Real MaretngW2 Earthlings,\" says an executive from Dunkins ad agency. The Starb
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Real MaretngW2 Earthlings," says an executive from Dunkins ad agency. The Starbucks customers that Dunkin' paid to switch were equally uneasy in Dunkin' Donuts: bear that they weren't special anymore, says the ad executive. Positioning for the Average Joe A few years ago, Dunkin' Donuts paid dozens ate its traditional customer base. There are no tomers. Dunkin's customers include more of faithful customers in Phoenix, Chicago, and couches in the remodeled stores. And Dunkin middle-income blue- and white-collar workers Charlotte, North Carolina, $100 a week to buy renamed a new hot sandwich a "stuffed melt across all age, race, and income demograph- coffee at Starbucks instead. At the same time, after customers complained that calling it a ic. By contrast, Starbucks targets a highe the no-frills coffee chain paid Starbucks cus panini" was too fancy, it then dropped it al income, more professional group But Dunkin tomers to make the opposite switch. When it together when faithful customers thought it researchers concluded that it was more the later debriefed the two groups, Dunkin' says it was too messy. "We're walking [a fine] lne, ideal, rather than income, that set the two found them so polarized that company re- says the chain's vice president of consumer in- tribes apart: Dunkin's tribe members want searchers dubbed them tribes," each of sights. "The thing about the Dunkin' tribe is, be part of a crowd, whereas members of the whom loathed the very things that made the they see through the hype. other tribe loyal to their coffee shop. Dunkin fans viewed Starbucks as pretentious and though loyal customers want nicer stores, they next to Starbucks and get two completely dif trendy. whereas Starbucks loyalists saw were bewildered and turned off by the atmo- ferent types of consumers, says one retailing Dunkin as plain and unoriginal. "I don't ge sphere at Starbucks. They groused that crowds expert it, one Dunkin regular told researchers after of laptop users made it difficult to find a seat vesiting Starbucks. want to sit on a couch. They didn't like Starbucks' -tall.--grande,-ng its own tribe of customers, both Dunkin' I stay at home Starbucks tribe want to stand out as individu- Dunkin Donuts' research showed that al als. "You could open a Dunkin Donuts right Over the past several years, each target- and "venti lingo for small, medium, and large Donuts and Starbucks have grown rapidy, rid- Dunkin' Donuts has ambitious plans to coffees. And they couldn't understand why ing the wave of Americas growing thirst for expand into a national coffee powerhouse, on anyone would pay so much for a cup of cof- coffee. However, the recent recession has par with Starbucks, the nation's largest coffee fee.t was almost as though they were a highlighted differences in the positioning chain. But the research confirmed a simple group of Martians talking about a group of strategies of the two chains. Dunkin Donuts fact: Dunkin' is not Starbucks, In fact, it doesn't want to be To succeed, Dunkin' must have its own clear vision of just which customers it wants to serve (what segments and targeting strategy) and how (what positioning or value proposition). Dunkin and Starbucks target very different customers, who want very dif- ferent things from their favorite coffee shops Starbucks is strongly positioned asasort of high-brow third place-outside the home and office -featuring couches, eclectic music, - walisjDunkin has a decidedly more low-brow. everyman kind of positioning. Dunkin' Donuts built itself on serving sim ple fare at a reasonable price to working-class customers. But recently, to broaden its appeal and fuel expansion, the chain has been mov ing upscal bit but not too far, it's spiffing up its more than 6,500 stores in 34 states and adding new menu items, such as lattes and flatbread sandwiches. Dunkin' has made dozens of store-redesign decisions, big and small, ranging from where to put the espresso machines to how much of its signature pink and orange color scheme to retain and where "chird place*: Dunkin Donuts has a decidedly more low-brow, "everyman kind of to display its fresh baked goods. However, asit positioning. Dunkin's not going after the Starbucks coffee snob: it's "going after the inches upscale, its being careful not to alien average Joe. UTS Differentiation and positioning: Starbucks is strongly positioned as a sort of high-browExplanation / Answer
1. It is important for Dunkin donuts to have a very clear vision about what the customers want and what the positioning is like. It should have a clear idea about the targeting and positioning strategy. It should understand the value proposition and the needs of different types of customers who have different needs for their coffee.
3. The positioning of Dunkin Donuts is for working class as compared to Starbucks which aims at being sophisticated and high brow place considered as third home. It positions itself as a reasonable alternative to Starbucks with the same feeling but aimed at working class.
2. Starbucks aims as the third brow working as third home for people who want a place outside office and home. Starbucks has eclectic space, sophisticated sofas, wireless Internet access and art splashed walls.
Dunkin donuts has a low brow positioning with everyman kind of positioning. It shows how everyday people get things done even at hard day of work. The prices are not expensive and invite people to take advantage of its friendly environment and prices.
4. Dunkin donuts aimed to go upscale by renaming it's sandwich as stuffed melt. The intention was the expand the meal and give it an innovative twist as competition to Starbucks.
5. The loyal customers of Dunkin donuts were shocked by the atmosphere at Starbucks with their pricey menu. The names for regular, medium and large glass of coffee were strange for them and they thought they were really pricey. They were not even able to find a proper place to sit with their laptop.
6. The target customers of Dunkin donuts are working class customers. The ones who are looking forward to have a good comfortable time but not spend a lot of money. They do not want anything unnecessary and fancy like Starbucks. But they are willing to have a good time without spending bomb on fancy names.
7. The target customers of Starbucks are the customers who are looking for a sophisticated setup to work and find a high key option for their third home. They are fascinated by the great ambience and splash art decor. They are willing to spend lot of money for this as a thing of sophistication and class.
8. Dunkin donuts was the top brand according to the survey based on the low price it offered to the customers with comfortable feeling of quality coffee. It exceeded the expectations of the customers for quality, service and affordability.
9. The ad slogan of Dunkin donuts is 'America runs on Dunkin' and the recent campaign is 'You kin do it'. It focuses on being a strong brand for people focusing on quality and supporting the struggles of Americans without charging too much for the same.
10.
It works on the same theme of providing a comfortable experience to Americans who are having hard times. You kin do it is a global campaign which works on the same theme of comforting during hard times.
It tells people that they can make through the workday and be alright in their struggle of hard times.
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