
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
 Copyright 2004
19
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
 Copyright 2004