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Dunkin'togo Marketing Plan
The Dunkin' to Go marketing plan proposes a new ready-to-drink bottled iced coffee product aimed at busy millennials, focusing on convenience, affordability, and health-conscious options. The plan outlines a strategy to capture a 10% market share by Q4 2017 through targeted marketing efforts, including social media and promotional events, while partnering with Coca-Cola for distribution. With a projected revenue of $12 million, Dunkin' aims to leverage its established brand strength to enter this new product category successfully.
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Dunkin'togo Marketing Plan
- 1. ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! +! Dunkin’ To GoMarketing Plan ! Professor Ehrlich | IMC 1 2015 marks the 65th anniversary of a small donut and coffee shop from Quincy, Massachusetts becoming a worldwide success story. With 11,000 shops, Dunkin’ Donuts has far succeed its small town roots to become a global brand superpower. Even with the success of Starbucks, Dunkin’ Donuts remains powerful force in the retail coffee and franchise arena. Dunkin’ Donuts has 2 worked hard to position themselves as the company that keeps America running with their convenient, affordable, consistent and outright delicious foods and drinks. With the frontier open, Dunkin’ is looking to expand their empire by entering a new and exciting product category. Meet Dunkin’ To Go. With your help, we can bring a new product to a new generation. Powerful Strategies. Defined Tactics. Our Famous Iced Coffee Reborn… Meet the Dunkin’ To Go Marketing Team: • Amalba!!Kola! • Ariel!!Tang! • John!C.!Mazur! • Nora!Chen! • Linh!Pham! For the first time, Dunkin’ Donuts Brand Group, Inc. sees their legendary iced coffee go portable for a whole new generation and audience. Inside the Plan Executive Summary Situation Analysis Defined Objectives Consumer Insights Marketing Strategies Marketing Action Plan Creative Direction Financial Projections Controls and Metrics Notes & Assumptions #Runwithdunkin 12.14.15
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- 3. 2 & Executive&Summary&& Dunkin’! Donuts,! operated!under! the! J.M.! Smucker! Company,! is! a! powerhouse! brand! that!is!among!the!top=selling!coffee!distributors!in!the!United!States.!With!such!a!tremendous! brand!strength!and!growth!potential,!we!are!excited!to!propose!an!entirely!new!product!line!to! Dunkin’!Donuts,!which!will!be!Ready=To=Drink!Bottled!Iced!Coffee.!Dunkin’&To&Go&is&aimed&at& the&busy,&hardworking&millennial,&who&needs&a&quick&and&affordable&source&of&fuel&to&power& them& through& the& day.! Offering! the! same! authentic! Dunkin’! Donuts! Iced! Coffee! taste,! our! product! will! feature! health& conscious& milk& options,! including! low=fat! and! soy! milk.! Today’s! millennials!are!not!only!apprehensive!about!pricing!options,!but!are!also!looking!for!products! that!serve!their!rising!health!conscious!attitudes,!and!we!believe!that!Dunkin’!To!Go!will!fulfill! these!consumer!needs.!! Launching!in!urban,!millennial=heavy!cities,!like!New!York!City,!Boston,!and!Washington,! DC,!we!plan!to!introduce!Dunkin’!To!Go!through!social!media!outlets!and!promotional!events,! such! as! blind! taste! tests! and! branded! drink! trucks.! These! marketing! efforts! are! aimed! at! targeting!millennials!on!the!platforms!that!are!most!appealing!and!engaging!to!them.!! Our&main&objectives&are&to&successfully&launch&Dunkin’&To&Go&within&the&readyUtoUdrink& bottled&iced&coffee&market,&and&to&also&obtain&a&10%&market&share&by&the&fourth&quarter&of& 2017.!Our!background!research,!consumer!insights,!and!highly=applicable!action!plan!will!help! us! to! actualize! our! objectives! and! bring! Dunkin’! To! Go! into! a! brand! new! lucrative! product! category.!! Achieving!10%!market!share!of!ready=to=drink!in!an!industry!Dunkin’!Donuts!has!never! participated! in! will! ostensibly! require! powerful! market! insight,! clearly! defined! marketing! strategies!and!detailed!and!actionable!marketing!tactics.!Bringing!the!Dunkin’!To!Go!product!to! market! may! appear! to! warrant! a! substantial! level! of! capital! deemed! too! high! by! Dunkin’! investors!to!consider!lucrative.!However;!our!marketing!plan!and!business!model!is!efficiently! designed!to!run!on!a!one!year!up=front!launch!budget!of!$1,000,000.!! With! a! profitable! and! solid! licensing! joint=venture! partnership! with! The! Coca=Cola! Company,!Dunkin’!Donuts!would!receive!an!8%!royalty!fee!on!every!single!unit!sold.!In!this! partnership,! Coca=Cola! would! be! responsible! for! all! costs! and! processes! associated! with! the! product!from!manufacturing!processing!to!distribution!in!sales.!With!our!sales!estimate!of!one! hundred! million! units,! we! anticipate! Dunkin’! Donuts! will! net! revenue! of! $12,000,000.! Accounting!for!your!million!dollar!investment,!Dunkin’!will!gross!a!revenue!of!$11,000,000.!! !
- 4. 3 Situation&Analysis&& Customers!! Dunkin’! Donuts! is!an! industry! leader! in! providing! customers! with! fast! and! consistent! service,!as!well!as,!quality!coffee!and!baked!goods!at!a!superior!value.!According!to!Ivy!Cohen! Corporate!Communications!(2015),!the!Dunkin’!Donuts!brand!seeks!to!serve!everyday,!hard= working!Americans!who!look!for!efficient!and!routine!ways!to!keep!them!going!throughout!the! day.!In!addition!to!this,!the!current!focus!of!Dunkin’!Donuts!is!to!promote!nutritious!products,! given!the!surge!of!wellness!trends!within!the!United!States.!(Dunkin’!Brands,!2015).! In!addition!to!this!consumer!type,!Mintel!research!(2015)!on!cold!brew!coffee!suggests! launching!a!cold!brew!product!reaches!customers!who!are!shying!away!from!ready!to!drink! coffee!beverages!that!contain!too!much!sugar.!Approximately!50%!of!consumers!are!looking!for! healthier! alternatives! to! carbonated! soda! drinks! and! coffees.! Given! these! recent! health! concerns,!Dunkin’!Donuts!bottled!coffee!will!not!only!be!accessible!to!everyday!hard=working! Americans,! but! will! also! be! mindful! of! health! concerns,! offering! lower! sugar! alternatives.! According! to! a! Mintel! report! (2015)! on! Dunkin’! Donuts’! newfound! health! positioning,! consumers!are!looking!to!the!beverage!category!to!provide!them!with!healthier!alternatives!to! their!proclivity!of!snacking.!! Ultimately,!Dunkin’!Donuts!serves!a!mass!American!audience!by!appealing!to!them!with! their!convenience,!affordability,!and!quality!taste.!These!attributes!will!be!amplified!with!the! new! Dunkin’! Donuts! Bottled! Coffee! beverage,! intended! to! not! only! serve! this! pre=existing! customer!base,!but!to!also!appeal!to!the!emerging!generation!of!working!millennials.!! ! Context! Demographics& –& Our! Dunkin’! Donuts! Bottled! Coffee! drink! is! aimed! at! working! millennials! for! several! different! reasons.! First,! millennials! represent! the! largest! consumer! demographic! representing! a! quarter! of! the! entire! United! States! Population! (Mintel! on! Marketing! to! Millennials,! 2015).! ! According! to! another! Mintel! report! (2015)! on! coffee! consumption,!older!millennials!(born!1979=1989)!are!mostly!likely!to!be!the!core!audience!for! our!ready!to!drink!coffee!beverage!with!31%!of!them!reporting!to!be!heavy!drinkers!and!32%!of! them! to! be! moderate! drinkers.! Mintel! (2015)! also! remarks! that! convenience,! flavor,! and! general!love!of!coffee!are!the!driving!factors!that!support!ready=to=drink!coffee!growth!among! millennials.!In!addition!to!this,!55%!of!older!millennials!are!the!majority!group!for!increasingly! expressing!interest!and!being!habitual!drinkers!of!cold!brew!coffee!(Mintel,!2015).!! For!ready=to=drink!coffee!consumers,!flavor!variety!is!one!of!the!most!important!factors! in!driving!purchases,!whereas!convenience!drives!regular!coffee!purchases!(Mintel,!2015).!It!is! interesting! to! note! that! according! to! the! Mintel! report! on! Coffee! (2015),! millennials! in!
- 5. 4 particular!look!for!portability!as!one!of!the!most!important!factors!in!their!coffee! purchases,! because! it!is! able! to! keep! up! with! their! constant,! on=the=go! lifestyles.! An! earlier! report!done!in!2014,!notes!that!57%!of!millennials!look!for!“better!for!you”!characteristics!in! their! coffee! purchases.! This! creates! an! emerging! opportunity! for! Dunkin’! Donuts’! Bottled! Coffee!product!line,!because!it!meets!the!needs!of!the!fast=paced!millennial,!while!also!offering! healthier!options!to!satisfy!their!health!demands.!! & ! Economic&–&Given!the!drastic!changes!within!the!United!States!economy!within!the!last! few! years,! consumers! are! becoming! increasingly! price=conscious,! and! are! researching! their! products!ahead!of!time.!Since!coffee!fulfills!a!routine,!basic!need,!Dunkin’!Donuts!appeals!to! most! Americans! with! their! convenience! and! low! prices,! as! compared! to! other! brand! name! coffee!stores.!According!to!IBISWorld!(2015),!the!main!economic!factors!impacting!the!success! of!Coffee!shops!are!consumer!spending,!consumer!confidence,!and!coffee!consumption.!The! report!projects!that!consumer!spending!will!2.69%!between!2015=2020,!spending!around!$12.8! trillion.!While!the!economic!recession!in!2008!caused!a!significant!decline!in!2008,!the!current! report! shows! an! upward! trend! in! spending! overall! over! the! next! five! years.! This! increasing! spending!can!also!be!attributed!to!the!decrease!in!unemployment!rates.!Consumer!confidence! is!also!projected!to!be!steadily!restored!among!consumers,!with!the!slow!strengthening!of!the! economy! and! employment! opportunities.! This! is! the! most! variable! factor! due! to! the! ever= changing!nature!of!economic!matters.!Lastly,!IBISWorld!(2015)!reports!stable!and!steady!coffee! consumption!over!the!last!fourteen!years,!and!this!trend!continues!towards!2020.!The!report! indicates!that!by!2020,!Americans!will!be!consuming!10.35!pounds!of!coffee!per!person,!which! is!a!strong!marker!of!success!for!coffee!franchises.!This!stability!shows!that!overall!people!are! largely!unaffected!by!changes!in!price.!While!IBISWorld!reports!an!increase!in!prices!over!the! next!five!years!for!coffee,!they!indicate!that!consumers!will!still!purchase!coffee,!but!will!opt!for! more! cost=effective,! brew=at=home! options.! This! places! Dunkin’! Donuts! Bottled! Coffee! in! a! strategic!position!to!accommodate!consumers!who!will!become!subject!to!the!the!projected! price!increases.! ! SocioUCultural& –& While! sweet! and! indulgent! products! have! long! driven! sales! for! the! beverage!industry,!rising!health!concerns!have!surfaced!that!may!change!the!nature!of!these! products.!Overall,!50%!of!consumers!are!shying!away!from!carbonated!soda!drinks!because!of! their!high!sugar!content,!creating!a!large!opportunity!for!other!beverage!industries,!like!coffee,! to!position!their!beverages!as!healthier!and!less!sugary!(Mintel,!2015).!Dunkin’!Donuts!is!aware! of!this!impending!issue,!and!has!added!smoothies!to!their!current!menu!to!increase!healthier! in=store!options!(Mintel,!2015).l!Cold=brew!coffees!could!be!the!answer!to!these!pre=existing! sugary!beverages,!since!they!focus!more!on!the!overall!coffee!production!process,!and!less!on! sugar! content.! In! the! past! five! years,! this! category! has! experienced! an! outstanding! 338.9%!
- 6. 5 growth,! reflecting! significant!consumer! interest! (Mintel,! 2015).! In! addition! to! this,! consumers! are! also! hyper=aware! of! the! impact! single=cup! coffee! usage! has! on! the! environment.!In!research!conducted!by!Mintel!on!coffee!(2015),!consumers!are!more!likely!to! engage!in!higher!volume!consumption!when!they!encounter!environmentally!friendly!packing! options!on!their!beverages.!Lastly,!in!an!age!where!consumers!are!constantly!running!and!on= the=go,!they!are!in!need!of!products!that!can!also!run!with!them.!As!a!result,!ready=to=drink! coffee!beverages!saw!10.2%!growth!between!2014=2015,!for!a!total!of!$2.55!billion!in!sales! (Mintel,!2015).!!! ! PoliticalULegal!–!Given!that!the!Dunkin’!Donuts!brand!is!a!franchise,!expanding!on!this! company! name! is! subject! to! many! different! legal! regulations.! According! to! Business! Insider! (2011),!in!just!2010!alone,!Dunkin’!Donuts!faced!fifteen!lawsuits!that!have!jeopardized!their! image!to!outside!investors.!These!allegations!resulted!from!controversial!legal!and!managerial! practices,!which!impacts!the!franchise!at!large.!Without!properly!addressing!the!internal!issues! that!cause!inconsistent!behaviors!and!experiences!within!franchises,!Dunkin’!Donuts!risks!losing! its!credible!brand!image!name.!Moving!forward,!Dunkin’!Donuts!must!lay!down!a!structured! and!adaptable!plan!that!accommodates!the!circumstances!and!needs!of!all!franchisee!owners.!! ! Technological&–&The!importance!of!mobile!devices!has!not!gone!unnoticed!by!key!coffee! competitors,!Dunkin’!Donuts!and!Starbucks.!A!report!on!coffee!and!ready=to=drink!coffee!in!the! United!States!reports!that!Dunkin’!Donuts!customers!who!have!visited!the!store!in!the!past! thirty!days!are!about!2.5!times!more!likely!to!visit!social!networking!websites!to!communicate! to!others!about!brands!and!companies!they!like,!and!twice!as!likely!to!be!followers!of!their! favorite! brands/companies! (Packaged! Facts,! 2014).! These! statistics! support! the! emerging! influence!of!social!media!websites!as!facilitators!of!word=of=mouth!marketing,!and!also!as!ways! that!customers!can!create!meaningful!relationships!with!the!brands!that!they!love.!In!addition! to! this,! mobile! payments! are! quickly! becoming! a! more! mainstream! way! of! purchasing! for! coffee,!accounting!for!over!14%!of!payments!in!the!U.S.!and!Canada!(Packaged!Facts,!2014).!To! keep! up! with! this! emerging! trend,! Dunkin’! Donuts! unveiled! its! DD! Perks! Rewards! Program,! which!enlisted!over!700,000!members!within!three!months.!Dunkin’!Donuts’!mobile!strategy!is! part!of!a!three=part!plan!which!has!included!the!introduction!of!their!own!mobile!application,! the!DD!Perks!Rewards!Program,!and!a!customer!relationship!management!program!to!boost! loyalty!(Packaged!Facts,!2014).!The!changing!habits!of!consumers!with!regards!to!technology! usage!have!significant!impacts!on!the!way!customers!make!purchases,!relate!to!their!favorite! brands,!and!even!access!new!brands!to!follow.!Dunkin’!Donuts!has!successfully!integrated!these! trends! into! its! core! brand! strategy! and! has! managed! to! stay! ahead! of! the! curve,! satisfying! consumer!demands.!! !
- 7. 6 Natural& –& The!food! and! beverage! industry! is! highly! reliant! on! natural! resources.!Weather!and!climate!changes!directly!impact!the!harvesting!of!coffee!beads,!and! have!already!negatively!impacted!their!production!between!2011=2014!(IBISWorld,!2015).!As!a! result,!coffee!have!experienced!a!surge!in!prices!due!to!this!lower!overall!coffee!bean!harvest! yield!for!these!years.!Another!natural!resource!that!impacts!this!industry!is!crude!oil,!which!is! used! in! the! transportation! and! distribution! of! coffee! beans.! While! prices! are! expected! to! decrease! in! coming! years,! natural! disasters! and! changing! economic! factors! may! impact! this! aspect!of!the!coffee!industry!(IBISWorld,!2015).!! ! Company! Dunkin’!Donuts!operates!under!the!Dunkin!Brands!Group,!Inc.,!which!was!established!in! 2005!in!Canton,!Massachusetts!(Factiva,!2015).!According!to!CREST!data!(2014),!Dunkin’!Donuts! is!the!industry!leader!in!selling!coffee,!both!iced!and!hot,!as!well!as!baked!goods!such!as!donuts,! bagels,! and! muffins.! In! addition! to! this,! Brand! Keys! (2015)! reports! that! from! 2007! to! the! present,!Dunkin’!Donuts!customers!are!ranked!#1!in!terms!of!coffee!brand!loyalty!(Brand!Keys,! 2015).!These!tremendous!statistics!speak!volumes!about!the!quality!and!consistency!of!Dunkin’! products,! and! shows! how! the! longevity! and! success! of! the! brand! serves! an! undeniable! customer!need.!! The!slogan!of!Dunkin’!Donuts!currently!is!“American!Runs,”!alluding!to!the!notion!that! Americans!are!living!now!more!than!ever!in!fast=paced!environments,!and!need!a!product!that! can! help! power! them! through! their! busy! day.! The! simple,! yet! powerful! mission! of! Dunkin’! Donuts!is!to!provide!fuel,!in!the!form!of!coffee!beverages,!to!everyday!customers!who!power! America!(Fast!Company,!2014).!On!the!Dunkin’!Brand!website!(2015),!Dunkin’!Donuts!products! are! positioned! as! providing! consumers! with! “superior! choice,! quality! and! service! at! a! great! value.”! With!this!goal!in!mind,!the!Dunkin’!Donuts!Bottled!Coffee!line!extends!the!services!of! providing! a! quick! energy! source! to! Americans! wherever! they! need! it! most.! Available! in! convenience! stores,! supermarkets,! and! Dunkin’! Donuts! stores,! Bottled! Coffee! products! will! serve!the!hardworking!American!consumer!by!being!more!readily!visible!and!available!for!them! to!access.!! !!! Collaborators/Complementors& Since!Dunkin’!Donuts!handles!much!of!the!goods!production,!we!propose!to!have!this! product! licensed! to! Coca! Cola! .! As! the! manufacturer! of! bottled! products! that! are! loved! by! millions! of! Americans,! Coca! Cola! is! a! strategic! partner! that! will! help! bring! Dunkin’! Donuts! Bottled!Coffee!to!the!next!level!in!terms!of!production!and!distribution.!This!product!would! partner! seamlessly! with! Coca! Cola’s! new! initiatives! supporting! health! and! wellness! needs!
- 8. 7 (License! Mag,! 2013).!Together,! Dunkin’! Donuts! and! Coca! Cola! will! be! able! to! deliver!a!high=quality!product!aimed!at!on=the=go!millennials!all!at!highly!affordable!prices.! In! terms! of! complementors,! there! is! no! better! partner! to! coffee! than! a! doughnut.! Dunkin’!Donuts’!premier!standing!baked!goods!in!the!doughnut,!bagel,!and!muffin!categories! serve!as!perfect!complementors!to!this!quick!on=the=go!beverage.!! ! Competitors!! The! coffee! franchise! industry! is! highly! competitive! and! concentrated.! According! to! IBISWorld!(2015),!four!coffee!franchises!own!90.2%!of!the!entire!market!share,!with!Dunkin’! Donuts!leading!the!pack!at!78.1%,!followed!by!Tim!Hortons!(7.6%),!The!Coffee!Bean!&!Tea!Leaf! (4.8%)! and! Biggby! Coffee! (1.5%).! Coffee! production! as! a! whole! introduces! other! key! competitors!to!this!field.!In!terms!of!Coffee!and!Snack!Shops,!the!Starbucks!Corporation!holds! 38%! of! the! market! share,! whereas! Dunkin’! Donuts! Inc.! has! only! 21.4%! (IBISWorld,! 2015).! Similarly,!when!looking!at!a!report!on!the!retail!market!for!coffee,!Starbucks!leads!with!33.5%! of!the!market!share,!and!Dunkin’!Donuts!follows!at!11.9%!(IBISWorld,!2015).!These!percentages! indicate!how!much!influence!Starbucks!bottled!drinks!have!had!on!their!retail!market!share.!By! introducing!our!Bottle!Coffee!product,!Dunkin’!Donuts!has!the!opportunity!to!grow!in!market! share!and!subsequently!increase!sales.!! In! terms! of! bottled! coffee! competitors,! Starbucks! currently! dominates! 72%! of! the! market!share,!followed!by!minor!competitors!such!as!Monster!(14.9%),!International!Delight! (7.8%),!Rockstar!Roasted!(1.6%),!Bolthouse!Farms!(0.7%),!and!Illy!Issimo!(0.2%)!(Euromoniter! International,! 2015).! Given! the! continuous! strength! in! customer! loyalty! and! consistently! successful! sales! record! of! Dunkin’! Donuts,! we! believe! our! Bottled! Coffee! beverage! has! the! potential!to!not!only!penetrate!this!market,!but!to!also!gain!a!substantial!amount!of!market! share.!! In!the!larger!competitive!beverage!context,!coffee!producers!like!Dunkin’!Donuts!must! also!be!wary!of!energy!drink!producers,!such!as!Red!Bull!and!Monster!Beverage!Corporation,! who!have!the!largest!shares!in!this!particular!market!(IBIS!World,!2015).!Positioning!Dunkin’! Donuts!bottled!coffee!as!a!quick!way!to!boost!energy!could!possibly!pose!as!a!threat!to!energy! drink!companies!who!are!already!largely!positioned!to!the!millennial!crowd.!! ! & & & & & & &
- 9. 8 SWOT&Analysis&! ! Strengths! Weaknesses! ● Dunkin’!Donuts! has! the! most! loyal! customers!for!the!past!eight!years! ● Remains! the! #1! seller! of! hot/cold! coffee!in!the!U.S.!! ● Strong! brand! name! that! drives! customer!preferences! ● Unique!taste! ● Low!prices! ● Convenience!! ● Strong!market!share! ● Perks! Program! strengthens! customer! loyalty! ● Weak!presence!in!the!West!Coast! ● Slow!and!limited!expansion!! ● Minimal! testing! done! on! bottled! coffee!drinks!! ● Legal! issues! regarding! franchisee! relationships! ! Opportunities! Threats! ● Rising! health=conscious! attitudes! among!Millennials!! ● Increasing! demand! for! quick! service/portability! ● Rise!of!payments!by!mobile!! ● Millennial!interest!in!cold=brew!coffee! ● Environmental!concerns!! ● Strong! competition! from! Starbucks! who!holds!the!majority!share!in!the!ready=to= drink!coffee!market! ● Business! relies! on! the! coffee! bean! industry,! an! area! where! prices! fluctuate! based!on!environmental!changes! ● Consumer! attitudes! towards! unhealthy!foods,!such!as!donuts! ! The! Dunkin’! Donuts! franchises! are! at! a! particularly! powerful! position! in! terms! of! financial!resources!and!brand!affinity,!which!bodes!well!for!the!introduction!of!a!new!product.! Internally!as!a!company,!Dunkin’!Donuts!has!continuously!proven!itself!as!the!leading!producer! of! both! hot! and! cold! coffee,! as! well! as! baked! goods.! In! addition! to! this,! Dunkin’! Donuts! customers!are!ranked!as!the!most!loyal!customers!for!the!past!eleven!years,!demonstrating!the! strength! of! their! brand! and! their! unwavering! dedication! to! serving! fundamental! customer! needs.!The!convenience,!affordability,!unique!taste,!and!loyalty!programs!have!driven!Dunkin’! Donuts’! large! market! share! in! the! coffee! franchise! industry.! However,! Dunkin’! Donuts! must! continue! to! evolve! and! test! and! learn! when! it! comes! to! consumer! trends.! The! launch! of! a! Bottled!Coffee!product!will!only!yield!successful!results!with!substantial!research!and!marketing!
- 10. 9 efforts,!as!well!as,!consistency!throughout!Dunkin’!Donuts!stores!and!retailers.!In! addition!to!this,!legal!issues!may!hinder!the!reputation!and!growth!of!Dunkin’!Donuts!stores,! and!the!brand!must!be!wary!and!diligent!about!treating!accusations.!! Given!these!internal!factors,!Dunkin’!Donuts!is!faced!with!many!new!opportunities!that! will! channel! growth!and! success! with! their! new! product! launch.! Consumer! trends! have! indicated! a! strong! interest! in! products! that! promote! health! and! wellness! needs,! and! by! positioning! our! product! as! having! more! sugar=conscious! options,! as! well! as! providing! milk! alternatives,!Dunkin’!Donuts!has!the!potential!to!appeal!to!this!emerging!concern.!Similarly,! consumers,!and!Millennials!in!particular,!are!expressing!interest!in!cold!brew!coffee,!which!is!an! angle!that!this!bottled!coffee!product!can!adopt!and!differentiate!itself!against!the!pre=existing! offerings!in!the!market.!Consumers!now!are!more!faced=paced!and!on=the=go!more!than!ever,! and!a!bottled!product!can!appeal!to!the!unique!needs!of!these!customers,!while!also!making! quick!payments!accessible!through!mobile.!Lastly,!with!rising!concerns!about!the!environment,! Dunkin’! Donuts! has! the! opportunity! to! make! this! product! using! recyclable! glass! materials,! boosting!the!overall!reputation!of!the!brand.!Despite!all!these!opportunities,!Dunkin’!Donuts! must! be! wary! of! the! threats! that! may! pose! a! challenge! to! their! business.! First,! Starbucks! is! already!a!leader!in!the!field!of!bottled!coffee!beverages,!taking!up!nearly!90%!of!the!overall! market! share.! Running! up! against! this! competition! may! not! be! effective,! so! Dunkin’! Donuts! must!push!for!its!unique!offerings!and!successfully!differentiate!itself!from!the!competition.! Secondly,!the!coffee!industry!relies!heavily!on!environmental!factors!that!impact!the!harvesting! of!the!beans.!If!the!yearly!harvest!is!not!enough,!prices!surge,!and!this!may!affect!overall!sales.! Lastly,! Dunkin’! Donuts! must! work! on! making! sure! their! image! of! moving! towards! health! consciousness!mirrors!the!consumer!outlook!on!the!brand.!Donuts!are!not!typically!associated! with!health!and!wellness,!and!this!approach!may!not!be!as!effective!in!appealing!to!their!target! audience.!! ! ! ! !
- 11. 10 Marketing&Objectives& ! The!Dunkin’!Donuts!Bottled!Iced!Coffee!product!we!have!proposed!is!an!entirely!new! product!extension!for!the!brand.!Other!popular!coffee!vendors,!like!Starbucks!and!Illy,!have! already!penetrated!this!market,!with!Starbucks!holding!an!outstanding!72%!of!the!total!share! (Euromoniter!International,!2015).!Because!this!market!is!skewed!to!favor!this!top!brand,!we! believe!that!a!Dunkin’!Donuts!product!has!the!ability!to!not!only!penetrate!this!market,!but! obtain!a!substantial!share!within!it,!lessening!Starbuck’s!overall!power.!Rated!top!coffee!brand! in!terms!of!sales!and!customer!loyalty,!Dunkin’!Donuts!possesses!a!unique!strength!as!a!brand,! which!will!help!promote!the!growth!of!our!product.!With!our!comprehensive!action!plan,!we! are! aiming! to!launch! Dunkin’! To! Go! in! the! ready=to=drink! coffee! market! and! gain! as! much! consumer!! ! Main&Objective! ! Successfully!introduce!Dunkin’!Donuts!To!Go!and!obtain!a!10%!market!share!within!the! bottled!iced!coffee!industry!by!the!end!of!Q4!in!2017.!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! &
- 12. 11 & Customer&Insights! This!section!uses!both!secondary!data!of!industry!reports!and!primary!data!of!market! survey.!The!survey!was!conducted!in!late!November!2015!with!a!sample!size!of!114,!among! which! 63%! aged!20=30,! 22%! aged! 30=40,! 78%! are! working! full=time! or! part=time! (the! target! market).!The!survey!purpose!was!to!examine!the!coffee=drinking!habit!of!potential!customers! (usage! frequency! &! time,! common! purchasing! scenario,! brand! preference! &! attributes,! and! willingness!to!try).!It!was!conducted!online!(90%)!and!at!four!Dunkin!Donuts!Stores!in!Brooklyn! and!Manhattan!(10%).!Details!of!Survey!Questions!and!Results!are!included!in!Appendix!3.! Defining&the&Market! There!are!three!key!segments!in!ready=to=drink!(RTD)!coffee!market.! The!first!group!includes!students&aged&18U22&(younger&Millennials)!with!a!busy!lifestyle.! They!most!likely!need!coffee!while!studying!at!college,!particularly!during!exam!time!.!“This! group!is!most!likely!to!exhibit!infrequent!coffee!consumption,!with!an!index!of!259!for!less!than! once!per!week!usage”!(Packaged!Facts,!2014)!–!see!Appendix!1.! The! second! group! is! working& older& Millennials& aged& 23U35! with! an! even! busier! and! more! stressful! lifestyle.! They! drink! coffee! before! starting! workday! or! during! the! workday.! According! to! Packaged! Facts’! 2014! survey! results,! “85%! of! adult! respondents! drink! coffee,! among! the! full=time! employed,! 86%! drink! coffee”! (Packaged! Facts,! 2015).! This! group! is! the! most! likely! to! be! heavy! RTD!coffee!drinkers! (Mintel,! 2015).! “They! are! one! of! the! few! demographic!groups!with!a!similar!percentage!of!users!drinking!RTD!coffee!both!heavily!(31%)! and!moderately!(32%)”!(Mintel,!2015).!Besides,!running!data!on!Simmons!Oneview,!we!figured! out! that! 11.2%! male! aged! 23=35! and! 11.4%! female! aged! 23=35! drink! bottled/canned! coffee! (29%!and!32%!respectively!higher!than!the!average)!(Simmons!Oneview,!2015).!! The!third!group!is!parents&aged&31U40!who!are!family!oriented,!health=concerned!and! price=sensitive.! Statistics! reports! a! higher! frequency! of!coffee!consumption! by! this! parents! group! compared! to! adults! in! households! without! children! (Mintel,! 2014)! –! see! Appendix! 2.! Parents!“come!close!to!the!heavy!coffee=drinking!behavior,!with!26%!being!heavy,!and!30%! moderate,! RTD! drinkers”! (Mintel,! 2015),! which! is! a! bit! lower! than! the! working! Millennials! group’s.! ! Drinking&behaviors! When%to%drink! “A! significant! 26%! share! of! coffee! drinkers! consume! in! excess! of! four! cups! per! day,! another! 20%! drink! three! cups! per! day.! This! suggests! that! nearly! half! of! all! coffee! drinkers! continue!their!coffee!habit!beyond!the!“starter”!cup!in!the!morning”!(Packaged!Facts,!2014).!
- 13. 12 This!is!in!line!with!our!market!survey!result,!which!indicates!40%!drinking!more! than!once!per!day,!62%!drinking!coffee!in!the!morning,!and!53%!drinking!whenever!getting! tired!or!during!break.!“The!key!is!for!makers!and!marketers!to!give!cause!for!these!consumers! to!think!differently!about!coffee!by!focusing!on!differentiating!day=part!usage,!such!as!the!iced! coffee!drinks!for!refreshment!or!blended!coffee!drinks!as!a!sweet!treat”!(Packaged!Facts,!2014).! ! Where%to%drink! Regarding! the! target!market! of! working! Millennials,! a! survey! indicated! “90%! of! employees!drink!at!least!one!cup!of!coffee!during!the!day,!with!95%!drinking!at!least!one!cup!at! work”!(Packaged!Facts,!2015).&Moreover,&“employees!of!smaller!companies&(less!than!9!people)! are!most!likely!to!drink!coffee!before!going!to!work!while!employees!from!small=to=medium! sized!companies!are!more!likely!than!average!to!have!coffee!at!work”!!!(Packaged!Facts,!2015).! Also,! “78%! of! coffee! drinkers! who! value! beverage! selection! are! passionate! about! their! workplace!offering!this!perk”!(Packaged!Facts,!2015),!which!suggests!the!promotion!of!bottled! coffee!for!working!offices’!vending!machines!or!rest!space.!! ! Purchasing&behaviors! Key%Attributes% According! to! our! survey! result,! the! most! important! attributes! of! choosing! a! favorite! coffee! brand! is! the! taste! (74%),! followed! by! the! convenience! (easiness! to! get)! (43%)! and! affordable! price! (30%),! which! implies! the! role! of! a! pre=launching! taste! test,! a! network! of! distribution! and! a! penetration! pricing! strategy.! Besides,! 48%! surveyed! drink! bottled! coffee! when!being!in!a!rush!and!need!a!quick!pick=me=up,!and!54%!rate!the!“convenience”!as!the!thing! they! like! the! most! about! bottled! coffee! (compared! to! 17%! for! the! taste),! which! further! emphasizes!on!the!“easiness!to!get”!component!of!this!bottled!version.! ! For!those!who!have!not!tried!bottled!iced!coffee,!the!most!common!reason!is!that!they! prefer!common!coffee!(56%),!but!there!are!also!concerns!about!health!(18%)!or!taste!(8%)!or! non=awareness! of! this! bottled! version.! 79%! are! willing! to! try! bottled! coffee! if! given! a! free! sample! (62%),! a! promotion! deal! (15%),! a! variety! of! flavor! options! (13%)! or! available! milk! options!(13%).!These!findings!suggest!Dunkin’s!Donut!to!address!the!health!issue!of!the!new! product,!conduct!taste!test!with!a!variety!of!flavors!and!distribute!samples!in!the!promotion.! ! When%to%buy! “Mintel’s!Beverage! Tracker!finds! that! at=home! and! food! service! iced!coffee!consumption!declined! in! the! winter! and! spring! months,! but! increased! during! summer! months:! at=home! iced!coffee!consumption!increased! by! 4! percentage! points! from!
- 14. 13 December!2014!to!June!2015!(with!26%!of!consumers!drinking)”!(Mintel,!2015).! This!indicates!that!the!favorable!timing!for!product!launching!and!promotion!would!be!summer! time.! ! Where%to%buy! “Supermarkets/food!stores!are!narrowly!in!the!lead!for!retail!sales!of!ready=to=drink!tea! and! coffee,! according!to! Packaged! Facts! estimates,! accounting! for! 35%! of! category! sales,! compared! with! 33%! for! mass! merchandisers/supercenters,! primarily! through! Walmart! supercenters.!Convenience!stores!also!claim!a!significant!share!of!the!market,!at!17%,!with!the! remaining!channels!garnering!15%!of!the!total.”!(Packaged!Facts,!2011)!! ! “An! exceptionally! high! draw! is! among! 7=Eleven! shoppers,! 37%! of! whom! buy! coffee! drinks!overall!(for!an!index!of!141,!or!41%!above!average),!and!21%!of!whom!buy!Starbucks! Frappuccino!or!Doubleshot!brand!coffees!(for!an!index!of!173).!At!the!same!time,!Whole!Foods! shoppers! and! Walmart! Supercenter! shoppers! are! also! disproportionately! drawn! to! these! products,! indicating! a! widespread! consumer! base”! (Packaged! Facts,! 2011)! (see! Appendix! 6).! This!should!be!noted!down!to!map!out!the!network!of!DD!bottle!coffee!distributors.! ! Packaging%! For! a! bottled! product,! packaging! also! needs! to! be! addressed! as! a! concern! to! the! customers.! “Top! three! food! and! beverage! packaging! features! consumers! want! are! tamper= proof,!easy!to!open,!and!re=sealable”!(Packaged!Facts,!2013).!!71%!of!consumers!expect!the! packaging! to! be! recycled.! More! marketers! are! putting! their! products! in! see=thru! packages,! which! “taps! into! consumer! desire! for! transparency! about! how! food! and! beverages! are! produced”! (Packaged! Facts,! 2013).! Glass! bottles! and! jars! are! the! most! favorite! packaging! material! for! food! /! beverages,! with! 34%! reporting! they! like! glass! “very! much”! and! 34%! responding! that! they! “somewhat! like”! glass! (Packaged! Facts,! 2013).! These! favorable! trends! should!be!incorporated!in!DD!bottle!design.! !! Furthermore,! young! adults! aged! 18=30! are! delaying! marriage,! which! allows! them! to! spend!a!greater!proportion!of!their!income!for!themselves!but!also!less!in!bunks!(IBISWorld,! 2015).!“With!one=!or!two=person!households!representing!61%!of!all!U.S.!households,!packages! sized!to!serve!one!or!two!people!have!become!a!big!trend!in!packaging”!(Packaged!Facts,!2013).! This!should!be!taken!into!account!when!designing!the!store=at=home!package!for!this!product.! ! Last! but! not! least,! innovative! packaging! design! would! drive! more! customers! to! get! engaged.!Examples!can!be!the!case!of!Coca!Cola’s!personalized!packaging!with!250!first!names! or!the!technology!of!“QR!codes!that!allow!a!consumer!to!scan!the!product!using!a!smartphone!
- 15. 14 • Male,!aged!28,!urban! • Full!time!job!and!part=time!graduate!student! •Often!commuting!to!work!and!school!with!tight!schedule! • Identifiers:!energetic,!quick!action,!career=oriented,!eco=conscious! • Preferences:!joining!outdoors!activities,!trying!new!things,!being!challenged,! using!new!technology,!connecting!with!friends!on!social!media! • Shopping:!7=Eleven,!The!Whole!Food,!Walmart! • Need!refreshment!drink!before!and!during!work! equipped!with!a!code!reader!application,!which!then!takes!the!consumer!to!a! mobile!site!where!they!can!interact!with!the!brand!in!various!ways.”!(Packaged!Facts,!2013).!! ! ! Technology%! To! continue! with! the! findings! in! the! Situation! Analysis,! consumers! who! have! visited! Dunkin’!Donuts!in!the!past!30!days!are!almost!2.5!times!as!likely!as!the!average!adult!to!view! social! sharing/! networking! websites! (Packaged! Facts,! 2014).! The! most! popular! social! media! network!for!people!aged!25=29!are!Youtube!at!95%,!Facebook!92%,!Instagram!77%!and!Twitter! 74%! (see! Appendix! 4).! They! are! also! active! in! mobile! usage! and! new! technology! (Packaged! Facts,!2014).! ! Based! on! those! information,! it! is! recommended! that! Dunkin'! Perks! Reward! Program,! which!is!already!effective!mobile!app!for!DD!users,!should!incorporate!with!tracking!QR!Code! (that! was! mentioned! in! packaging! section)! on! DD! bottle,! to! bring! customers! to! helpful! interactive!information!online,!on!their!phones,!and!on!the!social!media!channels!they!use.!! & Brief&Potential&Customer&Profile! ! ! & & &
- 16. 15 & Marketing&Strategies&& Market&Segments&and&Target&Market! The! three! main!segments! identified! in! the! RTD! (ready=to=drink)! coffee! market! are!! students&aged&18U22&(younger&Millennials),&working&older&Millennials&aged&23U35&and&parents& aged& 31U40.& In! the! scope! of! this! plan,! we! have! chosen! to! focus! on! the! ! working& older& Millennials&aged&23U35!because!of!their!heavy!coffee=drinking!behavior!(Mintel,!2015),!office! coffee=drinking!trend!(Packaged!Facts,!2015)!and!high!bottled!coffee!consumption!(Simmons! Oneview,!2015).!! Within&the&Target&Segment& Within!the!target!segment!of!working!Millennials,!three!sub=groups!are!defined.!! The! first! segment! within! our! targeted! group! is& current! Dunkin’& Donuts& customers.! Dunkin’! Donuts! is! ranked! number! one! in! customer! loyalty! in! the! packaged! coffee! category! (Packaged!Facts,!2014).!It!is!important!to!make!sure!the!new!bottled!coffee!is!consistent!with! the!current!brand,!so!that!Dunkin’!stays!true!to!its!unique!qualities!and!consequently!keep!their! loyal!customers.!The!new!product!is!also!expected!to!encourage!current!Dunkin’!customers!to! drink! more! coffee,! as! our! product! is! designed! for! portability! and! convenience.! The! Dunkin’! Donuts!Perks!Reward!Program,!therefore,!should!be!designed!in!the!way!optimal!for!both!in= store!drinker!and!bottle=at=home!or!bottle=at=office!drinkers.! The!second!group!is!the!RTD&coffee&customers.!We!speculate!that!Dunkin’!Donuts!is! most! likely! to! compete! with! Starbucks! in! this! segment! group.! Based! on! our! market! survey! results,!Starbucks!is!the!most!favorable!coffee!brand!(with!41%),!followed!by!Dunkin’!Donuts! (20%).!Starbucks!is!also!the!most!popular!bottled!coffee!provider!(87%!surveyed).!This!statistic! matches! with! the! secondary! findings! stated! in! the! Situation! Analysis.! To! differentiate! themselves!from!this!big!competitor,!Dunkin’!would!focus!more!on!their!essence!of!“readiness= to=go,”! the! brand! tagline! of! “America! run! on! Dunkin”,! health! concern! solution! (eg.! sugar! elements)!and!affordability.! The! third! group! is! energy& drinkers:! By! positioning! Dunkin’! To! Go! as! the! “Redbull! for! coffee!drinkers”,!Dunkin’!bottled!iced!coffee!is!most!likely!to!compete!with!energy!drinks!in!this! segment!group.!“Adults!aged!18=34!are!key!energy!drinks!consumers.!Adults!aged!18=24!over! index!in!energy!drink!usage!by!112%!(or!12%!above!the!adult!norm);!while!those!aged!25=34!are! 75%!more!likely!to!drink!energy!drinks”!(Packaged!Facts,!2013).!Specifically!in!the!workplace,! “coffee! also! competes! against! energy! drinks:! some! 30%& of! full=time! employed! daily! coffee! drinkers! have! also! consumed! energy! drinks! at! work,& while! energy! drink! users! are! also! over!
- 17. 16 index!of!RTD!coffee!drink!at!163!index!point”!(see!Appendix!5)!(Packaged!Facts,! 2013).! To! win!in! this! market,! Dunkin’! would! have! to! strongly! promote! the! energy! effect! together!with!the!healthy!factor!attributed!to!this!new!product.! ! ! Brand&Positioning&Summary& &! To!bottle!coffee,!milk!and!sugar!to!sell!without!the!power!of!branding!and!positioning! would!be!an!ineffectual!and!most!likely!unprofitable!task.!Unbranded!products!in!current!times! simply! do! not! allow! for! consumers! to! develop! strong! emotional! relationships! necessary! to! establish! a! lifetime! of! perpetual! buying.! With! the! extraordinary! success! of! Starbuck’s! Iced! Coffee! and! Frappuccino! lines! along! with! other! small! but! powerful! ready=to=drink! coffee! products,!entering!this!product!category!requires!a!brand!with!immense!power!and!awareness.! Due!to!sixty!years!of!strong!and!steady!brand!building,!Dunkin’!Donuts!has!revealed!itself!as! one! of! the! most! widely! known! coffee! retailers! in! the! world,! with! an! international! brand! presence!of!94%!(CGIB!Omnibus,!2012).!It!is!with!this!Dunkin’!Donuts!massive!brand!presence! with!which!our!product!positioning!will!be!based!on.! !! Dunkin’! Donuts! Iced! Coffee! must! reflect! the! brand! message! of! serving! consistently! delicious!coffee,!donuts!and!food!for!the!fast=paced!life!of!the!everyday!worker.!Dunkin’!Donuts! believes!their!products!are!the!fuel!that!keeps!America!successfully!running.!Like!all!Dunkin’! Donuts! products,! Dunkin’! Donuts! Bottled! Iced! Coffee! will! be! positioned! as! the& fuel& that! everyday!Americans!need!to!keep!their!lives!going.!This!product!has!the!classic&Dunkin’&Donuts& taste,!convenience&and!affordability!that!all!working!and!fast=living!Americans!rely!on.!Dunkin’! Donuts!Bottled!Iced!Coffee!has!a!distinct!taste,!one!that!reflects!the!quality!of!Dunkin’!Donuts! as!well!as!the!tastes!of!its!primary!target!market.!This!taste!will!be!positioned!as!slightly!bitter,! slightly!sweet,!full!of!coffee!flavor,!and!containing!a!higher!amount!of!caffeine.!Dunkin’!Donuts! Bottled! Iced! Coffee! will! also! reflect! the! company’s! value! promise! by! making! the! product! affordable!as!possible!to!its!target!market.! !! ! Point& of& Differentiation:! Simply! put,! the! Dunkin’! Donuts! brand! speaks! for! itself! with! regard!to!its!seriously!strong!brand!awareness.!This!product’s!point!of!differentiation!is!that!it!is! the!more!than!coffee:!it!is!the!distinctly&tasting,!affordable&and!highly&caffeinated&Bottled!Iced! Coffee!that!runs!America.! !! Frame&of&Reference:!The!Dunkin’!Donuts!Bottled!Iced!Coffee!product!will!operate!in!the! product!category!of!ready=to=drink!coffee!beverages.!
- 18. 17 &! The&Reason&to&Believe:!!The!target!market!believes!that!Dunkin’!Donuts!Bottled!Iced! Coffee!is!the!preferred!bottled!iced!coffee!to!drink!because!as!the!number!one!seller!of!coffee,! Dunkin’!Donuts!is!a!brand!that!can!trustfully!deliver!a!consistently!good!energizing!portable! coffee!product.! !! Brand&Positioning&Statement& !! For&today’s&hard&working&millennials,&Dunkin’&Donuts&Bottled&Iced&Coffee&is&the&most& distinct&tasting,&affordable,&portable&and&energizing&drink&among&all&ready&to&drink&iced&coffee& products,&because&of&Dunkin’&Donuts’&ubiquitous&brand&awareness&and&trusted&reputation&for& providing&the&fuel&for&everyday&people.! ! Brand&Vision&! Dunkin’! Donuts! is!an! American! brand! based! in! Canton,! Massachusetts,! with! stores! represented!in!a!vast!number!of!countries.!Dunkin’!Donuts!owes!its!immense!influence,!in!part,! to!its!strong!and!focused!brand!vision!that!has!served!as!a!consistent!and!reliable!message!to!its! consumers.!Global!Chief!Marketing!Officer,!John!Costello,!prides!himself!on!Dunkin’!Donuts’! simple,!yet!effective!message!to!consumers,!“everyday!folks!who!keep!America!running!keep! themselves!running!every!day”!(Fast!Company,!2014).!In!other!words,!Dunkin’!Donuts’!slogan,! “America!Runs,”!communicates!to!its!consumers!that!they!truly!understand!the!quick=paced! and!often!hectic!lives!of!Americans.!With!this!understanding,!the!company!strives!to!provide! consistently!fast!and!easy!service!with!incredibly!low!prices.!Dunkin’!Donuts!fuels!the!everyday! hard!worker,!who!then!fuels!America.!! Their!vision!has!remained!a!strong!foundation!for!the!way!their!company!is!perceived,! and! their! dedication! to! uphold! their! message! pays! off.! According! to! Brand! Keys! Customer! Loyalty!Index,!Dunkin’!Donuts!ranks!first!in!customer!loyalty!from!2006=2015.!In!addition!to! that,!the!company!has!a!94%!brand!awareness,!even!in!countries!and!cities!where!the!store!is! not! physically! present! (CGIB! Omnibus,! 2012).! The! incredible! strength! that! their! brand! and! vision!holds!definitely!remains!a!top!reason!why!Dunkin’!Donuts!is!number!one!in!coffee!sales,! holding! the! majority! market! share! in! the! coffee! space! (YE,! 2012).! Their! global! success! and! domination!in!the!coffee!market!is!a!testament!to!their!strong!branding!and!marketing!efforts.!! In!the!next!five!years!to!come,!Dunkin’!Donuts!plans!to!expand!markets!to!the!West! Coast,! seamlessly! integrating! its! brand! vision! in! new! territories! (Dunkin’! Brands,! 2015).! The! company!upholds!its!core!values!of!providing!stellar!goods!and!service!to!its!customers!through! constant! innovation! and! dedication! to! understanding! the! unique! needs! of! its! consumers,! especially! in! today’s! digital! era.! Dunkin’! To! Go! not! only! supports! the! Dunkin’! Donuts! brand! vision,!but!also!advances!its!message!by!creating!a!portable!drink!that!runs!with!Americans.!
- 19. 18 ! Product! Dunkin’! Donuts,! one!of! our! country’s! most! popular! coffee! franchises,! will! introduce! ready=to=drink! bottled! coffee,! providing! the! same! taste! consumers! know! and! love! in! stores.! Dunkin’! Donuts! is! proud! to! be! the! first! national! brand! to! sell! espresso! beverages! made! exclusively!with!Fair=Trade!Certified!espresso!beans.!Approximately!2,000!beans!go!into!making! just! one! pound! of! Dunkin’! Coffee.! We! use! 100%! Arabica! coffee! beans,! which! the! industry! regards!as!a!superior!grade!of!coffee.!! Our!competitor,!Starbucks!Frappuccino!saw!its!value!share!declined!from!52%!to!49%!in! 2013,!as!it!faced!competition!as!well!as!due!to!consumer!concerns!about!the!product’s!high! calories!content.!That!is!when!Starbucks!introduced!the!Starbucks!Iced!Coffee!line!in!2013,!to! address!health!concerns!(Euromonitor,!2014).!Americans’!love!of!sweet!flavours!has!supported! the!growth!of!RTD!coffee,!especially!for!those!younger!consumers!who!enjoy!the!sweetness! taste! of! brewed! coffee.! Brands! operators! emphasises! the! natural! and! unique! flavours! have! seen! strong! growth.! Also,! Dairy=free! milk! (i.e.,! soy,! rice,! and! almond)! is! a! growing! trend! in! consumer!beverage!products!and!foodservice,!as!a!result!of!rising!health=conscious!attitudes! (Euromonitor,! 2014).! Therefore,! we! want! to! introduce! Dunkin’! Donuts! RTD! coffee! as! the! premium!quality!and!healthier!coffee!in!the!market!to!attract!popularity.!We!will!offer!milk! variety!(regular,!low=fat,!and!soy)!as!an!option!for!product!selection.! The!two!packaging!we!have!designed!to!feature!on!bottle!Dunkin!to!Go!beverages:!the! Iced! Coffee! and! Iced! Caramel! Coffee.! We! bottled! our! coffee! in! glass! bottles! because! young! consumers!are!most!likely!to!associate!glass!bottles!with!being!high!quality!and!attractive,!glass! bottles! also! appeal! to! users! concerned! about! the! health! effects! of! plastic! bottles! (Mintel,! 2015)".! For! Dunkin’! Donuts! read=to=drink! bottled! coffee,! we! will! offer! two! kinds! of! flavors:! Signature!Iced!Coffee!and!Iced!Caramel!Coffee.!! ! Price! Consumers! are! focused! on! price! now! more! than! ever,! and! so! it! is! important! as! marketers!to!deliver!utmost!value!to!our!customers.!Starbucks!coffee!is!the!largest!competitor! to!Dunkin’!Donuts,!and!they!are!positioning!themselves!as!the!premium!coffee!shop!with!high! pricing!strategy.!On!the!other!hand,!Dunkin!Donut!abruptly!breaking!into!the!premium!coffee! industry! with! "cheaper,! but! almost! as! good,! coffees"(Brizek,! 2014).! Dunkin’! Donuts! is! commonly! known! for! its! good! standard! quality! coffee! with! affordable! prices;! therefore,! will! price!out!our!Dunkin!Donut!bottled!iced!coffee!with!penetration!pricing!strategy.!! We!are!offering!a!low!price!for!our!new!product!in!order!to!attract!customers!away!from! competitors.!According!to!data,!Dunkin!Donut!is!selling!more!than!1.7!billion!cups!of!coffee! every! year.! There! are! more! than! 7,600! Dunkin’! Donut! restaurants! in! the! United! States! and!
- 20. 19 nearly!11,000!restaurants!in!33!countries!worldwide.!By!having!an!existing!large! market!share!in!the!US,!Dunkin’!Donut!bottled!iced!coffee!will!be!able!to!reach!to!their!target! audience! and! penetrate!the! market! quickly.! In! ready! to! drink! coffee! market,! the! average! bottled!coffee!cost!from!a!range!of!$1.99!to!$2.99,!we!price!our!Dunkin’!Donut!bottled!iced! coffee!at!$1.49!per!bottle.! ! ! Below!are!competitor’s!RTD!coffee!market!retail!price!per!bottle:! ● Starbucks!Frappuccino!$2.89!! ● Starbucks!Iced!Coffee!$1.99!! ● Starbucks!Doubleshot!$2.99! ● Illy!Issimo!$2.49! ● Java!Monster!$1.99! ● Rockstar!Roasted!$1.99! ! Place! Dunkin’! Donuts! started! its! donut! bakery! shop! in! 1950,! Quincy! Massachusetts.! Now! there! are! more! than! 11,000! stores! in! the! world! and! approximately! 7,000! stores! in! the! USA! (Caffeine!Informer).! !! The!sales!at!Starbucks!are!$84,695,121,!while!sales!at!Dunkin’!Donuts!are!$42,996,003! in!2015!(Nielsen).!From!the!map!pictured!below,!it!is!clear!that!Dunkin’!Donuts!concentrates! more! on! the! east! coast! while! its! biggest! competitors! has! higher! concentration! around! west! coast!as!well!as!middle!regions!of!the!US.!!
- 21. 20 !! ! ! !! Our! idea!is! to! launch! our! bottled! coffee! in! its! Dunkin’! Donuts! stores,! grocery! stores,! supermarkets,!gas!stations!and!other!retailers!selling!ready=to=drink!beverages!sites.!People!will! also!be!able!to!order!them!from!its!official!website!and!Amazon.! ! Promotions! 1. DD&Truck&#DunkinToGo! We!will!have!a!Dunkin’!Donuts!branded!drink!truck!(DD!truck)!to!go!through!millennial= heavy!cities!on!the!east!coast,!such!as!New!York!City,!Boston,!and!Washington,!D.C.!The!truck! will!bring!bottled!iced!coffee!and!samples!to!these!cities!and!engage!with!millennials!to!gauge! what!their!responses!are!like!to!our!new!product.!The!trucks!will!be!travelling!along!Route!I95! on!the!East!Coast!to!promote!Dunkin’!To!Go.!It!will!start!from!April!to!June!(Q1).! I95! ! !! ! 2.!Blind&Taste&Test&Competition!“Dunking&For&Dunkin”!at!Bryant!Park,!New!York!City.! People!can!try!to!distinguish!Dunkin’!Donuts!coffee!based!on!the!sweetness,!off!flavors!and! aftertaste.!It!will!start!in!July!(Q2).! !
- 22. 21 3.!Dunkin’&To&Go!for!a&Year&Contest! This!contest!will!let!people!win!a!chance!to!have!year’s!supply!of!Dunkin!To!Go.!All!of! them! who! want!to! participate! in! this! contest! need! to! enter! their! email,! age,! geographical! location!and!product!reference.!It!will!start!in!September!(Q3).! ! 4.!DD&Perks&Rewards&Referral&Program!Tie=In!with!Dunkin’!To!Go! Current! Dunkin’! Donuts! Perks! can! refer! their! friends! to! join! DD! perks.! It! is! Dunkin’! Donuts!mobile!and!card!program!which!will!reward!people!a!free!Dunkin’!To!Go!drink!from! referral!person.!It!will!start!from!July!to!August!(Q2).!! ! 5.&Digital&Marketing! • Social!Medial! • Custom!Dunkin’!To!Go!Landing!Page! • Increase!Membership! • Viral!Videos! ! 6.&Direct&Marketing! • Email!Newsletter! • Postcard! ! We!believe!that!Dunkin’!Donuts!bottled!iced!coffee,!can!bring!convenience!for!people,! save!time!and!encourage!people!to!consume!more!coffee!whenever!and!wherever!they!are.!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
- 23. 22 Marketing&Action&Plan&! ! &“Dunkin&Runs&With&America”&%! #DunkinrunswithAmerica%#runwithit%! ! Our!team!plan!to!maximize!1!million!dollars!on!the!new!Dunkin’!Donuts!bottled!iced! coffee! to! innovate!the! product! for! desired! audience.! We! will! spend! the! money! on! digital,! television,! video,! direct! marketing,! radio,! podcasts,! promotions! and! market! research! (table! below)! ! Budget&Allocation& ! Expense&Category! Monetary&Cost! Percentage&of&Budget! Digital! $435,000! 46.8%! Television/Video! $75,000! 8%! Direct!Marketing! $104,000! 11.2%! Radio/Podcasts! $60,000! 6.6%! Promotions! $221,000! 23.8%! Market!Research! $55,000! 5.9%! ! ! ! Promotional&Tactics&and&Marketing&Budget&Allocation! The&DD&Truck&! Associated!Hashtags:!#DunkinToGo! Total!Marketing!Cost:&$160,000! Breakdown:! $35,000! payroll,! $25,000! Utilities! and! Samples,! $100,000! Trucks! and! Permits! Duration:!90!Day!Campaign! Time!of!Campaign:!Q1!(April=June)! !
- 24. 23 There!are!10,000!Dunkin’!Donuts!stores!in!the!world!and!approximately! 7,000! stores! in!the! USA! (Caffeine! Informer).! In! terms! of! sales,! Starbucks’! yearly! profits! are! estimated! to! be! about! $84,695,121,! while! sales! at! Dunkin’! Donuts! are! 42,996,003! (Nielsen,! 2015).! Dunkin’! Donuts! concentrates! more! on! the! East! Coast! while! its! biggest! competitors,! namely! Starbucks,! have! a! ! higher! concentration! around! the! West! Coast! as! well! as! middle! regions!of!the!US.!Therefore,!our!team!creates!DD!To!Go!campaign.!The!Dunkin’!Donuts!truck! (DD!truck)!will!go!through!the!east!coast,!where!has!heavy!concentration!of!Dunkin’!Donuts! lovers.! The! truck! will! bring! bottled! iced! coffee! and! samples! to! these! cities! and! engage! with! millennials! to! gauge! what! their! responses! are! like! to! our! new! product.! It! follows! I=95! (east)! route!to!promote!its!iced!bottled!coffee.!However,!the!truck!will!stay!in!New!York,!Boston,!and! Washington,! D.C.! for! longer! period! of! time! since! those! cities! have! high! concentration! of! millennials.! The! DD! truck! is! an! effective! promotion! strategy! which! can! bring! significant! awareness!of!the!product!in!public.!The!truck!will!host!photo!booth!area!where!customers!can! take! photos! with! the! truck.! They! can! also! post! pictures! through! social! media! channels.! The! truck!will!also!be!intergrated!with!DDToGo.com!in!a!way!that!consumers!can!view!where!the! DD!truck!is!at!all!times!on!the!east!coast!and!follow!its!location.!.!The!DD!Truck!campaign!will! begin!April!starting!in!Washington,!D.C.!and!continue!till!June,!ending!in!Boston,!MA.!! ! Blind&Taste&Test&Competition&U&“Dunking&For&Dunkin’’&! Total!Marketing!Cost:!$12,000!(Payroll,!Samples,!Supplies)! Reach:!150,000!participants!and!viewers!combined! Time!of!Campaign:!Q2!(July)! ! We!will!host!the!Blind!Taste!Test!Competition!“Dunking!For!Dunkin’’!at!Bryant!Park,!New! York! City.! The! reason! we! choose! Bryant! Park! is! because! it! is! a! city! park! where! has! high! concentration!of!visitors!and!foreign!travelers.!This!park!combines!both!historical!monuments! and! urban! amenities,! which! attracts! families,! working! people! and! students! come! to! enjoy! moments!of!a!day.!During!the!event,!we!will!offer!different!brands!of!coffee.!Coffee!lovers!can! taste!each!sample!of!them!to!pick!their!favorite!ones.!They!can!distinguish!them!based!on!the! sweetness,!off!flavors!and!aftertaste.!The!person!who!pick!Dunkin’!Donuts!will!be!a!winner!and! he!will!get!Dunkin’!Donuts!$25!gift!cards,!along!with!free!donuts.!! ! Dunkin’&To&Go&for&a&Year&Contest! Total!Marketing!Cost:!$5,000!(Five!Winners!@!$3,000!and!$2,000!for!Contest!Creative)! Time!of!Campaign:!Q3!(September)! ! This!contest!is!a!highly!profitable!tactic!with!regards!to!gaining!consumer!insight!and! information.!In!this!campaign!in!September!of!the!third!quarter,!Dunkin’!Donuts!creates!a!fun,!
- 25. 24 youthful,!but!professionally!oriented!contest!by!which!people!can!enter!to!win!a! chance!to!have!a!year’s!supply!of!Dunkin’!To!Go.!Thought!this!is!a!lot!of!product!to!one!person,! everyone! who! enters!must! enter! their! email,! geographical! location,! age,! and! product! preferences! into! the! submission! form.! By! entering! customers! must! opt=in! to! our! email! marketing!program!which!of!course!features!advertising!of!our!newest!product.!This!contest! will!be!promoted!socially!and!should!gain!serious!momentum!with!regards!to!specific!social! media!metrics!and!milestones.! ! DD&Perks&Rewards&Referral&Program&TieUIn&with&Dunkin’&To&Go! Total!Marketing!Cost:!! Time!of!Campaign:!Q2!(July!and!August)! ! The! DD! Perks! Rewards! Program! is! Dunkin’! Donuts! mobile! and! card! program! used! to! deliver!added!value!and!promotions!to!Dunkin’!Donuts’!most!loyal!customers.!Because!of!our! brand!new!product,!it!is!critical!to!incentivize!people!to!try!Dunkin’!To!Go!and!tell!their!social! networks! about! it.! Most! significantly,! the! DD! Perks! program! is! ! one! of! the! most! important! places!our!customers!need!to!join!and!identify!with.!In!this!promotional!program!current!DD! Perks!members!will!be!incentivized!to!refer!their!friends!to!join!DD!Perks!as!well.!Each!referral! the!person!makes!will!reward!them!a!free!Dunkin’!To!Go!drink.!One!person!can!refer!up!to!5! people!to!sign!up!for!DD!Perks,!thus!rewarding!the!first!person!5!free!bottles.!The!estimated! cost!for!this!program!combines!the!cost!to!make!the!digital!referral!mechanism!on!the!backend! ($5,000)!and!the!amount!of!free!samples!(10,000!<!)!that!could!potentially!be!given!to!referring! DD!Perks!members!($15,000).!! ! Digital&Tactics&and&Marketing&Budget&Allocation! Search'Engine'Optimization'% Total!Marketing!Cost:!$24,000! Time!of!Campaign:!Full!Year!with!Seasonal!Modifications! ! Search!Engine!Optimization!is!the!means!by!which!the!web!presence!that!Dunkin’!To!Go! accumulates!is!favorably!accounted!for!when!keywords!specific!to!the!product!are!inputted!into! a!search!engine.!Also!called!organic!search,!Search!engine!optimization!is!the!process!by!which! Dunkin’! To! Go! gains! greater! SERP! (Search! Engine! Results! Page)! visibility! without! being! associated!with!an!outright!advertisement.!To!stay!competitive,!it!is!proposed!that!we!optimize! our! organic! search! options! with! a! modest! budget.! It! is! with! strong! insight! that! the! main! keywords!associated!with!our!new!beverage!do!not!receive!high!average!monthly!searches.!An! example!of!this!is!the!keyword!“Bottled!Iced!Coffee”!which!receives!an!average!monthly!search!
- 26. 25 of!110!(Keyword!Planner,!Google!Adwords,!2015).!Though!the!average!search!is! very!low,!the!suggested!bid!of!$2.21!for!this!keyword!is!very!high,!meaning!that!there!are!many! companies!trying!to!gain!the!attention!of!a!small!number!of!highly!lucrative!consumers.!It!is! calculated!that!this!keyword!alone!could!warrant!a!spend!of!$2,000!per!month.!Since!there!are! not! many! other!keyword! groups! that! have! as! much! search! strength,! it! is! advised! that! we! allocate!a!yearly!spend!of!$24,000.!! ! ! ! Search'Engine'Marketing'(Paid'Search)% Place:!YouTube!and!Google!Display!Network!! Ad! Types:! In=Stream! Ads,! In=Display! Ads! (ReelSEO.com,! 2015,! http://www.reelseo.com/effective=video=types=youtube=ads/! Total!Marketing!Cost:!!$150,000! Time!of!Campaign:!Full!Year!with!Seasonal!Modifications! ! Search!Engine!Marketing!will!be!a!critical!tactic!to!engage!customers!by!spreading!brand! awareness,! product! information,! encouraging! social! network! sharing,! and! generating! impressions!with!the!intent!of!securing!conversions,!via!consumer!information!and!conversions.! Considering!how!Youtube!is!the!most!popular!social!media!network!from!people!ages!25=29,! the!majority!of!our!advertising!will!be!on!YouTube!and!the!Google!Display!network;!a!massive! network! of! Google! monitored! and! reviewed! websites! that! Dunkin’! To! Go! can! successfully! advertise!on.!Since!it!is!very!difficult!to!estimate!the!exact!cost!of!our!SEM!campaign,!we!have!
- 27. 26 calculated! that! $0.30!max! bid! per! ad! times! 5! million! prospective! consumers! equates!to!$150,000.!We!wish!to!spread!this!out!and!strengthen!the!reach!when!approaching! Q2.!! ! Social'Media% Total!Marketing!Cost:!!$180,000! Time!of!Campaign:!Full!Year!(Under!Contract!with!! ! Social'media!is!interchangeable,!cross=promotional,!and!helps!to!create!a!brand!voice.! You!can!promote!on!social!media!using!text,!visuals,!web!links,!videos,!and!more.!Not!only!is! social!media!a!great!promotional!tool!for!your!product!and/or!service,!but!it!also!allows!for! customer!service!and!the!ability!for!the!organization!to!communicate!and!interact!directly!with! its!key!audience.!Social!media!is!both!interchangeable!and!cross=!promotional!in!the!sense!that! an!organization!can!promote,!inform,!and!publicize!its!message!across!many!different!social! media!platforms.!For!example,!if!Dunkin’!Donuts!posts!an!Instagram!to!Twitter,!it!will!inform! Twitter!followers!that!Dunkin’!Donuts!also!has!an!Instagram!and!vice!versa.!If!Dunkin’!Donuts! uploads! that! Instagram! photo! to! Facebook,! Facebook! users! will! learn! that! product! has! an! Instagram.!This!is!commonly!used!by!many!organizations!to!cross!promote!on!multiple!social! channels,! thus! improving! social! media! presence! and! establishing! brand! voice! for! Dunkin’! Donuts!bottled!iced!coffee!is!important.!! Instagram!is!a!social!media!outlet!that!encourages!users!to!visually!document!their!lives! in!an!interactive!and!promotional!way.!We!believe!that!the!Dunkin’!Donuts!bottled!ice!coffee! Instagram! account! would! provide! a! great! opportunity! to! promote! new! product! and! other! events! by! providing! a! means! of! documentation! of! community! involvement! and! turnout.! Instagram! is! also! an! excellent! tool! for! the! promotional! events! because! current! and! new! merchandise!can!be!visually!displayed!so!that!those!who!follow!can!see!the!inventory!and!be! tempted! to! make! a! purchase.! Instagram! has! a! newsfeed,! which! can! generate! awareness! of! Dunkin’!Donuts!ice!bottled!coffee.!That!is,!people!can!see!if!others!“like”!comment,!or!even! follow!the!product!on!Instagram.!This!is!a!great,!easy!and!free!way!to!advertise!the!product.! Meanwhile,! we! also! want! to! use! Twitter! to! publicize! our! new! Dunkin’! Donut! brand! extension!line.!Prior!to!promotional!events,!Dunkin’!Donuts!will!create!a!hashtag!and!people! can!click!on!that!hashtag!to!receive!an!accumulation!of!every!other!user!who!has!used!the!same! hashtag!before.!For!users!who!use!#DunkinrunswithAmerica!#runwithit!will!get!1!dollar!off!then! they!purchase!in!store.!This!creates!a!Twitter!community!of!information!and!postings!about! events!and!product!is!simple!and!free.! !
- 28. 27 Facebook! is! not!as! intimate! of! a! social! media! platform! as! Instagram! and! Twitter.! Facebook!friends!can!reach!the!thousands,!whereas!Twitter!and!Instagram!followers!are!usually! more!selective.!Facebook!advertisement!of!Dunkin’!Donuts!bottled!ice!coffee!can!reach!a!large! audience.!It!is!also!important!to!cross=promote!across!multiple!social!media!channels!so!as!to! increase!the!likelihood!of!reaching!the!desired!audience.!Meanwhile,!we!will!also!advertise!the! product!on!Facebook.!Once!Dunkin’!Donuts!update!promoted!posts,!we!will!pay!for!posts!to!go! furthers!to!insert!in!people’s!news!feeds.!!! ! Facebook&Sponsored&Post&Advertising! Total!Marketing!Cost:!$60,000! Time!of!Campaign:!Full!Year!with!Seasonal!Modifications! ! Apart! from! perfectly! crafted! and! timed! Facebook! posts,! discussions,! and! replies,! Facebook! has! an! incredibly! robust! advertising! network! that! could! be! an! excellent! tool! for! Dunkin’!To!Go’s!brand!message.!With!all!the!wonderful!narratives!our!social!media!team!and! creative!department!have!been!working!on,!we!believe!it!would!be!a!prudent!and!efficient!task! to!sponsor!facebook!posts!on!Facebook.!That!is,!for!$1.50!per!thousand!impressions,!Facebook! will! serve! our! promoted! posts! to! 40,000! people’s! Facebook! feeds! (Jeff! Bullas,! 2014,! Jeffbullas.com).!These!sponsored!posts!will!allow!people!who!normally!wouldn’t!see!Dunkin’! Donuts!Facebook!posts!to!actually!view!them!in!a!non=intrusive!narrative!setting.!! % Custom'Dunkin’'To'Go'Landing'Page% Page!URL:!http://www.ddtogo.com! Total!Marketing!Cost:!$20,000! Time!of!Campaign:!Full!Year! ! In!order!to!generate!our!product!awareness!in!public,!it!is!essential!to!create!a!unique! Dunkin’!Donuts!To!Go!website,!called!“DDToGo.com”.!This!website!will!be!act!as!a!homebase! for! the! brand’s! web! presence.! Aside! from! being! optimized! for! all! browsers! and! viewing! conditions,!this!website!will!be!highly!optimized!for!mobile!technology!(Entrepreneur,!2015,! Entrepenuer.com).!Focusing!solely!on!the!new!product,!this!landing!page!will!work!to!establish! a!strong!presence!for!our!product!to!increase!consumer!familiarity.!It!will!have!comprehensive! information! of! our! bottled! iced! coffee,! along! with! store! locator! navigation! guide! and! social! media! channel! links.! Customers! can! share! their! photos! or! daily! stories! about! coffee! on! the! website,!for!instance,!what!bottled!ice!coffee!brings!for!them!in!life,!and!why!they!love!to!drink! bottled!ice!coffee.!Dunkin’!To!Go!also!has!mobile!app!which!displays!pages!the!same!as!the! website.!Customers!are!able!to!purchase!items!online!or!through!mobile!phone,!and!they!can!
- 29. 28 go!to!stores!to!pick!up.!Therefore,!for!those!busy!workers!and!students,!they!do! not!need!to!wait!in!line!to!make!a!purchase.!Dunkin’!To!Go!helps!bring!convenience!and!energy! for!its!customers.!! Online'registration'form,'Membership! It!is!important!for!Dunkin’!Donuts!Dunkin’!To!Go!have!an!online!registration!form!to! allow! for! shoppers!and! those! who! are! interested! to! stay! updated! with! special! events! or! offerings.!People!can!access!the!registration!form!from!Dunkin’!Donuts’!Dunkin’!To!Go!website! page!under!the!registration!tab!to!sign!as!memberships.!While!this!form!is!offered!online,!it!will! also!be!accessible!at!the!grocery!shops.!We!think!it’s!necessary!for!Dunkin’!To!Go!to!have!a! registration! form! to! encourage! more! than! just! current! customers! to! receive! newsletters,! information,!and!opportunities!to!get!involved!in!the!community!through!Dunkin’!Donuts.!The! registration!form!also!helps!people!connect!with!the!newsletter,!special!events,!promotions,! coupons,!postcards!and!any!other!relevant!information.!! We!encourage!people!to!sign!up!for!membership!by!word!of!mouth.!Anyone!who!has! signed!up!for!membership!will!be!offered!a!promotion!code.!If!the!person!shares!his!code!to!his! friends,!once!his!friends!sign!up!with!the!promotional!code,!each!of!them!will!get!3!free!Dunkin’! Donuts!bottled!ice!coffee.!For!anyone!who!purchase!at!stores,!they!can!gain!DD!to!Go!credits!(5! credits)!every!time!on!their!membership!card.!Once!they!reach!to!25!credits,!we!will!send!out! one!free!ice!bottle!coffee!coupon!through!emails.!Emails!will!also!send!out!events,!discounts! and!coupons!to!current!Dunkin’!Donuts!customers.! ! Television&and&Video&Tactics&and&Marketing&Budget&Allocation! Hulu'Advertising% Total!Marketing!Cost:! Time!of!Campaign:!Full!Year!with!Seasonal!Modifications! ! Media! streaming! service! Hulu! is! a! massively! popular! website! with! today’s! millenials.! Hulu!has!over!9!million!subscribers!(The!Verge,!2015,!theverge.com)!Hulu!is!so!popular!that!it!in! fact! is! more! people! watch! Hulu! than! Video! On! Demand! (Digital! Trends,! 2015,! Digitaltrends.com).!Hulu!allows!advertisers!to!serve!ads!on!during!all!programing!via!a!bidding! system!for!around!$35!per!thousand!viewers.!To!diversify!our!advertising!spend,!the!marketing! team!has!decided!to!reach!a!million!targeted!consumers.!The!cost!of!this!is!$35,000!which!could! be!very!profitable!for!spreading!brand!and!product!awareness!to!our!target.!!
- 30. 29 ! ! Video'Content'Creation% Total!Marketing!Cost:!$40,000! Time!of!Campaign:!1!Original!Content!Video!per!Quarter! ! Our! content! video!production! company! quoted! our! marketing! team! at! $10,000! per! video.!Videos!are!critical!pieces!of!content!that!our!target!market!will!respond!to.!They!will! serve!an!advertising!function!as!they!will!be!displayed!and!shared!on!all!social!media!platforms! as!well!as!used!as!advertisements!on!YouTube!and!Google!Display!Ad!Network.!We!believe!four! original!content!videos!will!diversify!our!brand!message!throughout!the!year!long!campaign.!! ! Direct&Marketing&Tactics&and&Marketing&Budget&Allocation! Email'Newsletter'% Total!Marketing!Cost:!$4,000! Time!of!Campaign:!Minimum!of!Twice!a!Month!Throughout!12!Month!Period! ! Since!our!target!audience!will!be!based!on!college!students!and!working!class.!We!will! also!promote!Dunkin’!Donuts!ice!bottled!coffee!through!email!newsletter.!It!should!also!include! links!to!social!media,!events!of!Dunkin’!Donuts.!We!also!want!to!send!out!the!newsletters!on!a! more!consistent!basis.!Therefore,!the!newsletter!should!have!more!specific!distribution!dates.! The!newsletter!should!serve!to!not!only!inform!customers,!but!to!also!remind!them!why!they! shop!for!bottled!ice!coffee.!The!newsletter!should!show!customers!all!for!the!events!Dunkin’! Donuts!is!engaged!in,!turnout!of!events,!or!any!news!regarding!to!Dunkin’!Donuts.!! ! Dunkin’'Donuts'Postcard'% Total!Marketing!Cost:!$100,000!($0.50!@!200,000!recipients!(50k!in!four!key!cities)! Time!of!Campaign:!Q1! ! We!will!send!out!Dunkin’!Donuts!postcards!which!contains!information!on!promotions! or! coupons! via! the! special! and! unique! Dunkin’! Donuts! postcards! to! current! Dunkin! Donuts! customers.!Our!goal!is!to!send!key!publics!specially!produced!postcards!containing!information!
- 31. 30 about!the!ice!bottled!coffee,!merchandise,!coupons,!community!immersion,!the! Dunkin’!Donuts,!and!more.!We!will!send!50,000!promotional!cards!to!loyal!customers!in!our! four!key!cities!of!New!York,!Washington,!D.C.,!Philadelphia!and!Boston,!MA.!Not!only!would!this! promote!the!ice!bottled!coffee!and!the!brand,!but!itself=!promotes!the!unique!postcards!that! Dunkin’!Donuts!has!to!offer.!Our!idea!for!the!postcards!to!also!serve!as!coupons!will!encourage! people!to!make!purchase!more!frequently,!even!at!a!small!discount.!Furthermore,!postcards! that! have! specific!event! information! can! be! used! as! invitations! to! Dunkin’! Donuts’! events.! Lastly,!the!personal!information!collected!from!customers,!such!as!demographics!and!gender,! can!be!used!to!further!enhance!our!understanding!of!the!Dunkin’!Donuts!consumer!base,!and! modify!product!offerings!accordingly.!The!postcards!also!are!designed!as!entrance!tickets!for! events!and!tell!customers!which!event!will!be!around.!!By!sending!out!unique!Dunkin’!Donuts! postcards,!we!believe!that!the!Dunkin’!Donuts!customers!would!be!able!to!grow!upon!their! current!interactions!with!their!key!publics!to!expand!and!broaden!their!audience!and!shopper= base.!! Dunkin’!Donuts!bottled!ice!coffee!will!be!on!the!track!of!omnichannel!marketing!in!how! it! uses! online,! store,! mobile! phone! and! public! events! to! bring! convenience! and! improve! its! service!experience!to!customers.!! Podcast'Advertising'Tactics'and'Market'Budget'Allocation% ! Total!Marketing!Cost:!$60,000! Time!of!Campaign:!Full!Year!! ! Working! millennials! are! always! on! the! go.! According! to! GenYize,! three! of! the! most! popular!podcasts!for!millenials!are!The%$100%MBA,%How%Stuff%Works%Presents:%Stuff%Mom%Never% Told%You,!and!Another%Round%with%Huben%and%Tracy!(GenYize,!2015,!Genyize.com).!Since!our! target! market! consumers! are! consistently! downloading! and! listening! to! podcasts! while! in! motion,!it!is!a!pragmatic!decision!to!invest!in!advertising!on!these!three!podcasts.!Our!tactic!is! to!advertise!Dunkin’!To!Go!twice!a!month!($1,720)!on!each!of!the!three!podcasts!throughout! the!year!(EO!Fire,!2015,!eofire.com).!! ! Full&Market&Research&Plan! Total!Marketing!Cost:!$25,000! Time!of!Campaign:!Pre=Campaign! ! A! fully! functional! and! highly! detailed! marketing! research! plan! was! conducted! by! our! marketing!team.!The!full!report!can!be!viewed!in!the!SWOT!analysis,!consumer!insights,!and!
- 32. 31 marketing!strategies!section!of!the!marketing!plan.!Without!marketing!research,! there!would!have!been!no!insights!which!are!foundations!of!our!marketing!strategies.!! ! ! Professional&Taste&Testing&Experiment! Total!Marketing!Cost:!$10,000! Time!of!Campaign:!Pre=Campaign! ! Prior!to!the!launch!of!our!product,!it!is!critical!to!understand!whether!the!taste!of!our! product!is!to!absolute!perfection;!that!is,!Dunkin’!To!Go!tastes!to!the!exact!specifications!of!our! target!market.!For!this,!a!professional!testing!company!Focus!Scope,!Inc!based!out!of!Chicago! will!set!up!various!taste!testing!groups!of!our!target!market!to!determine!if!the!product!is!tasty! or!not!to!their!pallets!(Focus!Scope,!Inc,!2015,!ww.focusscope.com).!Since!our!target!market! demands!a!specific!taste!to!their!bottled!coffee,!it!is!imperative!that!all!feedback!is!properly! processed! from! Focus!Scope! and! given! to! Coca=Cola! for! proper! taste! and! manufacturing! modifications!(before!manufacturing.!! ! Customer&Feedback&Program! Total!Marketing!Cost:!$20,000! Time!of!Campaign:!Full!Year!(Performed!at!End!of!Each!Quarter)! ! Surveys!are!pragmatic!and!cost!effective!ways!to!acquire!and!analyze!real!data!from!our! target!market.!For!$1,250!a!month,!Survey!Monkey!allows!companies!to!generate!their!own! survey!and!send!anytime!they!want.!It!is!advisable!to!send!out!a!survey!with!questions!about! our!consumer!as!well!as!the!product!at!the!end!of!each!month.!Collecting!data!like!this!from! consumers! allows! us! to! tweak! our! marketing! program! as! needed! throughout! the! year=long! campaign.!! ! !
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- 36. 35 Financial&Projections! &! Financial&Summary& &! With!over!ten!thousand!Dunkin’!Donuts!and!Baskin=Robbins!restaurants!in!the!United! States,!Dunkin’!Donuts!Brand!Group,!Inc.!is!an!absolute!powerhouse!within!the!coffee!retail! business.!For!sixty!years,!Dunkin’!Donuts!has!continuously!grown!as!a!company,!expanding!their! brand!and!goods!throughout!the!corners!of!the!globe.!With!Dunkin’!Donuts!Brand!Group,!Inc.! going!public!in!2011,!they’ve!seen!unprecedented!revenue!growth!at!the!rate!of!25%!in!the! past! five! years!(Dunkin’! Donuts! 2014! Annual! Report).! With! freestanding! restaurants,! combo! stores,!end!caps,!and!gas!stations,!customers!can!always!purchase!a!variety!of!consistently!good! food!and!beverage!items!in!a!casual,!clean,!and!convenient!environment.! !! The! growth! that! Dunkin! Donuts! has! amassed! throughout! its! industrious! lifetime! has! been! largely! attributed! to! the! company’s! aggressive! franchising.! As! stated! in! our! marketing! SWOT! analysis,! Dunkin’! Donuts! has! a! coffee! franchise! marketing! share! of! 78.1%! (IBISWorld,! 2015).!However!Dunkin’!Donuts!falls!short!its!main!competitor!Starbucks!in!the!coffee!retail! world,!trailing!the!gourmet!coffee!giants!by!21.6%!(IBISWorld,!2015).!There!is!no!doubting!the! aggressive!competition!between!Dunkin’!Donuts!and!Starbucks.!The!product!category!of!ready= to=drink! coffee! beverages! is! currently! dominated! by! Starbucks,! owning! a! solid! 72%! (Euromoniter! International,! 2015).! However,! Dunkin’! Donuts! has! enough! brand! equity! to! strongly!consider!expanding!their!successful!business!into!a!new!and!exciting!product!category.! !! Financial&Business&Model& Like!all!major!food!and!beverage!corporations,!Dunkin’!Donuts!Brand!Group,!Inc.!is!a! profitable!organization!due!to!its!initiatives!to!spend!capital!where!it!is!needed!most.!Dunkin! Donuts’! foray! into! the! ready=to=drink! category! requires! a! business! model! that! will! result! in! positive!revenue!stream!with!minimal!risk!and!liability.!!Entering!this!product!category!provides! many!challenges!that!Dunkin’!Donuts!must!strategically!approach.!These!challenges!include!the! following:! !! ● Deciding!which!channels!of!distribution!will!be!the!most!cost!effective.! ● Determining! whether! or! not! it! would! be! fiscally! smart! to! invest! in! millions! of! dollars!into!full!product!manufacturing!and!processing!plants.! ● Calculating!the!precise!points!where!Dunkin’!Donuts!would!turn!a!revenue.!
- 37. 36 ● Understanding!the!balance!of!power!and!market!share!between! the!four!largest!coffee!manufacturers!in!America:!Green!Mountain!Coffee!Roasters!Inc.,!The!JM! Smucker!Company,!Kraft!Foods!Inc.,!and!Nestle!SA!(IBISWorld!Industry!Report!31192A,!2015)! !! Unlike!adding!a!new!flavor!to!a!pre=existing!Dunkin’!coffee!drink!in=store,!Dunkin’!To!Go! requires! the!company! to! create! an! entirely! new! means! of! production,! marketing,! and! distribution.!Even!without!such!a!costly!endeavor,!Dunkin!Brands!Group,!Inc!has!a!current!debt! of!$1.89!billion!dollars!to!account!for!(Dunkin’!Brands!Group!Balance!Sheet,!FactSet!Research! Systems!Inc,!2015).!Though!these!challenges!and!obstacles!may!deter!investing!at!first,!it!is!our! strong!consumer!research!and!marketing!insights!that!has!led!us!to!our!proposal.!To!conquer! these! obstacles! requires! looking! no! further! than! Dunkin! Donuts’! strongest! and! most! threatening!competitor:!Starbucks.! !! Rather!than!incurring!the!drastically!high!costs!to!produce!and!distribute!ready=to=drink! coffee!beverages,!Starbucks!Corporation!has!decided!to!get!longtime!partner!PepsiCo!to!make,! sell!and!distribute!all!of!their!signature!RTD!products!including!Starbucks®!Frappuccino®!drinks,! Starbucks!Double!Shot®,!Starbucks®!Iced!Coffee,!Starbucks!Refreshers®!beverages!and!Tazo®! Bottled!Iced!Tea!(Starbucks!Newsroom,!http://bit.ly/1QhBy9b,!2015).!The!relationship!between! both! companies! sparked! the! creation! of! an! alliance! called! the! North! American! Coffee! Partnership,! which! for! twenty! years! has! helped! make! RTD! coffee! market! what! it! is! today! (Starbucks! Newsroom,! http://bit.ly/1QhBy9b,! 2015).! Based! on! the! critically! acclaimed! joint! venture!of!Starbucks!Corporation!and!PepsiCo,!Dunkin’!Donuts!Brand!Group,!Inc.!has!decided! to!pursue!a!parallel!yet!unique!partnership!with!The!Coca=Cola!Company.! !! The!financial!director!of!the!Dunkin’!To!Go!product!launch!has!successfully!created!a! joint! venture! partnership! with! the! beverage! giant! The! Coca=Cola! company.! Due! to! Dunkin’! Donuts’!mission!to!continue!growing!revenue!from!franchises,!it!has!been!determined!that!it!is! not! profitable! for! Dunkin’! Donuts! to! enter! the! RTD! coffee! production! industry! as! manufacturers.!To!enter!this!new!category,!Dunkin’!Donuts!is!prepared!to!create!a!licensing! deal! with! The! Coca=Cola.! In! this! licensing! deal,! The! Coca=Cola! Company! will! be! the! sole! manufacturer,! seller,! and! distributor! of! Dunkin’! To! Go! products.! In! return! for! Coca=Cola! manufacturing,!selling,!and!distributing!Dunkin’!To!Go,!Dunkin’!Donuts!Brand!Group,!Inc.!will! get!8%!revenue!from!all!products!sold!under!the!license.!That!is,!if!Coca=Cola!company!sells!five! million! bottles! of! Dunkin’! To! Go! at! $1.49! per! bottle,! Coca=Cola! would! gross! an! income! of! $7,450,000!while!Dunkin’!Donuts!would!receive!a!revenue!of!$596,000.!Though!8%!may!seem! like!a!small!percentage!of!revenue!received!for!such!a!large!sale,!one!must!consider!that!the!8%! is! pure! profit! that! required! little! to! capital! to! achieve! (Entrepreneur.com! Licensing! Guide,! 2015).! According! to! Coca=Cola’s! chief! licensing! agent,! Coca=Cola! promises! to! increase! the!
- 38. 37 royalty! percentage! by!one! point! for! every! 10! million! units! sold.! Coca=Cola’s! higher! volume! royalty! increase! is! a! major! incentive! for! the! Dunkin’! Donuts! marketing! department!to!sell!as!many!units!as!possible.! !! !! Though!Coca=Cola!will!be!the!creators!and!distributors!of!the!new!product!Dunkin’!To! Go,!Dunkin’!Donuts!is!exclusively!responsible!for!all!marketing!expenses!associated!with!the! product! launch.! The! budget! the! Dunkin’! To! Go! marketing! team! is! using! to! develop! the! marketing! plan! is! $1,000,000.! The! marketing! team! behind! Dunkin’! To! Go! believes! this! partnership!will!be!a!fruitful!because!it!allows!Dunkin’!Donuts!to!leverage!its!brand!equity!into!a! new!product!category!while!only!having!to!pay!for!marketing!costs.!As!Dunkin’!To!Go!marketing! strategies!and!tactics!build!trust!with!the!target!market,!smaller!percentages!of!revenue!will! aggregate!into!much!larger!earnings!for!Dunkin’!Donuts.!The!following!is!a!table!demonstrating! the!flow!of!profit!from!Licensor!(Dunkin’!Donuts!to!Coca=Cola!Company!(Licensee):! !! !! $1.49! Unit!Retail!Price!per!Bottled!Coffee! $0.30! Cost!to!Produce!the!Product!(Cost!of!Goods!Sold)! $1.19! Profit!for!Coca=Cola!(What!Coke!Grosses!from!each!Sale)! ROS!of!8%! Royalty!Percentage!(8%!of!the!Retail!Price)! $0.12! Amount!of!Profit!Dunkin’!Donuts!gets!for!Every!Unit!Sold! 10%! Share!of!Coca=Cola’s!Profit!that!Dunkin’!Donuts!Gets! !! !! Sales:!Sale!of!the!Dunkin’!To!Go!product!will!be!primarily!from!Coca=cola!distributors! to!retail!channels!which!include!convenience!stores!such!as!7=Eleven!and!drugstores.!Coca=Cola! Company!will!also!distribute!Dunkin’!To!Go!products!to!Dunkin’!Donuts!Stores.! !! Size& of& Market:! The! segment! we! have! chosen! to! target,! 23=35! year! old! working! millennials,!consists!of!approximately!40!million!consumers.!Due!to!the!fact!that!we!are!also! geo=targeting!our!market!to!the!mid=Atlantic!and!northeastern!regions!of!the!U.S.,!our!market! becomes!smaller!at!10!million!consumers.! !!
- 39. 38 Consumer& Purchase& Profile:!The! target! market! we! are! trying! to! reach!consists!of!primarily!moderate!to!heavy!coffee!drinkers!that!typically!consume!single!unit! RTD!coffee!and!energy!drinks!weekly!(Mintel,!2015).! !! Estimated&Revenues&for&Dunkin&To&Go:& !! *Assuming!each!consumer!drinks!10!RTD!Dunkin!To!Go!products!per!year,!an!estimated! 200,000,000!units!will!be!purchased!(10,000,000!consumers!x!10).! !! ! ! 100,000,000!units!x!$0.12!(Dunkin’!Revenue!per!Bottle)!=!$12,000,000!in!Estimated! Revenue
- 40. 39 Implementation&Controls&&&Metrics&& Social&Media&Controls&! The! strength! of!our! social! media! marketing! efforts! rely! heavily! on! the! magnitude! of! awareness!we!create!for!our!target!audience.!By!placing!the!majority!of!our!emphasis!on!our! social! media! campaigns,! including! Facebook,! Instagram,! and! Twitter,! we! expect! our! target! audience!to!be!reached!effectively!and!we!will!test!for!this!across!a!number!of!metric!controls.! The! most! important! factors! for! our! Facebook! campaign! will! be! number! of! followers,! likes,! views,!and!shares,!video!completion!rates,!ratio!of!positive!to!negative!comments,!and!click= through!rates.!! ● Grow!Facebook!follower!presence!from!13!million!to!14!million!by!the!end!of!Q4! ● Increase!Instagram!followers!by!50k!additional!followers!by!the!end!of!Q4!! ! Metrics&for&Achieving&10%&Market&Share! ! In! order! to! ensure! that! our! primary! marketing! objective! is! definitively! met,! specific!market!share!milestones!shall!be!set!and!achieved!for!each!quarter:! ● Achieve!3%!market!share!by!end!of!Q1! ● Achieve!5%!market!share!by!end!of!Q2! ● Achieve!8%!market!share!by!end!of!Q3! ● Achieve!10%!market!share!by!end!of!Q4! ! Customer&Feedback! ! To!ensure!that!1)!Dunkin’!To!Go!as!a!product!is!satisfying!all!the!target!market’s! needs! and! 2)! marketing! strategies! and! tactics! are! effectual,! customer! feedback! must! be! carefully!aggregated,!monitored!and!analyzed!via!product!surveys,!questionnaires,!and!polling.! Samples!of!target!market!consumers!must!be!asked!specific!questions!about!the!product,!the! marketing!plan,!product!taste,!product!experience,!and!product!availability.!This!will!be!done! with!a!cost!effective!survey!tool!known!as!Survey!Monkey.!Along!with!small!businesses,!Survey! Monkey!also!caters!to!corporate!accounts.!Surveys!will!be!issued!and!sent!out!to!consumers!at! the!end!of!every!month.!! ! Customer&Loyalty:&New&Members&for&DD&Perk&Program! The!DD!Perk!program!is!a!top!driver!of!consumer!purchases!for!Dunkin’!Donuts.!In!order! to! add! value! to! this! program,! we! must! make! sure! that! the! introduction! of! Dunkin’! To! Go! provides!an!increase!in!new!memberships!and!app!downloads.!! ● Increase!DD!Perk!memberships!by!10%!by!the!end!of!Q4!
- 41. 40 ! Notes&&&Assumptions&& Research& Our!research!on!the!Iced!Coffee!Bottle!industry!is!limited!to!secondary!research!sources! that!supported!our!claims!to!launch!Dunkin’!To!Go.!! ● Some!secondary!data!is!not!updated!to!2015!but!drawn!from!2011,!2013!or!2014! information.!! ● The!market! survey! could! not! cover! a! large! sample! sizes! with! geographic! diversification,!which!might!have!led!to!some!bias!in!the!results.! ● A!taste!test!with!focus!group!should!be!done!before!developing!the!product!but!it!is! impossible!to!conduct!under!the!scope!of!this!research.! More!research!would!be!needed!to!gain!more!comprehensive!and!thorough!consumer! insights.! Financial&Projection& For!the!purpose!of!our!marketing!plan,!we!assume!that!our!marketing!budget!is!of!the! amount!of!$1,000,000.!!This!amount!is!the!capital!Dunkin’!Donuts!has!prospectively!allocated!to! the!marketing!team!to!fund!our!integrated!marketing!plan.!Our!marketing!plan!for!the!product! Dunkin’!To!Go!is!a!year!long!campaign,!broken!down!into!four!quarterly!periods.!Due!to!the!fact! that!Dunkin’!To!Go!is!a!brand!new!product,!a!baseline!has!not!been!established.!Dunkin’!To!Go! is!a!product!created!under!a!licensing!agreement!between!Dunkin’!Donuts!Brand!Group,!Inc.! and!The!Coca=Cola!Company.!In!this!arrangement,!Coca=Cola!manufactures,!distributes!and!sells! Dunkin!To!Go!products!while!Dunkin’!Donuts!receives!8%!of!the!revenue!from!all!the!products! sold!under!the!parameters!from!the!license.! !! Quarterly!Breakdown!of!Dunkin’!To!Go!Fiscal!Year! Quarter!1!(Q1):!April,!May!and!June! Quarter!2!(Q2):!July,!August,!and!September! Quarter!3!(Q3):!October,!November!and!December! Quarter!4!(Q4):!January,!February!and!March! ! ! ! ! ! ! !
- 42. 41 References&& Alvarez,!A.!(November!2015).!Coffee%Store%Franchises%in%the%U.S.%Retrieved!December!1,!2015! from!IBISWorld.!! Barrett,!Joan.!"How!Much!Does!Social!Media!Marketing!Cost?"!N.p.,!8!May!2015.!Web.!7!Dec.! 2015.! Bonetto,!L.!(2015).!Marketing%to%Millennials.%Retrieved!December!1,!2015!from!Mintel.!! Bond,!Shannon.!"Bottled!Iced!Coffee!Comes!in!From!the!Cold!=!FT.com."!N.p.,!1!Apr.!2014.!Web.! 6!Dec.!2015.! Brizek,! M.! G.!(2014).! Coffee% wars:% The% big% three:% Starbucks,% McDonald's% and% dunkin'% donuts.% Journal% of% Case% Research% in% Business% and% Economics,% 5,! 1=11.! Retrieved! from! http://ezproxy.library.nyu.edu:2048/login?url=http://ezproxy.library.nyu.edu:2171/docview/16 61099155?accountid=12768!! Caffeine! Informer.! (2015).! Coffee% Caffeine% Content% Guide.! Retrieved! December! 1,! 2015! from! http://www.caffeineinformer.com/complete=guide=to=dunkin=donuts=caffeine=content!! Christine! Champagne,! T.! I.! (2014).! Dunkin'% Donuts% and% Starbucks:% A% Tale% of% two% coffee% marketing% giants.! Retrieved! 2015,! from! Fast! Company:! http://www.fastcocreate.com/3034572/coffee=week/dunkin=donuts=and=starbucks=a=tale=of= two=coffee=marketing=giants! Cioletti,! A.! (June! 2013).! Always% CocaUCola.% Retrieved! December! 1,! 2015! from! http://www.licensemag.com/license=global/always=coca=cola.!! Coffee!=!US!=!Ready=To=Drink!Consumption.!Rep.!N.p.:!Mintel,!n.d.!Web.!8!Dec.!2015.! Dumas,!John!L.!"Podcast!Sponsorships!=!The!Ultimate!Guide."!N.p.,!28!Nov.!2013.!Web.!4!Dec.! 2015.! Dunkin'!Brands!2014!Annual!Report.!Rep.!no.!10=K.!N.p.:!n.p.,!n.d.!1=8.!Print.! Dunkin’! Brands.! (2015).! Dunkin’% Donuts.% Retrieved! December! 1,! 2015! from! http://dunkinbrands.com/about/donuts.!! Dunkin’! Brands.! (2015).! Our% Guests.% Retrieved! December! 1,! 2015! from! http://dunkinbrands.com/responsibility/our=guests.!! Dunkin'!Donuts!Brand!Group,!Inc!Annual!Balance!Sheet.!Annual!Balance!Sheet.!N.p.:!n.p.,!n.d.! Web.!11!Dec.!2015.! Dunkin'! Donuts.! (2015).! Dunkin'% Donuts% Brand% Power.! Retrieved! 2015,! from! dunkinfranchising.com:!http://www.dunkinfranchising.com/franchisee/en/brandPower.html! eMarketer.!(2015).!Social%Media%Channels%used%by%US%Social%Media%Users%by%age.!! Euromonitor!International.!(2015).!RTD%Coffee%in%the%US.!!
- 43. 42 Fast!Company.!(2014).!Map:%Which%coffee%chain%dominates%in%your%city.!Retrieved! 2015,! from! fastcodesign.com:!http://www.fastcodesign.com/3027829/infographic=of=the= day/map=which=coffee=chain=dominates=in=your=city! Ford,!R.!(April!2015).!Cold%brew%coffee%reaches%boiling%point.%Retrieved!December!1,!2015!from! Mintel.!! Gullapalli,!K.,!&!Bizeo,!S.!(July!2015).!3%reasons%to%be%cautious%about%investing%in%Dunkin’%brands.% Retrieved! December! 1,! 2015! from! http://www.businessinsider.com/is=dunkin=the=right= investment=2011=7.!! Honignman,!Brian.!"How!Much!Does!SEO!Cost?!A!Breakdown!|!Digital!Current."!N.p.,!15!June! 2015.!Web.!9!Dec.!2015.! IBISWorld.!(2015).!Coffee%and%snacks%shop%US%report.!! Nielsen.!(2015).!Retrieved!from!nielsen.com:!http://www.nielsen.com/us/en/top10s.html!! Ivy!Cohen!Corporate!Communications.!(2015).!Brand%transformation:%Dunkin’%Donuts.%Retrieved! December!1,!2015!from! http://www.ivycohen.com/MarketingCoach/BrandTransformationDunkinDonuts.html! Kastrenakes,!Jacob.!"Hulu!Hits!9!Million!Subscribers!as!TV!and!Mobile!Viewing!Takes!Off."!N.p.,! 29!Apr.!2015.!Web.!10!Dec.!2015.! Marshall,!Carla.!"What!Are!The!Most!Effective!Formats!for!YouTube!Advertising?"!N.p.,!02!Oct.! 2014.!Web.!10!Dec.!2015.! McKitterick,!W.!(May!2015).!Energy%Drink%Production%in%the%U.S.%Retrieved!December!1,!2015! from!IBISWorld.!! Mintel.!(2014).!Coffee%U%US%U%The%consumers.!! Mintel.!(2015).!ReadyUtoUdrink%US%Consumption.!! Nielson.! (2015).! Top% 10s.% Retrieved! December! 1,! 2015! from! http://www.nielsen.com/us/en/top10s.html.!! Packaged!Facts.!(2014).!Coffee%and%Ready%to%Drink%Coffee%in%the%US,%Retail%and%Food%Service,%8th% edition.!! Packaged!Facts.!(2013).!Energy%Drinks%and%Shots%in%the%US.!! Packaged!Facts.!(2011).!Functional%and%Natural%Ready%to%Drink%Beverage%in%the%US.!! Packaged!Facts.!(2015).!Food%and%Beverage%Packaging%Innovation%in%the%US.!! Packaged!Facts.!(2015).!Office%Coffee%Service%in%the%US.!! Patterson,!Nycea.!"Top!5!Podcasts!for!Millennials."!N.p.,!20!July!2015.!Web.!11!Dec.!2015.! Rogers,!C.!(September!2015).!Coffee%U%USU%Important%Purchase%Attributes%Retrieved!December!8,! 2015!from!Mintel.!! Shandrow,!Kim.!"10!Questions!to!Ask!When!Optimizing!Your!Website!for!Mobile!Users."!N.p.,! 04!Mar.!2014.!Web.!11!Dec.!2015.! Simmons!Oneview.!(2015).!Data%running%on%bottled/canned%drinking%male%&%female%aged%23U35.!! !
- 44. 43 "Starbucks!and!PepsiCo!to!Bring!Starbucks!RTD!Beverages!to!Latin!America."!New! Agreement! Signed! to!Bring! Starbucks®! Ready=To=Drink! Coffee! Beverages! to! First! 10! Latin! American!Markets!in!2016.!N.p.,!23!July!2015.!Web.!8!Dec.!2015.! Starbucks!Fiscal!2014!Annual!Report.!Form!10=K.!Washington:!n.p.,!2014.!1=100.!Web.!9!Dec.! 2015.! Starbucks!Income!Statement.!9!Dec.!2015.!Raw!data.!N.p.! "Starbucks!Strengthens!Its!Leadership!Position=Investor!Relations."!N.p.,!6!Feb.!2006.!Web.!5! Dec.!2015.! Travis,!N.!(2015).!Dunkin'%Brand,%Our%Vision%for%the%Next%5%Years%.!! Turk,! S.! (September! 2015).! Coffee% production% in% the% U.S.% Retrieved! December! 1,! 2015! from! IBISWorld.!! Waniata,!Ryan.!"Amazon!Prime!Instant!Video!vs.!Netflix!vs.!Hulu."!N.p.,!12!Sept.!2015.!Web.!10! Dec.!2015.! "4!Ways!to!Boost!Your!Social!Media!Marketing!for!Less!than!$1!Per!Day."!Web!log!post.!N.p.,!30! Jan.!2014.!Web.!11!Dec.!2015.! Wikimedia! Commons.! (n.d.).! US% 101% map.! Retrieved! 2015,! from! Wikimedia! Commons:! https://commons.wikimedia.org/wiki/File:US_101_map.svg! Wikipedia.! (n.d.).! Interstate% 95.! Retrieved! 2015,! from! Wikipedia:! https://en.wikipedia.org/wiki/Interstate_95! & & & & & & & & & & &
- 45.
- 46. 45 Appendix'3'! Market&Survey&on&Coffee&Drinking&Habit! Sample%size:%114.%Geography:%New%York%City.%Conducting%time:%November%2015! ! 1.!!How!old!are!you?! #! Answer! ! ! !! Response!%! 1! <!20! ! ! !! 4! 4%! 2! 20!=30! ! ! !! 72! 63%! 3! 30=40! ! ! !! 22! 19%! 4! >!40! ! ! !! 16! 14%! ! Total! ! 114! 100%! ! Statistic! Value! Min!Value! 1! Max!Value! 4! Mean! 2.44! Variance! 0.60! Standard!Deviation! 0.78! Total!Responses! 114! ! 2.!!What!is!your!gender?!! #! Answer! ! ! !! Response! %! 1! Male! ! ! !! 44! 39%! 2! Female! ! ! !! 70! 61%! 3! Other! ! ! !! 0! 0%! ! Total! ! 114! 100%! ! Other! !
- 47. 46 Statistic! Value! Min!Value! 1! Max!Value!2! Mean! 1.61! Variance! 0.24! Standard!Deviation! 0.49! Total!Responses! 114! ! 3.!!Which!best!describes!your!occupation?!! #! Answer! ! ! !! Response! %! 1! Full=time! student! ! ! !! 20! 17.54%! 2! Full=time! student!and! part=time!job! ! ! !! 22! 19.30%! 3! Working! professional! (more!creativity! related)! ! ! !! 18! 15.79%! 4! Working! professional! (more!business! related)! ! ! !! 28! 24.56%! 5! Working! professional! (more!service! relate!–!social! work,!public! service! education,! healthcare)! ! ! !! 16! 14.04%! 6! Working! professional!in!a! manual!labor! field! ! ! !! 5! 4.39%! 7! Other! ! 5! 4.39%!
- 48. 47 ! !! ! Total!! 114! 100%! ! Other! Retire! Unemployed! Handyman! Stay!at!home!mom! Recent!graduate!+!no!job! ! Statistic! Value! Min!Value! 1! Max!Value! 7! Mean! 3.41! Variance! 3.39! Standard!Deviation! 1.84! Total!Responses! 114! ! 4.!!How!often!do!you!drink!coffee?!! #! Answer! ! ! !! Response! %! 1! Never! ! ! !! 3! 3%! 2! Once!a!day! ! ! !! 35! 32%! 3! Two!to!three! times!a!day! ! ! !! 39! 35%! 4! More!than! four!times!a!day! ! ! !! 5! 5%! 5! Occasionally! (less!than!once!a! day)! ! ! !! 28! 25%! ! Total! ! 110! 100%! (If%answer%is%1,%skip%to%Question%12%&%13.%If%answer%is%NOT%1,%continue%to%Question%5U11)! Statistic! Value! Min!Value! 1! Max!Value! 5!
- 49. 48 Mean! 3.18! Variance! 1.47! Standard!Deviation!1.21! Total!Responses! 110! ! 5.!!When!do!you!drink!coffee?! #! Answer! ! ! !! Response! %! 1! In!the! morning,!to! start!the!day! ! ! !! 68! 62%! 2! During! break!time! ! ! !! 17! 15%! 3! Whenev er!I!am!tired!or! sleepy! ! ! !! 42! 38%! 4! Other! ! ! !! 22! 20%! ! Other! 8am!and!noon! No! Morning,!lunch,!break! Late!at!night!for!study! Night!time! And!afternoon! Morning!and!anytime!of!day!I!crave!it! After!lunch! After!meals! Any!time!of!the!day! Morning!and!a!little!after!lunch! afternoon! Morning,!or!noon! Never! In!the!morning,!to!start!the!day!and!around!noon!(when!I!get!tired!or!sleepy)! Throughout!the!day!regardless!of!fatigue! Mid=morning!and!afternoon!
- 50. 49 In!the!morning,!when!I!get!to!work! When!energy!drinks!are!not!readily!available.! All!morning! Occasionally!during!the!day!and!early!evening! ! Statistic! Value! Min!Value! 1! Max!Value!4! Total!Responses! 110! ! 6.!!Which!coffee!brand!do!you!prefer?! #! Answer! ! ! !! Response! %! 1! Starbucks! ! ! !! 45! 41%! 2! Dunkin’!Donuts! ! ! !! 22! 20%! 3! Peet’s!Coffee! ! ! !! 2! 2%! 4! Oren’s! ! ! !! 6! 5%! 5! Other! ! ! !! 35! 32%! ! Total! ! 110! 100 %! ! Other! Like!both.!Like!starbuck!but!no!money! Doesnt!matter.! 7/11! la!colombe! Local! Organic,!Costco! Espresso!at!home! La!Colombe! Gregorys! lavazza!
- 51. 50 Folgers! Turkish! Cafe!bustelo! Depends!on!what's!available! Choc!full!of!Nuts! La!Colombe! Third!Rail!Coffee!or!Stumptown! Blue!Bottle! whatever! Eight!O'Clock! Douwe!egberts! Stumptown! Cafe!bustello! Whatever!is!in!the!office! Trader!Joe's! kanaan!coffee!from!nablus,!palestine! Philz! #! Answer! ! ! !! Response!%! 1! The!fresh!taste! ! ! !! 81! 74%! 2! The!style! ! ! !! 17! 15%! 3! The!convenience! (many!locations,!easy!to! get!to)! ! ! !! 47! 43%! 4! The!loyalty! program!and!perks! ! ! !! 24! 22%! 5! Environmental! concern!(recyclable! cups,!napkins,!etc)! ! ! !! 11! 10%! 6! The!affordable! prices! ! ! !! 33! 30%! 7! Other! ! ! !! 7! 6%! Local!coffee!place! Quick!check!
- 52. 51 independent!coffee!shops! Trader!Joes! Keurig!K=Cups! Shop!Rite!brand!coffee! Rook! Cafe!Bustello! ! Statistic! Value! Min!Value! 1! Max!Value!5! Mean! 2.67! Variance! 3.08! Standard!Deviation! 1.76! Total!Responses! 110! ! 7.!!What!attributes!do!you!value!in!your!favorite!coffee!brand?!(Choose!all!that!apply)!! ! Other! Wifi! Latte!in!dunkin!taste! Healthy! Grew!up!with!ut! Unique!customer!experience!and!high!caffeine!content!in!coffee! Rich!dark!roast! able!to!combine!decaf!and!regular!in!reusable!pods!to!how!much!caffeine!I!want! at!that!time! ! Statistic! Value! Min!Value! 1! Max!Value! 7! Total!Responses! 110! ! 8.!!Have!you!ever!had!bottled!iced!coffee?! #! Answer! ! ! !! Response! %! 1! Yes! ! ! !! 71! 65%!
- 53. 52 2! No! ! ! !! 39!35%! ! Total! ! 110! 100%! ! Statistic! Value! Min!Value! 1! Max!Value! 2! Mean! 1.35! Variance! 0.23! Standard!Deviation! 0.48! Total!Responses! 110! ! 9.!!What!scenario!best!describes!when!you!drink!bottled!coffee?! #! Answer! ! ! !! Response! %! 1! When!I! am!in!a!rush! and!need!a! quick!pick=me= up! ! ! !! 34! 48%! 2! I!order! packs!of!them! in!advance! ! ! !! 3! 4%! 3! When!I! have!no!way!of! getting!fresh! coffee! ! ! !! 26! 37%! 4! Other! ! ! !! 8! 11%! ! Total! ! 71! 100%! ! Other! Buy!in!convenience!next!door! Some!one!gave!it!to!me! almost!never! I!like!to!do!that!once!in!a!while! only!once!
- 54. 53 When!I'm!on!a!road!trip!and!need!to!bring!pick!me!up.! When!I!am!trying!to!save!money==don't!like!the!flavor!as!much! someone!left!it!at!my!house! ! Statistic! Value! Min!Value! 1! Max!Value!4! Mean! 2.11! Variance! 1.30! Standard!Deviation! 1.14! Total!Responses! 71! ! 10.!!What!do!you!like!about!drinking!bottled!coffee?! #! Answer! ! ! !! Response! %! 1! I!like!the! taste! ! ! !! 12! 17%! 2! I!like!that! it!is!convenient! ! ! !! 38! 54%! 3! I!like!that! it!is!a!cheaper! alternative!to! regular!iced! coffee! ! ! !! 5! 7%! 4! I!like!that! it!is!portable! ! ! !! 10! 14%! 5! Other! ! ! !! 6! 8%! ! Total! ! 71! 100%! ! Other! I!just!drink!it!with!meals!every!now!and!then! I!don't! I!don't!like!it! Don't!like!it! I!do!not!like!it;!hard!to!find!a!non=sugar,!non=dairy!option! I!don't.!
- 55. 54 ! Statistic! Value! Min!Value! 1! Max!Value!5! Mean! 2.44! Variance! 1.39! Standard!Deviation! 1.18! Total!Responses! 71! ! 11.!!Which!brand!of!bottled!coffee!do!you!typically!drink?! #! Answer! ! ! !! Response! %! 1! Starbucks! ! ! !! 62! 87%! 2! Illy! ! ! !! 4! 6%! 3! Dunkin’!Donuts! ! ! !! 1! 1%! 4! Other! ! ! !! 4! 6%! ! Total! ! 71! 100%! ! Other! different!kinds! Stumptown! Grady's!Cold!Brew! no!preference! ! Statistic! Value! Min!Value! 1! Max!Value! 4! Mean! 1.25! Variance! 0.56! Standard!Deviation! 0.75! Total!Responses! 71! ! 12.!!Why!have!you!not!tried!bottled!iced!coffee?!! #! Ans ! Resp %!
- 56. 55 wer! ! !! onse! 1! I! don’t!think! the!taste! would!be! good! ! !!! 3! 8%! 2! I! prefer! regular! coffee! ! ! !! 22! 56 %! 3! Ther e!aren’t! enough! options! available! ! ! !! 0! 0%! 4! I! don't!think! it’s!healthy! ! ! !! 7! 18 %! 5! I! wasn’t! aware!that! it!existed! ! ! !! 4! 10 %! 6! Othe r! ! ! !! 3! 8%! ! Total! ! 39! 10 0%! ! Other! Prefer!other!choice! How!can!ice!be!bottled!in!coffee!and!maintained!in!form?! Sugar!intake!concerns! ! Statistic! Value! Min!Value! 1! Max!Value! 6! Mean! 2.90! Variance! 2.20!
- 57. 56 Standard!Deviation! 1.48! Total!Responses! 39! ! 13.!!What!would!incentivize!you!to!try!bottled!iced!coffee?!(Choose!all!that!apply)! #!Answer! ! ! !! Response! %! 1! A!free!sample! ! ! !! 24! 62%! 2! A!promotional!deal! ! ! !! 6! 15%! 3! A!large!variety!of! flavors! ! ! !! 5! 13%! 4! Having!different! milk!options!available!(ex:! almond,!coconut,!soy)! ! ! !! 5! 13%! 5! Other! ! ! !! 8! 21%! ! Other! Not!sure! Not!try! curiosity!and!opportunity! Nothing,!my!mind!is!set! Sugar,!fresh!taste! Don't!drink!iced!coffee! its!not!real!coffee! ! Statistic! Value! Min!Value! 1! Max!Value! 5! Total!Responses! 39! & & & & & &
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