Monday, February 18, 2008

Dunkin Donuts, then McDonald's, followed by Starbuck's



We're talking coffee ratings. “Brand Keys Customer Loyalty Engagement Index Rankings” is an annual survey and McDonald's premium coffee has helped them climb back into the good favor of their clientèle.

And my wife is totally sold on the iced coffee they introduced last year.

Note that Starbuck's is number 3. And with McDonald's introducing lattes nationwide this year, combined with the belt tightening that many consumers are doing, it may take more than a three hour training session later this month to energize Starbuck's.

Here's the report on Coffee, Diapers, Beer, Phones and Computers from Brandweek:



McD's, Sam Adams in Line With Shifting Loyalty Drivers

February 17, 2008

By Kenneth Hein

McDonald’s has taken its lumps in the past for its high-calorie menu options, but now the fast feeder has become a textbook example of how to change with the times.

For the first time, McDonald’s topped the “Brand Keys Customer Loyalty Engagement Index Rankings” in the fast food category. The burger giant had regularly ranked close to the bottom of its segment for much of the survey’s 11 years of existence. This year it tied Subway for the top spot.

Brand Keys’ annual index asks regular brand users to rate how well their favorite brands meet or exceed their expectations. The New York firm polled 26,000 consumers via the phone and face-to-face in January about 382 brands.

Thanks to its premium coffee, salads and even its new McSkillet breakfast offering, McDonald’s has satisfied consumers’ cravings for menu variety and healthy choice/quality/value, which are the biggest drivers of consumer loyalty in the category.

Subway held strong, however, as former fatty Jared Fogle celebrates his “10 years of keeping it off” in its latest ad efforts. “It shows the power of giving customers fresh stuff and allowing them to order it the way they want it,” said Tony Pace, CMO, Subway Franchisee Advertising Trust, Milford, Conn. In terms of menu variety, “We have 14 million combinations when you do the math with all of the different veggie and sauce combinations. And when it comes to healthy choice, we certainly win on that one.”

Meeting consumers’ expectations is tricky business. Every category except for two saw the elements that drive consumer behavior shift. Fifty-seven categories in all were examined, including the coffee category which McDonald’s appeared in for the first time. It ranked second, ahead of Starbucks and behind Dunkin’ Donuts.

McDonald’s USA rep Bill Whitman said, coffee has become an all-day favorite: “Consumers appreciate the full-bodied, robust taste of our premium, roast blend. We’ll only continue to grow that offering.”

McDonald’s introduced a line of espresso-based drinks including cappuccinos and lattes at 800 restaurants and will roll them out nationwide throughout the year.

Another sign of the times: Wal-Mart's private-label brand White Cloud tied Playskool as the top brand in the diaper category. “This is symptomatic to a larger degree of the commoditization of brands,” said Robert Passikoff, president of Brand Keys, New York.

As is the fact that there were more ties at the top of categories (16) than ever before. “The curtain has been pulled back from brands exposing products and services that have lost their ‘brandness’ and are turning into category placeholders,” said Passikoff.

For diapers, elements like design, comfort and fit have been replaced with how much is it? “Consumers are smarter, they realize that they are all basically the same,” said Passikoff. “ They are all going to end up just being the same smelly diapers you have to change 13 times a day.”

Sam Adams also staged an upset, surpassing Coors and Budweiser as the top beer choice. Coors had regularly ranked No. 1; however, the fact that full-bodied taste is the leading category driver played into Sam Adams’ brand promise.

“Our goal has always been to create a world-class American craft beer and our most important audience, our drinkers, have told us we have accomplished our task,” said Jim Koch, founder and brewer of Samuel Adams. “Obviously, the credit goes to the full-flavored taste of Samuel Adams beers.” He also touted its “Take Pride in Your Beer” ad campaign and promotions, such as its home brewing contest.

AT&T, which had drastically metamorphosized over the years, jumped to the top spot of the wireless category which it shares with Verizon. That was due in part to its deal with Apple to be the exclusive carrier for the iPhone. Not coincidentally, Apple defeated other comers in the computer category where design and added features were consumers’ top concern.

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