- Scan Question
- + Post
- Get Coins
Marketing Planning Helps Dunkin’ Donuts Score Big in Coffee Customer Loyalty
A key goal for a marketing manager is to make sure that the company’s brand stays relevant. Successfully realizing this goal requires a marketing planning process that is both thorough and grounded in best practices, and also flexible enough to allow the firm to react to (and hopefully stay ahead of) changing customer preferences and shifts in values. Over its 67 years in business, Dunkin’ Donuts has shown that it can stick to its core mission while also regularly updating its marketing strategy, and thus remain relevant within the highly competitive “out-of-home coffee” category.57
In 1950, Dunkin’ Donuts was a single restaurant in Quincy, Massachusetts, with a simple mission: serve high-quality donuts and coffee at affordable prices with fast and friendly service. Today, with over 12,000 restaurants in 45 countries, the chain’s mission is still basically the same, but many aspects of its marketing strategy have changed to keep the brand fresh and relevant against fierce competition.58
In the first five decades of its history, Dunkin’ was mostly about the donuts. In the early 2000s, it decided to shift the focus more to the drink into which the donut was about to be dunked—the coffee. It squarely took on market leader Starbucks by offering a less expensive (yet really tasty) alternative, one that was faster and more user-friendly—the “average Joe’s average joe.” In 2006, Dunkin’ got even more serious about coffee with its famous and highly successful “America Runs on Dunkin’” campaign. Today, although it certainly still sells plenty of donuts, Dunkin’ sells an incredible 1.9 billion cups of coffee per year—that’s 60 cups per second!59
In recent years, a major focus of Dunkin’ Donuts’ marketing planning has been its digital strategy, especially by enabling engagement with customers through social media. Examples include the “create Dunkin’s next donut” contest a few years back, and the more recent integrated #mydunkin campaign on Twitter. In the latter, fans were encouraged to share their experiences via Facebook and Twitter with how Dunkin’ keeps them running, with the most enthusiastic fans appearing in Dunkin’ TV ads. Using these tools has helped the company hear the stories of its customers, retell the stories, and interact with these loyal fans on a regular basis.60
Although Dunkin’ scores lower than Starbucks in the number of social media interactions, experts importantly give Dunkin higher marks in terms of the quality of those interactions. According to Dunkin’s ad agency executives, “More than ever, Dunkin’ is a brand that listens to its guests, through multiple channels, at all levels of the organization. Dunkin’ puts its fans at the center of its social media strategy—they’re an active and passionate tribe that’s fueled by interactions with the brand.” And Dunkin’ also manages to take a jab at the competition now and then. Recently, its top Facebook post was a photo of a Dunkin’ T-shirt emblazoned with the message “Friends don’t let friends drink Starbucks.”61
Marketing (Big M) and marketing (little m) combine strategic and programmatic/tactical approaches to provide a comprehensive focus on a company’s most important stakeholder: the customer and his or her experience with the brand. Witness Dunkin’s highly successful loyalty Page 76program, DD Perks Rewards, which is a key competitive differentiator for the company. With over 5 million members, this program is one of the fastest-growing loyalty programs in the quick service restaurant (QSR) industry. As a member of DD perks, customers earn points for every dollar spent and receive a free drink when they accrue 200 points. On becoming a DD Perks Rewards member, the customer receives a personalized welcoming e-mail message explaining the benefits of the program. Additional e-mails are also sent, and customers receive special offers on their device through Dunkin’s mobile app (which has been downloaded over 16 million times since its launch). The app is also the platform for Dunkin’s On-the-Go-Ordering, with which customers can place their order in advance and pick it up on arrival.62
The superior customer experience that Dunkin’ Donuts provides has earned them industry accolades. No doubt to the ultimate chagrin of Starbucks, in the Brand Keys Customer Loyalty Engagement Index®, Dunkin’ Donuts has been number 1 in coffee customer loyalty for the past 11 years in the out-of-home coffee category and the number 1 brand for packaged coffee category for the last five years. This index recognizes brands that surpass competitors in delighting customers and meeting their expectations for taste, quality, and service, as well as brand value.63
Because of superior marketing planning and marketing strategy
execution, Dunkin’ Donuts has successfully made the shift in focus
from donuts to coffee, but it does operate in the shadow of
Starbucks, which has 36 percent of the U.S. market to Dunkin’s 24
percent. And make no mistake about it, Starbucks is also very
committed to digital and social media marketing and also has a
loyalty program and a mobile app.64 As each company
engages with its customers, Dunkin’s marketing managers will have
to stay at the top of their game and continue to deploy a strong
market planning process, monitor and adapt to customer trends, and
respond with strategies designed to keep the Dunkin’ Donuts brand
relevant and strategically differentiated against the
Dunkin’ Donuts made a strategic decision to make its business about the coffee, not just the donuts. What are the risks when a company that is so closely identified with one product (it’s in their name!) decides to change its focus to a different product? What marketing strategies can help reduce the risks and increase the probability of success?
Marketing Planning Helps Dunkin’ Donuts Score Big in Coffee Customer Loyalty A key goal for a...
Define Starbucks’ niche in the coffeehouse marketplace, both in its early days and today… Discuss the factors that caused Starbucks' sales to stumble in the mid-to-late 2000s. If you were the CEO at the time, how would you have reversed this trend? What comes next for Starbucks? What new marketing strategies might the company develop to remain relevant? 2. Company and Marketing Strategy Partnering to Build Customer Engagement, Value, and | Relationships CHAPTER PREVIEW In the first chapter, we explored...
In the spring of 2009, an article from Bloomberg News summed up the situation that Starbucks was in: “After more than a decade of sensational buzz, Starbucks is struggling nationwide as it faces slowing sales growth and increased competition.” The initial success and later struggles of Starbucks are a familiar pattern for firms in monopolistically competitive markets. When Starbucks began rapidly expanding, CEO Howard Schultz knew that fresh-brewed coffee was widely available in restaurants, diners, and donut shops. He believed,...
Businesses both big and small are flocking to social media platforms such as Twitter, Facebook and YouTube. The fact is that a presence on these platforms not only allows companies to engage in conversations with consumers, but also serves as an outlet to drive sales through deals and coupons. And while major brands like Starbucks, Virgin, and Levi’s have been participating in the social web for some time now, the rate of adoption among small businesses is increasing too. According...
QUESTION 50 Effective social media advertising is the result of ________. systematic planning defined character customer dogmatism total freedom quirky novelty QUESTION 55 Global brands are viewed differently than local brands, and consumers worldwide associate global brands with three characteristics: quality signal, global myth, and social responsibility. True False QUESTION 59 COOKING OIL MINI CASE: Value Mart is a national grocery store chain that markets its own line of store-brand food products as a low-cost, high-value option for the cost-conscious...
Starbucks after Schultz This activity is important because, as a manager, you must be able to identify your company’s core competency and select an appropriate business-level strategy to optimize its competitive value. The goal of this exercise is to demonstrate your understanding of core competency and business-level strategies by applying these concepts to Starbucks’ recent experience in identifying and regaining its competitive advantage. Read the case below and answer the questions that follow. Case Inspired by Italian coffee bars, Starbucks...
Need help answering marketing questions. Which statement best defines a market? - organizations with products that satisfy people’s needs and wants. - people with a need and a want for a product. - people with the desire and ability to buy a product. - People with the desire and the need for a product. 2. The Detroit Institute of Art (DIA) creates a series of ads featuring upcoming exhibits. Frank, after seeing the ads, spent several days at the DIA...
Part One What is the main assumption of factor proportion theory by Heckscher-Ohlin that makes it different from other international trade theories? What are the critical ways in which standardization and adaptation are different from each other when preparing international market selection? Give an example to support your answer. The strategic planning process for international business requires different types of analysis, one of that is the Internal analysis of organizational resources, Discuss why the assessment of internal resources is critical...
Marketing Plan: Product Identification and SWOT Analysis What needs to be done. The focus of your marketing plan can be a new product/service idea of your own or an existing product/ service. I have chosen to do a marketing product and SWOT analysis for the company Walmart. Here is an example but in of McDonald's I'm doing the company WALMART About WALMART should contain paragraphs that cover like the example pictures above. Should include The SWOT analysis that I'm doing...
Coffee Cravers Ignoring Bean-Price Surge for Caffeine Fix by Marvin G. Perez and Lynn Doan Coffee Cravers Ignoring Bean-Price Surge for Caffeine Fix Marvin G. Perez and Lynn Doan March 13, 2014, 5:17 PM EDT Doreen Cappelli is so hooked on her morning cappuccino that she says she’d pay a lot more to get it. “I don’t drink wine and alcohol,” Cappelli, 52, said after buying the $3.25 drink at Blue Bottle Coffee at San Francisco’s Ferry Building, in the...
Discussion questions 1. What is the link between internal marketing and service quality in the airline industry? 2. What internal marketing programmes could British Airways put into place to avoid further internal unrest? What potential is there to extend auch programmes to external partners? 3. What challenges may BA face in implementing an internal marketing programme to deliver value to its customers? (1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...