Dunkin' Donuts has officially stepped beyond the realm of being simply the quick donut sh op around the corner that truck drivers stop at to grab a quick snack. The giant chain is slowly encroaching upon the likes of Starbucks in becoming a household name and a local neighborhood cornerstone.
The Coffee Wars are officially in full swing, and with the all the negative press that the Bux has gotten recently regarding its slowing growth, pitiful stock performance, and not to mention the lawsuits, Dunkin Donuts seems to be gaining momentum...and fast.
Historically, one of the defining differences between the two chains has been the personal attention and care that Starbucks has provided their customers (what they call the "third place.") But Dunkin has responded, and with a technological edge.
With a main focus on their blue collar customer base, they started a campaign called "How do you keep america running?" With the use of their very own YouTube channel, Dunkin Donuts has invited their loyal customers to tell their stories in a creative way, and reward the top 50 submissions with free donuts for a year, and a possible place on the Dunkin Donuts website.
This campaign is brilliant! Not only does it give customers the ability to personalize their Dunkin Donuts experience (something that Starbucks had relied on as a competitive advantage,) but it also shows that the big chain is no longer just a quick-stop donut shop. They are now giving their customers a voice. ""Our loyal customers regularly tell us stories, both heart-warming and funny, about how they keep this country running," says Dunkin' Donuts Brand Marketing Officer Frances Allen. "We're pleased to launch our new YouTube channel to give people a chance to tell their unique stories in their own creative way."
With this new customer focus, not to mention their new focus on gourmet coffee (without the pretentiousness of Starbucks,) it seems that Starbucks will be fighting an uphill battle in the Coffee War.
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As a Seattlite... I hope Starbucks wins this uphill battle. I was talking with Pledge Richie last night about Apple and how I thought one of their main competitive advantages was simply that not everyone could afford it. People see a mac and they go, "whoa". Its like the aston martin of computers.
Do you think Starbucks is safe in this regard too? I mean, people make fun of the $5 lattes, but realistically, Starbucks is (perhaps not the aston martin of coffee makers), but at least a Camry if not a Lexus. People trust the name. When I hear of Dunkin Donuts, I do not think my one-stop shop. I picture donuts, something that does not appeal to the broad American public (We are now in our 'get healthy' phase of Americana). How can a donut shop beat Starbucks when Starbucks has fresh fruit, 'healthy' options and a fan base that seems infinite.
Lastly, I just found a script called, "how starbucks saved my life". Haven't read it, but I feel that people's obsession with starbucks will not go away. Perhaps market share will be lost, but Starbucks is here to stay.
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