Study: Value Trumps Price Among Shoppers†

Brandweek, February 28, 2009 — Consumers are not buying based on price alone. Instead, they are relying more on their perception of value when deciding which brands to stay loyal to during the recession.

In fact, consumer expectations regarding brand value went up 20 percent, according to the 2009 Brand Keys Customer Loyalty Engagement Index. Those brands that aren’t perceived as being worth it will fall to the wayside, said Brand Keys president Robert Passikoff.

Brand Keys polled 26,000 consumers of 441 brands in 63 categories earlier this year. Among the brands that received the highest marks for meeting or exceeding consumer expectations, “there is a price-value formula consumers use to calculate brand differences and to decide which brands to buy,” said Passikoff.... continue reading

Who Served Up the Better Coffee Media Strategy in 2008?†

Optimedia's Antony Young Compares Dunkin' Donuts and McDonald's

Advertising Age, January 26, 2009 — Antony Young

We know the recession is hurting purchases of big-ticket items such as cars and flat-screen TVs, but even life's seemingly small luxuries, such as that morning latte, are being hit hard. Indeed, an Advertising Age study found that 60% of Americans have scaled back from premium coffees in the past six months, with the mighty Starbucks experiencing a flattening of its froth. Enter Dunkin' Donuts and McDonald's, which both upped their coffee-marketing efforts in 2008, hoping to steal some of Starbucks' share.

Smucker Cuts Folgers, Dunkin' Coffee Prices

Marketing Daily, December 8, 2008 — J.M. Smucker Co., which completed its acquisition of Folgers from Procter & Gamble in early November, is coming out of the gate aggressively by announcing pricing reductions on the brand.

Wake Up Call†

Brandweek, November 11, 2008 — Given its recent financial struggles—at the core of which are weak sales that have forced the closing of about 600 of its U.S. stores through the first half of fiscal year 2009—the question many people are asking right now is: Can Starbucks get its mojo back?

Original Team Tries to Revive Starbucks

New York Times, October 30, 2008 — Since Howard D. Schultz returned to the helm of Starbucks in January, he has desperately tried to recapture the company’s original magic. Mr. Schultz has hired back one of the authors of Starbucks’s original success: Arthur Rubinfeld, its president of global development. Back at Starbucks since February, Mr. Rubinfeld is now guiding a renovation of its stores and refocusing on the urban markets that gave the company its illustrious start.

The Ad Changes With the Shopper In Front of It†

Some Digital Screens Could Adjust Messages Based on Features

Wall Street Journal, August 21, 2008 — Ad targeting is coming to a store near you.

In the latest effort to tailor ads to specific consumers, marketers are starting to personalize in-store promotions based on products the consumer recently picked off a shelf or purchased — and in the near future, based on what the shopper looks like.

Dunkin' 'on the Offensive' in Coffee War†

New Marketing Chief Aims to Establish Chain as Beverage Leader

Advertising Age, January 24, 2008 — America may run on Dunkin', but Dunkin' runs on Will Kussell.

As the coffee war with McDonald's heats up this year, the $4.7 billion, privately held doughnut chain has tapped Mr. Kussell, 49, as president-chief brand officer. Mr. Kussell has held a variety of marketing jobs, including senior VP-marketing and retail concept officer, during his 13-year tenure with Dunkin' Donuts, which has 5,300 U.S. locations. He was most recently chief operating officer of parent company Dunkin' Brands.

McDonald's Takes On a Weakened Starbucks†

Food Giant to Install Specialty Coffee Bars, Sees $1 Billion Business

Wall Street Journal, January 7, 2008 — This fall, a McDonald's here added a position to its crew: barista.

McDonald's is setting out to poach Starbucks customers with the biggest addition to its menu in 30 years. Starting this year, the company's nearly 14,000 U.S. locations will install coffee bars with "baristas" serving cappuccinos, lattes, mochas and the Frappe, similar to Starbucks' ice-blended Frappuccino.

Internal documents from 2007 say the program, which also will add smoothies and bottled beverages, will add $1 billion to McDonald's annual sales of $21.6 billion.

Dunkin' Donuts Whips Up A Recipie for Expansion†

Wall Street Journal, May 3, 2007 — Joe Rando has had no problem selling baked goods to residents of Nashville, Tenn., since he opened the first Dunkin' Donuts in the area in August. On opening day, he even sold out of doughnuts. But getting locals to make Dunkin' their regular stop for coffee — which has a higher profit margin than baked goods — has been more challenging. "Dunkin' is truly entrenched as a ritual for Northeastern customers," says Mr. Rando. In Nashville, he says, "we haven't necessarily changed the behavior — the coffee-buying behavior — yet."

Dunkin’ duking it out in supermarkets

Boston Herald, March 1, 2007 — Dunkin’ Donuts coffee will soon join Starbucks in fighting for shelf space with Folgers and Maxwell House at stores nationwide. Dunkin’ Brands Inc. signed a long-term agreement for brand behemoth Procter & Gamble to distribute packaged whole bean and ground Dunkin’ Donuts coffee to U.S. grocery stores, mass merchandisers, club stores and other retailers within a year.