MKTG 303 Principles of Marketing Mix Constant Cheng

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MKTG 303 Principles of Marketing Mix Constant Cheng George Mason University

MKTG 303 Principles of Marketing Mix Constant Cheng George Mason University

DECISIONS ON POSITIONING: Based on the perception map: • Dunkin’ Donuts is not at

DECISIONS ON POSITIONING: Based on the perception map: • Dunkin’ Donuts is not at its ideal point. • Dunkin’ Donuts can move into the good gap by improving on primary attributes, ones that are closest to the preference vector. • These include cleanliness, pleasant smell, good service and good brand image. • This makes sense as things Dunkin’ needs to improve upon as Dunkin’ has been more of a place people quickly pick up products (as indicated by its cluster name ‘Grab n’ Go’) than a place to meet and stay. • Finally, Dunkin’ can improve its auxiliary attributes including good value, convenient location, and wide product variety. • Having a high coordinate on the vertical axis and being a store for people to quickly stop at, these are attributes in which Dunkin’ are scores highly.

REPOSITIONING http: //www. fastcocreate. com/3034572/coffee-week/dunkin-donuts-and-starbucks-a-tale-of-two -coffee-marketing-giants

REPOSITIONING http: //www. fastcocreate. com/3034572/coffee-week/dunkin-donuts-and-starbucks-a-tale-of-two -coffee-marketing-giants

PRODUCT How does the product compares to those of the competitors’? Three ways to

PRODUCT How does the product compares to those of the competitors’? Three ways to position an offering (for product comparison): 1. Unique 2. Difference 3. Similarities (“Only product/service with XXX”) (“More than twice the [feature] vs. [competitor]”) (“Same functionality as [competitor]; lower price”) Look at product attributes (that are unique, different, similar) that can be translated into “superior” benefits to the customers. This is to explain why your customers prefer your product over those of the competitors’!!! Check the perceptual map for clues! Regular coffee – SB; Iced coffee – DD; Tea: SB; Hot Chocolate: DD; Breakfast sandwiches; DB; Doughnuts; DD; http: //greatideas. people. com/2015/01/30/starbucks-vs-dunkin-donutsseattle-new-england-superbowl/

VALUE PROPOSITION (product/price) How does the product/price compares to those of the competitors’? Five

VALUE PROPOSITION (product/price) How does the product/price compares to those of the competitors’? Five ways to articulate the product/price value proposition (for comparing value to price): 1. More for more (Mont Blanc, most luxury goods) 2. More for the same (Toyota Lexus over Mercedes) 3. More for less (Wal-mart, well known brand for less) 4. The same for less (Panasonic TVs) 5. Less for much less (Airline not serving food) Elements to cover for this section: • Show the price of your nearest competitor(s)’ • Show your price • Show the relative product/price value proposition • Double check to make sure that your product price value proposition is consistent with overall positioning

PLACE Dunkin’ Donuts now has nearly 11, 300 restaurants in 36 countries , trails

PLACE Dunkin’ Donuts now has nearly 11, 300 restaurants in 36 countries , trails behind its rival Starbucks which has 21, 536 retail stores in 65 countries (11, 000 of them in the U. S. ) The Dunkin’ App connects guests to the brand with an exciting array of tools and information to make any Dunkin’ run fast and easy. Highlights include: • Purchase, register and reload a Dunkin’ Donuts Card • Pay right from the app using a Dunkin’ Donuts Card • Send an m. Gift to friends and family • Locate the nearest Dunkin’ Donuts http: //news. dunkindonuts. com/news/dunkin-donuts-mobile-app-adds-support-forapples-passbook

PROMOTION 1. Purpose of the promotional campaign – highlight repositioning and accentuate new product

PROMOTION 1. Purpose of the promotional campaign – highlight repositioning and accentuate new product attributes and customers’ benefits 2. Central Message – “Better value, more convenient locations” 3. Slogan – America runs on Dunkins’ -> American Thrives on Dunkins’? ? ? 4. Specific promotional tactics – “DD drinkers were much more likely to talk about Starbucks on social media than the other way around…Dunkin’ puts its fans at the center of its social media strategy—they’re an active and passionate tribe that’s fueled by interactions with the brand” http: //www. fastcocreate. com/3034572/coffee-week/dunkin-donuts-and-starbucks-a-tale-of-two -coffee-marketing-giants