Dunkin’ Donuts RestaurantMarketing Guide

© 2010. DD IP Holder LLC. BR IP Holder LLC. All rights reserved.

TABLE OF CONTENTS

I. INTRODUCTIONRoles of Marketing & Local Restaurant MarketingYour Restaurant

II. UNDERSTANDING YOUR RESTAURANT AND COMMUNITYRestaurant ProfileS.W.O.T./Situational AnalysisTrade Area MappingTrade Area ProfileTrade Area Events and OpportunitiesCompetition Profile

III. MARKET PLAN DEVELOPMENTObjective Strategy Tactics BudgetSchedulePost Analysis

IV. LSMNOW.COM OVERVIEW

V. CONCLUSION

1

SECTION I

INTRODUCTION

Roles of Marketing

The role of marketing is to bring guests in, bring guests back and trade them up whenever possible.

The role of local restaurant marketing is to build upon, and enhance, broadermarketing messages. This is accomplished by personalizing the message to your guests and demonstrating your commitment to the community.

A combination of both marketing formats will assist in achieving thefollowing objectives:

•Build brand differentiation•Drive sales and profitability•Improve marketing productivity•Connect with local community

The advertising done by the brand is broad-based and focused on driving against all key objectives. To continue that success, each franchisee network needs to have a plan that is tailored to the needs of individual restaurants and of local guests.

It is important to research and prepare accordingly before implementing a localcommunity marketing plan.

The following tools will assist in clarifying exactly what programs are best suited for you and your needs. Remember, you have the power to own your community through local marketing efforts.

2

Your Restaurant

Know your restaurant’s community. Each location has a unique blend of neighbors, guests, community leaders, opinion makers and businesses. Impact your restaurant’s sales by creating a program suited to your community and its personality. The trade area mapping section will provide a tool for determining your restaurant target area.

Your planning research will include the following steps:•Restaurant Profile•Situational Analysis (S.W.O.T.)•Guest Profile•Trade Area Profile•List of Community Events in Your Trade Area

Once you have answered the questions above, you are ready to develop your plan. Money should not be spent without first understanding and identifying the correct audience for your message.

Your marketing plan should include the following steps:•Goals & Objectives What are you trying to achieve?•Strategy & Tactics How are you going to achieve your objectives and goals?•Budget & Schedule How much will it cost and when will each tactic take place?•Program Analysis Plan How will you measure and analyze program results/success?

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Section II

UNDERSTANDING YOUR RESTAURANT AND COMMUNITY

Step 1 – Restaurant ProfileBegin building your profile by understanding your restaurant sales, customer counts, product mix and traffic flow – day to day, and hour by hour. In addition, take time to understand your guests, location and restaurant’s capabilities. Each restaurant has different strengths, weaknesses, opportunities and threats (S.W.O.T.). By identifying these key areas, you will be able to better understand your situation.

Step 2 – Situational Analysis (S.W.O.T.)S.W.O.T. analysis can give you a bird’s eye view of your restaurant, relative to your guests and trade area. Your findings should be laid out in the format below to make the information easy to decipher.

STRENGTHS•Positive factors that impact your restaurant internally

•e.g. Restaurant size, experienced team, good visibility, etc.

WEAKNESSES•Challenges that impact your restaurant internally

•e.g. High turnover, limited space, obstructed signage, poor employee attitudes, etc.

OPPORTUNITIES•External areas where Dunkin’ Brands mightbe able to capitalize

•e.g. Snowbirds return, customer brand loyalty, high-profile events, etc.

THREATS•External factors that are/may impactyour resturant

•e.g. Landlord issues, increased competition, product recall, etc

Tips for starting your S.W.O.T. analysis:•Look at the external factors (opportunities & threats) that are out of our control.•Identify 3-5 top opportunities and threats.•When evaluating a restaurant’s strengths and weaknesses, it is important to keep an objective perspective.

•Identify and prioritize 3-5 top strengths and weaknesses for each restaurant. •Which strengths still could be improved upon?•Which weakness is most important to minimize or fix?

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S.W.OT. WORKSHEET

5

STRENGTHS

–

–

–

–

OPPORTUNITIES

–

–

–

–

WEAKNESSES

–

–

–

–

THREATS

–

–

–

–

Step 3 – Trade Area Profile

Understand your trade area. Are there unique aspects or events that occur in the area? What makes that area different from others? Become a familiar face in your trade area. Get to know the schools, hospitals, businesses, competitors and community services.

*Primary focus should be a one to two mile radius around your restaurant.

**Secondary focus will be a three to four mile radius around your restaurant.

Trade Area Mapping

1. Get a Map – From a local bookstore or library or use www.mapquest.com.www.mapquest.com offers a great mapping resource that will quickly help map your trade area.

www.mapquest.com instructions:•Go to www.mapquest.com•Type in your restaurant’s address•Click ‘Get Map’ •Scroll down and click on the ‘places of interest’ you desire for your map •Click ‘update map’•Instant trade area map

2. Complete the Trade Area Profile Worksheet

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TRADE AREA PROFILE WORKSHEET

7

RESTAURANT LOCATION(ARE YOU LOCATED IN A STRIP MALL, FREE STANDING BUILDING, MAJORINTERSECTION, DOWNTOWN LOCATION, ETC.?)

RESTAURANT VISIBILITY(IS YOUR RESTAURANT HIDDEN BY TREES OR BUILDINGS, CAN PASSERSBY SEE SIGNS?)

RESTAURANT ACCESS(IS YOUR RESTAURANT EASILY ACCESSIBLE?)

RESTAURANT TRAFFIC(WHAT IS YOUR AVERAGE CUSTOMER COUNT PER HOUR?)

Step 4 – Who is Your Guest?

What types of people are coming into your restaurant for coffee and baked goods? Where are they coming from? Where are they headed? Where can you interact with them outside of the restaurant?

Some important factors:•Do your restaurant guests reflect the age of residents in the surrounding community?

•Is your community predominantly one ethnicity? Hispanic? Caucasian? Etc.•Is your restaurant located in a strong religious community?•Where are the large neighborhoods/complexes near your restaurant?•What neighborhoods are most likely to have coffee drinkers? •Where are the major shopping centers or strip malls?•Are there any major sports arenas/parks in the area?•What are the major hotels and resorts in the area?•What companies are in the area that employ large work forces?

Complete the following worksheets to get started.

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TRADE AREA CALENDAR OF EVENTS(List events that occur in the area throughout the year.)

9

JANUARY -

MAY –

SEPTEMBER –

FEBRUARY –

JUNE –

OCTOBER –

MARCH –

JULY –

NOVEMBER –

APRIL –

AUGUST –

DECEMBER –

TRADE AREA PROFILE(List the Schools, Churches and Prominent Businesses in the Area.)

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TOP BUSINESSES

CHURCHES

SCHOOLS

Step 5 – Competition

Take your competition seriously. You may know your coffee and baked goods are better, but your potential guests do not.

Where is the competition located, relative to your restaurant? Where are new competitors planning to build/open?

COMPETITIVE PROFILE

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WHO IS YOUR COMPETITION AND WHERE ARE THEY LOCATED?

WHO ARE THEIR GUESTS?

OTHER OBSERVATIONS?(SERVICE, FACILITY, PRICING, EXECUTION)

WHAT ARE THEIR STRENGTHS AND WEAKNESSES?

Section IIIDEVELOPING YOUR MARKETING PLAN

Once you have completed your trade area analysis, you are ready to build your marketing plan.

Step 1 - Objectives Identify your objectives. What results are you hoping to get? What do you want to achieve? Your objectives are the foundation of your marketing plan, with everything else stemming from them.

In order to remain focused, your maximum number of objectives should be two. An objective must be measurable in order to determine the success of a program. In addition, you must define a time period for the program. This allows you to compare new results to old results and adapt for the future.

Examples:•Increase sales by 5% by end of quarter two•Increase PM business by 10%•Increase weekend beverage sales by 3%

Step 2 - StrategyIdentify your strategy. How are you going to accomplish your objectives? If the objective is to increase store sales by X%, what will you do to reach that number?

You should always market to the strengths of the business. Programs that focus on the largest parts of the business will garner the largest return. Conversely, programs that promote least sold items will garner a smaller return.

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Step 3 - TacticsNow you should identify your tactics. Tactics are the ideas you will execute. Will you create a contest, employee incentives for suggestive selling, sampling programs and/or direct mailers? Tactics facilitate your path to reaching your objective(s).

Step 4 - BudgetEnsure that you outline a budget before implementing any part of your plan. Research should be done on all costs associated with your tactics. Plan ahead and make good long-term decisions. How much money will it take to implement a promotion? Doing so will help you stay within the budget parameters that you set and avoid any surprises or wasteful expenses.

Step 5 - ScheduleEach tactic should have a time component. When will you begin implementation? How long will the tactic be in effect? A schedule will help you maintain a global view of the marketing plan and enable you to track progress throughout the campaign.

Step 6 – Measuring SuccessEach program must be analyzed to understand its success. Program objective(s) will determine what must be tracked. For best results, develop a tracking form for quick and easy post analysis. If the objective(s) specify tracking sales, customer counts, and/or specific product movement, set up your form to show 4 to 6 weeks pre-program, program period, and 4 to 6 weeks post. If coupon redemption is the key success indicator, the tracking form should identify the following: offer(s), quantities, method of circulation and daily redemption, by offer and hour of day, through the expiration date(s). Analysis must also include program cost for comparison. Make certain these costs are outlined on your tracking form. Any external influences, such as weather or road construction, should also be noted. These extenuating factors can play a key role in your overall program success.

Use the following worksheets to complete your marketing plan.

13

PC# Address:

Month 1

-LOCAL STORE MARKETING CALENDAR (Part 1)-

Awareness

Trial

Frequency

Loyalty

/

Competitive

Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Month

14

PC#

Mon

th 1

-LO

CA

L ST

OR

E M

AR

KET

ING

CA

LEN

DA

R (P

art 1

)-

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 10

Mon

th 11

Mon

th 12

Mar

chM

onth

Apr

ilM

ayJu

neJu

lyA

ugus

tSe

ptem

ber

Oct

ober

Nov

embe

rD

ecem

ber

Janu

ary

Febr

uary

Add

ress

:

Awareness

Trial

Frequency

Loyalty

/

Competitive

Doo

r Han

ger

Buck

slip

sBe

My

Gue

st

Card

s

Post

er,

Law

n Si

gn,

Pole

Sig

n

Post

er,

Law

n Si

gn,

Pole

Sig

n

Dire

ct M

aile

r w

ith

Freq

uenc

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rd

Freq

uenc

y Ca

rdFr

eque

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Card

Buck

slip

/ Bo

unce

back

Coun

ter C

ard

Doo

r Han

ger

Shar

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SI

SAMP

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15

-LOCAL STORE MARKETING BUDGET WORKSHEET (Part 2)-

Items to be Ordered CommentsDate Items Needed Cost

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Where to Purchase Quantity

Total Cost:

16

-LO

CA

L S

TO

RE

MA

RK

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BU

DG

ET

WO

RK

SH

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T (

Par

t 2)

-

Item

s to

be

Ord

ered

Com

men

tsD

ate

Item

s N

eede

dC

ost

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Whe

re to

Pur

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uant

ity

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l Cos

t:

Dire

ct M

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r w

/ Fr

eque

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Car

d

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nter

Car

d

Buc

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s

Doo

r H

ange

rs

Law

n Si

gn

Post

er

Freq

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y C

ards

Pole

Sig

n

Freq

uenc

y C

ards

Shar

ed F

SI

Post

er

Be

My

Gue

st C

ard

Pole

Sig

n

Law

n Si

gn

Buc

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s

Doo

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3/15

3/15

4/12

4/2

4/2

4/2

5/15

4/2

8/14

8/5

11/1

5

11/1

11/1

5

11/1

5

1/20

1/4

LSM

now

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10,0

00

2 500

10,0

00

22 750

1 250

10,0

00

3500

21 1,00

0

20,0

00

2,80

0.0

0

6.50

40.0

0

1,343

.00

48.0

0

56.0

0

82.5

0

44.0

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35.0

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1,50

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84.0

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65.0

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88.0

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17

PC# Address: Program Objective:

Week Ending

Pre-

Prog

ram

(4 w

ks.)

Post

-Pro

gram

(4 w

ks.)

Prog

ram

Wee

ks

Total: $ $

$ $

$ $

$ $

Total:

Total:

% Change pre/post

Gains

% Change (+/-)

Program Costs from Budget Worksheet: Gains Less Program Costs Customer Counts Redemption

*If Applicable

PROGRAM SUMMARY

% Change pre/post

Actual Store Sales *Units Sold*Prog. Product Sales *Prog. Prod. CC’sCustomer Counts *Coupon/Freq. Cd. Redemption By Offer

Offer 1 Offer 2 Offer 3 Offer 4 Offer 5

-MARKETING PROGRAM TRACKER/POST ANALYSIS WORKSHEET-

18

PC#

Add

ress

:Pr

ogra

m O

bjec

tive:

Wee

k En

ding

Pre-Program (4 wks.) Post-Program (4 wks.)Program Weeks

Tota

l:$

$

$$

$$

$$

Tota

l:

Tota

l:

% C

hang

e pr

e/po

st

Gai

ns

% C

hang

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/-)

Prog

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Cos

ts fr

om B

udge

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kshe

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Gai

ns L

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Cos

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usto

mer

Cou

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Rede

mpt

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*If A

pplic

able

PRO

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M S

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% C

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7/10

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7/24

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9/4

9/11

9/18

9/25

8/7

8/14

8/21

8/28

2125

2175

2250

2175

2,25

0

2.25

5

2,25

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2,25

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2,20

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2,27

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8975

70 70 72 72

8,72

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lips

110 100

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455/

46%

$157

0-7

5.0

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$149

5 A

ctua

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3.29

%

Offe

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$178

-75.

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= $1

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%24

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220

225

223

240

230

234

225 SAMPLE

19

Section IVLSMNOW.COM OVERVIEW

Dunkin’ Brands offers LSMnow.com as a resource for you and your marketing efforts. Below is an overview of the Web site.

For a login and password and for Web site assistance using LSMnow.com, contact:

LSMnow.com Help CenterPhone: (855) 576-6669

Email: lsmnow@zadv.com

Once you log on to LSMnow.com, you have access to materials in the following areas. You should coordinate with your Field Marketing Manager in order to ensure that your local store promotions do not conflict with you market-wide promotions.

This category offers a variety of tools to get you on your feet.•Business tools/stationary

•Coupons/handouts•BMG cards, door hangers, frequency cards, etc.

OpeningsThis category offers all the materials you might need in order to promote astore opening/remodel.

•Opening materials•Banners, counter cards, etc.

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National POP Kit Add-OnsThis category offers support materials for national promotions including materialsfor DDSmart or oven-toasted promotions.

Special Events & PromotionThis category offers items you might need to support certain events or promotions.

•Anniversary Materials•Costumes•Community Relations Materials•Customer Appreciation Materials•Holiday Materials

FAQs and ResourcesIn this section, you will find several resources to help you with local storemarketing including:

•Brand standards•Helpful videos•Instructions and order forms•LSM user manual•Hispanic Materials•Coupons, handouts and signage in Spanish•Coupons / Door Hangers

21

Section VCONCLUSION

Marketing requires research and planning to be done correctly. Completing the enclosed worksheets will assure your message and tactics are on target with your audience. This prep will also assist in spending appropriately.

After starting a program, give it time to succeed. All marketing programs work through repetition. A customer has to see something three times before they will likely respond. Don’t constantly change ideas before you’ve given them a chance to take root.

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