In a time of job cuts and home foreclosures, a $4.00 latte is one indulgence that some Americans are willing to forgo. Although Starbucks’ premium lattes are what made the coffee shop famous, the premium prices are now hurting its profits.
Competition with places that sell cheaper coffee, such as Dunkin Donuts and McDonalds, has pushed Starbucks in the direction of more affordable beverages.
Starbucks plans to launch its new line of instant coffee, Starbucks Via, next week. Although the launch was supposed to be kept secret until February 17, executives leaked the story to Advertising Age, and now it’s appearing everywhere, from blogs to Fortune magazine, to the Wall Street Journal.
According to Fortune, stores will begin selling Starbucks Via, which is powdered coffee that just needs hot water, as early as next month. The product will be sold in packets that come in packages of three for $2.95 or 12 for $9.95. As a result, consumers will be able to have a cup of Starbucks coffee for under $1.00.
If the taste is the same as regular Starbucks coffee, Starbucks may have created one of the most memorable products of 2009. If the taste isn’t comparable to its original brew, the product will disappear.
Unfortunately, many people have negative biases against instant coffee that may discourage them from trying Via. A Wall Street Journal article explains, to counter the problem, Starbucks went through hundreds of versions to replicate its signature brewed coffee taste and plans to heavily push samples to consumers. In addition to sampling, it will be interesting to see how Starbucks positions and promotes this new product launch.
Will an inexpensive, instant version of America’s favorite luxury coffee sell? Or will people continue to indulge on their more expensive favorites? Does this campaign require re-educating consumers about the great taste of instant coffee?
When looking at the top 10 launches from the Most Memorable New Product Launch Survey, it’s hard to believe that 69% of consumers Schneider Associates, Mintel and IRI polled could not remember a single new product that was launched in 2008.
The Super Bowl always has the most interesting and talked-about commercials of the year, but are consumers just too preoccupied to recall and act on ads they saw just once during the game? What will it take to cut through the mental clutter and the morass of bad financial news?
A recent Advertising Age Article, “Bad Times Affect Ad Recall for Bowl Sports,” supports the MMNPL’s findings. According to a 12 year Gallup & Robinson study cited in the article, “there is a direct relationship between the confidence people have in the economy and the attention they pay to Super Bowl commercials.” When the economy is bad, recall decreases. While how engaging the commercial is and the quality of the game also matter, the economy does play an important role. When people are worrying about losing their job or their house, they’re not thinking about that funny Bud commercial.
These statistics create massive problems for already struggling advertisers. Some have decided to skip the Super Bowl this year, while others are trying new strategies to break through. According to an interview from Mobile Marketer, more ads will include text message call outs to solve the recall problem and get immediate responses from viewers. This strategy, which was used in 5% of last year’s ads, including an Obama campaign ad, is rumored to be increasing to 10% or 15% this year.
We’ll just have to watch the game this Sunday to see what happens. Companies need to captivate and engage the Super Bowl audience in innovative ways. It takes a lot to motivate consumers in the best of times and far more in the worst of times so it will be fascinating to Monday morning quarterback this important advertising event.
If you had 3 million dollars would you spend it on a Super Bowl Ad?
Be funny, be clever, be witty, be insightful, and most importantly —BE MEMORABLE!
To celebrate this year’s Most Memorable New Product Launch (MMNPL) Survey results, Schneider Associates, IRI and Mintel are inviting you to create the “Most Memorable Post” based on facts included in the survey. The contest will be judged by social media superstars Steve Hall (@stevehall) of AdRants.com, JuliaRoy (@juliaroy) of JuliaRoy.com and Bob Collins (@robertcollins) of Social MediaBreakfast.com/boston.
To be eligible for contest prizes, you must create a blog post or Tweet about one of following three trends or facts found in this year’s Most Memorable New Product Launch Survey:
Categories
1. Technology
Technology continued to dominate the MMNPL list with Wii Fit, iPod Touch, Macbook Air, and Rock Band. No doubt you’re using one or more of these incredibly fun products and must have a few memorable stories to share.
2. Social Media Trends
Our survey shows purchasing decisions by males are far more influenced by social media than those by females. What’s up with that? Do you think this is true?
3. Intimate Fun
K-Y Yours + Mine Couples Lubricant was the first ever intimate bedroom product of its kind to crack the Most Memorable New Product Launch Top 10 List. We suspect it won’t be difficult to write a memorable post about this new product.
Prizes:
$50 American Express gift check for the ‘most memorable” blog post in each of the three categories
$25 American Express gift check for the “most memorable” Twitter post in each of the three categories
Contest Rules:
Blog
To be eligible for the blog contest prizes, bloggers must link back to our blog, www.MMNPL.com, and use keyword tags: “MMNPL” and the title of the category you are submitting (“Technology,” “Social Media” or “Intimate Fun”). This will help us find your results.
Twitter
To be eligible for the Twitter contest prizes, contestants must use their personal Twitter account to create a “Most Memorable Tweet.” Please include the hash tag “#MMNPL.”
All entries must be received by 11:59 p.m. EST on Sunday, November 23, 2008. Winners will be posted by 12 noon on Tuesday, November 25, 2008 at mmnpl.com.
To download the press release and the Executive Summary of the MMNPL Survey results please visit this link: www.mmnpl.com
And don’t forget—be funny, be clever, be witty, be insightful, and most importantly—BE MEMORABLE!
FOR IMMEDIATE RELEASE Contact: Patrick Richardson Schneider Associates (617) 536-3300 prichardson@schneiderpr.com Recession “crunches” new product recall to all-time low Most Memorable New Product Launch Survey finds Wii Fit most remembered by Americans; other new technology products and twists on familiar brands also recognized Chicago (November 18, 2008)—Advertisers and brand managers have new challenges to face as Americans are less aware of new product launches than ever before. That’s the key finding from the seventh annual Most Memorable New Product Launch Survey (MMNPL), conducted by Schneider Associates, Mintel International and IRI. When asked about new products from 2008, 69% of survey respondents could not remember a single new product launched during the year. Even the most memorable new product of 2008— the Wii Fit—was recalled by only 22% of respondents in aided recall*. Rising food and gas prices, fear of economic recession and attention-grabbing political campaigns are all to blame: “2008 was a year of distractions, with the average American’s attention pulled in many different directions simultaneously,” comments Lynn Dornblaser, Director of Trend Insight at Mintel. “The fervent presidential campaigns and election genuinely excited many voters. But even more, we saw people deeply impacted by the financial crisis. From higher food prices to unemployment to housing scares, economic struggles seriously affected the way many people lived this year.” Char Partelow, Senior Vice President, Panel Consulting Group at IRI noted that Americans have cut back on spending, making them inherently less aware of new products. “Because many people can only afford the basics, they’re sticking to what they know, products and services that bring them comfort. We found that ‘a trusted brand name’ ranked as the number one quality respondents looked for when buying new products. Many Americans are simply less interested in ‘risking it’ on a new product.” “Sticking to what they know” explains the prevalence of familiar food and drink brands on the MMNPL survey winners list. Of the products most frequently remembered in aided recall*, five were new twists on familiar food and drink: Bud Light Lime, McDonald’s Southern Style Chicken Biscuit & Sandwich, Kraft Mac & Cheese Crackers, Gatorade G2 and Yoplait Fiber One. “Consumers recalled new product launches from brands they know and love. McDonald’s, Kraft and Bud Light are trusted brands that gave people a new variation on something familiar,” comments Julie Hall, Vice President, Schneider Associates. For the second year in a row, technology products featured prominently on the MMNPL winners list. The Wii Fit and iPod Touch were numbers one and two, respectively, and MacBook Air and Rock Band were represented in the top 10 memorable launches. The Most Memorable New Product Launch Survey was conducted online among 1,000 respondents aged 18 and over during September 2008. Given a list of 50 new product launches from 2008, people most commonly remembered the following: 1. Nintendo Wii Fit (recalled by 22% of respondents in aided recall*) 2. iPod Touch (16%) 3. Bud Light Lime (15%) 4. McDonald’s Southern Style Chicken Biscuit & Sandwich (14%) 5. Kraft Mac & Cheese Crackers (13%) 6. KY Yours + Mine Couples Lubricant (12%) 7. Gatorade G2, Yoplait Fiber One (11%, two-way tie) 8. MacBook Air, Rock Band, Burger King Apple Fries, Neosporin Neo To Go!, Kraft Bagel-fuls (8%, five-way tie) For more information on the survey or to learn more about the results, visit www.mmnpl.com. *For aided recall, Mintel gave survey participants a list of 50 new grocery, personal and beauty care, technology and toy products from 2008. This list was selected in advance by Mintel, IRI and Schneider Associates. About Mintel International Mintel International is a leading global supplier of consumer, product and media intelligence. For more than 35 years, Mintel has provided insight into key worldwide trends, offering unique data that directly impacts client success. www.mintel.com About Schneider Associates Schneider Associates is a full-service marketing communications agency that launches products, services, companies and communities. www.schneiderpr.com and www.launchpr.com About IRI Information Resources, Inc. (IRI) is a global leader in providing consumer, shopper, and retail market intelligence and insights supporting 95 percent of the FORTUNE Global 500 consumer packaged goods (CPG), retail and healthcare companies. www.infores.com ###
According to a 2006 study, 30 percent of American adults are overweight. And so are most of their dogs. Statistics from a recent veterinary report show that man’s best friend is also tipping the scales a little too far, with 25 percent of all American dogs classified as overweight.
Since Americans and their pets are both battling weight problems, it’s not surprising the diet markets for these two groups are similar. To capture this market of consumers with overindulging dogs, Del Monte Pet Products introduced Pup-Peroni 50 Calorie Packs, the first portion controlled snacks for canines.
Calorie conscious snackers have turned 100 calorie packs into a $200 million annual goldmine. According to a February USA Today article, 82 single serving products touting 100 or fewer calories were released in 2007. In 2004, there were only seven. This trend is snowballing among health conscious Americans, and Del Monte is pioneering the movement in the pet food market.
“They’re a guilt-free snack,” says Matthew Park, Del Monte’s marketing vice president. “Just as 100-calorie packs help people 50-calorie packs help dogs cut calories and live healthier.”
Does this trend have the legs to create a whole new market for calorie conscious dog owners? Are the Pup-Peroni 50 Calorie Snack Pouches memorable enough to become the first ever pet food to crack the top 10 Most Memorable New Product Launch List? Will they soon have Weight Watchers for dogs?
The results are in! Schneider Associates, BNP Media’s New Product Magazine, IRI and comScore are pleased to announce the findings of the Sixth Annual Most Memorable New Product Launch Survey. Based on feedback from more than 1,000 consumers across the country, this study reveals the most memorable new product launches of 2007 and highlights the latest trends in consumer behavior.