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Mmnpl 2009 Webinar 11210 Final

by Most Memorable New Product Launch

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As you look toward upcoming new product launches, see what made the Most Memorable New Product Launches of 2009 so successful. Join Schneider Associates, Sentient Decision Science, and IRI to review the top 10 product launches of 2009, as determined through the eighth annual Most Memorable New Product Launch Survey. This presentation discusses what made these product launches memorable, as well as the latest marketing, consumer purchasing and behavioral trends, including:

• Migration MarketingTM
• Social Media
• Media Multitasking
• “Trading up” or “down”
• Emergence of Small Indulgences
• Brand Trust
• Health Attribute Seeking Behavior

Creators:

• Julie Hall, Executive Vice President, Schneider Associates

• Aaron Reid, Chief Behavioral Scientist, Sentient Decision Science

• Char Partelow, Senior Vice President of Consumer and Shopper Insights, IRI

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Ann Ruth to present team and read short bio/company info.
Aaron Slide
Serves as early indicator of market trends: Increasing importance of word of mouth and product sampling Rising number of information sources used by consumers Focus on locally grown foods/country of origin Desire for whole grains, low salt, no trans fats or reduced high fructose corn syrup Increase in digital integration of campaigns Fragmentation of media Rising number of information sources used by consumers
Julie Slide
Julie Slide
Julie Section/Slides
Julie Slide
Julie Slide
I will now hand it over to Char Partelow from IRI who will walk you through some of the Key Data from the MMNPL Survey
Char Slide
Char Slide
Char Slide
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Char Slide
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Char Slide
Char: So without further ado, Let’s get to the Top 10 Most Memorable New Product Launches of 2009. Aaron, can you kick it off?
(Aaron slide) Samsung LED Launch: March 2009 Overview : The new 8000, 7000 and 6000 Series build upon the success of Samsung’s first and second generation LED HDTV models. These cutting-edge TVs use LEDs as their primary light source, rather than traditional Cold Cathode Fluorescent Lamps (CCFL). Benefits of using LEDs include ultra-high contrast ratios, slim depths that allow for more artful designs, plus increased energy savings. In addition, a variety of state-of-the-art networking features give the ability to adapt to how consumers view and experience with shows, movies, games and other multimedia at home. “ Samsung has proven LED technology is a viable choice for consumers desiring the best picture possible from an LCD television. Samsung’s latest LED televisions redefine the standards for viewing quality, energy-efficiency and home entertainment décor,” said Jonas Tanenbaum, Vice President of LCD HDTV Marketing at Samsung Electronics America. “Samsung stays committed to developing technology and products that go beyond current expectations of value, quality and innovation. And, we are excited to be a part of this exciting point in TV evolution.” Television Ads: http://www.youtube.com/watch?v=7IMP722pMd4 http://www.youtube.com/watch?v=4rd4JWiIwRE http://www.youtube.com/watch?v=KirLIcm3kIc&feature=related http://www.youtube.com/watch?v=AjA6v6CX8mY&feature=related Samsung Electronics, the global leader in consumer electronics, announced that it is on its way to leading the global TV market for the fourth year in a row. Samsung’s successful performance is being driven by the success of its full line-up of revolutionary LED TVs, which were launched earlier in 2009. Sales have been so successful that Samsung predicts a five time increase in LED HDTV sales in 2010, with at least 10 million units sold. http://bi-me.com/main.php?id=40275&t=1&c=4&cg=2&mset=1021 Samsung Electronics, the global leader in consumer electronics, has predicted a five time increase in LED HDTV sales in 2010, with at least 10 million units sold. http://news.alibaba.com/article/detail/trade/100172454-1-samsung-sees-led-tv-sales.html Press Release: http://www.slashgear.com/ces-2009-samsung-luxia-led-tv-0729265/ Samsung LED TV ads called 'misleading' by U.K. authority http://news.cnet.com/8301-17938_105-10332988-1.html Samsung Steps Up the Action With Eli Manning (NY Times) http://www.nytimes.com/2009/10/01/business/media/01adco.html Ad Spend: Samsung is casting a wide campaign net, spending more than $100 million this season, to promote its televisions on broadcast, online and mobile media, as well as in print and in stores. http://www.nytimes.com/2009/10/01/business/media/01adco.html Off Clip-On tied #10 Launch: July 2009 Overview : Unlike ordinary personal repellents, OFF!® Clip-On™ repellent provides mosquito protection without putting anything on your skin. The quiet, battery-powered fan circulates repellent all around you. Within minutes, OFF!® Clip-On™ repellent provides personal protection from mosquitoes. If you move, allow a few minutes for the unit to rebuild its protection. Protects against mosquitoes that may carry West Nile Viru OFF!® Clip-On™ repellent uses an active ingredient with no sce Each refill provides up to 12 hours of head-to-toe protection. One refill is included with the unit. OFF!® Clip-On™ repellent refills are sold separately and contain 2 repellent disks (for a total of 24 hours of mosquito protection). When clipped to your clothing or just laid on a flat surface nearby, this compact device provides head-to-toe protection. Website - Online information and directions: http://www.offprotects.com/clip-on-mosquito-repellent/ Ace Hardware Outlet Video: http://www.youtube.com/watch?v=jKARkHCqC98 OFF! Clip on Insect Repellent Review http://www.associatedcontent.com/article/1771540/off_clip_on_insect_repellent_review.html Off clip-on repellent fan attracts swarms of buyers – AdAge http://www.allbusiness.com/retail/retailers-general-merchandise-stores-discount-club/12870231-1.html Marketing Mix: The Off! Clip-on exceeded SC Johnson ’s initial sales expectations by more than 400% and sold about $4.2 million its first month, according to Information Resources Inc. data that exclude Walmart, club stores, home-improvement stores and other big channels for the product. The fan has been popular enough that it’s impossible to find in many stores around the country during the prime barbecuing and summer-camp season, though it remains in stock on Amazon. Word of mouth campaign with BzzAgent.
(Aaron Slide) Launch: October 22, 2008 Overview: Google and T-Mobile's G1, the first mobile phone built around Google's open-source, Linux-based Android platform , is officially a product. Before a warm, if not entirely enthusiastic crowd in Manhattan, executives from T-Mobile, HTC and Google officially unveiled the T-Mobile G1. Listing for $179 with two data plans ($25 and $35), the T-Mobile G1 is available now to existing T-Mobile customers in limited quantities (via T-Mobile's web site) and at all T-Mobile locations by late next month. It will also launch in the U.K. in November, and across all of Europe by early next year. The G1 is a dual-band HSDPA (1700/2100) and quad-band GSM device. Marketing Mix: Big Launch Presentation: Google, T-Mobile Launch 'Game Changing' G1 Phone: http://www.pcmag.com/article2/0,2817,2331007,00.asp Google, T-Mobile USA launch the G1 Android phone http://www.fiercewireless.com/story/google-t-mobile-usa-launch-g1/2008-09-23 Google Dream Phone Makes Its Debut – Wired.com http://www.wired.com/epicenter/2008/09/google-dream-ph/ Television Ads: Ad Spend: Sales: T-Mobile USA has sold one million G1 based phones within six months. With this impressive number, G1 accounts for around two-thirds of total 3G phones currently available with T-Mobile’s networks. When compared to iPhone, Apple announced its millionth iPhone sold on September 10, 2007, just 74 days after the device’s launch. As the G1 is only the first phone to run Google’s Android OS, and the software itself is due for a major update in the near future, so the match is hardly over yet. A million unit is an important milestone for both T-Mobile and Google but they have yet to capture the public’s attention the way the iPhone did when it sold 1 million iPhone 3Gs in its first weekend. http://areacellphone.com/2009/04/g1-android-iphone-sales-figure/
(Aaron Slide) Launch: May 2009 Overview: Taco Bell announced the debut of its new Volcano Menu, designed to make any spicy food lover’s taste buds stand up and pay attention. Last year Taco Bell introduced the Volcano Taco and due to its immense popularity, went quickly to work on menu expansion. This year, the all-new Volcano Menu, armed with a new version of its vaunted Lava Sauce, is coming out with burritos and nachos. Volcano Nachos: Tortilla chips covered with hearty beans, seasoned ground beef, warm nacho cheese, red tortilla strips, our new cheesy, molten hot lava sauce, jalapenos, and topped off with reduced fat sour cream. Marketing Mix: Taco Bell is supporting the launch of the new Volcano Menu with an advertising campaign that will extend throughout the summer which includes television and print ads. Television Ads: http://www.youtube.com/watch?v=3cGb-9w5n1Y Taco Bell extends bold flavor with Volcano menu: http://www.qsrweb.com/article.php?id=14487 Press Release: http://www.reuters.com/article/pressRelease/idUS93331+18-May-2009+BW20090518 Sampling: Taco Bell flew a lot of food bloggers out to their test kitchens in Irvine, CA to test the new volcano menu, specifically, the lava sauce. See two blogs below: http://www.foodfacts.info/blog/2009/06/taco-bell-hq-and-test-kitchen-tour.html http://www.scottrobertsweb.com/Visit-to-the-Taco-Bell-Test-Kitchen-and-Volcano-Menu-Review This summer the sun won't be the only thing heating up America. Taco Bell(r) announced today the debut of its new Volcano Menu, designed to make any spicy food lover's taste buds stand up and pay attention. Last year Taco Bell introduced the Volcano Taco and due to its immense popularity, went quickly to work on menu expansion. This year, the all-new Volcano Menu, armed with a new version of its vaunted Lava Sauce, is coming out burritos blazing. http://www.chainleader.com/article/CA6659267.html?industryid=47553 BRANDWEEK Articles: Taco Bell Taps R/GA for Digital: http://www.brandweek.com/bw/content_display/esearch/e3if7a4852b0435babd14e45ba16cdf314b Taco Bell Makes Cinema Debut: http://www.brandweek.com/bw/content_display/esearch/e3i344418db676344f05090f21273a8f616
(Char Slide) Launch : July 2009 Overview: The Angus Deluxe is its first burger launch since 2001. The Angus burgers are made with some items that haven’t been on McDonald’s burgers before, like rings of red onions, sauteed mushrooms, full slices of bacon, natural Swiss cheese and bakery-style sesame seed rolls. They come in three versions: The Deluxe, topped with mayonnaise, mustard, tomato, leaf lettuce, red onions, sliced dill pickles and American cheese (we paid $4.19, $5.89 for a value meal). Bacon & Cheese, topped with ketchup, mustard, red onions, dill pickles, three full slices of bacon and American cheese (we paid $4.39, $6.90 for a value meal). Mushroom & Swiss, made with mayonnaise, sautéed mushrooms and Swiss cheese (we paid $4.19, $5.89 for a value meal). When the Angus burger launched, McDonald’s used free offerings to entice its customers by offering coupons for free medium fries and a soft drink with the purchase of one of the three sandwiches. In September, McDonald’s offered coupons for a free Angus Third Pounder premium burger plus a free transit pass to public transit systems in Atlanta, Baltimore, Chicago, Dallas, Denver and Washington, D.C., as part of its "Try Free, Ride Free" promotion Free Ride Website: ( www.mcdepk.com/TryFreeRideFree ). Free Ride Press Release: http://mcdepk.com/TryFreeRideFree/docs/TryFreeRideFree_NationalRelease_English.pdf Background information: http://mcdepk.com/TryFreeRideFree/docs/TryFreeRideFree_Backgrounder_English.pdf McDonald’s started a new website called “Angus Honors” where users can make up their own two-word headline to be placed in a banner ad. http://angushonors.com/ Television Ads: http://www.youtube.com/watch?v=U26SVURjtcs http://www.youtube.com/watch?v=S5inf_NwIi8 LOS ANGELES (Reuters) – September 2009. McDonald's Corp's August sales at existing restaurants rose 2.2 percent globally, missing analysts' target, as strength in Europe partly offset weakness in the United States and other parts of the world. U.S. same-store sales up less-than-expected 1.7 percent. http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH79174_2009-09-09_15-50-08_N09308829.htm Marketing Daily: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=109024 McDonald’s Kicks off new Angus Burger Promo: http://www.qsrweb.com/article.php?na=1&id=15778 BURGERS how good are they at premium fast food restaurants? Article about Trend in Premium burgers at Fast Food Restaurants (mentions Angus Burger) “ Turns out, fast food restaurants are taking advantage of the tough times and delving into the premium burger category in hopes of drawing customers away from pricier alternatives sold at sit-down burger restaurants.” http://www.pennlive.com/living/patriotnews/index.ssf?/base/living/1257786607212130.xml&coll=1 Food Week: The Top Food Trends for 2010 McDonald's and Burger King have effectively introduced their Angus burgers at higher prices based on the consumers’ perceptions of what this type of beef means; and look for even more growth. http://www.foodweek.com.au/main-features-page.aspx?articleType=ArticleView&articleId=5661 Trends in Fast Food “ Diet foods don't work in the quick-service, or fast food, industry. Mickey D's McLean burger was a great idea but it just didn't catch on with the fast-food eating public.” http://www.restaurantreport.com/features/ft_trends.html BRANDWEEK Articles: August 2009: The chain reported a 3.5 percent second quarter U.S. sales spike last month. It credited the launch of McCafe premium coffees as well as strong demand for the Big Mac. http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i85f38c299a3a459ada89bb8663a805cc CKE Attacks McDonald's Angus Burger http://www.brandweek.com/bw/content_display/esearch/e3i85f38c299a3a459a3504af11448a254e
(Char Slide) Launch: July 2009 Overview: The chefs at Quizno’s have created a whole new way to eat sandwiches. Toasty Torpedoes over a foot of Quiznos flavor served on our slim, sleek ciabatta bread. Made with the same butcher-quality meats and cheeses you love on our subs in five delicious new flavor combinations including: pesto turkey, Italian, turkey club, beef bacon & chedder, and the big kahuna tuna. They’re waiting for you. Torpedo Website: http://www.quiznostoaster.com/ Quiznos® Kicks Off “Where Do You Torpedo?” Contest http://pr.quiznos.com/quiznos-kicks-off-where-do-you-torpedo-contest.ia Restaurant News: http://www.nrn.com/article.aspx?id=366296 Quiznos launches Torpedo sandwich promo http://www.fastcasual.com/article_printable.php?id=14723&page=17 Television commercial: http://www.youtube.com/watch?v=7LQpRQh2KSQ "Where Do You Torpedo?" promotion : Consumers have the chance to win $10,000 for demonstrating how to eat Toasty Torpedo sandwiches, whether in an unusual place or while doing an unexpected activity. Beginning June 8, 2009, fans of the sandwich can upload pictures or videos showing where or how they've eaten a Toasty Torpedo sub to www.toastytorpedo.com , accompanied by a brief description and optional musical soundtrack. Visitors to the site register to vote whether an entry is "Mmmm... Toasty" or "Not Toasty," and are then automatically entered into a sweepstakes for a chance to win free Toasty Torpedoes for an entire year. At the contest's conclusion, Quiznos will invite people to choose their favorite of the top 10 entries as determined by user voting. The winner will be announced on Aug. 3 and honored with a $10,000 cash prize, while all 10 finalists will receive free Torpedoes for a year. To inspire fans about how and where they might enjoy a Toasty Torpedo, Quiznos has released a short video detailing a cross-country Torpedo adventure, capturing real-life consumers eating Toasty Torpedoes in each of the 50 states. Created by Red Popsicle, producers of the documentary film "10 MPH," the video will be distributed online and available on www.toastytorpedo.com . Quiznos is using social media channels to raise awareness of the contest, building upon its existing Facebook and Twitter presence. Quiznos has redesigned its Facebook page to offer contest information and updates, while the irreverent @QuiznosToaster Twitter persona is sending consumers on a virtual scavenger hunt, giving clues to find Quiznos gift cards hidden at locations around the country.
(Char Slide) Blackberry Storm: first iPhone competitor paves way - Touch screen iPhone competitor was launched with a $100 million ad budget Sold 500,000 units in the first month after launch Launch: November 2008 Overview: Designed to satisfy the needs of both consumers and business customers, the BlackBerry Storm smartphone combines the powerful communications features, global connectivity and personal productivity advantages of the BlackBerry(R) platform with a revolutionary touch-screen technology that dramatically enhances the touch interface and enables easy and precise typing. The world's first "clickable" touch-screen responds much like a physical keyboard and also supports single-touch, multi-touch and gestures for intuitive and efficient application navigation Marketing Mix: Directly competing with the iPhone. Email campaign before product was launched on Verizon website. Spent over $100 million on advertising Print media – full page ad in WSJ before the phone was released. Viral Marketing, RIM rejected this piece because it was too “confrontational” but it helped spread the word about the Storm online- http://www.youtube.com/watch?v=xfjS6c9tBls&feature=related Online Videos: http://worldwide.blackberry.com/blackberrystorm/storm_videos.jsp Television Ads: w/ John Krasinski. Shown during football games. Ads before product launched: http://www.youtube.com/watch?v=t-BmTodxe38 http://www.youtube.com/watch?v=RyZ1TXvRhug Sales: People familiar with the matter say the company sold roughly 500,000 units in the first month after the Storm's Nov. 21 launch. That is a promising start, though well off the pace of AT&T Inc.'s sale of 2.4 million iPhone 3G devices in that device's first full quarter on the market. Ad Spend: But despite a marketing campaign that cost more than $100 million, the smart phone has gotten off to a bumpy start. Some early buyers have complained about technical bugs with RIM's first touch screen BlackBerry, although others say most new gadgets have problems that need to be ironed out. http://online.wsj.com/article/SB123292905716613927.html Sampling: Blackberry Storm Pre-Sale, invitation only: http://www.boygeniusreport.com/2008/11/18/verizon-wireless-private-sale-causes-a-furor/comment-page-4/ Press release: http://www.marketwire.com/press-release/Research-In-Motion-NASDAQ-RIMM-907824.html Wall Street Journal Article: http://online.wsj.com/article/SB123292905716613927.html New York Times Article – You call this a Blackberry? http://www.nytimes.com/2008/11/27/technology/personaltech/27pogue.html?pagewanted=1&_r=2&em Blackberry Storm Postcards: http://crackberry.com/verizon-taking-blackberry-storm-advertising-seriously
(Char Slide) Snuggie mania takes over the nation - Launched using primarily infomercials and word of mouth - More than 4 million Snuggies were sold in a three-month period - Ranked #8 on Shoppers Advantage list of top holiday gifts in December 2008, and inspired Snuggie Pub Crawls Launch: October 2008 (For sale August 2008 but TV advertising began in October and as a result they were sent to retailers in December 2008) Overview: Snuggies went on sale in August, began TV advertising in October and started shipping to retailers in December. Already, 4 million have been sold (as of January 2009). The Snuggie, an oversized fleece blanket with sleeves, stars in a ubiquitous TV ad so cheesy it's practically art, and apparently wildly entertaining. Snuggie Website: https://www.getsnuggie.com/flare/next USA Today article: http://www.usatoday.com/life/lifestyle/2009-01-27-snuggie_N.htm Ellen Degeneres Show: http://www.youtube.com/watch?v=hOhrsLEozZs Snuggie for Dogs Website: https://www.snuggiefordogs.com/flare/next Snuggie Fashion Show Images: http://www.time.com/time/photogallery/0,29307,1924078_1949308,00.html Snuggie Sightings website: http://snuggiesightings.com/snuggie/ Facebook Fan Page: http://www.facebook.com/home.php#/Snuggie?ref=search&sid=13308024.565068667..1 Television Ads: http://www.youtube.com/watch?v=2xZp-GLMMJ0 Tweets: sarahhanksltd i got a snuggie for the office, (sort of makes me look like a jedi) remymoore I wanna wear my snuggie to work. Going to attempt to leave my house w/it on & see if anyone stops me. Sales: It's been incredibly successful and is simply mind boggling. The makers of Snuggie have sold over 4 million sleeved-blankets in just a 3 month period. Not to mention the fact that the product has blown up virally. http://www.leveltendesign.com/blog/colin/snuggie-sightings-most-unlikely-marketing-and-viral-success-2009 In early December, the $20 Snuggie ranked No. 8 on Shoppers Advantage's list of top holiday gifts. It was the only nonelectronic nestled among the Wii, cellphones and GPS systems. http://www.allbusiness.com/marketing-advertising/marketing-advertising/12068870-1.html BRANDWEEK ARTICLES: Snuggie Blankets Market with Extensions http://www.brandweek.com/bw/content_display/esearch/e3i0a5fa05df2f2bdcfbba64ae32e689aee Marketers Mull Using Social Net Feedback for Direct Campaigns http://www.brandweek.com/bw/content_display/esearch/e3ief6bd78f4bc262dbcb41617316e7f6bc
(Julie Slide) Beatles: Rock Band offers unique retro-rocker fun - Featured replica instruments like the Rickenbacker 325 Guitar, Hofner Bass, Gretsch Duo Jet Guitar and Ludwig Drums Promotions included a huge television ad buy, print ads, web banner ads, in store promotions, contests, and release parties - Sold 25% of inventory in the first week and more than 595,000 copies since the September launch Launch: September 2009 Overview: Experience The Beatles’ music and legacy like never before, using the core Rock Band gameplay. You won’t just watch and listen as The Beatles make rock history, create landmark records, and conquer the world – for the first time, you’ll be part of the band! Compatible with most instrument hardware, and introducing new hardware; The Beatles: Rock Band Rickenbacker 325 Guitar, Höfner Bass, Gretsch Duo Jet Guitar, and The Beatles: Rock Band Ludwig Drums. Marketing Mix: Online Videos: http://www.thebeatlesrockband.com/videos/tvcommercial Behind the scenes footage: http://www.thebeatlesrockband.com/videos/tvcommercial Beatles Rock band was simultaneously released at the same time as the remastered Beatles catalogue of the band was released. The game was promoted through and overload of television commercials on almost every channel, print ads, banner ads on the web, in store promotions, contests, release parties that put Halo 3 and GTAIV to shame. Microsoft even brought out the last two surviving Beatles to E3 this year to endorse the game. Dhani Harrison went on Late Night with Conan O’Brien to promote the game and every retailer from 7-11 to Whole Foods sold Beatles stuff. http://triangleartsandentertainment.org/?p=2667 Dhani Harrison on Conan: http://www.mefeedia.com/tv/22823636 Television Ads: http://www.thebeatlesrockband.com/videos/tvcommercial Sales: September 9, 2009 - Beatles Rock Band debuted to an impressive 700,000 units worldwide this week. Comparing to the combined week 1 sales of Guitar Hero 5 in Americas / Other Regions, Beatles is up 36% - stronger reviews and the Beatles brand are to thank for this. Interestingly, the majority of the difference comes from the Wii version – Beatles outselling Guitar Hero by nearly 70% on the Nintendo console. Another difference comes with regions – the Beatles are comfortably ahead in America but in Europe Guitar Hero sales are more than double Rock Band (even in the UK). This can be attributed to the fact that Guitar Hero has always been a much stronger brand in Europe than Rock Band, even the Beatles name can’t change this. That said, I expect Rock Band to close the gap in coming months and act to grow the brand in Europe. http://www.rockband.com/forums/showthread.php?t=165148 In the first week of release, the company sold about 25% of their inventory. http://www.incgamers.com/News/18647/the-beatles-rock-band-sales-exceed-expectations Website: http://www.thebeatlesrockband.com/ New York Times Article: http://www.nytimes.com/2009/08/16/magazine/16beatles-t.html?_r=2&pagewanted=print Product Specs: http://www.thebeatlesrockband.com/images/press/pdfs/E3_Beatles_Gameplay_Fact_Sheet_5_30.pdf Wired Article: - Online Beatles RockBand Trailer http://www.wired.com/print/gaming/gamingreviews/magazine/17-09/mf_rockband New York Times Blog http://artsbeat.blogs.nytimes.com/2009/07/15/a-hard-days-night-with-the-digital-beatles/?hp BRANDWEEK ARTICLES: Beatles Help Boost Music Game Biz http://www.brandweek.com/bw/content_display/esearch/e3ied2621cfc5e7c4ccf78ec4f09cebae86 7-Eleven, Whole Foods Come Together for Fab 4 http://www.brandweek.com/bw/content_display/esearch/e3i2a5df3fecd0d1783b6ec8e275b0f1b09 Facebook Fan Page: http://www.facebook.com/TheBeatlesRockBand
(Julie Slide) Launch: May 2009 Overview: McDonald`s McCafé coffees brings a variety of customizable beverages to the national menu, including lattes, cappuccinos and mochas. Playing off the fun of the accent mark in McCafé, the McCafé Theatré, featured in national advertising and online at www.mcdonalds.com/mccafe, seeks to showcase how any ordinary situation can become a whole lot better when you enjoy it with McCafé. Your morning commute becomes a commuté (comm_u_táy) and your office cubicle becomes a cubiclé, all to show that when you "McCafé Your Day," a better day is possiblé. McDonald’s launched its campaign in conjunction with YouTube by taking over YouTube’s homepage. McDonald’s created a very interactive website solely for McCafé which features, each new drink, games, online crafts, music making (mocha beats), coffee art, how McCafe can make your life better and virtual ice skating ( http://www.mccafecoffee.com/ ). In addition to offering free samples of the drink for three weeks, McDonalds also promoted the drink with a contest where contestants had a chance to win $50,000 cash from Visa and a $500 McDonalds gift card when they wrote about how McCafe makes their day a little better. McDonald’s also took the opportunity to poke fun at Starbucks with bill boards posted around Seattle, Washington. McDonald's called it "a light-hearted, fun approach to our brand," aimed at promoting the company's McCafe coffee products. However, Starbucks is not finding the ad campaign funny. McCafe Twitter handle: McCafeYourDay Ad Spend: By now I would not be surprised if nearly all of us have seen a new ad, heard a radio blurb, or have driven by a new McCafe, adorned with banners and ads for their new coffee and espresso beverages. Yesterday, McDonalds started the launch of a new $100M ad campaign that is promoting their McCafe rollout and an expanded espresso and coffee menu. http://www.baristaexchange.com/forum/topics/mcdonalds-100m-ad-campaign Sampling : - Nationwide McDonald's anticipates giving away an estimated 10 million samples during the 'McCafe Mocha Monday' nationwide sampling event starting July 13; weekly sampling program coincides with semi-finalist voting for the McCafe Your Day contest and sweepstakes. http://www.chainleader.com/article/CA6669941.html McD's Launches McCafe With An Accent On The 'E' http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=105474 McDonald’s Rolls With YouTube For McCafe Launch http://paidcontent.org/article/419-mcdonalds-rolls-with-youtube-for-mccafe-launch/ Television Ads: http://www.youtube.com/watch?v=IvyMkGeQ3R0 Adding an “é” to everything: http://www.youtube.com/watch?v=W1cXI1CXpS8 http://www.youtube.com/watch?v=1lf21VljV0w&feature=related McDonald’s Corporation Q2 2009 Earnings Call Transcript July 2009: In the past few years, sales have been up from 2% to 5%, largely due to the McCafe. http://seekingalpha.com/article/150959-mcdonalds-corporation-q2-2009-earnings-call-transcript Fast-food giant McDonald's Corp. said Wednesday that its global comparable-sales rose 2.2% in August after new products and its McCafe coffees helped to bolster demand in the U.S., offsetting lower sales in Asia. September 2009: http://www.marketwatch.com/story/mcdonalds-august-sales-rise-22-missing-views-2009-09-09 McCafé Press release: http://www.reuters.com/article/pressRelease/idUS150698+05-May-2009+BW20090505 Coffee wars – McDonald’s vs,. Starbucks: http://www.cnn.com/2008/US/12/12/coffee.costs/index.html McCafe website: http://www1.mcdonalds.com/mccafe/index.html Latte’s Have Legs Article talking about how McDonald's and Starbucks have been locked in battle with consumers paring back luxury spending “ After a long slog, it seems that McDonald's higher-end coffee drinks are catching on with consumers. A recent unscientific survey of McCafes found them busy and boasting long lines on a weekday morning.” http://www.marketwatch.com/story/lattes-have-legs-at-mcdonalds-2009-11-09 BRANDWEEK Articles: McCafe Helps Fuel McDonald's Earnings http://www.brandweek.com/bw/content_display/esearch/e3i017491d566a166610be825c802b8a220 Starbucks Revamps Menu with Healthier Fare http://www.brandweek.com/bw/content_display/esearch/e3i9b66dcb9d0fe519a5c414b2afd139866
Char or Aaron Slide McDonald’s McCafe draws a line in the froth - McCafé launches customizable lattes, cappuccinos, and mochas - $100 Million ad campaign - Took on Starbucks and ran billboards saying “four bucks is dumb” - Promoted the drink with a contest where contestants could win $50,000 cash from Visa and a $500 gift card Launch: May 2009 Overview: McDonald`s McCafé coffees brings a variety of customizable beverages to the national menu, including lattes, cappuccinos and mochas. Playing off the fun of the accent mark in McCafé, the McCafé Theatré, featured in national advertising and online at www.mcdonalds.com/mccafe, seeks to showcase how any ordinary situation can become a whole lot better when you enjoy it with McCafé. Your morning commute becomes a commuté (comm_u_táy) and your office cubicle becomes a cubiclé, all to show that when you "McCafé Your Day," a better day is possiblé. McDonald’s launched its campaign in conjunction with YouTube by taking over YouTube’s homepage. McDonald’s created a very interactive website solely for McCafé which features, each new drink, games, online crafts, music making (mocha beats), coffee art, how McCafe can make your life better and virtual ice skating (http://www.mccafecoffee.com/). In addition to offering free samples of the drink for three weeks, McDonalds also promoted the drink with a contest where contestants had a chance to win $50,000 cash from Visa and a $500 McDonalds gift card when they wrote about how McCafe makes their day a little better. McDonald’s also took the opportunity to poke fun at Starbucks with bill boards posted around Seattle, Washington. McDonald's called it "a light-hearted, fun approach to our brand," aimed at promoting the company's McCafe coffee products. However, Starbucks is not finding the ad campaign funny. McCafe Twitter handle: McCafeYourDay Ad Spend: By now I would not be surprised if nearly all of us have seen a new ad, heard a radio blurb, or have driven by a new McCafe, adorned with banners and ads for their new coffee and espresso beverages. Yesterday, McDonalds started the launch of a new $100M ad campaign that is promoting their McCafe rollout and an expanded espresso and coffee menu. http://www.baristaexchange.com/forum/topics/mcdonalds-100m-ad-campaign Sampling : - Nationwide McDonald's anticipates giving away an estimated 10 million samples during the 'McCafe Mocha Monday' nationwide sampling event starting July 13; weekly sampling program coincides with semi-finalist voting for the McCafe Your Day contest and sweepstakes. http://www.chainleader.com/article/CA6669941.html McD's Launches McCafe With An Accent On The 'E' http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=105474 McDonald’s Rolls With YouTube For McCafe Launch http://paidcontent.org/article/419-mcdonalds-rolls-with-youtube-for-mccafe-launch/ Television Ads: http://www.youtube.com/watch?v=IvyMkGeQ3R0 Adding an “é” to everything: http://www.youtube.com/watch?v=W1cXI1CXpS8 http://www.youtube.com/watch?v=1lf21VljV0w&feature=related McDonald’s Corporation Q2 2009 Earnings Call Transcript July 2009: In the past few years, sales have been up from 2% to 5%, largely due to the McCafe. http://seekingalpha.com/article/150959-mcdonalds-corporation-q2-2009-earnings-call-transcript Fast-food giant McDonald's Corp. said Wednesday that its global comparable-sales rose 2.2% in August after new products and its McCafe coffees helped to bolster demand in the U.S., offsetting lower sales in Asia. September 2009: http://www.marketwatch.com/story/mcdonalds-august-sales-rise-22-missing-views-2009-09-09 McCafé Press release: http://www.reuters.com/article/pressRelease/idUS150698+05-May-2009+BW20090505 Coffee wars – McDonald’s vs,. Starbucks: http://www.cnn.com/2008/US/12/12/coffee.costs/index.html McCafe website: http://www1.mcdonalds.com/mccafe/index.html Latte’s Have Legs Article talking about how McDonald's and Starbucks have been locked in battle with consumers paring back luxury spending “ After a long slog, it seems that McDonald's higher-end coffee drinks are catching on with consumers. A recent unscientific survey of McCafes found them busy and boasting long lines on a weekday morning.” http://www.marketwatch.com/story/lattes-have-legs-at-mcdonalds-2009-11-09 BRANDWEEK Articles: McCafe Helps Fuel McDonald's Earnings http://www.brandweek.com/bw/content_display/esearch/e3i017491d566a166610be825c802b8a220 Starbucks Revamps Menu with Healthier Fare http://www.brandweek.com/bw/content_display/esearch/e3i9b66dcb9d0fe519a5c414b2afd139866
(Julie Slide) And the #1 Most Memorable New Product Launch of 2009 – KFC’s Grilled Chicken!
(Julie slide) Not exactly the original plan but ultimately one that worked: Coupon for free samples mentioned on Oprah Failure to redeem coupons and meet extraordinary demand Negative media coverage about franchisees not honoring promotion; KFC issues “rain checks” for coupons Large advertising campaign supports launch Product trial and purchase are strong Grilled Chicken becomes the most successful launch in KFC history (65+ million Americans) Media issues retractions, generates positive launch coverage Launch: April 2009 Overview: Kentucky Grilled Chicken has fewer calories, fewer fat grams and less sodium than our Original Recipe chicken, all without sacrificing the great taste of KFC. It’s marinated, seasoned with KFC’s famous secret herbs and spices, and then slow roasted to juicy perfection. Enjoy the better-for-you-chicken with the savory flavor of KFC. Marketing Mix: KFC started the campaign with a new tagline, “Unthink what you thought about KFC” in addition to free chicken giveaways. The launch began with free samples of the product including Oprah endorsing it on her show and website offering a coupon for a free two-piece meal. ( www.oprah.com/kfc ). Problems with KFC/Oprah Coupon http://www.foodfacts.info/blog/2009/05/problems-with-kfcoprah-coupon.html KFC ended up revoking the coupon because of too much demand from consumers and anger from franchise owners, which resulted in riots, racial abuse, pandemonium, a near complete breakdown of KFC’s entire supply chain, and some KFC stores simply refusing to honor the coupons. http://www.foodfacts.info/blog/2009/05/kfc-revokes-coupons-issues-rainchecks.html In addition to the negative results mentioned above, Southern California chicken company, El Pollo Loco, created a whole campaign against KFC grilled chicken. All this combined only made KFC more popular and well-known. Social Media/Technology: MySpace - Specifically, KFC launched a promotion on MySpace, where the user that submits the best video ad for the brand will both star in an upcoming TV ad campaign and receive a lifetime supply of chicken. KFCwill pick three finalists, and users will vote for the winner. How much is a lifetime’s supply of chicken you ask? According to Brand Republic, KFC will be on the hook for around $16,000 USD, or roughly 2,600 two-piece meals. KFC also incorporated widgets into their campaign. It’s called the “bucketizer” widget and it allows fans to upload images and see how they would look on a Kentucky Grilled Chicken bucket. “Bucketized” images of KFC fans are already appearing all over MySpace and other social media sites. They also have one for celebrities. http://www.kfc.com/about/newsroom/070909.asp MySpace Website/Videos: http://www.myspace.com/unthinkfc Television Ads: Free Chicken Day: http://www.youtube.com/watch?v=WUmQJh9R_rE&feature=PlayList&p=9EF0A4A0440DD289&playnext=1&playnext_from=PL&index=71 Commercial: http://www.youtube.com/watch?v=RgkjDdMJ34Y&feature=PlayList&p=9EF0A4A0440DD289&index=72&playnext=2&playnext_from=PL Is your groove grillin?: http://www.youtube.com/watch?v=28SL3k4mTWI , http://www.youtube.com/watch?v=l5vx2itH49s&feature=related http://www.youtube.com/watch?v=bD9xC6gQ-Uw&feature=related Controversial commercial – some thought a little racist: http://www.youtube.com/watch?v=GpqTqtDT6t8&feature=player_embedded “ Promotional roller-coaster was a blessing” KFC, a subsidiary of Louisville-based Yum Brands Inc., won't reveal sales numbers since the grilled chicken rollout, but Eaton called the early results "transformational" for a brand that has struggled with its heritage of fried food in the U.S., even while expanding rapidly overseas, especially in China. "Clearly, we're bringing in a lot of new customers," Eaton said. "We're exciting a lot of people about the brand who haven't been excited about the brand before. And that's really helping the business grow." http://abcnews.go.com/Business/wireStory?id=7665975 Grilled Chicken Most Successful KFC Launch Ever http://www.mediabuyerplanner.com/entry/44057/grilled-chicken-most-successful-kfc-launch-ever/?utm_campaign=newsletter&utm_source=wmd&utm_medium=textlink BRANDWEEK Articles: Oprah Helps KFC Roast Its Brand Image http://www.brandweek.com/bw/content_display/esearch/e3i22db2de2f279e316ba83c4908147d43e Big Chicken Chains Expand Their Range http://www.brandweek.com/bw/esearch/article_display.jsp?vnu_content_id=1003782195 Category Wars: Big Chicken Chains Expand Their Range http://www.brandweek.com/bw/esearch/article_display.jsp?vnu_content_id=1003782488 KFC Seeks Face of Kentucky Grilled Chicken http://www.brandweek.com/bw/content_display/esearch/e3i388dc3328f74c5ee82e12e1810c39378 Wasserman Articles: KFC Grilled Chicken Launch Far from a Fiasco http://www.brandweek.com/bw/content_display/esearch/e3i9eca39474e4901393233cd8dcee5eac3 KFC Links to Beach Volleyball http://www.brandweek.com/bw/content_display/esearch/e3id6133b258de563ea4ca91fb39c9f4588
I will now hand it over to Aaron Reid from Sentient Decision Science to discuss some of the Consumer Insights.
Aaron Slide
Aaron Slide
Aaron Slide
Now we’ll discuss some of the conclusions from the 2009 MMNPL survey.
Julie Slide
Char Slide
Aaron Slide
Julie Slide
We would love to hear some of the questions you might have.
Julie: I want to thank my colleagues: Char Partelow of IRI & Aaron Reid of Sentient Decision Science, who conducted and analyzed this great survey.
Char Slide
Julie Slide

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Mariusz Bednarko at Infinity Group 2 years ago