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Dunkin’ Donuts Espresso Launch:How Consumer Research Led to Success
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“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
WHAT IS MARKETING?
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1950 1961 1970 1974
1981 2001
PAST, PRESENT AND FUTURE
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WHY DO WE NEED MARKETING RESEARCH?
Lots of ideas
Little information
How do we make the best go-to-market decision?
What need statesare driving consumers? Does it
taste good?
What should wename it?
What will be our sales forecast?
Who is our best prospect?
What overallexperience are consumers seeking?
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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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A Consumer-Driven Model…
Mindshare
Unique versus
Competition
CompetenciesKey
Consumer Needs
Current Equity
DEVELOPING SUSTAINABLE ADVANTAGE
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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 espresso-based 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. Coffee A&U Results
2. CREST Trend Information (showing category & afternoon occasion opportunities)
3. Datamonitor Market Sizing: Annual Report (showing growth)
4. National Coffee Association Annual Report (showing growth)
Lots Of Discussion
Mixed Internal Feelings
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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?”
THE ROAD TO SUCCESS
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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?!
THE ROAD TO SUCCESS
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Summer 2002 ... It’s a GO
MAKE IT HAPPEN mode begins!
THE ROAD TO SUCCESS
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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
THE ROAD TO SUCCESS
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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”
THE ROAD TO SUCCESS
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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)
THE ROAD TO SUCCESS
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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
THE ROAD TO SUCCESS
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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
THE ROAD TO SUCCESS
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LAUNCH
THE ROAD TO SUCCESS
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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
WHAT HAPPENED NEXT?
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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
THE RESEARCH ROAD NEVER ENDS!
