To Copy or Not To Copy: Adding Smoothies to the Burger King Menu An integrated social media research study Prepared by Conversition May 2012 Methodology = Listening + Asking Listen to Learn Collect Clean Categorize Calibrate 2 • Scour the internet for relevant messages • Clean out spam and nonrelevant chatter (e.g., fun engagement conversations on Facebook) • Categorize the verbatims into relevant content areas, e.g., pricing, recommendations, commercials, celebrities • Calibrate the sentiment into 5-point Likert scale buckets Ask to Confirm Hypothesize Design Analyze Report • Review the social media listening data for hypotheses • Design unbiased survey questions to answer those hypotheses • Analyze the results and identify meaningful segments • Report on major differences and conclusions The Smoothie Buzz Belonged To Burger King In April 2012, a collection of social media conversations about smoothies generated many mentions of Burger King, far more than Jamba Juice, a restaurant that specializes in smoothies. 3 On April 2, Burger King Introduced Smoothies Why? Before April 2 2012, no one talked about smoothies at Burger King. The new product launch was immediately recognized in social media, but the buzz quickly declined. 75 0 4 People Like The Smoothies Thanks for the healthy option! • “Mom I want a healthy smoothie and some free fries from bk! :D” • “David Beckham can enchant any person including me. It is nice to know that Burger King is offering some healthy smoothies. “ 5 400 100 B2B T2B 300 75 200 50 100 25 0 0 Taste Healthy Favourite Box Score (%) Sample Size Sample Size They taste great! • “Guess what ? I just had a smoothie from burger king, and it tasted greeeaaatttt (;” • “This Burger king tropical mango smoothie is like an amazing tropical paradise in my mouth lol this thing tastes so good” • “The strawberry banana smoothie from burger king is the BEST smoothie.! Omg it's so good :)” But People Complained: You’re a copy cat 100 Sample Size Sample Size What’s the deal with the ice? • “What smoothie only has chunks of ice? That’s burger king” • “Crushed ice with flavoring is not a smoothie burger king” • “burger king smoothies taste like water” 400 B2B T2B 300 75 200 50 100 25 0 0 Ice 6 Creativity Watered Down Box Score (%) Aren’t you just copying Mcdonalds? • “Burger King copying McDonalds for theirs smoothies.. #Wtf? #BeOriginal” • “Burger King's such a copycat these smoothies are identical to McDonalds' smoothies” Ask to confirm: Copy Cat Concerns • A small but significant number of people remarked that Burger King was simply copying McDonald’s. Will this lack of nutritional creativity have a negative impact on the product’s success? • Are loyal brand users happy regardless? • Are competitive users angered? Ice Concerns • A small percentage of people indicated that the smoothies were watered down or that the ice pieces were too big. • Is there an issue with the consistency of the ice or is this just a minor concern from a few voices? 7 Ask: Competitive Comparisons • Consumers generally like smoothies and rate all brands, except Tim Horton’s, at about the same level • BK loyals, purchasers, and triers have more positive opinions of BK and competitor smoothies, perhaps because of the recent attention focused on the category • But, McDonald’s loyals, and those who feel Burger King is just copying McDonald’s rate BK smoothies slightly less positively – but still positively Top 2 Box “Do you like Smoothies…” Sample Size In general? At Burger King? At McDonald's? At Starbucks? At Tim Horton's? Total BK Loyals McD Loyals BK McD Purchasers Purchasers 499 57 127 253 82% 81% 84% 83% 68% 90% 98% 91% 87% 81% 81% 73% 85% 84% 56% 87% 85% 90% 86% 73% Tried BK Smoothie Copy Cats 377 241 188 83% 81% 87% 83% 69% 92% 86% 86% 86% 74% 85% 78% 84% 77% 56% Loyals: “If you could go to only one of the following restaurants for the rest of your life, which one would you choose? “ 8 Ask: Is there a copy cat concern? • Across the entire sample, about 70% of people indicated they would be somewhat or much more likely to purchase something at McDonald’s. • Even loyal McDonald’s customers, and those who say Burger King is just copying McDonald’s, indicate they are somewhat or more likely to purchase at Burger King now. • Unfortunately, only a third of people feel that this menu addition was the result of research. This problem could easily be rectified by sharing the focus group and research experiences that led to the decisions. Why did BK launch smoothies? Total BK Loyals 499 57 127 253 377 241 188 Customers asked for them To be like McDonald's To have more healthy beverages Market research demanded it 26% 39% 40% 32% 14% 46% 24% 58% 37% 29% 39% 41% 28% 43% 40% 24% 33% 39% 28% 100% 37% 34% 32% 32% 33% 35% 32% 35% Likely to purchase (T2B) 70% 91% 62% 76% 70% 77% 64% Sample size 9 McD BK McD Tried BK Loyals Purchasers Purchasers Smoothie Copy Cats Ask: Is there an ice problem? • Though only a few social media comments noted an ice problem, this was confirmed via unaided responses to ”why your best friend should NEVER try a smoothie from Burger King” – – – – – “ice not completely crushed “ “too much ice in smoothie (not creamy)“ “poorly blended - chunky ice bits “ “The ice doesn't get ground up “ “I had one once that was more ice than friut “ • And, when prompted, even 16% of Loyal BK customers, felt that the ice was not crushed enough • Burger King must address this issue more carefully to determine whether a slight tweak to the recipe will cause more harm than good. Which of the following are concerns for you? Sample Size Watery Ice isn't crushed enough 10 Total BK Loyals McD Loyals BK Purchasers McD Purchasers Tried BK Smoothie Copy Cats 499 57 127 253 377 241 188 19% 24% 16% 16% 20% 23% 16% 21% 19% 23% 20% 24% 15% 25% Listen to Learn, Ask to Confirm • • • Burger King recently updated their menu to include smoothies, an option already offered by several major competitors Though untrue, social media picked up on the Copy Cat notion. The problem appeared to be more bark than bite as even consumers who yielded that complaint intended to purchase at Burger King. However, many consumers do not realize that the menu additions were the result of much market research • This could be rectified via a communications campaign that shares video or verbatims from the research experiences • A few complaints in social media led to the discovery of a trickle of complaints in the survey research. • 11 Burger King must conduct further research to determine if a tweak to ice consistency is worthwhile. Thank you 12