Better way to Use Segmentation by YUM!, TNS, and Taco Bell #TMRE #MRX


Live blogs by @LoveStats! This is a session summary from The

The classic Taco Bell logo used from 1985 to 1...

Image via Wikipedia

Market Research Event by IIR in Orlando, Florida, November 2011. It was posted mere minutes after completion of the talk. Any inaccuracies are my own. Any humorous side remarks are also my own. Feel free to leave comments and critiques.

***                                                                                                          ***

8:00 – A Better Way to Use Segmentation for Strategic Product

Planning & to Drive Innovation
Debra Kassarjian, Director, Customer Experience, YUM Brands
John Essegian, EVP Client Service, TNS

  • Wanted to develop a new menu architecture. It was time for an update. Where were the innovation opportunities.
    HARNESS THE POWER!  [Buzzword bingo🙂 ]
  • Need to get the information and how to activate it
  • Great segmentation integrates brand, consumer,competitive landscape to  identify gaps; holistic; living document
  • It is NOT target user groups in isolation; a tracker with brand ratings; put it on the shelf
  • Most common downfalls – only identified segments, not linked to opportunities, not at product level; can’t communicate them, lack of organizational structure to bring to life
  • 2001 – no innovation, test market was 50/50 successful, no up-front insights, too much spent on product testing
  • Needed more comprehensive approach to developing new products; melting cheese on everything doesn’t cut it :)  [although that does work for me]
  • Started with 2 hours indepth interviews and projective techniques, make people talk about QSR in a way they never have [now @Zebrabites is listening]
  • Take qual work into quant work
  • Used cluster analysis, factor analysis, no magic there [shocking, most people like to think their analysis is unique when it really isn’t🙂 ]
  • Thought they had “big” covered but they didn’t; restructured so they had a pillar focusing on this area; they had focused on flavours not world of big and meaty and humungous
  • They went barhopping and restaurant visiting with menand their friends
  • Developed 4 to 5 years of pipeline out of this one area
  • Why go to Taco Bell? Sit and stay, waiting for paycheck, on the go, only the best meat, hungry man, fresh and tasty; these create a lot of profile information – demographics, visit motivators
  • Plotted 56 of their menu items to see role and where there are gaps
  • “Live life large” Big fun, big events, big food
  • Led to Triple Steak, 5 buck box, L chalupa, volcano menu, fully loaded nachs; Their ads focus on how huge the food is.
  • [I think everyone wants Taco Bell for lunch after seeing a series of ads focusing on “Big”]
  • They realized they didn’t move fast enough on some of stages – snackwrap, quality. They still need to do beverages, breakfasts, hispanic needs
  • Success rate in 2010 was 80%, consumer based ideas, 90% success at height of program [Now THAT is increased ROI!]
  • Then she moved to Pizza Hut where the situation was the same. 50% success rate at beginning and they had to start all over
%d bloggers like this: