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Advertising & Money

A small case study about a company's expenditures for advertising and how the money flows in this business. This process isn't limited to just Dunkin Donuts, but is applicable to most world wide brands across the world. Coca-Cola, McDonald's, Adidas, all do this in one way or another.

1. What is being sold?

 

Dunkin' Donuts sells different products like beverages, pastries, sandwiches, breakfast goods in general. Just like any other business, their aim is to make a profit, expand, and eventually make more profit. While they are a business, they do want to satisfy their customers. Because without them, there isn't any money.

Their key demographic is blue collar working males. In recent years, their ads have included working class/everyday people to go along with their new tagline "America runs on Dunkin'". They know who is buying their products, and they understand the consumer more than the consumer understands themselves.

2. How can we appeal to the consumer?

 

Hill Holliday does the TV and print ads, while there are other agencies like Studiocom, that focus on the digital side of advertising. Having multiple agencies is not unheard of. When you go on Dunkin' Donuts's website, the many promotions and advertisements that appear are thrown at you by Studiocom. They're in charge of keeping you hooked online. Hill Holliday is in charge of those coupon ads you rush to the store with, the print ads. They need to get you into the store, but even if you don't have a coupon, they show you that "America runs on Dunkin'", then you crave morning coffee.

The research and creative aspect of advertising happens here. Even in international advertising. These agencies need to understand their target audience. Dunkin' can provide this and other information so that the marketing for their products is successful. The reasons these ads work is because they appeal to the consumers and newcomers. The ads are able to pull you in with their witty commercials and taglines, and give you an incentive to come in. No matter where you live, someone is going to want to sell you something, and they're going to find out how.

3. Was it worth it?

 

In 2009, Dunkin' Donuts spent $100M on advertising alone. They continue spending a lot on advertising to this day, Dunkin' continues to make increasing profits year after year. The advertisements have been proven to be a success, they've even put down Starbucks in their ads and managed to get ahead of the game by being the bigger and better brand.

 

While the average American may be Dunkin' Donut's target audience, it was virtually eliminated in Canada by local competitor, Tim Horton's. Tim Horton's could be described as Canada's Dunkin' Donuts, which means that they know their people way better than Dunkin' ever could, and that could explain their failure for Canadian expansion.

Even though expansion in one area might not have been successful, there are still other strategies. As proven by Dunkin' Donuts themselves, you can succeed in the market if you know what you are selling and who you are selling your product to. Learning to advertise and implement yourself like McDonalds did around the world, results in good marketing and eventually profit. It's all part of the business.

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