AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 Alexia Hagialas COMM 422 / PROF SHEN / FALL 2014 Amber Li Emily Sonni Kerrin Jennings Rachel Seibert 1 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 TABLE OF CONTENTS
Executive Summary…………………………………………………………………………………..………………….……………………..….………………….………………………3 Situational Analysis……………………………………………………………………………..………………….…..………………………….….………………………………….4-­‐12 SWOT Analysis………………………………………………………………………………..………………….…………………..……………..………………….……………………..13 Creative Strategy…………………………………………………………………………………………….………………..………………….……………………..……………….14-­‐15 Media Objectives…………………………………………………………………………….…………………………………………..………………….……………………..…….16-­‐21 Media Integration……………………………………………………………………………………………………..………………….……………………..…………….…………22-­‐27 Traditional Media…………………………………………………………………………..………………….……………………..………………………………………………………28 Flowchart………………………………………………………………..………………….……………………..………………………..……………………………………………………29 References………………………………………………..……………..………………….……………………..…………………………………………………………………………….30 Appendix………………………………………………………………………..………………….……………………..………………………………………………………………….31-­‐33 2 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 EXECUTIVE SUMMARY
Dunkin’ Donuts prides itself on efficiency and reliability. With its speed and “brand that America grows on” mentality, Dunkin’ guarantees cups of fresh coffee and baked goods that are ready for your packed schedule. Frequent consumers tend to be college students between the ages of 18-­‐24 who lead fast-­‐
paced lifestyles and seek comfort within their surroundings. The Dunkin’ brand has a strong presence within the market of baked goods and coffee. However, in order to establish themselves from the many competitors Dunkin’s new marketing strategy will target 18-­‐24 year-­‐old college students who crave the same taste and quality they that have grown up with through the Dunkin’ brand. The strategy will emphasize how Dunkin’ coffee and baked goods have been present and delivering satisfaction in our consumer’s lives from the time they were young. Whether it’s a simple cup of decaf or a box of munchkins, Dunkin’ classic products could be considered “a taste of home” right on campus. The Dunkin’ media plan consists of a combination of traditional and non-­‐traditional promotions including print ads, social media, Spotify and Pandora commercials, “campus kiosks”, partnerships with college athletics departments, and a Dunkin’ Donuts sponsored 5k. The media plan will follow a continuous but pulsing schedule, emphasizing marketing around back-­‐to-­‐school, finals weeks, and holidays. This schedule will allow the Dunkin’ brand to establish a solid reach and frequency with their target audience and will give college students the incentive to buy when they want the brand the most. Essentially, this media plan highlights the idea that Dunkin’ Donuts is the familiar and reliable “brand you grew up with”. It focuses on targeting college students who are always on-­‐the-­‐go and in need of a quick fix. It emphasizes that Dunkin’ is a brand that we’ve all known and loved from the munchkins we eat after our first soccer games to the Dunkin’ decaf we drink at our first business meetings. Focusing on the college demographic, whether students are in need of a coffee study break, or are simply grabbing a donut before they run to class, Dunkin’ will always be the quick and delicious place to go.
3 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Company and Background The Dunkin’ brand was founded in 1950 in the chilly town of Quincy, Massachusetts. Initially created by Bill Rosenberg, the company has grown to franchise over 12,000 Dunkin’ Donuts, Baskin-­‐Robbins and Togo’s shops globally. Additionally, they cultivate revenues in the billions each year. During 2013, Dunkin’s sales totaled to approximately 9.3 billion dollars. Their primary products include hot and cold coffee, baked goods, and hard-­‐
served ice cream. Overall, the company has grown into a global brand with approximately 11,000 locations in 33 countries. However, coffee and ice cream fail to represent what is truly at the core of the Dunkin’ Brand. The company prides itself on the idea that the community is the “heart of their business.” As a result, the Dunkin’ Donuts & Baskin-­‐Robbins Community Foundation was created in order to achieve three main goals: feed the hungry, health for our children, and to ensure the safety of our neighborhoods. Dunkin’ supports various non-­‐profit and philanthropic organizations so that one-­‐day they will be able to successfully accomplish each of these goals. According to CREST data for the year of December 2013, Dunkin Donuts was recognized as the: #1 in iced regular/decaf/flavored coffee #1 in hot regular/decaf/flavored coffee #1 in donut category #1 in bagel and muffin category #2 in breakfast sandwich servings #1 in customer loyalty in the coffee category since 2007 Ever since the first franchise opened in 1955, Dunkin’ has attributed their success to their mission to “make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-­‐merchandised stores. 4 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Competitive Analysis Dunkin Donuts has two primary competitors: McDonalds and Starbucks. Both of these brands hold high market shares in the coffee and pastry category, making them main competitors to Dunkin’ Donuts. Dunkin Donuts US Ad Spending (000) Market Share $139,063.4 24% McDonalds US Ad Spending (000) Market Share $479,619.9 15% McDonalds is one of the most iconic brands in the world. This powerhouse has been a pioneer in the advertising world, always focusing their marketing on “what the customer wants in a product, rather than selling the product itself.” Their most popular slogan, “I’m Lovin’ It” is recognized and associated with McDonalds throughout the world. In the past year alone, McDonalds has spent a total of $480 million dollars on advertising efforts. They have shifted their marketing towards valuing healthy and sustainable lifestyles. McDonalds also has multiple promotions that inspire consumer interest, such as the Monopoly game promotion and the very popular $1, any size, hot or iced coffee. 5 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Competitive Analysis Starbucks US Ad Spending (000) Market Share $109,000.00 36% Starbucks has made itself known as the “third place” for consumers: it is not home and it is not work, it is the place where the customer can go to relax and enjoy a beverage. Starbucks is a classic success story. The brand worked its way into the hearts and wallets of America from very basic beginnings: one store in Seattle. Starbucks has not been the type to utilize traditional advertising techniques. This brand utilizes unconventional advertising techniques that are in line with the company’s branding and positioning. Starbucks is very active on social media sites, such as Instagram and Twitter. Starbucks positions itself as “trendy,” “sophisticate” and “an affordable luxury.” It is seen as more of a place to gather with friends, or as a place to study and read. This type of place, a café, is very “in” right now and attracts the portion of the population who want a coffee house. 6 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Creative History
Dunkin’ Donuts is known for its signature coffee and breakfast selection. Since the early 2000s, the Dunkin’ brand has made numerous efforts to promote and upgrade their image across America. Beginning in 2004, Dunkin’ Donuts officially claimed their fair trade certified coffee. In 2005, Dunkin’ created a new store prototype that gave it a new and improved modern look which included the addition of a drive-­‐thru window. A year later, the well-­‐known “America Runs on Dunkin” campaign began. Promotions and marketing through social media began to break through in 2008 with the launching of Facebook and Twitter pages, Pinterest pins, and Instagram posts. Also during this year, Dunkin’ Donuts started its “DD smart” campaign. DD smart is the alternative Dunkin’ menu, which offers better-­‐for-­‐you items such as egg-­‐white flatbreads and lower-­‐calorie drinks. In 2012, Dunkin created the DD app for iPhones, which offers promotions, gift card purchasing, store locators, and more. One example of the Dunkin’ promotions, or “DD Perks,” applies to the store in State College, which offers free medium hot/ iced coffee every Monday after the Penn State Football team wins. Finally, this year, Dunkin Doughnuts’ main creative strategy emphasizes keeping things “simple” and “American”. In a recent Dunkin’ commercial, a woman is ordering a “large” coffee, and the cashier corrects her saying “you mean a deici?” The commercial pokes fun at fancier coffee shops using Italian labels. The “America Runs on Dunkin’” campaign currently holds strong, with an emphasis on keeping their store in line with simple, American traditions. 7 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Target Audience
Dunkin’ Donuts caters towards the busy lives of not only the working class, but also college age adults of both male and female genders. The group is active both physically and mentally. The demographic and psychographic information for the Dunkin’ Donuts consumer target has been taken from the online Simmons database. Dunkin’ targets primarily people ages 18-­‐54, who have been educated up to the 4th year college level. Ages 18-­‐24 (107), 25-­‐
34 (112), 35-­‐44 (108) and 45-­‐54 (123) all go to Dunkin’ Donuts restaurant on a monthly basis, while those aged 55 and over only have a monthly index of 77. According to the data, more women (111) buy Dunkin’ than men (88). Also, in regards to familial life, those who are unmarried (107) tend to buy Dunkin’ more than those who are in a marital relationship (94). When looking at Dunkin’ buyers’ educational statuses, those who have a higher educational level tend to buy more. Those who have only graduated high school have an index of 92, while college graduates lean toward a much higher index of 143. It also seems as if the busier student frequents Dunkin’ monthly and at a higher average than those who are not students at all. Dunkin’ consumers are literally on the go. Full time college students have an index of 121, and those not in colleges are placed at an index of 96. In regards to where these consumers live, they tend to be mostly in urban areas with a population of 150,000 or more, County A (150) and County B (75). 8 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Target Audience
There appears to be similarity between educational level and job employment as well. Full-­‐time employees frequent Dunkin’ monthly, with an index of 111, while their counterpart of part-­‐time employees has a bit of a higher index of 120. Retired persons only have an index of 66. This could be correlated to the fact that busy college students hold more part-­‐time jobs than those who are out of college. Along these same lines, people with a household income of less than $25,000 (104) seem to have a slightly higher index than those who make $25,000-­‐$74,999 (99) and those who make more than $70,000 (99). Because Dunkin’ Donuts claims that America runs on Dunkin’, it would make sense to study how many active people choose this brand. Of those who choose Dunkin’ Donuts brand, people who make sure to exercise regularly have an index number of 100. Of these same people who choose Dunkin’, those who strive for a balanced diet have an index of 101 and those who find it difficult to be healthy in their busy schedules have an index of 126. This research suggests that people who choose Dunkin’ prefer a healthy, active lifestyle. These same people also consider breakfast to be more important than lunch and dinner (104). Aside from actually consuming donuts, Dunkin’ consumers tend to use various sources of media for their entertainment purposes. For example, they mostly use magazines (184), radio (162), Internet (110) and social media (105), and TV (107). Knowing what media outlets are highly used by consumers helps the Dunkin’ Donuts brand choose where to place their advertisements. According to the Simmons data on advertising receptivity, Dunkin’ consumers are mostly above average (106) and not below (88). Target Consumer Summary (Simmons, 2011): ·∙ Ages 18-­‐54 ·∙ Females ·∙ College Educated ·∙ HHI < $25,000 ·∙ Health conscientious ·∙ Use various media outlets (higher focus on magazines and radio) Our target audience: College Students 18-­‐24, are the generation that has really “grown up with Dunkin.” 9 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Geography
The Dunkin’ brand has over 18,000 points of distribution in 55 countries, including 10,858 Dunkin’ Donuts’ points of distribution, by which 7,677 were in the United States by the end of 2013. (Annual Report, 2014) In July 2013, the 500th restaurant of Dunkin’ Donuts opened in New York City. (The New York Times, 2013). Now, Dunkin’ Donuts is slowly expanding across the country to the west coast, and planning to distribute more points in the next few years. The average consumption of Dunkin’ Donuts is much higher in the Northeastern United States than in South, Midwest and Sest. The index number of Dunkin’ Donuts in the Northeast is 220. After that is South, which has and index number of 91. Midwest and west are have indexes of 68 and 50 respectively. (Simmons, 2011) The index number of the markets that have above average use for Dunkin’ Donuts: Atlanta (109) Boston (242) Chicago (218) Miami (183) New York (262) Philadelphia (209) Washington DC (171) The index number of the markets that have below average use for Dunkin’ Donuts: Dallas (56) Houston (68) Los Angeles (64) San Antonio (41) 10 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Timing and Purchase Cycle
Dunkin’ Donuts markets both hot and cold drinks on its menu. Generally speaking, depending on the time of year, consumers will be more likely to purchase one type of drink over the other. Obviously, some consumers hold strong preferences and will not change the temperature of the coffee they consume based off of the weather. The following information accurately utilizes common sense to make predictions on the buying habits of Dunkin’ Donuts customers. In the warmer months, iced coffee is very popular for consumers. The iced coffee drinks can be purchased multiple times per week. These drinks bring in more revenue for Dunkin’ Donuts because the prices of iced beverages are higher than the prices of hot beverages. Dunkin’ Donuts also runs a promotional event on the first day of spring, offering free iced coffees to customers. In the colder months, customers are more likely to purchase hot coffee beverages. Dunkin’ Donuts also sells hot chocolate, which is very popular during winter months. As the weather gets colder, more people are inclined to purchase hot coffee regularly, which is great news for Dunkin’ Donuts. 11 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SITUATION ANALYSIS
Media mix
Over the past five years (from 2009 to 2013), Dunkin’ Donuts spent a total of 646,506.8 (000) dollars on media. Dunkin’ Donuts spent a total of 75% of its budget on TV advertising. From the brand’s total spending, about 42% of its budget (270,282.2 (000) dollars) was spent on spot TV. Dunkin’ Donuts also spent a significant amount of its budget on network TV (18%) and cable TV (15%). Although Dunkin’ Donuts invested the majority of its budget in television, they also utilized other mediums, including: magazine, radio, Internet, and outdoor display. (Ad$pender, 2014) Dunkin’ Donuts’ target audience is people ages 18 to 54, who lead busy lives and tend to live healthy lifestyles. Dunkin’ Donuts current media plan does not effectively convey its message to the target audience through commercials. Young and middle aged persons who are busy and live healthy lifestyles are less likely to spend their time in front of the television. Therefore, Dunkin’ Donuts does not reach the maximum percentage of their target audience that they potentially could. The target audience is both physically and mentally active with higher educational levels, so Internet might be a medium that works more effectively than TV. Consumers of Dunkin’ Donuts are always on the go and tend to read magazines, so Dunkin’ Donuts can consider increasing advertising through radio and magazines. Competitor’s spending: Dunkin’ Donuts’ main competitor, Starbucks, spent total of 329, 770.8 (000) dollars on media in the last five years. Starbucks used a different strategy than Dunkin’ Donuts. The brand only spent 28% of its budget on TV. Starbucks primarily focused their advertising efforts on magazines and newspapers. Starbucks spent the majority of its budget on magazines (91,841.5 (000) dollars.) This is a much larger investment on magazines than Dunkin’ Donuts’, who spent 10,225.1 (000) dollars on magazine advertising. However, the target audiences of Starbucks and Dunkin’ Donuts are similar, so in order to reach the potential customers, Dunkin’ Donuts should focus more on magazine and newspaper and be prepare for the competition from Starbucks in these mediums. (Ad$pender, 2014) Dunkin’ Donuts promotes its coffee and food as on the go products, so its idea is actually really different from its competitors. The brand should consider reallocating its budget to include more advertising through mediums other than primarily television. Dunkin’ Donuts’ advertising would work more effectively if it utilized mediums that are more relevant to its target audience, such as radio and magazines. 12 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SWOT ANALYSIS
Strengths: •
•
•
•
Dunkin’ Donuts has a strong, well-­‐known, and patronized following in the United States. Dunkin’ Donuts has grown into a global brand with approximately 11,000 locations in 33 countries. Dunkin’ Donuts hold its place as number one in customer loyalty for coffee since 2007, and number one in the categories of iced coffee, hot coffee, bagel, donut and muffin sales. The restaurant is appealing to consumers because of its affordable prices, wide range of menu options, and convenience. Weaknesses:
•
•
•
Dunkin’s ambience is loud and chaotic, which goes against the current trends that are coffee house type places where people can go to relax in a comfortable and sophisticated atmosphere. Dunkin’s “America Runs on Dunkin’” campaign works for their target audience, but cannot compete with the target audience and primary consumers of Starbucks. Dunkin’ Donuts does not offer the wide variety of menu options that McDonald’s. 13 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 SWOT ANALYSIS
Opportunities: •
•
•
•
Dunkin Donuts’ largest opportunities are in redefining of target audience, and expansion of store characteristics. There is ripe opportunity to market more directly to college-­‐educated females, ages 18-­‐54, who are health conscious and active on various media platforms. Dunkin’ Donuts can have the potential to cater to loyal customers of Starbucks by changing the ambience of and expanding their store characteristics. If Dunkin’ Donuts can find a way to add separate sitting rooms to inspire consumers to view Dunkin’ as a place they can relax and meet with friends, then there is opportunity to compete with Starbucks’ target audience. Dunkin Donuts could slightly change the ambience in the stores to encourage more customers to not only visit while Dunkin’ “on the go.” Threats: •
•
•
•
•
Threats to Dunkin’ Donuts are primarily Starbucks and McDonald’s. Starbucks positions itself as a cool, hip place for customers to hang out, study, and meet people. Dunkin’ Donuts has a more “on-­‐the-­‐go” feel and is not a place where customers would usually go to hang out and spend time with friends. Therefore, they lose consumers who want this ambience to Starbucks. Dunkin’ Donuts struggles to compete with the distinct target audience of Starbucks, which is “adults ages 35-­‐40, who tend to be urbanites with relatively high income, professional careers and a focus on social welfare.” McDonald’s is very similar to Dunkin’. Both establishments have an “on the go” and fast food feel to them. They have similar store ambience: bright, loud, and fast-­‐paced. There is also threat with local coffee shops that possess more enticing atmospheres and hand crafted drink. 14 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 CREATIVE STRATEGY
Communication Objectives
1. To position in the mind of consumers that Dunkin’ Donuts is the brand that has been and will always
be there for you through the milestones of maturing because it is familiar and easily accessible
whenever needed.
2. To enhance brand awareness by reminding consumers that Dunkin’ has always been the perfect choice
for the fast paced experiences of life.
3. To remind consumers that Dunkin’ products are a community experience through every stage of life,
from “munchkins” at soccer games to doughnuts and coffee at business meetings.
Brand Positioning
To college students, Dunkin’ Donuts is the brand of coffee and donuts that reflects the needs of their busy lifestyles through efficiency, low cost and familiarity. With Dunkin’, young students can be confident that the same taste and quality they’ve always enjoyed will be there for them on campus just as it is at home. Promise: Dunkin’ Donuts promises consumers with both a reliable and consistent cup of coffee that can accompany them on any on-­‐the-­‐
go experience. Tone: The tone of the advertising campaign will be sentimental, heartwarming and upbeat. Theme Line/ Slogan: “America Grows on Dunkin”
15 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 CREATIVE STRATEGY
Print Advertisements
16 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA OBJECTIVES
Target Audience
Objectives: Our primary target audience is men and women ages 18-­‐24. They are young college students who are on-­‐the-­‐go and seek familiarity and convenience for their daily routines. They are educated consumers and generally good proponents for the brand. This target also can be reached easily through social media. Strategy: The strategy that will be implemented to reach our target demographic of college students will be non-­‐traditional. The use of social media on college campuses is very heavy, therefore we plan to communicate with our audience via Facebook, Twitter, Instagram, YouTube, Spotify, Pandora. We plan to launch our campaign with specific promotions and a new type of service that makes it even easier for students to grab our product and go. 17 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA OBJECTIVES
Reach and Frequency
Objective: Beginning in August 2014, we will be promoting Dunkin’ Donuts through a National Campaign with Spot market emphasis. We will be advertising with a flight schedule throughout the months of August until May. Our only flight periods will fall during the summer months of June and July, October and January. There will be high cycles of frequency during the beginning of August (back to school), November (before Thanksgiving break), December (finals, Christmas), Mid-­‐January (return to second semester), April/ May (finals and beginning of Spring). Strategy: Throughout all months that we are advertising, our frequency will remain at an average of 3.1, which we gathered from the Ostrow Model predictions. We hope to increase this frequency as we increase our reach in November and April. These specific months were chosen because they are the most optimal time periods during semester that students will frequent Dunkin’ Donuts. We plan to advertise in radio, magazines and TV, with a higher concentration in Men’s and Women’s Magazines, and spot TV in order to appeal to the college age target. We plan to place advertising on TV channels such as ABC Family, FX, Sports Networks, Comedy Central and news outlets in order to reach our target. We plan to utilize the magazines that our target audience commonly read, such as Cosmopolitan, Glamour, People, Sports Illustrated, and GQ. Aug
Reach 78.7%
Frequency 2.6
Sep
Nov
Dec
Feb
Mar
Apr
May
78.7%
83.3%
78.7%
78.7%
78.7%
83.3%
78.7%
2.6
3.1
2.6
2.6
2.6
3.1
2.6
18 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA OBJECTIVES
Scheduling and Timing
Objective: The 2014-­‐2015 campaign will be focused on non-­‐traditional media that includes a wide range of social media platforms. The non-­‐traditional media will be continuous in order to promote brand awareness and pulsed during selective times within the year to advertise the introduction of new seasonal drinks and food items. These selective times will be sensitive to the schedules of college students and revolve around the specific benchmarks of a student’s year. Strategy: Beginning in August of 2015, we will implement our campaign hoping to focus on spot advertising around 1-­‐ when college students go back to school 2-­‐ lead up to breaks/ holidays to introduce seasonal drinks and foods 3-­‐ finals weeks, 4-­‐midterm weeks. When we start to advertise more during these pulse periods, we will have food stands in the form of pop up shops where brand ambassadors will offer promotions, freebies, and discounted food and drink items.
19 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA OBJECTIVES
Geography
Objective: We chose six cities as targets for our Dunkin’ Donuts campaign. Dunkin’ Donuts already shares a big portion of the market in these six cities. We can effectively reach out target audiences in these cities. Strategy: We target six specific markets throughout the United States. These big cities contain many universities and colleges, where we can find our main target audiences for the campaign. These are the cities that we will focus on for the media plan: Boston, MA Philadelphia, PA New York, NY Chicago, IL Washington, D.C. Miami, FL 20 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA OBJECTIVES
Budget
Objective: The campaign year for the Dunkin’ Donuts campaign will begin in August 2015 and end in May 2016. The total budget for advertising of Dunkin’ Donut this year is $140 million. However, we decided to spend one fifth of the total budget for our campaign, which targeted only college students age 18 to 24. Our budget for the campaign is $28 million. The budget will be split between Radio, Magazine, and TV mediums. The leftover money will be allocated towards the promotional events we plan to implement. Strategy: According to our flowchart, the most expenses will be allocated toward Men’s and Women’s Magazines and Spot TV-­‐Daytime. This Dunkin’ Donuts campaign will be focusing more on non-­‐traditional mediums rather than traditional advertising. We still felt that it was important to maintain a presence in traditional advertising, so we chose TV and Magazines to focus on for this campaign. Total = 139063.4 (000) dollars ⅕ of the total budget will be 27812.7 (000) dollars Ballpark= 28 million ⅕ of overall budget for Dunkin Start from august, 2015 and ends in July, 2016. 21 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA OBJECTIVES
Ostrow Model
Marketing Factors That Affect Frequency
Established brands -0.2
-0.1
High market share
-0.2
-0.1
Dominant brand in mkt. -0.2
High brand loyalty
-0.2
-0.1
Long purchase cycle -0.2
-0.1
Product used occasionally
-0.2
-0.1
+0.1
+0.1
-0.1
+0.1
+0.1
+0.1
+0.2
+0.2
+0.1
+0.2
+0.2
+0.2
+0.1
+0.1
New brands
Low market share
+0.2 Smaller, less known brand
Low brand loyalty
Short purchase cycle, high volume
Product used daily
+0.2 Need to beat competition
+0.2 Older consumers / children
+0.2
+0.2
+0.2
+0.2
+0.2
+0.2
Complex copy
Less unique copy
New copy campaign
Image copy
Multiple kinds of messages
Smaller ad units
New messages
+0.2
+0.2
+0.2
+0.2
+0.2
+0.2
Higher ad clutter
Non-compatible environment
Low media attentiveness
Pulsing / flighting
Many media in mix
Fewer opportunities
Total: 0
Copy Factors That Affect Frequency
Simple copy -0.2
-0.1
+0.1
More unique copy
-0.2
-0.1
+0.1
Continuing campaign -0.2 -0.1
+0.1
Product sell copy
-0.2
-0.1
+0.1
Single kind of message -0.2 -0.1
+0.1
Larger ad units
-0.2
-0.1
+0.1
To avoid wearout: Older messages -0.2 -0.1
Total: -0.2
Media Factors That Affect Frequency
Lower ad clutter
-0.2
-0.1
Compatible editorial env.
-0.2
-0.1
High media attentiveness
-0.2
-0.1
Continuity scheduling
-0.2
-0.1
Limited media mix
-0.2
-0.1
Opportunities for repetition -0.2
-0.1
Total: 0.3
+0.1
+0.1
+0.1
+0.1
+0.1
+0.1
0.1+3.0 =3.1
22 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA INTEGRATION
Spotify and Pandora Ads
Estimated Cost: $100,000.00 Objective: To promote Dunkin’ Donuts brand awareness by streaming engaging advertisements on popular free-­‐streaming music listening platforms, such as Pandora and Spotify. Strategy: College students love to use free-­‐
streaming services such as Spotify and Pandora. About ¼ of the US population tunes into Pandora each month. Pandora can be streamed from almost any device, and it is the #2 most downloaded app of all time. According to Spotify’s website, the average cross-­‐platform user spends 146 minutes using Spotify every day. Since last year, the share of Spotify’s mobile users has tripled, meaning that Dunkin’ Donuts will have potential to reach a huge audience if they sponsor advertisements on this platform. To engage the listeners of Pandora and Spotify with Dunkin’ Donuts, a partnership must be formed. A 15 second ad for Dunkin’ Donuts will be run during streaming time on Pandora and Spotify. This “radio” ad will be upbeat and engaging. It will be played more often during high-­‐stress times of the semester, such as finals week, as well as earlier in the morning to persuade listeners to head to their nearest Dunkin’ Donuts for a quick pick-­‐me-­‐up 23 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA INTEGRATION
Dunkin’ Social Media Accounts (Twitter & Instagram)
Estimated Cost: $50,000.00 Twitter
Objective: To engage consumers in the great strides Dunkin’ Donuts takes to promote on-­‐campus sporting events and activities. Through social media efforts, Dunkin’ wants to create a sense of unity among campus students where Dunkin’ provides the ties to bind them. Strategy: Twitter-­‐ With this non-­‐traditional advertising approach, Dunkin’ Donuts will tweet through its college campus twitter accounts the different sporting events that they plan to attend and serve their “1 coffee, 3 munchkins, 1 dollar” deal. They will use the #1dollardunkin hashtag to help engage their followers. Not only will they bring awareness to the sports and 5K events, but they will also allow for a chance for students to earn special RTs from the campus brand. Students can use the hashtag and tweet at their respective Dunkin’ college campus accounts a picture of themselves or their friends at the events. This will also increase awareness to each of the student’s own followers and thus increase awareness to Dunkin’ and the sporting events. 24 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA INTEGRATION
Dunkin’ Social Media Accounts
(Twitter & Instagram)
Estimated Cost: $50,000.00 Instagram
Objective: To increase brand awareness among college students by promoting Dunkin’ via the popular social media portal of Instagram. This way, students would associate the brand with the trending and influential app that exposes the world to positive things. Strategy: Instagram-­‐ With this non-­‐traditional advertising approach, Dunkin’ Donuts will “Instagram” virtual gift cards that offer a free cup of coffee for the first 200 people who see it and show it upon arrival to the shop.
25 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA INTEGRATION
Campus Kiosks
Estimated cost: $250,000.00 Objective: To increase brand awareness and strengthen the concept of “the brand you grew up with”. College campus kiosks provide low cost food and drinks during busy exam weeks and show college students that Dunkin’ Donuts is always there to support them when they need. To convey the message that Dunkin’ Donuts is college student’s best choice for their fast paced life. Strategy: This is a non-­‐traditional advertising strategy targeting on college students. Dunkin’ Donuts will cooperate with big universities in the six cities that we targeted. For each city, we will choose up to ten universities. We will place one or two, depends on the size of campus, kiosks in the library or busiest place in each university. The total number of kiosks will between 60 and 80. We will choose one of the midterm weeks and the final week to place the kiosks, because there will be high demand for coffee and food during these periods of time. We will provide “one dollar menu”, which include a small coffee and three munchkins. Students would like to spend money to get coffee and food during busy exam weeks. Dunkin’ Donuts’ kiosks provide them with convenience and support. For us, kiosks are easy to place and need little resources. This strategy can effectively communicate our brand ideas with college students. 26 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA INTEGRATION
Dunkin’ 5k
Estimated Cost: $10,000.00 Objective: To allow college students to engage in a fun sponsored event that will create brand awareness and benefit Dunkin’s charitable partners. The race should be successful in a college setting because college students love student events and free food. Strategy: There will be one Dunkin’ 5k challenge per year. The objective of the race is to complete a 5k and eat half a dozen glazed Dunkin’ doughnuts (2 per mile). The event is supposed to be silly and for fun rather than a competitive 5k; however, competition is allowed. Students will pay $15 to run the race. Half of the proceeds will go to Dunkin’s partner “Feeding America” and the other half will profit Dunkin Donuts stores. Overall, we hope this event will be profitable for Dunkin’ stores and will promote the brand with a positive image and free advertising across college campuses. 27 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 MEDIA INTEGRATION
Athletics Department Partnership
Estimated cost: $250,000.00 Objective: Dunkin’ Donuts will create partnerships with the athletic departments of specific universities. Dunkin’ Donuts will increase brand awareness by placing kiosks at sporting events, which will provide our promoted “1 coffee, 3 munchkins, 1 dollar” deal. Also, this will hopefully promote student attendance at athletic events. Strategy: This non-­‐traditional advertising effort will effectively influence our target audience: college students. Dunkin’ Donuts will officially partner with the athletic departments of selected universities. Each weekend, there will be a specific athletic event to be promoted, such as men’s ice hockey, women’s lacrosse, men’s basketball, and others. At this event, Dunkin’ Donuts will have a kiosk where the promoted “1 coffee, 3 munchkins, 1 dollar” deal will be available to students with a valid student ID. These kiosks will increase Dunkin’ Donuts’ brand awareness to the target audience through their presence at the event and the great deal. Attending sporting events can be tiresome, and not everyone wants the traditional soda and hot dog menu of traditional snack bars. Having a Dunkin’ Donuts kiosk available to students attending the event will be very beneficial to both the consumers and to Dunkin’.
28 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 TRADITIONAL MEDIA
Available budget: $ 28,000,000
Spot television
Estimated cost: $268,800 Rationale: Television is the perfect vehicle that can provide both sound and visual stimulation to target audiences. We only focus on daytime spot television is because the campaign targets on certain cities and certain consumers who are college students. Small percent of college students would like to watch TV, so we spend small amount of budget on spot television. Network & Spot radio
Estimated cost: $1,729,400 Rationale: Radio is an effective vehicle to convey ideas in short time. People like to listen to radio when they are driving, which is exactly Dunkin’ Donuts’ theme – “on the go.” People can just stop by for a coffee or a donut after they heard the radio. People who have fixed daily routine may have the chance to hear the advertisements of Dunkin’ Donuts every day. This will potentially influence they purchase behavior. National Magazine
Estimated cost: $ 25,884,500 Rationale: Magazine is an effective vehicle that can provide visual stimulus to attract target audiences. People can access to magazine in many public locations, which can reach more audiences than expected. More importantly, Dunkin’ Donuts’ target audiences mostly use magazines as their source of media for entertainment according to research. We can also advertising on different magazines based on interest of readers.
29 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 FLOWCHART
30 AMERICA GROWS ON DUNKIN’ DD MEDIA PLAN FALL 2014 REFERENCES
Brizek, M. G. (n.d.). Coffee Wars- The Big Three: Starbucks, McDonald's and Dunkin' Donuts. Journal of Case
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Champagne, C., & Iezzi, T. (n.d.). Dunkin' Donuts And Starbucks: A Tale Of Two Coffee Marketing Giants.
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Lim, P. J. (2014, July 25). Dunkin', Mickey D's, or Starbucks? The Surprising Winner of the Coffee War.
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A case study. (n.d.). Retrieved from http://www.carlyle.com/our-business/portfolio-of-investments/dunkinbrands-inc%20%20%20%20%20%20http%3A//news.dunkinbrands.com/About/About-Us-6e.aspx
Dunkin' Donuts Press Kit. (2014, February). Retrieved October 10, 2014, from
http://news.dunkindonuts.com/imagelibrary/downloadmedia.ashx?MediaDetailsID=325
Starbucks's advertising spending in the U.S. 2013 | Statistic. (n.d.). Retrieved October 14, 2014, from
http://www.statista.com/statistics/275195/starbucks-advertising-spending-in-the-us/
Simmons Database
Ad$pender Database
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