Dunkin' Donuts Supermarket Coffee Is Hot!
The chain's foray into grocery store distribution has racked up first-year sales of close to $200 million after its launch in early 2007. Yet some Dunkin' Donuts franchise owners may only be able to see product cannibalism, where a consumer buys a bag of coffee beans and makes a brew rather than visit the local Dunkin' shop for a cup.
The move to put Dunkin' Coffee into orange bags at the neighborhood supermarket makes it to AdAge's 50 Marketing Case Studies of things for marketers to take note of. Ms. Audra Schlegel, brand manager for joint venture partner P&G discusses the mechanics that helped this product take off.
Ms. Schlegel cites strong TV and print advertising from Hill Holliday; publicity by RF Binder Partners; packaging that stood out on the shelf bearing the shops' distinctive look; and an extensive in-store and event demo effort. "Once people try it," she says, "they come aboard."
That's a lot of marketing success driving consumers to relate good coffee and Dunkin' Donuts. More consumers who don't have time to make a cup of joe themselves may actually visit a franchise for one as good or better.
McDee's
The difference between McDonalds and alot of other franchisors is that they know that their business is better when in agreement with franchisees. You don't see them selling fries/applie pies, etcs in supermarkets or other points of distribution. McDee's is run by very smart people who see the long run effect of having good relations b/w zors and zee. These other companies might in the short-run have increased sales but in the long-run it can be the death of the relationship. Look at the business study on this and that is why McDee's is number one. They have MBA's, PHD running their business while these other are home grown who cannot see past their raise or annual bonus. Look at Carvel and Hagen Daaz you don't see too many these popping up all over the place.
a controversial program
For BMM readers who may not know, DD Coffee in superarket channels remains a controversial program with Dunkin's Franchisee Association.
Please see:
http://www.bluemaumau.org/dunkin_franchisees_oppose_new_coffee_distribution
Is it the same coffee?
Is it even the same product? Just because P&G is selling beans in grocery stores doesn't mean they are from the same source and roasted in the same way as in the stores.
The grind is also important, as is the equipment. Most people never clean their home coffeemakers (should use white vinegar periodically) and don't have a system to remove water impurities.
Home coffee should not be tasting the same (let alone better) than properly prepared store coffee.
If you are getting the same taste at home as at your local DD shop, either you are a coffee guru who is fanatical about quality or your local shop is not doing its job.
In the Midwest these days, guys carry around old Starbucks
paper cups as a means of telling chicks that they still have a job. You can get as much lovin in Detroit now with a Starbucks cup as you can by driving a hot new car.
As the great recession robbery spreads across the country, guys should hoard Starbucks paper cups to use to pick up chicks.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School