Thursday, February 14, 2008
A morning commute gift from Dunkin Donuts
Today on my way to work I received an unexpected "gift" from Dunkin Donuts, two $1 gift certificates. I don't believe it was part of a Valentine's promotion, but the pink color did complement the day. What resonated about the promotion was the way in which the certificates were distributed. I take the T to work (Boston's name for its subway system) with both my start and stop locations being a station with a Dunkin Donuts inside. I didn't receive the certificate inside either station, but instead received it while ending my T ride and boarding the shuttle that takes commuters from the T station to the office complex I work in. In retrospect I'm not sure if the certificates were from Dunkin Donuts or from the shuttle company, Curbside, but the promotion left me with a more positive impression of both companies. Regardless of whose promotion it was it was a good partnership. It captured my attention in the midst of an early morning commute where coffee was my priority and Dunkin Donuts complimented their core message that American Runs on Dunkin. Very smart and very relevant.
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So did you redeem the coupon, or are you planning to ... no, I am not planning to take it from you, was just curious to see the effectiveness of the promo, which partly is already cause its created this positive brand impression on you, the consumer, but did it translate into a sale?
A quote from Philip Kotler has stuck in my head from way back when I was reading his book as part of Marketing Management during my MBA which said " The ain't any brand loyalty that a 2 cents off cannot buy".. this was the opening quote to the section on sales promotion. In this case I can see the $1 off on Dunkin doing two things (a) reward existing consumers - and there are loads of those in the Boston area who swear by Dunkin. So in a true way, that can either be seen as a revenue lost (these guys are queuing up to buy coffee anyway), or seen as rewarding loyal consumers by saying, "Appreciate it, and what better way than a monetary incentive of a $) and (b) driving trial among new consumers (new coffee drinkers and competitive users0.
The smart thing is any promotion is if it can be seamlessly linked to the core Brand proposition, which I agree with you, Dunkin is doing very well. This is linked to their mantra of "America runs on Dunkin" and at the same time is engaging consumers when and where they are most receptive i.e. morning commute to work.
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