Archive for March, 2008

Dunkin’ Donuts knows who they are and who they want to attract

I know I’ve posted a few times about Starbuck’s - the experiential case study in the coffee biz.  However, in an effort to show unbiased attention to the other guys I applaud Dunkin’ Donuts effort to position themselves in a unique and competitively attractive way to the other guys in Seattle.

A recent post from the Hub, interviewed several brand marketers about creating great retail experiences.  One of the panel members was Frances Allen from Dunkin’ Donuts.  A great piece.  What particularly caught my attention was when they addressed the subject of consumer segmentation.  Frances took that question and went on to explain their consumer positioning and consumer target.

How critical is customer segmentation to retail success?

Allen: It’s knowing who you are that is number one. So, we understand completely who Dunkin’ Donuts is and who finds Dunkin’ Donuts appealing. You’ve got to understand the products they want, that fit in with their needs, the service that’s appropriate for them and a value equation that they can feel good about.

It’s certainly not about demographics in our case. When you go to a Dunkin’, you see a construction worker standing behind a nurse standing behind a woman in a power suit. Dunkin’ Donuts has a unique appeal to people who have busy lives. They are working people with places to go.

What Dunkin’ customers want is quick quality. They want to come in and know what they’re going to get. They are not looking to sit around on sofas and chat and have meetings. They have worked a hard day’s wage and want a real down-to-earth quality product at a fair price. That crosses all demographics.

An epiphany moment for me!  You see, I frequent several coffee establishments but wasn’t sure why I went to one over the other.  It now all made sense.  Often the best positioning is the least obvious, but resonates on some deeper emotional and often unconscious level.  As I thought about the times I appreciate Dunkin’ the best, it was when I was in a hurry, stressed, and just needed a great consistent cup of coffee - on the go.  Contrast that with Starbuck’s, where I would go to meet someone, relax, and take it all in - maybe on a couch - or minimally at a much leisurely pace.

This positioning integrates very well with their previous Rachel Ray “On the Go” campaign as well as their new “Keep it Simple” campaign.  It now all makes sense.  I love being an enlightened consumer!

Is this a mall or a trauma center?

Marketing to kids has always been a slippery slope but this one feels like a vertical cliff.  Recently McDonald’s received a lot of negative press for placing subtle advertising on report cards.  And in the face of the childhood obesity epidemic Ronald will now only be promoting healthy snacks such as apple slices and milk.  But this one makes me wonder.

Abercrombie & Fitch has thrown about 10 million dollars to gain exposure, naming rights, and probably more at a new emergency department and trauma center at the Columbus Children’s Hospital in Ohio.  I understand that the company once known for shotguns and waterfowl hunting gear is based there.  I also get that they may see this as their own unique way to give back in a non-offensive way to the kids (and more importantly the parents) that they target.  But where will this lead?

Let’s say your child has a broken arm and is bed ridden in this facility.  Are they provided with A&F designer hospital gowns invariably headed for collectible status?  Coupons in the take home packs.  A&F branded casts?  How about in-room advertising on TV?  Fashion show tours complete with blaring music in the lobby?  Talk about a captive audience.  What does a brand expect (or deserve) for its 10 million dollars?

In my opinion A&F has gone a bit too far with this one.  Grant it there will be an enormous amount of PR generated both positive and certainly negative.  But this is a long-term commitment that contractually has multiple strings attached.  The brand will continually try and push the envelope on this sponsorship deal and while the kids may think it’s cool to be seen in this branded trauma ward - the parents may see it as an annoying intervention of a brand in the wrong place.

A&F would have been better off to set aside their money to help pay for underprivileged kids in this hospital.  Just feels better for everyone involved.

Consumers make the final call

With all the creative shops around I found it interesting that one of the largest beverage brands around has turned to their consumers to make the final pick for a fairly prominent piece of creative -the logo for the Coke Zero 400 Powered By Coca-Cola, the new name of the July Sprint Cup Series race at Daytona on July 5.  It seems like the brand guys in Atlanta are allowing the Coke Zero brand the freedom to go places that the more conservative “red stripe” anchor brand can’t pull off, not the least of which was branded tongue piercing over in Brazil.  But let’s get back to the NASCAR logo.

It seems the folks at Coke Zero had narrowed their logos for the high profile Summer race down to two - probably created by their agencies of record.  However, the final decision was left to the fans and target consumers.  And as the story goes it was a close call - 51% to 49%.  I think it’s great to give consumers (almost 40,000 voted) ownership of a logo that will undoubtely be everywhere those fans look over the next few months - maybe years.  This deal with Coke is part of a fully integrated 10 year deal.

 Lesson learned: trust your consumers with your brand, involve them early in the marketing process, and you usually won’t be steered wrong.  Early and often involvement leads to future engagement and loyalty.