Dunkin' Brands Company

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E=MC Hammer: Andreas Parker, Francesca Mishriki, Ansley Beaver, Minnda Fulmer, Victoria Robertson
ADV3101 Fall
Advertising Creative Strategy
Dunkin’ Brands Company
 Headquartered in Canton, Massachusetts
 In 1946, Bill Rosenberg invested $5,000 and launched Industrial Luncheon Services
 In 1948, Rosenberg opened a donut shop called Open Kettle
 In 1950, Rosenberg rebranded Open Kettle as Dunkin’ Donuts
 Parent company of Dunkin’ Donuts and Baskin Robbins
 “Dunkin’ Brands strives to be recognized as a company that responsibly serves our guests,
franchisees, employees, communities, business partners and the interests of our planet.”
 DD Perks Rewards program reached it’s 1 millionth member in June 2014
 Sells about 1.8 billion cups of coffee each year
Source: Dunkin’ Donuts Press Kit, 2014
Industry
 Market Share
 Dunkin’ Donuts: 16.1 percent
 Starbucks: 32.8 percent
 Stock Shares
 Dunkin’ Donuts: $46.69
 Starbucks: $72.10
 Krispy Kreme: $17.46
 Reach
 Dunkin’ Donuts: 10,858 stores
 Starbucks: 19,767 stores
Source: Statista, 2013
Witkowski, 2014
Market Watch, 2014
Creativity
 Dunkin launched the #mydunkin campaign that puts customers in the spotlight to show
their passion for the brand
 15-second commercial: Tweet: “Just found a @DunkinDonuts Pumpkin flavored K-cup in
my coffee stash. Best day ever!!! #mydunkin.”
 Advertised 2 boxes of Dunkin’ Donuts K-cups for $19.99
 Uses testimonial-like persuasive technique
 Powerful selling points are usually emotional instead of rational
Branding
 Uses bright, complimentary colors in the logo
 Includes tagline, “America runs on Dunkin,” in the logo
 Unique and recognizable font
 The word ‘runs’ paired with its alternate brand logo of the running man alludes to fast
customer service
 Uses the word ‘donuts’ in the logo to brand a primary product line
 Starbucks uses the word ‘coffee’
 Krispy Kreme uses the word ‘doughuts’
Uncovering Insights
 Most up-and-coming demographic is white males under age 39 who have children and household incomes
of $50,000 or more
 Keurigs and K-cup technology rapidly growing in popularity giving Dunkin’ a chance to more effectively reach
this demographic
 Introduced mobile app in 2013
 Dunkin’ planned to move to California and into airports, college campuses and military bases
 Major threat to the industry is sports and energy drinks
 Baby boomers make up largest customer segment
 Dunkin responds to customer feedback well
 Replaced Styrofoam cups with recyclable plastic cups
 Offered alternative menu options such as low-calorie and low-fat options
Source: Rudarakenchana, 2014
Primary Research Method
 Survey of 28 questions
 Administered to over 100 people and received 120 total responses
 Click HERE for survey link
 Utilized multiple choice and Likert scale responses
Survey Questions
 1. Do you consider yourself a coffee connoisseur?
 2. How many times do you drink coffee per week?
 3. How much time do you spend at a coffee/donut shop weekly?
 4. How often do you purchase donuts?
 5. Typically, when you visit a coffee/donut shop, what is the reason for the visit?
 6. Rate the importance of price when purchasing coffee and/or donuts.
 7. What is the most you are willing to pay for a cup of premium coffee?
 8. What is your favorite/preferred brand of donut?
 9. How likely are you to remain loyal to your favorite brand if it raised its prices while its
competitors’ prices remained the same?
Survey Questions (cont.)
 10. Rate the importance of customer service when purchasing at coffee/donut shops.
 11. What is your favorite/preferred brand of coffee shop coffee?
 12. Who do you think is Dunkin' Donuts biggest competitor in the coffeehouse industry?
 13. What do you consider to be the biggest difference between Dunkin' Donuts and its
competitors?
 14. How important do you consider the use of eco-friendly products and practices at the
places in which you shop?
 15. Do you use or purchase re-usable cups and/or bags?
 16. Does the use of only Fair-Trade Certified and/or locally grown/made food influence
your decision to go to a coffee shop?
Survey Questions (cont.)
 17. Are you more likely to choose a coffee/donut shop that offers healthy menu options?
 18. How important is atmosphere and aesthetics to your coffee/donut shop experience?
 19. What is the area in which Dunkin' could improve its customer experience the most?
 20. What immediately comes to mind when you think of Dunkin' Donuts?
 21. What is your gender?
 22. What is your race?
 23. What is your age?
 24. What is your employment status?
 25. What is your marital status?
 26. How many people live in your household?
 27. What is your annual household income before taxes?
 28. What is your highest degree or level of school you have completed?
Survey Response Analysis
 The majority of respondents answered with the following:
 48 percent were between the ages of 18-22
 57 percent were employed
 65 percent were single
 53 percent considered atmosphere of the store most important
 47 percent answered they are likely to stay loyal to their favorite brand even if prices increase
 Almost half of respondents considered $3-$4 a reasonable price for a cup of premium coffee
Questions that Led to the Big Idea
 Who is the brand leader?
 Krispy Kreme is the brand leader for donut sales
 Dunkin’ has dominated coffee for over 50 years
 What are the trends in the industry?
 Emerging trend is rewards programs and mobile apps
 Are there any pending issues that may affect your brand’s future?
 2012 litigation tried to force Dunkin’ to drop the word ‘artisan’ from it’s menu claiming false advertising
Source: Dunkin’ Donuts Press Kit, 2014
PR Newswire, 2013
Modern Baking, 2012
Questions that Lead… (cont.)
 Is your company known for its product innovations?
 Released Mother’s Day themed donuts
 Dark roast coffee blend that is Rainforest Alliance Certified™
 To what extent does your brand match with consumers’ needs, wants, problems and
interests?
 In 2013, Dunkin’ was ranked “number one in customer loyalty for the 8th consecutive year in the
coffee category
Source: PR Newswire, 2013
Swipely Team, 2013
Diversity
 Focused on DD Perks program for 2014
 Uses YouTube channel to celebrate customer
interest in Dunkin’
 Features cartoon-like characters of various skin
colors in commercials
 Uses both genders in ads
Creative Brief
 Used BBDO’s approach
 Target audience is single white females between the ages of 18 and 22
 Value environment, menu options and price
 Don’t like to travel much to get what they want but will remain loyal to the brand
 Dunkin is perceived as a value brand
 To compete, Dunkin’ will use social media campaigns and branded hashtags
Ad Copy
 “You never have to search very hard to find what you’re looking for.”
 Customers have fast paced life styles and like things to be easy
 Dunkin’s current brand tagline is “America Runs on Dunkin’”
Ad Ideas for Twitter
Ad Ideas for TV
Pretentious female employee greets the man.
Employee:
Hello, may I help you?
Man:
I’d like a coffee please.
Employee gives snide face and speed talks.
Employee:
Ok, sure. Would you like that regular or decaf or as a latte, frozen, iced, tall, grande,
venti, trenta…
Her words become muffled and faster and faster. The words on the menu begin to
move about like a shaken crossword. The music meshes with the barista’s words and words on
the menu until he gets dizzy and falls backwards where he then wakes up in his bed to his 6:00
a.m. alarm. The man is shaken but relieved.
The man is dressed in his business suit and stops at a Dunkin Donut’s store. He’s greeted with a
smile by the Dunkin’ employee.
Man:
Yes, I’d like a coffee. A medium, regular coffee please.
The employee gives him his beverage promptly. He smiles and gives a sigh of relief as he picks
up a local newspaper and takes a seat.
Ad Ideas for Print
Ad Ideas for Print
Radio
GROUP:
Happy birthday to you. Happy birthday to you. Happy birthday Dunkin’ Donuts
fan. Happy birthday to you.
SFX:
GROUP CHEERING, CLAPPING, BLOWING NOISE MAKERS.
ANNCR:
Who says you can’t have your donut and eat it too? Dunkin’ Donuts is now
proudly preparing its donuts with sustainable palm oil, so planet earth may
celebrate even more birthdays. When you join the DD Perks Rewards Program,
you get a free birthday beverage of your choice! Go to ddperks.com or
download the Dunkin’ Donut app to your smartphone to claim your birthday gift.
Television
 Customer wakes up and makes coffee at home with a
Dunkin’ K-cup then stops by the Dunkin’ store on the
corner near home
 The customer then goes for a quick and easy pick-meup during lunch at the Dunkiin’ store attached to his
office building
 The ending tagline and visual is a happy customer
enjoying his Dunkin’ with the tagline, “You never have to
search very hard to find what you’re looking for.”
Direct Marketing
DD Perks Program Terms and Conditions
HAV E A DRINK O N US!
HAV E A DRINK O N US!
Jamie Customer
1234 Curvy Paved Rd.
Jamie Customer
1234 Curvy Paved Rd.
Apt. 100
Jacksonville, FL 32246
Apt. 100
Jacksonville, FL 32246
Your favorite coffee tastes better when it’s FREE!
The DD Perks Program (also known as “the Perks Program”) is offered at the sole discretion of Dunkin’
Donuts. Perks Program rules, terms, conditions, benefits or rewards may be modified at any time by Dunkin’
Donuts, with or without notice. Such changes may affect previously earned points and rewards.
To become a Member in the Perks Program, you must activate a Dunkin’ Donuts Card (“DD Card”) and enroll it in
the Perks Program at www.dunkindonuts.com or on the Mobile App. To earn points, simply use your DD Card to
pay at participating Dunkin’ Donuts locations. Members receive a reward for a free beverage coupon (“Reward
Coupons”) when they reach 200 Points. Reward Coupons can only be redeemed at participating locations, which
can be found at www.dunkindonuts.com/ stores.
Earning “Points”
Enjoy DD Perks® for free when you refill your card and use it at any Dunkin’
location. Refilling is easy. Go in store, online at DDPerks.com, or in the Dunkin’
Mobile App. The app is available for iPhone® and Android®.
1. Members must use an enrolled DD Card, either plastic or on the Mobile App, to pay at a participating Dunkin
Donuts location. A participating location may be found at www.dunkindonuts.com/stores. Baskin-Robbins cards
accepted at locations that have both Dunkin’ Donuts and Baskin-Robbins products cannot be used in to earn
points in the Reward program.
Run on Dunkin’ every day and earn bonus points to get free beverages. With
the DD Perks® program, earn 5 points for every $1 you spend on qualifying
purchases in any participating Dunkin’ store.
2. Members earn 5 (five) Points for every $1 (one) spent on Qualifying Products (defined below), exclusive of sales
tax.
Log in today with a Dunkin’ Donuts card to enroll and start benefiting!*
3. Members earn a one time “bonus” of 200 Points when they enroll in the Perks Program. This is a onetime
reward regardless of how many DD Cards are enrolled in the account.
4. Qualifying Products are all Dunkin’ Donuts products purchased at participating locations, except: the purchase
or reload of a DD Cards or Gift Cards, Gift Certificates, Reward Coupon Redemptions, donations to charity, and
Newspapers. Sales tax and returned merchandise will be deducted from the purchase price. Product purchases
through the Dunkin’ Donuts on-line shop are excluded. Baskin-Robbins products sold in Dunkin’ Donuts/BaskinRobbins combo locations are excluded.
TA KE A PEEK. EA RN A DRINK.
5. Point balances will be displayed at the bottom of your receipt and in your account
on www.dunkindonuts.com or on the Mobile App.
6. From time to time, participating locations may experience system unavailability and cannot process a DD Perks
transaction and Points will not be recorded. Members can contact Customer Care to request that Customer Care
manually enter the Points for the transaction into the “Members” account. The Customer Care Team can be
contacted at 1-800-447-0013. Hours are M-F 8:30am – 5:00pm EST.
7. Once a Reward Coupon is issued as described below, 200 Points will be removed from the Member’s account,
even if the Reward Coupon is not redeemed.
8. All Points earned on all DD Cards enrolled in a Members account will be accumulated in one main account.
9. Points will be earned on Qualified Purchases made in the prior thirty (30) days prior to enrollment with the
enrolled DD Card. However, for DD Cards enrolled prior to February 19, 2014, points will only be earned on
Qualified Purchases made on or after January 21, 2014.
*See the back of the letter for important information.
Social Media
 Not sure what to get your friends this holiday season? Everyone loves a #CroissantDDonut
 ‘Tis the season for red and green sprinkles #DunkinDonuts
 You’ll need all the caffeine you can to stay awake until midnight to ring in the New Year! Pick
up your last #DunkinDonuts coffee of 2014.
 If you don’t have time to come into our stores in the morning, have no fear, Keurig® is here!
#DunkinDonutsKCups
 Send us your favorite donut and coffee combination with the hashtag #MyDunkin
 My boyfriend’s name is Joe. He’s French. And vanilla. Okay he’s a cup of French vanilla coffee
at Dunkin Donuts.
 Dunkin’ Donut’s coffee > boyfriends. It doesn’t talk back and it’s always available in the
morning.
 Dunkin’ Donuts coffee is the only study aid with rewards. #DDPerks
 What’s your favorite holiday flavor? #DDPerks
 RT if you drink, eat and sleep Dunkin’
Integrated Marketing Communication
 Place more emphasis on Instragram marketing
 The Dunkin’ mobile app is beginning to gain traction in
the marketplace
 Target audience are heavy users of Instagram
 Currently, a centralized Dunkin’ Donuts Instagram
account does not exist
 May give customers another way to earn point that tie
into DD Perks program
Client Pitch
 Main message to customers is going to be respectful of their
time; they want things fast, easy and affordable
 Target audience is white females ages 18-22
 Goal of campaign is to integrate Dunkin’ into the customers
lifestyles
 Dunkin’ is a fast and inexpensive brand that does not have
the perception of “cheap”
Client Pitch (cont.)
 Ads will showcase several delicious food and
beverage options as well as price and
convenience stand points
 Ad to the right is the focal point of the campaign
 Portrays the idea that Dunkin’ surrounds our
customers and that they don’t have to search very
hard to find what they’re looking for
References
Dunkin' Donuts Press Kit. (2014). Dunkin’ Donuts News. Retrieved from
http://news.dunkindonuts.com/imagelibrary/downloadmedia.ashx?MediaDetailsID=325
Market Watch. (2014). Krispy Kreme Doughnuts Inc. The Wall Street Journal. Retrieved from
http://www.marketwatch.com/investing/stock/kkd
Modern Baking. (2012). NY bakery takes legal action against Dunkin’s ‘artisan bagel’ line.
Retrieved from
http://search.proquest.com/abitrade/docview/1009188534/F2CA5CE8148A412DPQ/19?
accountid=14690
PR Newswire. (2013). Dunkin' Donuts announces plans to enter southern California. Retrieved
from http://www.prnewswire.com/news-releases/dunkin-donuts-announces-plans-toenter-southern-california-187088681.html
References (cont.)
Rudarakenchana, N. (2014). Coffee industry threatened by energy and sports drinks: U.S.
coffee drinking trends. Retrieved from http://www.ibtimes.com/coffee-industrythreatened-energy-sports-drinks-us-coffee-drinking-trends-1563060
Statista. (2013). Coffeehouse industry statistics and facts. Retrieved from
http://www.statista.com/topics/1670/coffeehouse-chain-market/
Swipely Team. (2013). 5 reasons why Dunkin’ Donuts ranks #1 in loyalty. Retrieved from
https://www.swipely.com/blog/dunkin-donuts-loyalty/
Witkowski, W. (2014). Dunkin’ vs. Starbucks shares: Dunkin’ has roasted its rival recently. Market
Watch. Retrieved from http://blogs.marketwatch.com/thetell/2014/04/24/dunkin-vsstarbucks-shares-dunkin-has-roasted-its-rival-recently/
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