ADVERTISINGCAMPAIGNEVENT

DECAChapter:BedfordHighSchool
3/10/2016

DunkinDonuts:
Energizingthe
Youth
CGDCompany:ChrissyHowardSmith,GraceIrvinDillard&
DejaeNayeWilkins
BedfordHighSchool
481NorthfieldRd
Bedford,OH
44146

I.

EXECUTIVESUMMARY
HeadquarteredinCanton,Massachusetts,DunkinDonutsistheworldsleadingbaked
goodsandcoffeechain.DunkinDonutsservesover3millioncustomersperdayastheysatisfy
thedesiresofdonut,coffeeandbakedgoodsconnoisseursworldwide.Despitetremendous
previousgrowthandworldwideAmericaRunsonDunkinnotoriety,DunkinDonutshas
closedover100storesnationwide,andexperiencedadeclineinsalesalongwithadeclinein
overalltraffic.Reporteddeclineismostlyduetoincreasedcompetition,increasesinpricing(due
toanincreaseineggprices),andaneconomicdownturn.Theproposedadvertisingcampaign
addressesDunkinDonutscurrentrealityandstrivestohelppropelDunkinDonutsintothenext
generationbyfocusingonthenextgenerationthemillennialandteenbuyermarket.
Withthenewcampaign,EnergizingtheYouth,CGDCompanyhasdecidedtotargeta
youngerbuyingdemographic:youngadultsbetweentheagesof16and24.Thecampaignwillbe
composedofa7prongedapproach:traditionalchannels,digitalchannels,loyaltyprogramsand
socialresponsibility,populationappeal,retailcustomization,productlineextensions,and
productplacement.Themultifacetedsevenprongedapproachincludesanewandimproved
loyaltycardtoincreasecustomerloyalty,Huluadvertisements(onlinetelevisionstreaming),
televisionadvertisements,radioadvertisements,asponsorshipwithKimKardashian,remodeling
storestohaveamorecasualsittingarea,andexpandingourproductlinebyaddingCubancoffee
beanstoprovideasubstitutionforMonsterenergydrinks.CGDCompanyalsoaimstodevelop
thebusinessspresenceonsocialmediatoreachthetargetmarketandpromotenewdeals.Itis
expectedthatthetotalbudgetneededforthiscampaignis$3,616,721.Implementedactivities
willresultinaROIof10%overaperiodof1214months.

II.DESCRIPTION
DunkinDonutswasopenedbyBillRosenberginQuincy,Massachusettsin1950.
DunkinDonutsisthelargestbakedgoodsandcoffeechainworldwide,servingover3million
customersdaily.TheCompanysells52differentdonutvarieties,otherbakedgoods,andovera
dozendifferentbeveragesliketeaandcoffee.ThisdifferentiatesDunkinDonutsfromother
coffeeplacesbecauseithassignificantbakeryoptions.Also,DunkinDonutshasmorebrand
recognitionthanothersimilarplaces.DunkinDonutshasover11,300restaurantsin36different
countries.
CompetitiveMatrix:
Qualities

Starbucks

PaneraBread

DunkinDonuts

HowWeDoIt

Availabilityoffood

Low

High

Medium

Byutilizinglocal

products(breads,
sandwiches,etc.)

foodmarkets.

Costeffectiveness

Low

Medium

High

Bystickingtoan
efficientbudgetto
selltothe
consumers.

Appealingsocial
environment

High

High

Low

Byimprovingthe
restaurantsfurniture
andmakeitamore
socialroom

Brandperception

High

Medium

Medium

Bycenteringthe
campaignon
energizingthe
youth.

III.OBJECTIVE(S)OFTHECAMPAIGNTheobjectiveofEnergizingtheYouthisto
increaseDunkinDonutssalesby10%bytheendoftheadvertisingcampaignbytargetinga
youngerdemographic:teenagersandcollegestudents.Thecoffeehouseindustryisvaluedat
$28.84billionandDunkinDonutsownsashareof16.1%ofthemarket.Thisislessthanhalfof
themarketsharethatStarbuckshaswithaof32.8%share.Thegoalofthiscampaignisto
changetheyoungeraudiencesviewsofDunkinDonutsandrepositionthecompanyinthe
youngeraudiencesmindtodirectlycompetewithStarbucksandgainmarketshare.CGD
CompanywantstorepositionandcompetewithStarbucksbycreatingasimilarinstore
atmospherewhilecapitalizingonDunkin'Donutsstrongdifferentiationposition.
IV.TARGETMARKETS
Inthispromotionalstrategy,DunkinDonutswilltargetteenagersandcollegestudents
betweentheages1624whoareoftenoverwhelmedandinextremeneedofcoffee.Currently,
DunkinDonutshasfailedtoprovidearelevantpositionalcampaigntotargetthisdemographic

leavingthemtogotothemoretrendiercoffeeshop,Starbucks.Therefore,thegoalofthis
advertisementcampaignistochangethepositioningofDunkinDonutsintheyounger
audiencesmindtodirectlycompetewithStarbucksandgainmarketshare.
TheCurrentState:
Currently,DunkinDonutstargetmarketismiddleagedconsumers
betweentheagesof2545(largestconsumersofcoffee)witha
disposableincomeearning$35,000minimallyayear.Dunkin
DonutscurrentbuyerpersonaisStressedStevewhoisaprofessional
businessmenwithafamilyathomewhomakesanidealcustomer
sinceheistypicallybusyandontherun,lookingforfastservicetoprovidehimwitha
caffeinatedbeverage.
ProposedTargetAudience:Aspreviouslystated,CGDCompanybelievesthatifDunkin
Donutscreatesappealingadvertisementsforayoungeraudience,theywouldgainmoresalesand
generateabiggerprofit.Therefore,thisadvertisementcampaignwilltarget1624yearolds.

V.PRIMARYBUYERSPERSONAMeetStereotypicalSally.Sheis
currentlyincollegemajoringinPsychologyandlovestobespiritually
sound.StereotypicalSallyoftentendstofollowthenextbestthingthat
capturesherattentionandtheattentionofherpeersaroundher.She
enjoyswatchingrealityshowssuchasKeepingUpwiththeKardashians.Althoughthereisa
hindrancetoherbudget,shelovestoeatatplaceslikeChipotleandusuallypicksupStarbucks
beforesheeatsthere.However,herschoolschedulehasbeensohectictothepointwhereshe

cannotaffordtowaitatbothoftheneverendinglines.Sobeforeshehastoheadtohernextclass
forfinals,shegoestoDunkinDonutstobuycoffeethatwillhelpherfindthemotivationand
energythatwillgetherthroughherfinals.Sheisgreetedbyagraciousstaffandisgivenher
coffeealmostimmediatelyuponhertransactionaswellasabreakfastsandwichsheordered.She
realizesthatshehasextratimeonherhandsinceshedidnotgotoStarbucksandChipotlesoshe
findsanice,calmseattostudyinforthetwentyminutesbeforeherfinal.Sherealizesthatsince
thereconstructionofDunkinDonuts(asaresultofthiscampaign)shefinallyhastheperfect
placetobothstudyandhangoutwithherfriends,soherandherfriendsbecomeregular
customers.
VI.TARGETEDMEDIA
Inordertosuccessfullyimplementthisadvertisement
campaignandreachtheyoungertargetmarket,CGD
Companymustuseselectivemediaoutletsthatthebuyer
personawillconsumeusingthe7MultifacetedApproach.
Themediathatthisadvertisementcampaignwilltargetis:

1.TraditionalChannels
1. Radioonthewaytoschool,theselectedtargetmarkettendstolistentotheFMstation
(Z107.9and97.1)andtopreparethemforthedayahead.Theradioadvertisementswill
bereleasedapproximatelyat7amtoconvincethetargetthattheyneedacupofcoffee
beforeschooltogetthemthroughtheday.CGDCompanywillalsoreleasean
advertisementduringtheaveragelunchbreak,12pm,inordertopersuadethemthat
DunkinDonutsisthebestoption.Theseradioadvertisementswillalsorunat8pmwhile
StereotypicallySallyisonherwaytohangoutwithherfriendssothattheywillbe
persuadedtostopatDunkinDonutsbeforegettingtheirnightstarted.
2. Televisiontheselectedtargetmarkettendstowatchrealityshowssincetheyarefullof
drama.Therefore,CGDCompanywillpromotetheadvertisementsonE!whereKeeping
upwiththeKardashiansisaired.CGDwillalsopromoteadvertisementsonother
televisionstationswhichairsrealityshowssuchasVH1andBravo.Sinceteenagersand
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collegestudentsarebigonbingewatchingseriesonHulu,CGDwillalsopromote
advertisementsontheresinceNetflixonlypromotestheirownadvertisements.
2.DigitalChannels
SocialMediaSinceMillennialsareDigitalnatives,itisimperativethatthecompanyusessocial
mediatoreachthemsincetheyarealwaysonline.As66%of1824yearoldsaremoreloyalto
companiestheyfollowthroughsocialmediaaccounts(LoyaltyStatistics:TheUltimate
Collection),CGDCompanyaimstousesocialmediatobuildrelationshipswiththeselected
targetmarket.Socialmediawillbeusedasagatewaytoconnectandupdatethemaboutnew
dealsandincentivesthatDunkinDonutsareoffering.CGDCompanywilltargettheselected
audiencethroughInstagramandTwitterwhicharemainlypopulatedbyteenagersandcollege
students.

VII.PROMOTIONALACTIVITIES
Tosuccessfullyappealtotheselectedtargetaudience,CGDCompanywilltarget
promotionalactivitiesdirectlyatthem.Asanaddedadvantage,CGDCompanyareexpertsatthe
selectedtargetmarketslikesanddislikes,whattheywatch,whattheylistento,andwhichsocial
mediasitestheycanbefoundon.Tomakessurethecompanygetsincontactwithasmanyof
potentialconsumersintheselectedtargetmarketaspossible,CGDCompanywillpush
advertisementsontoeachofthesemediaoutlets.CGDCompanysplannedpromotional
activitiescompletetherestofthe7Multifacetedapproachthatinclude:
3.LoyaltyProgramandSocialResponsibilityDunkinDonutsimprovedloyalty
cardloyaltycardswillnowbeofferedtocustomersafter10purchases.CGDCompanywants
thecustomerstoneedtohavealoyaltycard,therefore,thecompanywillcreateanewand
improvedcardthatrepresentsthethemeEnergizingtheYouthwhileofferingloyaltydeals.
Theloyaltycardwillprovideloyalcustomerswith3%offofeachpurchasewithafreedonutand
coffeeonbirthdays.Thecardwillalsogivethemachoicetodonate5centswitheachpurchase
toapartneredcauseoftheirchoice:localhomelessshelter,localfoodbanks,ActionAgainst
Hunger,andmoresinceastudystatedthat63%ofmillennialssaiditsimportantthattheir
loyaltyprogramparticipationsupportslifestylepreferencessuchaswellnessprograms,
sustainabilityeffortsoracharity,versus53%ofGenXers(3550)and46%ofbabyboomers
(51andover)(LoyaltyStatistics:TheUltimateCollection).Theloyaltyprogramwillalsoallow
loyalcustomerstobethefirsttodrink/eatthenewextensionsintheproductlineforfreethefirst
time.
4.PopulationAppealSpokespersontoappealtotheselectedtargetmarketKim
KardashianhasbeenarolemodeltotheStereotypicalSalliesintheworldlatelyassheturneda
negativeintoapositivelight.That'sthetypeofpersonthatCGDCompanyaimstoendorseatthe
newandimprovedDunkinDonutsestablishment.KimKardashianwillalsoallowthecompany
toreachhertargetaudience(whosedemographicsthatthecompanyistryingtotarget)and
persuadethemthatDunkinDonutsisthekeytoabetterlife.CGDCompanywillincorporate
DunkinDonutsintoKimKardashianspopulargamewhichwillprovideherwithanenergy
boostandaddtothethemeoftheadvertisingcampaignDunkinDonuts:Energizingthe
Youth.Thisformofproductplacementwillbeusedtotargetthe1624yearoldswhoare
obsessedwithhergame.Induetime,itwillenticeKimKardashiansfanstowanttobuy
DunkinDonutsaswell.
6

5.RetailCustomizationImprovingsomeDunkinDonutsrestaurantsCGDCompanywill
improvetwoDunkinDonutsrestaurantsineachstatetoseeifthemodificationsimprovethe
amountofyouththatcomeinandsitinsideoftherestaurant.ThesechangeswillbeinDunkin
Donutslocationswhichcanbeaccessedbyhighschoolandcollegestudentswithalarge
populationofMillennialsforexample,ColumbusandCleveland.ThedesignschosenbyCGD
Companywillgivetherestaurantamoreyouthfulvibesothattheselectedtargetmarketcan
comein,hangout,andstudyinsidewhilebuyingmoreproducts.Intherestaurants,CGD
Companywilladdcouches,afireplace,andcirculartableswithoutletsnearthemsothetarget
marketcanpluguptheirphonesandlaptops.
6.ProductLineExtensionstocompetedirectlywithStarbucks,DunkinDonutswillunleash
theirversionofCubanCoffeetoaddastrongercoffeeselectiontoitsmix.CGDwillalso
provideseasonalcoffeeflavorssuchaspumpkinspicewhichappearsstronglytotheselected
targetaudience.Theseadditionstotheproductlinewillprovideboldflavorstotargetthenew
boldaudience.CGDCompanyaimstoeasethemoftheirfatigueandenergizetheyouthso
thattheycancontinueworkinghardbycreatingstrongflavorswhichwillstillbehealthierthan
Monsterdrinks.
7.ProductPlacementalongwithplacingDunkinDonutsinsideofKimKardashiansgame
CGDwillplaceitinsideofherrealityshowwhich,inturn,willconvinceheraudience(1634
yearolds)tobuyDunkinDonutsaswellsincealocalcoffeeshop,InternationalBakeryCuban
Dulceria,thattheKardashiansmentionedintheirrealityshowincreasedtheirprofitsby85%.

VIII.PrimaryData
CGDCompanyhastakenthelibertyinconductingatwoweeksurveythatillustratesthe
thoughtsoftheStereotypicalSallysinhighschoolandcollegesintheNortheastOhioregion.
ThesurveywasbasedontheirthoughtsofDunkinDonutsandKimKardashiantofurtherprove
howtheimplementedstrategieswillincreasesales.Whenaskedhowmuchmoneyhavethey
spentonenergyintheKimKardashiangame83.3%ofrespondentsstatedthattheyhavenot
spentanythingonenergybutclothesinstead.ThisstatisticprovesthatKimKardashianwould
notbelosingmuchmoneybyincorporatingDunkinDonutsasanenergyboostinhergame.
Whenaskedhowirritabletheygotwhentheyrunoutofenergywhileplayingthegameona
scaleof15,onebeingnotatallandfivebeingextremelyirritable,44.4%ofthemstatedthat
theywereextremelyirritable.ThusprovingthattheincorporationofDunkinDonutsinthe
gamewouldbeawin/winsituationforbothsides.Itwouldcausetheplayersofhergameto
7

becomelessirritatedandlesslikelytoquitwhilegivingDunkinDonutsmorebrandrecognition
astheytargetthemillennials.AsseeninFigure1,45%ofrespondentsstatedthattheydonot
feelthatDunkinDonutsappealstotheyouth.Whenaskedaboutthereasonbehindtheiranswer,
63%oftherespondentsstatedthatDunkinDonutstargetedolderpeoplemore.AsseeninFigure
2,70%ofrespondentsbelievedthatKimKardashianappealedtotheyouthwhichproveshow
muchherendorsementscanhelpwithDunkinDonutsnewcampaign,EnergizingtheYouth.In
anotherquestionwhichaskedwouldKimKardashian'sendorsementmakemoremillennials
liabletobuyDunkinDonuts,67%ofrespondentsstatedthatitwouldsincetheyouthis
infatuatedwithKimKardashian.Whichproveswhyherendorsementisworthitasshewillbring
inmoreoftheselectedtargetmarket.Lastly,whenaskedwouldtheystudyatDunkinDonuts
55%ofrespondentssaidthattheywouldnotand61.1%ofthemhasstatedthatitisbecause
DunkinDonutsdoesnothaveacomfortableenvironment.Whichprovesthatremodelingsome
restaurantswillproveeffectiveforDunkinDonuts.
Figure1

Figure2


XI.BUDGET
Tosuccessfullyfulfillthisadvertisementcampaign,itisprojectedthatCGDCompany
willneed$3,616,721tobeabletosuccessfullyadvertiseinourselectedmedias.Althoughpublic
relationsandmostofthesocialmediapromotionswillbefree,itwillcostanegotiable
$1,000,000forKimKardashiantoendorseDunkinDonutsplushernegotiabledemandssuchas
planetickets,ahotel,security,stylists,andarentalcar.Theplaneticketsalonewillbeabout
$17,781forfirstclassticketsforherand4otherfriendsandacoachticketforherassistant
($3,500perticketx5+281foracoachticket=$17,781)togettotheset.Asseeninanarticle,the
addedcostoftherestofherdemandswillcomeroughlyto$51,260.
BREAKDOWN
CostforKim
Kardashianto
Endorse
$1,000,000

Costfor5FirstClass
TicketsPlus1Coach

CostfortheRestof
HerDemands

$17,781

$51,260

ExpectedCosts
Summary

$1,069,041

Thebudgetalsoincludesthe$35perHuluadvertisementwhichCGDCompanywillrunfor12
months($1,680),$850,000toaddtotheproductlineandforhiringresearcher,$1,026,000to
advertisefivecommercialsontelevision(HowMuchDoesTelevisionAdvertisingReallyCost?),
$550,000tocreateandprintloyaltycards,and$120,000tocover12monthsofradio
advertisements.
BREAKDOWN
Totalprice 12Months
Costto
forKim
ofHulu
Createand
Kardashian
Ads
Print
Loyalty
Cards

Costfor5
TVAds

Costto
Testand
Addto
Product
Line

12Months
ofRadio
Ads

Expected
Costs
Summary

$1,069,041 $1,680

$550,000

$1,026,000 $850,000

$120,000

$3,616,721

X.ROI
Withtheanticipatedoutcomefromtheadvertisingcampaign,CGDCompanyexpectsto
returnthemoneyusedinthebudgetplus$1,000,000withinthenext1214months.Thisisan
expectedROIsinceCGDwillbeincreasingbrandawarenessthroughthenewpromotions,
appealingto/gaininganewtargetmarketbytargetingteenagersandcollegestudents,while
maintainingtheregularcustomersthatDunkinDonutsisknownfor:themiddleagedbusiness
man.Withthisadvertisementcampaigndirectlytargetingteenagersandcollegestudents,CGD
Companyexpectsatleast750,000newcustomersnationwide,1,200,000worldwidewhichis
about.0125%ofthe80millionMillennialsintheworld(TheMillennialGenerationResearch
Review).Thisincreasewilldriveatleasta10%increaseinsaleswithinthe1214monthtime
framethatCGDCompanywillbeworkingonthiscampaignaswellasdrivelongtermcustomer
loyaltytothebrand.
XI.SCHEDULEOFADVERTISINGPLANNED
Thegoalforthisadvertisingprogramistocapturetheyouthsattentionbycentering
advertisementsaroundthethemeDunkinDonuts:EnergizingtheYouth.Theadvertisements
willfocusonpromotingnewproductstoDunkinDonutsproductlinesuchastheloyaltycard,
coffeemadewithcubanbeans,andgivingbacktothecommunitiesacrossAmericatocreate
socialresponsibilitywithinthebrand.CGDCompanywillbeusingthreemediaoutletstoinform
theprimarytargetmarkettoensuretheappropriatereachoftheconsumersfromtheappropriate
channels.Thethreemediaoutletswillberadio,socialmedia,andtelevision(topromotethenew
loyaltycard,cubancoffee,andourwaytogiveback).Thegoalistoreleasethemediaoutletsby
August1of2016duetothetargetaudiencestartingschoolaroundthefallandtheheavy
workloadwillresultintheneedtoconsumecoffee.Outletssuchassocialmediaandtelevision
willbegininthebeginningofthefall(EarlyAugust)toannounceournewcampaign.

Radio

Television

KimKs
Endorseme
nt

Social
Media

Additionto
Product
Line

Improve
Locations

Date

August
2016

August
2016

newseason
premiere
fall

August
2016

August
2016

August
2016

Time

7amand
12pm

8pm

8pm

6pm7pm

5am

7am

XII.SCHEDULEOFALLSALESPROMOTIONACTIVITIESPLANNED:
10

DunkinDonutswilllaunchtheirimprovedloyaltycardtopersuadethetargetmarketin
Augustduetomajorityofstudentsresumebacktoschoolandcollege.TheappearanceofDunkin
DonutsintheKimKardashiangamewillbegininSeptemberbecauseitisnotoftoppriorityto
pushsalesandenticeourprimarytargetmarket.

ImprovedLoyaltyCardwith
AddedBenefits

KimKardashianGame

Date

August2016

September2016

Time

12pm

12am

XIII.STATEMENTOFBENEFITSTOTHECLIENT/ADVERTISER
Thegoalisforboththeclientandadvertiseristofeelasthoughtheyarebothbenefiting
throughtheproduct.ThemaingoalfortheadvertiseristogainROIandthemaingoalforthe
consumeristofeelasthoughtheyaregettingthebestdealpossibletosatisfytheirwantsand
needs.OtherbenefitsofEnergizingtheYouthinclude:
AdvertisersBenefits:
gainingarelationshipwiththeconsumer
increasingsales
haveapopularoutlet(KimKardashianGame)
appealingtotheprimarytargetmarketandgainingalargerprofit
supportingacausetogainapositiveperspectiveintheconsumersminds
generatinganewloyallifelongcustomer
CustomerBenefits:
FeelclosertospokespersonKimKardashian
haveaproductandaplacewhichsatisfiestheirwantsandneeds
Retaillocationmeetingphysicalandsocialneeds
Gainbenefitfromloyaltyprogram
Feelasthoughtheyarehelpinghumanity
Cancreateaconversationsparkonsocialmedia

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