Blog Post #2

 

Dunkin is keeping beverage innovation humming during the pandemic as consumers look to treat themselves. Kate Rogers. October, 23 2020.

https://www.cnbc.com/2020/10/23/dunkin-is-keeping-beverage-innovation-humming-during-covid-pandemic.html

 

Summary:

Dunkin Brands Group was able to adapt to the coronavirus pandemic and understand the changing needs and wants of their customers. During the pandemic, the brand noticed that a new theme of “treating themselves” had emerged. The company added new menu items such as oatmilk and refreshers made with green tea and flavored fruit concentrate. These new item changes brought in a new demographic of younger female customers.

The company is now looking to build off it’s core value and coffee background while adapting new ways to be modern and relevant. The company partnered with TikTok star Charli D’Amelio and launched “the Charli drink”. Hundreds of thousands of Charli drinks were sold in the first 5 days and the company noticed app traffic went way up. They saw a 57% increase in app downloads on the day the Charli drink launched. Dunkin saw major challenges in the beginning of 2020 but was able to make a pivot in operations to end off the year successful.

Analysis:

 The main reason Dunkin Brands Group was so successful in 2020 was because they understood their macroenvironment. When they recognized that customers were making different decisions and choosing beverages that were harder to make at home, they were able to adapt to the changing social environment. When customers want to “treat themselves”, they know that Dunkin now offers new menu items that will fit their needs. Because they were able to respond to their environment, they were able to meet the needs of their customers.

Dunkin Brands group also did a great job recognizing a demographic that they could better serve if they shifted their marketing. They were able to target a specific generational cohort, specifically Gen Z, by partnering with a Tik Tok star who appealed to the demographic. In doing this, they were able to modernize their brand and keep themselves relevant. Because Gen Z grew up with smartphones (and are considered “Digital Natives”, it makes sense that they would be more inclined to utilize the Dunkin app and cause app traffic to soar.