Download - Dunkin' Donuts U. S. Marketing
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CHRIS FUQUA VP – MARKETING
SCOTT HUDLER VP – GLOBAL CONSUMER ENGAGEMENT
Dunkin’ Donuts U. S. Marketing
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Dunkin’ Donuts: A 65 year old, iconic brand that evolves with the times. We energize, inspire,
and reward our customers, our employees, and our franchisees through great products, exceptional guest service, and innovative marketing
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We are a Marketing Powerhouse
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FRANCHISEE-FUNDED ADVERTISING BUDGET
$375M+
NATIONAL MARKETING DRIVING SALES AND BUILDING
BRAND AWARENESS
CONSUMER ENGAGEMENT WITH INTERACTIVE, SOCIAL
& MOBILE MEDIA
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Part of everyday life for a lot of people…
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Our most important job
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u Staying relevant
u Leveraging a strong and diverse team
u Confronting reality and headwinds
u Innovating
u Building relationships with franchisees
u Evolving our marketing approach
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We stay relevant by focusing on key trends
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QSR /Coffee Trends
u Breakfast is growing
u Coffee is a busy market
u Mobile is influencing choice
Consumer Expectations
u Authenticity, transparency
u Quality at a value
u Customization, personalization
u Health and Wellness
Economy/Macro Environment
u Industry bi-furcation
u Service models impacted by labor issues
u Low gas prices, offset by rising menu prices
u Weather
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Great opportunities ahead (Don’t look back)
u K-Cup and Pound of Coffee purchases have transitioned to grocery
u Avian Flu Crisis impacted Egg supply
u Weather patterns early in the year
2015 Challenges Reasons for optimism
u Strong lineup of innovative products
u Focus on building coffee culture through Macchiato, Coffee Commitment
u Continued expansion of DD Perks
u Expansion of CPG
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2016 Strategies: Continuing the evolution
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Differentiating thru Product Innovation
Building our Coffee Culture
Expanding Daypart Relevance
Leveraging Technology to Improve
the Brand Experience
Building 1:1 Marketing Capabilities
Evolving the way we Engage Consumers
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BEVERAGE PRIORITIES
Our pipeline remains strong and priorities are clear
Other 4%
Food 16%
Bakery 23%
Beverages 57%
% of Sales Hot Coffee Iced Coffee Blended
Beverages Specialty Coffee Hot/Iced Tea
Data shown is 2015 year-to-date through August
65% food sold
before 11 am
35% food
sold after 11 am
FOOD PRIORITIES Donut Innovation Breakfast
Sandwiches PM Snacking Improving ingredients
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Differentiating through Product Innovation
In a business based on ritual, innovation breaks the tie
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Building our Coffee Culture
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u Protect Hot Coffee
u Build our Ice Coffee Lead
u Bolster Special Coffee Credentials
u Continue Coffee Commitment
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Our morning business is strong and we have a great opportunity later in the day
DBI Data 12
Transactions % of Total
0
10
20
30
40
50
60
70
Morning (4 - 11am) Afternoon (12 - 6pm) Evening (7 - close)
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Expanding Day-part Relevance
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u Beverages = Ritual
u Perks = Targeted Activity
u Be the All Day Breakfast Leader
u PM Snacking
u Shift focus to Young Audience
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We are evolving the way we engage with today’s consumers
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High Profile Media
Original Brand Content
Targeted Digital Media
u Aligning with high-profile media to drive brand and LTO messaging
u Increasing our Digital Spending based on Stronger ROI and Targeting opportunities
u Developing original brand content utilizing partnerships
u Leverage the brand’s 15M + social connections across social platforms
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Leveraging technology to improve the brand experience
u Improving franchisee profitability with the DD Card
u 14M+ Mobile App downloads
u 3.5M DD Perks Members
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On-the-Go Ordering
u Next step in Consumer Engagement
Delivery
u Exploring 3rd party options
Curbside Pickup
u Benefits locations with no Drive Thru
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Launching a test of Mobile Ordering in November
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u Testing in Portland, ME beginning November 2015
u Exclusive benefit to DD Perks members
u Planning to expand nationwide in 2016
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Potential Benefits of Mobile Ordering
Increased DD Perks acquisition and member engagement
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Increased customer throughput during peak hours
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Improved Guest experience
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Driving mobile payments with a leader
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u Launching Apple Pay in the DD app October 2015
u Apple Pay available in Dunkin’ restaurants beginning 2016
u Guests can pay with their DD Card through Apple Pay
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Launching Dunkin’ Delivery
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u Launching Delivery test in Q4 2015 in Dallas, TX
u Future integration into the app
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Building a strong digital ecosystem to power targeted 1:1 engagement
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14M+ Mobile App
Users
6M Email
Subscribers
3.5M DD Perks Members
15M+ Social
Connections
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Building 1:1 Marketing capabilities through DD Perks
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u 3.5 million members
u Growing frequency and spend among members
u Building Partnership Marketing opportunities
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How the DD Perks loyalty program works
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Activates DD Card and enrolls on DDPerks.com
FREE Beverage at enrollment
Spends $1
5 DD Perks Points
Accrues 200 DD Perks Points
FREE Beverage
Receives a personalized offer based on spend
Bonus points to accrue rewards
faster
Guest action taken
Guest earns
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We are refining our ability to track DD Perks members activities
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u Have built significant data on DD Perks members since launching in early 2014
u Leveraging across multiple digital channels
u Using data to deliver targeted 1:1 offers based on activity
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Targeting with more variables, driving richer customization and more relevant touch points
4/27 Visit 1 $2.99, AM visit, Hot Coffee & Donut, mPay
4/27 Offer for Beth Visit Dunkin’ 5X this week and earn 50 points
4/29 Visit 2 $2.95, PM visit, Hot Coffee & Muffin, DD Card
3/30-4/26 Targeting Beth visits Dunkin’ 3X per week
4/30 Journey Builder Reminder on Facebook
4/30 Visit 3 $1.95, AM visit, Hot Coffee, DD Card
5/01 Visit 4 $3.94, AM visit, Hot Coffee & 2 Donuts, mPay
4/27-5/02 Offer Impact Beth spends $15.28 over 5 visits in 1 week
5/02 Visit 5 $3.45, PM visit, Iced Coffee & Donut, mPay
Confidential information: Copying, dissemination or distribution of this information is strictly prohibited. Source: Loyalty data 3.30.14-5.03.15
5/02 Badge Reward Beth earns Beverage Baron badge for purchasing a drink 5x/week
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Targeting DD Perks offers to increase PM purchase behavior
DBI Data 25
OFFER: Get 20 Bonus Points for every visit after 2pm
High Frequency Guests with no PM Visits
Low Frequency Guests with some PM Visits
Targeted Group Resulting Performance
+34% Lift in Response
+14% Lift in Response
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Focused on continuing to grow DD Perks membership and engagement
u Build upon Q4 momentum
u Mobile Ordering exclusive to Perks members
u Strong acquisition push among Holiday DD Card base
u Active social data acquisition efforts
2016 Acquisition Drivers 2016 Engagement Drivers
u Special offers to our VIP Members (top 1% of spend)
u Testing of Premium membership tier
u Exclusive price-pointed offers for Perks members
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2016 Strategies: Continuing the evolution
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Differentiating thru Product Innovation
Building our Coffee Culture
Expanding Daypart Relevance
Leveraging Technology to Improve
the Brand Experience
Building 1:1 Marketing Capabilities
Evolving the way we Engage Consumers
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Tying it all together
u Our 65 year old brand is special
u Our foundation is strong − we work to protect it every day
u We are building a Coffee Culture that our consumers expect and deserve
u We innovate in everything we do
u Strong relationships are at the core of our success
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CHRIS FUQUA VP – MARKETING
SCOTT HUDLER VP – GLOBAL CONSUMER ENGAGEMENT
Dunkin’ Donuts U. S. Marketing
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