Download 1 Kelsey Bohannan Araixa Ruiz Anna Tournade

Kelsey Bohannan
Araixa Ruiz
Anna Tournade
1
Executive Summary
Dunkin’ Donuts is a baked goods and coffee franchise that is part of the Dunkin’ Brands
Company. Established in 1950, today Dunkin’ currently holds a 5 percent market share amongst their
two main competitors, Krispy Kreme and Starbucks, in the baked goods and coffee industry. For more
than 50 years, they have been living at their “soul” purpose of leading the “quick quality” segment of the
food and beverage industry by serving more than 3 million customers per day.
Dunkin’ Donuts has a reputation for brewing high-quality coffee and is America’s largest retailer
of coffee-by-the-cup. Also, this franchise is known for using 100 percent Arabic coffee beans. While
Dunkin’ spends much of their budget on advertising and Krispy Kreme spends practically nothing on its
advertising, both companies barely have been incapable of matching Starbucks’ market share. The
baked good and coffee industry, as well as the leisure restaurant industry, is still considered a successful
industry that keeps Dunkin’ Donuts and it’s competitors in business.
Some uncontrollable restraints for the industry are the health issues many people are facing as
well as a low economy forcing consumers to think more about their leisure spending habits. With the
obesity rate America on the rise in the early 2000s, many people looked to healthier options. This
included foods with lower trans and saturated fat as well as lower sugars. Dunkin’ Donuts compensated
for this by cooking in better oil and offering healthy alternatives to their usual items. Also, with the
changing economy, Dunkin’ Donuts was faced with the issue of positioning itself as a necessity rather
than a luxury.
Our research is targeted towards a primary audience of adults ages 25 to 54, with a secondary
target audience of ages 18 to 24. We chose this large demographic because this consumer group is the
second highest ranking demographic that consumes Dunkin’ Donuts, after the largest consumer group
of 18 to 49 year olds. Consumers ages 25 to 54 have a stable income of about $75,000 to $149,000, like
to get their coffee quickly and efficiently, are part of the work-force, drink coffee consistently and are
money-conscious. This consumer group is also considered a large user of the Internet, specifically with
social media.
Since this target demographic is heavy users of Internet, we chose to focus the majority of our
media mix on the Internet medium. Also, we found that Dunkin’ Donuts consumers are large users of
magazines. We chose to use magazines in our campaign because we are able to target more accurately
possible and steady Dunkin’ Donuts consumers.
We also chose to do a national continuous campaign throughout the 2012 year. This will keep
Dunkin’ Donuts steady in the minds of consumers. The tagline we chose is “Get Your Daily Dunkin’.”
There previous taglines have all incorporated their brand name, so we included that as well as made the
tagline a call to action instead of simply spreading awareness.
The overall budget for the campaign is 40 million dollars with a national contingency of four
million dollars. The campaign will use national media to target the primary audience of working adults,
ages 25-54 with steady income of at least seventy-five thousand dollars. The media plan totaled
$35,899,700. This came in under budget and above all of our frequency and reach goals.
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Table of Contents
Situational Analysis…………………………………………………………………………………………………………………………..…….1
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Company Background………………………………………………………………………………………………………………...1
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SWOT Analysis……………………………………………………….……………………………………………………………………2
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Marketing Mix…………………………………………………………………………………………………………..………………..4
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Uncontrollable Restraints……………………………………………………………………………………………..…………….6
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Brand Positioning………………………………………………………………………………………………………..………….....7
Competitive Information…………………………………………………………..…………………………………………………….….....8
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Market Share………………………………………………………………………………………………….……………..……………8
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Advertising Share……………………………………………………….………………………………………………………..…..…9
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Competitor’s Media Mix……………………………………………………………………………………..............…...…..12
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Competitor’s Share of Voice…………………………………………………………………….…...………....................13
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Advertising expenditures...............................................................................................................14
Target Audience……………………………………………………………………………………………………………………………………15
Marketing Objectives………………………………………………………………………………………...…………………………………16
Advertising Objectives…………………………………………………………………………..……………………………………………..16
Media Objectives…………………………………………………………………….…………………………………………………………...18
Media Mix..................................................................................................................................................19
Creative Tagline............................................................................................................................. .............21
Cost Summary……………………………………………………………………………………………………………………..………………..22
Overall Campaign Goals…………………………………………………………………………………………..…………..……………….22
Year at a Glance…………………………………………………………………………………………………………………………………….23
Flowchart....................................................................................................................................................24
Work Cited..................................................................................................................................................25
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Situational Analysis
Company Background
In 1950, Bill Rosenberg opened the first Dunkin' Donuts shop in Quincy, Massachusetts. Dunkin'
Donuts licensed the first of many franchises in 1955 (Dunkin Donuts). The company is a leading quick service restaurant franchiser that operates more than 16,000 franchise locations in about 55 countries.
Dunkin' Donuts is the world's leading doughnut chain (Hoovers).
At Dunkin’ Brands, Inc., they like to say that their “soul” purpose is to lead and build great
brands. For more than 50 years, they have been doing just that by leading the “Quick Quality” segment
of the food and beverage industry. Dunkin’ Brands goes beyond what people expect from a traditional
quick service experience to deliver best-in-class menu items to eat, drink, and enjoy (The Dunkin' Donuts
trademarks).
Dunkin' Donuts is the world's leading baked goods and coffee chain, serving more than 3
million customers per day. Dunkin' Donuts sells 52 varieties of donuts and more than a dozen coffee
beverages as well as an array of bagels, breakfast sandwiches and other baked goods (Dunkin
Donuts). By using a franchising model, Dunkin' Brands has been able to aggressively expand its
doughnut and ice cream concepts globally without the cost of new construction and operating
expenses (Hoovers).
Dunkin' Brands has been particularly focused on expanding its chains into growing international
markets such as Asia and the Middle East. About 500 Dunkin' Donuts outposts are slated to open
throughout India, the first of which are expected to launch by early 2012. Its Baskin-Robbins chain is
forging new territory in China, with plans to open 100 ice cream stores through 2018 (Hoovers).
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Nigel Travis replaced Jon Luther as CEO in 2009. He previously served as head of the third
highest ranked delivery chain Papa John's. Luther, who remains as chairman, has led Dunkin' Brands
since 2003 when he was brought in from AFC Enterprises' Popeyes Chicken & Biscuits chain (Hoovers).
SWOT Analysis
S trength
Weakness
-Dunkin’ Donuts has a reputation for brewing high quality
coffee for more than five decades
- Dunkin’ Donuts uses media to advertise while Krispy Kreme
has never spent any money on advertising
-Dunkin’ Donuts is America’s largest retailer of coffee-by-thecup, serving nearly 1 billion cups of brewed coffee each year.
-On an average day, Dunkin’ Donuts sells more than 30 cups of
freshly brewed coffee each second.
- Dunkin’ Donuts uses 100% Arabic coffee beans and has its
own coffee specifications, which are recognized by the industry
as a superior grade of coffee.
-Dunkin’ Donuts serves nearly 1 billion cups of brewed coffee
every year or approximately 2.7 million cups a day.
- Dunkin’ Donuts mails coupons to their customers.
Opportunity
Threat
-Franchises available.
-People wanting to eat healthier (low calorie/low carb).
-The opening of new stores.
-Starbucks entry into breakfast sandwiches.
-M cDonalds gourmet coffee
Dunkin’ Donuts is a well known brand with 2,600 stores across the United States with an
international presence in 30 foreign countries. Dunkin’ Donuts has maintained a strong reputation for
having quality-brewed coffee at a reasonable price. With a large variety of donuts, more than a dozen
of coffee choices and a wide range of breakfast sandwiches and baked goods, this brand stands alone in
leading the “Quick Quality” segment of the food and beverage industry, and the world’s leading chain
for the coffee and baked goods industry, serving over 3 million customers a day. This restaurant is
recognized as serving the top-grade coffee products by using 100 percent pure Arabian coffee and
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unique coffee specifications for each specialized drink. Dunkin’ Donuts is also very strong at retaining
their loyal consumers by providing coupons via direct mail, coupon magazines and other media
promotions.
A recent and rapidly growing trend with consumers is health awareness and nutritional value in
the food they purchase. Although Dunkin’ Donuts has made some promotional efforts to get the word
out about their low-calorie and overall nutritional value of their products, franchises in the donut and
baked goods industry are typically not associated with “healthy” options. Dunkin’ Donuts’ efforts in
casting a healthier lifestyle are relatively weak, for most consumers do not think of a donut restaurant as
a healthy food option. Also, Dunkin’ Donuts spends a large portion of their budget on advertising their
brand on a variety of mediums, while their direct competitor, Krispy Kreme, spends little to none on
advertising.
With 98 percent brand recognition in the U.S., the Dunkin’ Donuts franchise provides an easy
and ample opportunity for their brand to continue to expand in communities throughout the country
and world. By opening new stores in new locations, this gives Dunkin’ Donuts opportunities to tap into
untouched markets and aid in its brand growth potential. Also, because Dunkin’ Donuts is known for
both its quality coffee and donuts/baked goods, they have the advantage of breaching into two types of
markets rather than just being known for quality coffee (Starbucks) or donuts (Krispy Kreme).
Despite Dunkin’ Donuts’ opportunity easily tap into untouched markets and ability to promote
their brand heavily in both a coffee and donut category, they also must remain mindful of the consumer
health trend, as mentioned in the brand’s weaknesses. Consumer’s want to know the foods they are
putting into their bodies are wholesome and provide nutritional value. This healthy lifestyle trend poses
a serious threat to all companies in the coffee and baked goods industry. Starbucks, a fellow coffee
competitor, is now making efforts to reach a broader market like Dunkin’ Donuts in the baked goods and
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food market. They now serve breakfast sandwiches, donuts and a larger variety of foods to snag more
consumers and to further match competition with Dunkin’ Donuts and Krispy Kreme.
Marketing Mix
Price:
Coffee drinks and cold beverages can range from ninety-nine cents to 4 dollars depending on
the size and add-ins. Most donuts will sell at seventy-nine cents per donut or $3.99 for a half dozen and
$5.99 for a dozen. Hot breakfasts such as wraps and flatbreads sell from roughly two dollars to combos
with coffee for a little over three dollars. Muffins and bagels sell for around the same as donuts as well
as other beverages such as Coolattas sell for almost two dollars (depending on size).
Product:
Dunkin’ Donuts is known for its variety of products. These range from their typical donuts in
multiple flavors to coffee to other baked goods. Their coffee can vary from plain to adding flavor shots
such as caramel, vanilla, hazelnut, etc. They also offer their special “Dunkaccino” which is a combination
of hot chocolate and coffee. To better accomodate their consumers and their busy schedules, Dunkin’
Donuts also provides “Box O’Joe” which is a box that hold roughly six cups of coffee. Also, the donuts
can come in the form of mini donuts, “munchkins,” or their regular donuts. Among other baked good
are muffins and bagels as well as breakfast sandwiches and hash browns. Dunkin’ Donuts also offers a
multitude of beverages aside from coffee. These include the “Coolatta,” frozen lemonade, frozen hot
chocolate and frozen lemonade.
Promotion:
Traditional
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Television: Many of Dunkin’ Donuts television advertisements poke fun at Starbucks and their
“pretentious” atmosphere (Archiver).
Radio: Advertisement featuring fictional lawyer Bob "The Bulldozer" Phillips (2010)
Most popular slogans are “America Runs on Dunkin’” (2006) and the more recent “You ‘Kin Do
It” (2009)
“You ‘Kin Do It” campaign includes radio, print and outdoor advertising, as well as point-ofpurchase, sports marketing and event marketing.
Non-Traditional
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Web marketing: (Chicago Sun- Times Blog)www.dunkinbeatstarbucks.com
Mobile marketing: Wanted consumers to respond to outdoor, print and broadcast ads by
entering code to receive a downloadable coupon.
“Create Your Own Donut”: 2010, Donut Building web site and contest in celebration of its 60 th
Anniversary
Online marketing also works closely with their home region sports teams such as the Boston Red
Sox.
Social media: YouTube, Facebook and Twitter
Place
Over 2,600 stores in 30 countries outside the United States.
• Aruba
• Peru
• Puerto Rico
• Russia
• Shanghai
• Thailand
• UAE
• Bulgaria
• Chile
• Colombia
• Germany
• Honduras
• Japan*
• Kuwait
• Malaysia
• Oman
• Pakistan
• Philippines
• Qatar
• Saudi Arabia
• Spain
• Taiwan
• Bahamas
• Canada
• China
• Ecuador
• Grand Cayman
• Indonesia
• Korea
• Lebanon
• New Zealand
• Panama
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Uncontrollable Restraints
There have been two major uncontrollable restraints that have already affected and could
continue to affect the Coffee and Snack Shops industry. These two restraints are the turbulent and
changing economy leading to a lack of consumer spending, as well as rising nutritional issues and greater
health and eating awareness (Star Global Tribune).
The Coffee and Snack shop industry experienced a significant stand-still in 2009, with the
recession making consumers more fiscally aware. With a lack of funds, consumers tended to not eat out
as much, or spend money on low-price items. This monetary responsibility that consumers had to
withhold placed pricey coffee drinks and pastries into an expendable “luxury” category rather than a
“necessity” (Star Global Tribune).
The poor economy and the resulting slump in industry sales has begun to turn around, but has
also forced industry leaders such as Dunkin’ Donuts and Starbucks to expand not only their menu but
their investments (Star Global Tribune).
Also, due to the growing obesity rate in the United States in the early part of the century
(Medicalsite.com), Americans are becoming more health conscious and aware of what they put inside
their bodies (Epinions.com).The government continues to release Dietary Guidelines that haven’t
changed much since 2005. They still recommend as little saturated and trans fat in ones diet as possible,
challenging food manufacturers to lower the trans and saturated fats in their products as well (Tribune).
Food manufacturers and restaurants are also looking for new oils and ways to cook their food in
a healthier manner. The use of palm oil, for example, has become popular among manufacturers
(Tribune).
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Brand Positioning
Dunkin’ Donuts’ founder, Bill Rosenberg opened the first restaurant under this simple mission:
“Make and serve the freshest, most delicious coffee and donuts quickly and courteously in
modern, well-merchandised stores.”
This philosophy still stands true today as Dunkin’ Donuts continues to hold the leading position in the
coffee and baked goods restaurant industry. The Dunkin’ brand is the parent brand to Dunkin Donuts
and Baskin-Robbins ice cream, both possessing the same mission of delivering top-quality food and
beverages in a friendly, fast and inexpensive environment. The Dunkin’ brand strives to link their
products with certain values and principles, such as the “eatdrinkthink” mission. By providing a tasty
wide menu selection, they strive to have consumers think of Dunkin’ Donuts as not just a breakfast joint,
but a restaurant for any time of day. The Dunkin’ brand also innovativly ties their products to the brand
by strategically reaching communities through widespread franchising abilities and promotional
materials.
For this media plan, we will continue to endorse their current innovative franchise practices and
messages, but rearrange the means by which they reach their desired consumer.
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Competitive Information
Market Share
Starbucks currently holds 92 percent of the donut/ coffee industry, while this number seems
extremely large Starbucks is currently the dominant player in this market. Dunkin’ Donuts falls in second
having a 5 percent share in the donut and coffee industry and making $577.14M in annual sales. Krispy
Kreme falling in third with 3 percent of the market share making $361.95M in annual sales.
In the United States, Dunkin' Brands holds a 52 percent market share of breakfast daypart
visits and 57 percent share of total QSR coffee, based on servings nearly six times greater than that of
the nearest competitor. Competition continues to intensify as competitors increase the breadth and
depth of their product offerings, particularly during the breakfast daypart, and open new units; such as
Starbucks and Krispy Kreme. Although new competitors may emerge at any time due to the low barriers
to entry (Edgar Online Inc.).
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Advertising Share
2007-2008 Advertising Share:
Figure 1
Figure 1 displays the advertising expenditures and share of Dunkin’ Donuts, along with their top
two competitors from January 2007 to January 2008. Dunkin’ Donuts spent the largest sum of
advertising dollars, at $34 million causing them to be the leader by landslide at 72.3 percent compared
to Krispy Kreme and Starbucks. This is surprising, for Starbucks dominates the market at 92 percent,
while spending $12.8 million on total advertising efforts. This large difference in percentages is most
likely due to the large market share Starbucks has in the coffee industry. Krispy Kreme spent a mere
$226,000, but only trailed 2 percent behind Dunkin’ Donuts in market share. The total advertising
expenditures were over $47 million for the 2007-2008 years.
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2008-2009 Advertising Share:
Figure 2
Figure 2 shows some minor changes in ad expenditures amongst the three competitors from
January 2008 to 2009, but still maintaining the same share proportions. Dunkin’ Donuts cut down on
their ad spending by more than $14.6 million in this year, but clearly maintained the top advertising
share position by 66.1 percent. As a result of Dunkin’ Donuts’ apparent budget cuts, Starbucks’ ad share
increased while their ad expenditures decreased to about $9.7 million, almost $3.1 million dollars less
than their 2007-2008 expenditures. Krispy Kreme continued to trail far behind in advertising efforts by
only spending $207,300, which is $18,700 less than the previous year. Total advertising expenditures for
Dunkin’ Donuts, Starbucks and Krispy Kreme in 2008-2009 were $29.3 million.
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2009-2010 Advertising Share:
Figure 3
The 2009-2010 year shows a more equally proportionate scale of ad expenditures amongst the
three competitors. Dunkin’ Donuts cut ad expenditures to a little less than $11.28 million, which
decreased their overall ad share to 53.8 percent. Starbucks managed to further cut their ad spending by
about $1.4 million and still experience an increase in ad shares. Conversely, Krispy Kreme invested a
significantly larger amount of their budget to advertising efforts by spending $1.4 million, almost a $1.2
million increase from the previous years. The total advertising expenditures for 2009-2010 were $20.9
million. Although all three companies started to even out their expenses as the years progressed,
Dunkin’ Donuts still devoted the largest portion of their budget to advertising expenditures among the
competing coffee and baked good brands.
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Competitor’s Media Mix
Figure 1
Dunkin’ Donuts’ media mix for the 2009-2010 year was mainly composed of heavy Internet
advertising. Their focus on the Internet held 72.5 percent of their media mix while other mediums such
as spot TV, cable TV and network TV barely equaled one percent of their plan. Out of home advertising
was also important for Dunkin’ Donuts as well as continuing their position in spot radio. Dunkin’ Donuts
has found a strong advertising base with the Internet and is continuing its attempts to dominate its
share of voice within that medium.
Figure 2
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Krispy Kreme is an interesting competitor because they do not focus on their advertising the
way Dunkin’ Donuts and Starbucks do. This is made visible by the fact that Krispy Kreme’s advertising
budget is merely a fraction of its competitors. The budget that Krispy Kreme does have, they spend
primarily on local newspapers.
Figure 3
Starbucks Coffeehouse has a more varied advertising mix compared to its other two main
competitors. In the 2009-2010 campaign year, Starbucks has focused their advertising on a national
level with 63.4 percent of its advertising budget going towards national newspapers. Similar to Dunkin’
Donuts, Starbucks spends the second largest portion of their budget on out-of-home advertising. While
Starbucks’ main focus looks to be on the national level, they have enough variety of spot advertising and
national advertising to make a well-rounded campaign.
Competitor’s Share of Voice
Company
CATV
Internet
Local
Newsp
Nat’l
Magazine
Nat’l
Newsp
Network
TV
OOH
Spot Radio
Spot TV
Dunkin’
Donuts
18.4%
96.7%
94.7%
---
2.8%
13%
59.7%
73.7%
55.2%
Starbucks
81.2%
3.3%
4.8%
100%
92.4%
86.9%
40.3%
26.3%
44.8%
Krispy
Kreme
---
---
.52%
---
---
---
---
---
--16
Figure 1
Figure 1 shows the share of voice that Dunkin’ Donuts, Starbucks and Krispy Kreme each have in
the varying advertising mediums. Its clear here that Krispy Kreme does not spend nearly a tenth of what
competitors such as Starbucks and Dunkin’ Donuts do. Due to Krispy Kreme’s lack of advertising
expenditures, Dunkin’ Donuts is almost put into direct competition with Starbucks. In figure 1, it is also
visible that Dunkin’ Donuts has the largest share of voice within the Internet, l ocal newspapers, out-ofhome advertising, spot radio and spot TV. These numbers reconfirm the primary target audience
chosen for Dunkin’ Donuts, which is working adults ages 25 to 54. This demographic is known to be
heavy radio and Internet consumers, as well as being commuters who are receptive to out-of-home
advertising.
Advertising Expenditures
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The chart above depicts how much each coffee company spends on advertising for the 20092010 year. It is apparent that Krispy Kreme spends significantly less than leaders such as Starbucks and
Dunkin’ Donuts. Although ad spending continues to decline because of the recession, it is not occurring
as rapidly as anticipated. As shown in this graph, Dunkin’ Donuts dominates ad spending among the
competitive set. Starbucks, Krispy Kreme and Dunkin’ Donuts have all maintained similar media mix
strategies and budgets in the past decade.
Target Audience
The primary target audience for Dunkin Donuts during the 2012 campaign year is adults ages 25
to 54. Based on the information from MRI Mediamark, the total population of adults 25 to 54 is
126,879,000. Out of that population, 16,829,000 bought Dunkin’ Donuts in the last 6 months. Among all
users of Dunkin’ Donuts, adults 25 to 54 group comes in second to the highest category, which is adults
18 to 49. Most adults within the 25 to 54 age group have a stable income, like to get their coffee quickly
and efficiently, are part of the work-force, drink coffee consistently and are money-conscious. This
consumer group is also considered a large user of the Internet, specifically with social media. Nearly four
in ten Internet users from ages 30 to 49 use social media every day, and at least 59 percent of all
American adults own a computer ("2000 Census of Population and Housing"). While the Internet is a
main source of media for this age group, reaching 67.5 percent, Television reaches over 25 percent
more of adults ages 18 and older. Radio also has a large consumer base, reaching 60.6 percent of adults
ages 18 and older (Media Habits of Children). Therefore, we will attempt to increase sales within this
age group predominantly through Internet advertising, as well as using Television, radio and other
popular mediums, in our campaign.
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As stated before, most American adults aged 25 to 54 have a stable income with the average
being $75,000 to $149,000. Out of the surveyed adults, 64,718,000 make this annual income, and out of
that population 9,741,000 have bought at Dunkin’ Donuts in the last 6 months. This is the largest group
of Dunkin’ Donut buyers and part of our primary target audience.
The secondary target market for Dunkin’ Donuts is young adults ages 18 to 24. According to the
U.S Census, people under 20 years of age make up over a quarter of the U.S. population (27.3 percent).
This age group also makes up the largest group of buyers for Dunkin’ Donuts. In the campaign, we want
to keep the sales of this group constant since they are Dunkin’ Donuts’ main source of income.
Marketing Objectives
Dunkin’ Donuts has two marketing objectives for their 2012 media plan. The first of these is to
increase its overall market share by 5 percent. With its main competitor Starbucks holding a significant
amount of the market already, raising the market share for Dunkin’ Donuts by 5 percent is a realistic
way to remain competitive. The second objective is to increase the market share among our target
audience, adults ages 25 to 54 who have a stable income, by 15 percent. Since there is no likelihood to
dominate the market with Starbucks and its large share, maintaining a strong presence in our consumer
target market is key. Not only will these objectives strengthen the Dunkin’ Donuts consumer base, but
by increasing its sales it will gain a larger portion of the leisure restaurant market as well as receive
higher profits.
Advertising Objectives
The advertising objectives for Dunkin’ Donuts is to maintain steady sales amongst the young
adult population ages 18 to 24. Dunkin’ is very successful at reaching this demographic in all areas of
advertising, from familiarity and awareness to actual point of purchase. Therefore, we wish to create a
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campaign that will further maintain sales in this large demographic while simultaneously reaching a
primary consumer group of adults ages 25 to 54 with household incomes of $75,000 to $149,000. This
group of consumers is easily persuaded by effective advertising campaigns and word-of-mouth.
Starbucks is successful at emphasizing a unique persona and atmosphere with their coffee products in
their advertisements and stores. This unique vibe attracts many of the adults Dunkin’ Donuts wishes to
obtain. Because the coffee and baked goods industry involves low-involvement products, Dunkin’ has
the opportunity to easily sway this older demographic from basing their coffee and baked good
preferences from image-oriented, to price- and efficiency-oriented preferences. Thus, Dunkin’ must
capture this primary target audience by focusing their advertising on the upper-funnel of the inverse
pyramid to achieve greater call to action and purchase by their consumer groups. Dunkin’ should also
emphasize the efficiency, quality and expansiveness of their menu over the brand image to ultimately
achieve greater sales. The Dunkin’ campaign would create a desirable image by focusing on the products
and options available, rather than focusing purely on atmosphere, like Starbucks. By embarking on a
new primary target market, Dunkin’ Donuts should be able to achieve a higher market share within it’s
target audience, while maintaining their presence with the secondary young adult demographic. A
revamped tag-line that still focuses on the efficiency and goodness of Dunkin’ Donuts will attract the
new secondary audience, while still retaining their original primary audience who value the speediness
and quality of the Dunkin’ brand.
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Media Objectives
Reach and Frequency Goals
The reach and frequency goals for our 2012 advertising campaign are split in to twelve national
campaign periods corresponding with each month throughout the year. Due to the fact that Starbucks
dominates the market share even though Dunkin’ Donuts leads the advertising share, we have decided
to make this a continuous campaign. It would be nearly impossible to regain the market share from
Starbucks, so instead, we want to heavily advertise to our receptive target market and medium to light
consumers. The campaign needs to be continuous because Dunkin’ Donuts is also a vendor of “feel”
products, and needs to be able to remain constant in its consumer’s minds.
Its necessary for out campaign to immediately begin strong and set the tone for the rest of the
periods, so the first period starts with a reach of 80 and frequency of five. We want to maintain a reach
and frequency close to this for the next three periods. By period five (May), we want to raise the reach
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and frequency levels until the end of period seven. This sudden increase in reach and frequency levels is
related to the seasonality of our target consumer. Many of our consumers are on vacation f rom work
during the summer months which means less commuting and less direct need for their morning coffee
or donut to start off their workday. Also, the possibility that many of our target audience members are
trying to save money for vacations during this time, makes it vital that Dunkin’ Donuts positions itself as
a necessity and not a frivolous purchase.
Once the summer months are over, we plan to go back to a medium level of both reach and
frequency not going below a reach of 78 and frequency of four. Positioning this standard level of reach
and frequency after three periods of high levels will help maintain Dunkin’ Donuts visibility while not
continually overwhelming the consumers.
Media Mix
The media mix for Dunkin’ Donuts’ 2012 campaign is divided into seven different mediums to
reach our consumers at the national level. These seven different mediums are Internet, magazine,
radio, out-of-home, newspaper, cable television and network television.
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Internet is the largest media type used in the Dunkin’ Donuts plan holding 68 percent of the
media mix. According to MRI+, Dunkin’ Donuts consumers are very heavy internet users, with an index
of 125 in both quartile one and two. Dunkin’ Donuts consumers are also heavy users of social media on
the Internet and desire to communicate with other consumers and the company/brand itself.
According to MRI+, Dunkin’ Donuts consumers are also heavy users of magazines with an index
of 124 in quartile one and index of 114 in quartile two. We want to incorporate magazines into the
media mix for 2012 because Dunkin’ Donuts hasn’t taken advantage of these consumers in the past.
Also, magazines are able to more specifically target our demographic with women’s magazines, specific
interest magazines, etc.
We also wanted to focus some of our advertising efforts on newspapers and out-of-home
advertising. These mediums are used about equally by Dunkin’ Donuts consumers, so we allotted to
them the same percentage of the media mix. Our out-of-home advertising is going to take place in the
top 20 DMAs consisting of cities such as Los Angeles, New York City, Atlanta, Chicago and Washington
D.C.
Also, some of our lightest used mediums are radio and more so, television. Still, in order to keep
a continuous campaign and the Dunkin’ Donuts brand fresh in target consumers’ minds as well as still
continuing awareness, we included network television advertising and radio advertising. This can target
the working adults and commuters who use the radio or television as “background” media and will
reinforce the campaign throughout the year.
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Creative Tag-line
“Get your daily Dunkin’.”
In 2001, Dunkin' Donuts was using the slogan "Loosen Up A Little," but it quickly decided that
telling consumers to chill out was inappropriate given the shock of the terrorist attacks. Then in 2009,
looking to add a positive spin to some tough times, Dunkin' Donuts launched its "You kin' do it" ad
campaign. However, the company scrapped that slogan and has spent nearly a year looking for a new
one, which is “America Runs on Dunkin” (“Adweek”). As stated in our advertising objectives, we wish to
capture a new primary audience of adults ages 25 to 54 with household incomes of $75,000 to
$149,000, along with maintaining our secondary audience of adults ages 18 to 24. Therefore, we wished
to convey the same air of quality and efficiency Dunkin’ is known for towards our secondary consumer
group but also expand awareness to the older population through a new ad slogan. We decided the
slogan, “Get your daily Dunkin’.”, still expresses the same idea of starting your day, or taking a break
from your hectic schedule, to recharge and nourish your body with the delicious options Dunkin’
provides. This new tag-line is even supported by the existing drive-in signs that read “Welcome Back”
and “See You Tomorrow.” This further enforces the new ad campaign and communicates the idea of
Dunkin’ being a part of their customer’s daily routine.
24
Cost Summary
Budget: $40,000,000;
Contingency Budget: $4,000,000
Actual Budget: $36,000,000
Total GRP: 9,078
Overall Campaign Goals:
25
Year at a Glance:
26
Flowchart:
27
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