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Feb 27 2008 8:47AM EST

Starbucks, Dunkin Donuts Stunt Their Own Stunts

For watchers of business spin, nothing produces a bigger cringe than a publicity stunt that is either poorly conceived or poorly executed. And yesterday afternoon, the Coffee Wars provided us with beautiful examples of each.

Poorly Conceived: As the latest tactic in its public redemption strategy, Starbucks pointed out that its baristas didn't understand how to work the automated machines that now make their espressos, simultaneously shutting down 7,100 U.S. stores for a conspicuously public re-training effort. Janet Adamy's WSJ story reports that the explicit contrition came straight from the top.

"Over the years we kind of lost our way," Starbucks CEO Howard Schultz told workers in a video that started the training.

Consequently, much of the coverage pointed out that the quality of the coffee had slipped. Elizabeth Gillespie's AP story, for instance, quoted an analyst saying:

The quality of the product has deteriorated a bit over the last few years, and they know they've got to improve it.

What's wrong with that? Wasn't that the intention of the event?

Sure, but instead of showing that it was making progress against its perceived problems, Starbucks actually raised the awareness of a new problem. Check the past coverage of Starbucks' recent woes, and you'll see little criticism of the actual quality of the coffee. Most of the attention focused on long lines, poorly maintained stores that were too close to each other, and the invasive smell of hot food. More than anything, the coverage noted the decrease in romance that came with the move to automated machines.

But future coverage of Starbucks will now surely cite slipping coffee standards as one of top reasons for the company's decline. That may seem like a small distinction, but it's not. It's one thing when you're getting the romance wrong. It's another when the core of what you do is perceived to be broken. And, as Andrew Clark's Guardian story reflects, that's effectively what the Starbucks shut-down communicated.

What stunt should they have pulled instead? How about simultaneously closing those 7,100 stores to reinstall the hand-operated espresso machines that drove Starbucks original success?

Poorly Executed: Not to be out-done, Dunkin Donuts staged its own counter-effort, offering bargain espresso drinks during the Starbucks shutdown. That's a good idea in itself, given that Dunkin's marketing strategy is built on getting people to reconsider where they get their coffee. By timing its event with the one at Starbucks, Dunkin ensured that it would be included in the majority of the news reports.

But instead of saying that it was inviting Starbucks regulars to try a strong alternative at a lower price, Dunkin publicly insisted it was doing something else. Newsday's Keiko Morris reported:

Dunkin' Donuts representatives insist that the promotion -- which is between 1 p.m. and 10 p.m. -- is really a celebration of last week's announcement that the company had taken first place in the coffee category of Brand Keys' Annual Customer Loyalty Engagement Index.

Wow. What could be more alluring than that? Let's celebrate!

While the Starbucks ploy actually brought self-inflicted damage, the Dunkin effort simply missed taking full advantage of a unique opportunity.

Keep an eye on Dunkin, which is getting increasingly edgy. After using the challenger strategy to great effect in recent years, the company seems to be falling into the trap of talking to itself, instead of the customer across the counter. Consumer like "wars" that are joyfully waged on their behalf, but usually get turned off if the battle starts to feel simply like mean-spirited combativeness. Check out this lathered-up money-quote from Dunkin boss Will Kussell.

"Long before we launched the espresso revolution in 2003 and made it possible for customers to enjoy authentic lattes without long waits, high prices and confusing sizes, the hard-working people who keep this country running recognized Dunkin' Donuts as the place to enjoy high-quality coffee and baked goods any time of day at an affordable price," said Will Kussell, President and Chief Brand Officer of Dunkin' Donuts Worldwide.

That quote naturally got some pick-up. But is Dunkin Donuts a place where you can get a friendly cup of coffee, or the branch office of a reincarnation of the Share Our Wealth movement?

In other words, Dunkin should keep its same-for-less proposition piping hot, but should always do so with rhetoric that's nice and warm.

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