Dunkin Donuts versus Starbucks

I recently had the opportunity to hear Mike Sheehan from Hill Holiday, Connors, and Cosmopolous speak. Like any good agency CEO, he spoke about his clients, namely Dunkin Donuts.

Dunkin Donuts is dear to my heart. When I was young, my friends and I could hang out there, skateboard, talk with the staff, and buy donuts. Nowadays, I live right down the street from the original Dunkin Donuts (not to mention International House of Pancackes - which is now a parking lot!).

Needless to say, Dunkins is changing their brand. This is uncomfortable for me at first, but I'm starting to come around. They are becoming more about coffee than about donuts. Why? Money. You make a lot more dough off of coffee.

Look at Starbucks, they've managed to take over the world only serving coffee. They are really selling an experience, but the tangible product is a coffee. They've also managed to keep their stores busy throughout the day, a seemingly difficult challenge for Dunkins.

Dunkins is up for the Starbucks challenge, fresh with mucho diniero and a bunch of private equity managers. Of note, Thomas H. Lee, who brokered the Pepsi / Snapple deal, and made a bundle in the process. Can you say non-alcoholic beverage king? Go Tommy!

Dunkins has scrapped their plan of using Togo's and Baskins to acheive the day part sales they are looking for, and are now using smoothies to extend their sales throughout the day. This might just work. Why don't they just buy Island Oasis, Planet Smoothie, and Jamba Juice?

I need to write Mike a letter about in-store marketing.

External Links:
Hill Holiday's Dunkin Donuts Blog Page