• by Karlene Lukovitz  @KLmarketdaily, June 7, 2011

Taco Bell's aggressive media response to the class-action suit claiming that its taco filling should not be advertised as beef -- a suit filed Jan. 19 and dropped three months later -- appears to be improving consumer perceptions of the chain, based on recent YouGov BrandIndex social media-based metrics. 

BrandIndex's scores, which include buzz and other scores, as well as an overall brand-health "Index" score, range from 100 to -100 and are compiled by subtracting negative online/social media feedback from positive feedback. A zero score means equal positive and negative feedback. The overall perception/Index score is a brand-health metric that averages sub-scores of quality, value, satisfaction, reputation, willingness to recommend and general impression.

A week after the suit was filed, Taco Bell's overall Index/perception score among adults who had eaten in a fast-food restaurant within the past three months dropped from 25.2 to 11.7 (below the average index score of QSRs -- quick-serve restaurants -- which hovers around 12). Between April and May of this year, its Index score rose from 14.5 to 20.5.

In addition, Taco Bell's buzz score jumped from 7.5 to 14.9 between the end of April and the end of May, putting it in fourth place among the 10 biggest buzz-improvers for May, among the numerous major brands tracked daily by BrandIndex. Prior to the suit, as of January 1, the chain's buzz score was 20; by March 4, it was at -1.9. (This negative metric was not that radical, according to BrandIndex, which notes that BP's buzz score hit  -74, and stayed there for quite some time, after its oil-spill crisis.)

As of late April, Taco Bell had not received its requested apology from the law firm that brought the suit, and CEO Greg Creed told FoxNews.com that a decision on whether to counter-sue would be discussed in upcoming meetings with franchise partners. Creed maintained that the bad publicity from the suit had done significant damage, citing Taco Bell chairman David Novak's statement during an earnings call that the chain's performance went from "really strong" to a flat quarter because of impacts from the suit. (The law firm that brought the suit declined to comment to FoxNews.com.)

McDonald's Surpasses BK on Buzz  

Meanwhile, while one might assume that McDonald's, as the dominant QSR, would pretty much always be the leader in buzz-score terms, that has not always been the case. According to BrandIndex, the leader tends to be the focus of any negative sentiment in the social (or other) media environment (such as growing concern about obesity), which has tended to depress McDonald's' buzz score periodically.

In fact, Wendy's, with its improved fries and other menu offerings -- backed by advertising/marketing -- continues to lead in BrandIndex buzz scores among major QSRs, rising from 28.1 in April to 29.3 in May.

And as for the rivalry between McDonald's and #2 Burger King, as of Sept. 1, 2010, McDonald's' buzz score was 23.2, versus Burger King's 17.4. As of the end of April 2011, McDonald's' buzz score was 17.9, versus Burger King's 19. But by the end of May, McDonald's had gotten the advantage, with a 23.8 buzz score, versus BK's 20.9.

Stepping outside of the BrandIndex scores, Lou Rubin, chief marketing officer for global brand consulting firm CoreBrand, noted that Burger King "has long been in need of a major brand realignment," based on his firm's proprietary Brand Power data, whereas McDonald's "has done an exemplary job of building and protecting its brand."

McDonald's' continuous focus on "menu innovation that addresses cultural changes, like the need to have healthy options, has allowed it to stay contemporary and top of mind," said Rubin. "Starbucks' recent decision to alter its branding is also indicative of how important it is for a leader to embrace change in the category. Burger King will need to make a serious investment in its brand, menu, physical structure, operations and communications to become competitive again."

Given that BK is turning its creative over to McGarryBowen New York, which reportedly won the account based on submitting concepts not within BK's standard marketing approach of recent years, it appears that BK is on to Rubin's observations.