The marketers at Dunkin' Donuts no longer want you to think of the brand as a "donut shop". They would rather that you focus on its line of beverages, which according to the CEO, comprise 60% of the chain's revenue with coffee making up the vast majority of that percentage. And so Dunkin' Donuts will now be known simply as Dunkin' with a "face-lift" planned for the brand backed by a national advertising campaign. But don't be fooled. There will still be actual donuts. Oh yes.
This can't be considered a total "re-branding" effort because it's really not going to be drastic enough for that kind of terminology; but in dumping the "donuts" nomenclature and simplifying the brand name, updating the logo, and remodeling its stores (more of a face-lift than a makeover), marketers hope to bring the brand to a much more contemporary position in the market. Drive-through lanes for mobile orders are already in the works. But with McDonald's serving the low end of the coffee market and Starbucks firmly entrenched at the high end, it might be challenging for Dunkin' to find a comfortable market position between the two Goliath's. This is why a focused and compelling national advertising campaign to establish the brand's position is an absolute must.
If marketers do want to occupy that "middle seat", it is likely that Dunkin's signature donuts will become more pastry-like and its coffee more upscale to pick off high end customers from Starbucks; but there will also be pressures to keep prices low so that the brand can appeal to the higher end of the customer base from McDonald's. This would be a good middle seat strategy as long as marketers can come up with enough exciting new product introductions and compelling promotions to maintain a loyal and growing customer base. Let's see what happens.
Discussion: Do you think this strategy is a good idea? What elements would make up a good ad campaign for introducing these changes to the brand?
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