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	<title>The Curious Investor &#187; Consumer Advocacy</title>
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		<title>How not to respond to a consumer letter</title>
		<link>http://thecuriousinvestor.com/2009/09/21/how-not-to-respond-to-a-consumer-letter/</link>
		<comments>http://thecuriousinvestor.com/2009/09/21/how-not-to-respond-to-a-consumer-letter/#comments</comments>
		<pubDate>Tue, 22 Sep 2009 01:59:36 +0000</pubDate>
		<dc:creator>Dan Hung</dc:creator>
				<category><![CDATA[Company Analysis]]></category>
		<category><![CDATA[Consumer Advocacy]]></category>

		<guid isPermaLink="false">http://thecuriousinvestor.com/?p=722</guid>
		<description><![CDATA[Consumer advocacy letters are always fun. And, in case those of you felt that McDonald&#8217;s was not unique in its cordial response to my letter, here&#8217;s a follow up with a letter I wrote to Burger King (BKC). Forgive me, I wrote this letter last summer, but haven&#8217;t had a reason to share it on [...]]]></description>
			<content:encoded><![CDATA[<p><a title="The Curious Investor Consumer Advocacy" href="http://thecuriousinvestor.com/category/company-analysis/consumer-advocacy/">Consumer advocacy letters</a> are always fun. And, in case those of you felt that McDonald&#8217;s was not unique in <a title="McDonald's consumer advocacy letter" href="http://thecuriousinvestor.com/2009/09/17/you-dont-need-a-13d-to-write-a-letter/">its cordial response to my letter</a>, here&#8217;s a follow up with a letter I wrote to Burger King (<a href="http://www.wikinvest.com/wiki/Bkc">BKC</a>). Forgive me, I wrote this letter last summer, but haven&#8217;t had a reason to share it on this blog for until today.</p>
<blockquote><p>To whom it may concern:</p>
<p>I recently returned from a trip to China and had several terrific experiences at Burger King locations there. With the hype of the Olympics still in the air and increased interest by Americans in all things Chinese, I think it&#8217;s a great time for your Company to think about bringing one of your best menu items in the world to the US &#8211; the Spicy &#8220;Ma-La&#8221; Whopper.</p>
<p>To be honest, when here in the US, I typically spend more of my fast food dollars at competitors to Burger King mostly because I feel that Burger King lacks some pizzazz in their product offerings. In Asia, on the other hand, Burger King is one of the few western chains that I have actively sougt out ever since I first ate a Ma-La Whopper two years ago on a trip to Taiwan. When I went to China this summer, I was thrilled to see that it was also on the menu there. The sandwich is a tremendous culinary achievement and the fact that it hasn&#8217;t been brought to the United States surprises me especially given the interest in &#8220;spicy&#8221; style sandwiches that have been offered at other competing fast food restaurants &#8211; the Wendy&#8217;s Spicy Chicken and the Wendy&#8217;s Four Alarm Burger being the most famous of the bunch.</p>
<p>Admittedly, the Ma-La Whopper may not have a form factor that would play terrifically in the United States. The sauce offers a distinctly Asian spiciness which may be somewhat different from what most Americans expect having grown up on Tex-Mex style spices &#8211; chipotle, jalapenos, etc. But, I think you will find that Asian &#8220;spice&#8221; can go a long way even in the United States. Ask anyone who&#8217;s tried Sriracha and they&#8217;ll tell you that they think it can go well on anything. I believe this to be true of the Burger King &#8220;Ma-La&#8221; sauce. The sauce itself is a bit thin which I like, but may be messy for some people&#8217;s tastes. A simple change in the formula to add a thickening agent like tapioca starch or xantham gum would be easy or another solution would be to mix the sauce into the base mayonnaise which is used on the burger already. One might also consider incorporating the same spices into the burger patty, but I could see this as being less feasible since the Company would ave to source pattie which could only be used for one sandwich.</p>
<p>All-in-al, I belive it&#8217;s a terrific time to introduce a sandwich I believe will be highly successful here in the United States and which would make me an avid Burger King eater here at home as well as abroad.</p>
<p>Sincerely,</p>
<p>[<a href="http://thecuriousinvestor.com">The Curious Investor</a>]</p></blockquote>
<p>And, the response from Burger King? Click to read on&#8230;<br />
<span id="more-722"></span></p>
<blockquote><p>Dear [<a href="http://thecuriousinvestor.com">Curious Investor</a>],</p>
<p>Burger King Corporation receives many ideas and suggestions from persons outside our organization. However, we spend a great deal of time, money and effort towards the development and implementation of new services, products, techniques and equipment, which we have used or may use in the future. In view of htis, it is not surprising that many of the suggestions made to us from outside our company are already known or available to us through the efforts of our staff. While we appreciate your interest in presenting an idea or suggestion to us, it is Burger King Corporation&#8217;s policy not to accept or review any unsolicited idea or suggestion. We do this in order to avoid any possible confusion or misunderstanding regarding the ownership of an idea or submission.</p>
<p>Thank you for taking the time to contact Burger King Corporation.</p>
<p>Sincerely,</p>
<p>Yosha</p>
<p>Consumer Response Representative</p></blockquote>
<p>Admittedly, the difference between my letter to Burger King and <a title="McDonald's customer service responses" href="http://thecuriousinvestor.com/2009/09/17/you-dont-need-a-13d-to-write-a-letter/">my letter to McDonald&#8217;s</a> was that in one case I wrote to provide an unsolicited suggestion whereas in the other case I simply wrote to provide customer feedback. That being said, my letter to Burger King was significantly more positive than my letter to McDonald&#8217;s yet the most cordial and enthusiastic response came from McDonald&#8217;s. Second off, while portions of the McDonald&#8217;s letter seemed canned, the Burger King letter was clearly a template. While they couldn&#8217;t admit to having read my letter for legal reasons, it was clear they had read it enough to respond appropriately to an &#8220;unsolicited suggestion.&#8221; Yet, somehow, they hadn&#8217;t read the letter well enough to realize all I was asking for was for the importation of an already existent Burger King product which should lend no confusion over ownership.</p>
<p>Moreover, Burger King very clearly chose not to take advantage of a great opportunity to lock in someone who was a borderline superfan whereas McDonald&#8217;s still tried to sway my opinion of their new premium drinks despite my writing a letter expressing my displeasure with them. Burger King&#8217;s letter was terse, formulaic, rejection-like and signed by a &#8220;Consumer Response Representative&#8221; without a last name while McDonald&#8217;s provided a seemingly personal response from a &#8220;Vice President of the U.S. Customer Satisfaction Department.&#8221; Even if this was merely for show, McDonald&#8217;s clearly has a customer service focus and Burger King is seemingly more interested in improbable legalities than actually making their customers feel like they can actually &#8220;have it your way.&#8221;</p>
<p>It is interesting to note that the <a href="http://www.sogoodblog.com/2009/01/07/burger-king-unveils-the-angry-whopper/">&#8220;Angry Whopper&#8221; was unveiled later in the year</a> which may have been the source of Burger King&#8217;s skittishness. But, couldn&#8217;t they have responded with the same safe harbor language but added a heads up about a new product that I would be likely to enjoy? At the very least, could they show more appreciation while still reserving their rights over their own in-house development? Couldn&#8217;t they extend me a job to help them develop and market great new products!?</p>
<p>Whatever the case, it is clear that the &#8220;<a href="http://www.globalcompliance.com/tone-from-the-top.html">tone at the top</a>&#8221; at Burger King is not a true customer service focus, but just the standard corporate ass-covering beaurocracy that we have come to expect from large companies. While this isn&#8217;t enough to sway a decision to invest in one business versus another, it is a worrisome sign especially for a consumer experience dependent business and I will admit it did factor at least marginally into my decision to invest in McDonald&#8217;s versus Burger King.</p>
<p><strong>Full Disclosure: Author is long shares of MCD at the time of writing. No position in other stocks mentioned. </strong></p>
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		<item>
		<title>You don&#8217;t need a 13D to write a letter</title>
		<link>http://thecuriousinvestor.com/2009/09/17/you-dont-need-a-13d-to-write-a-letter/</link>
		<comments>http://thecuriousinvestor.com/2009/09/17/you-dont-need-a-13d-to-write-a-letter/#comments</comments>
		<pubDate>Thu, 17 Sep 2009 05:44:45 +0000</pubDate>
		<dc:creator>Dan Hung</dc:creator>
				<category><![CDATA[Company Analysis]]></category>
		<category><![CDATA[Consumer Advocacy]]></category>

		<guid isPermaLink="false">http://thecuriousinvestor.com/?p=712</guid>
		<description><![CDATA[Almost all of us investors have felt the way Bob Chapman or Dan Loeb at one point in our lives. I can&#8217;t count the number of times that I&#8217;ve wanted to grab a member of management and give him what for. Well, there are times when just sitting back and searching for 13D letters just [...]]]></description>
			<content:encoded><![CDATA[<p>Almost all of us investors have felt the way <a title="Bob Chapman invented the 13D" href="http://www.associatedcontent.com/article/207923/who_is_robert_chapman_hedge_fund_maverick_pg2_pg2.html?cat=3">Bob Chapman</a> or <a title="Dan Loeb: Angry Investor" href="http://www.newyorker.com/archive/2005/04/18/050418ta_talk_mcgrath">Dan Loeb</a> at one point in our lives. I can&#8217;t count the number of times that I&#8217;ve wanted to grab a member of management and give him what for. Well, there are times when just sitting back and <a title="Finding hedge fund holdings" href="http://thecuriousinvestor.com/2007/07/12/follow-the-big-boys/">searching for 13D letters</a> just isn&#8217;t enough.</p>
<p>Truth is, you don&#8217;t need to be a 5% shareholder or even a shareholder at all, to write a letter to a company you deal with. Just look around for the &#8220;comments and suggestions&#8221; addresses on the packaging of the products you use. Or, simply go online and look for some customer service e-mail addresses. In my experience, these little customer service entreats are often a great way to test how well a company responds to the demands of their customers and whether or not they&#8217;re nimble and persuasive or stubborn and uncooperative. I don&#8217;t think I have to say, investing in nimble businesses which can convince customers of their value proposition is usually a winning bet.</p>
<p>Let&#8217;s start with a company I recently wrote about &#8211; <a title="McDonald's a great fundamental and technical story" href="http://thecuriousinvestor.com/2009/09/15/mcd-almost-as-much-value-as-a-dollar-menu/">McDonald&#8217;s</a>. Last summer, I tried out McDonald&#8217;s new beverages &#8211; Sweet Tea and Caramel Iced Coffee. In my opinions, they were cloyingy sweet and just completey off the mark and unenjoyable. I couldn&#8217;t help but write an e-mail to express my displeasure.</p>
<blockquote><p>Dear McDonald&#8217;s,</p>
<p>I am writing as a result of a few recent visits to <span style="background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: #dbf0fa; background-position: initial initial;">McDonald</span>&#8217;s that have left me less than enthused with your new product offerings &#8211; particularly the new sweet tea and caramel iced coffee drinks. I&#8217;m not sure what product trials the Company went through or how it decided on its formulations but I&#8217;ve found both drinks to be sickly sweet, nearly undrinkable. I don&#8217;t believe that this is a result of my personal preference or a misstep at an individual <span style="background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: #dbf0fa; background-position: initial initial;">McDonald</span>&#8217;s as I&#8217;ve given the drinks a try at multiple locations.</p>
<p>While a good southern sweet tea is traditionally rather sweet, one would expect a hint of tea flavor to remain. The caramel iced coffee is even worse, tasting like sugar syrup and milk without even a trace of coffee. I thought that these new drink offerings were a terrific way to highlight <span style="background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: #dbf0fa; background-position: initial initial;">McDonald</span>&#8217;s hot tea and coffee offerings which are truly underrated, but it&#8217;s clear that these two new cold beverages were not designed to capitalize on the quality of your base tea and coffees.</p>
<p>These poor drinks are particularly disappointing to me given <span style="background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: #dbf0fa; background-position: initial initial;">McDonald</span>&#8217;s success rolling out some terrific new products like the southern style chicken, mcskillet burrito, and multiple incarnations of the snack wrap. I would hope that the Company is able to continue its terrific innovation and not slip back into the cycle of misfires like the failed sandwich releases in the 1990s that left me disenchanted with the overall <span style="background-image: initial; background-repeat: initial; background-attachment: initial; -webkit-background-clip: initial; -webkit-background-origin: initial; background-color: #dbf0fa; background-position: initial initial;">McDonald</span>&#8217;s franchise.</p>
<p>Sincerely,<br />
[<a href="http://thecuriousinvestor.com">The Curious Investor</a>]</p></blockquote>
<p>Lo and behold! McDonald&#8217;s wrote back. Later in the year, so maybe they aren&#8217;t the most responsive, but they were impressive. See their reply after the jump&#8230; </p>
<p><span id="more-712"></span></p>
<p>Despite my firing off an e-mail, McDonald&#8217;s, in fact, took the time to type up a personalized letter and mail it.</p>
<blockquote><p>Dear [<a href="http://thecuriousinvestor.com">The Curious Investor</a>]:</p>
<p>As 2008 winds down and the holidays are upon us, I wanted to take this opportunity to say <strong><em>thank you</em></strong> &#8211; we value you as a customer.</p>
<p>During this year, you took the time to contact McDonald&#8217;s to share feedback or request information about one of our coffee products. You contacting us gives us an opportunity to learn from you, which allows us to better meet your needs and expectations. We want you to know that we appreciate your comments and we thank you for your business.</p>
<p>In appreciation we&#8217;d like to invite you and a friend to stop by McDonald&#8217;s restaurant for a complimentary cup of Premium Roast coffee with the enclosed Be Our Guest cards. McDonald&#8217;s coffee is always brewed fresh every thirty minutes using 100 percent Arabica beans, the finest in the world. And, we have some <em>exciting</em> new products in our McCafe line of specialty coffees (such as creamy lattes, frothy cappuccinos and rich mochas) which are currently being introduced at many of our US restaurants &#8211; with even more to come in 2009! We hope you&#8217;l have the opportunity to enjoy these new products when they are available at your local McDonald&#8217;s</p>
<p>So again, Mr. Hung, thank you for taking the time to contact McDonald&#8217;s this year. We appreciate you and the opportunity to serve you. WE look forward to serving you in the coming year!</p>
<p>Sincerely,<br />
Terri K. Capatosto<br />
Vice President<br />
U.S. Customer Satisfaction Department</p></blockquote>
<p>Outside of the slow response and the somewhat canned line about our the nature of my inquiry, the customer letter does a perfect job communicating to a potentially unsatisfied customer. It&#8217;s enthusiastic, supportive, and appreciative despite the negative tone of my original letter.</p>
<p>More than this, McDonald&#8217;s takes advantage of an opportunity in front of a prospective customer by both educating the reader about a new product line and offering a free trial to get the prospective consumer back into a McDonald&#8217;s location. AND! They think enough to give a second free trial so as to create potential word of mouth advertising. Brilliant! In fact, I ended up giving both my free trials to friends and have become a fan of McDonald&#8217;s coffee. Though, I have to say, the sweet tea and caramel iced coffee are still sickly sweet. Maybe my tastes don&#8217;t quite converge with the rest of America&#8217;s.</p>
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