Differentiation

To compare similar products and goals, it is important to see how companies differentiate themselves and their products from others. Let’s compare Dunkin Donuts and Starbucks:

According to Investopedia, “Starbucks and Dunkin’ Brands are the United States’ largest coffee chains” (Delventhal, 2022). There are similar coffee options offered by both companies-even though food options differ-and they both have similar overall strategies. However, their business models differ in terms of scale, ownership, and branding.

Dunkin’ Donuts, now known simply as Dunkin’, is America’s beloved coffee and donut company, delighting taste buds and energizing mornings for over 70 years. It was founded by a brilliant entrepreneur by the name of William Rosenberg back in 1970 in Canton, Massachusetts (Dunkin Website, 2023).

Founded in 1971 by Jerry Baldwin, Gordon Bowker, and Zev Siegl, in Seattle, Washington, Starbucks is a multinational coffeehouse chain and coffee company based in the United States. They began their operations by selling roasted coffee beans directly to consumers, but soon expanded their business into distributing beverages (Starbucks Website, 2023).

Both brands share many similarities, but they also have several differences that set them apart.

Let’s talk about Dunkin…

To enhance its social media presence, Dunkin adopted several measures, including promoting a colorful and quirky personality online (Ahuja, 2022). By focusing on consumers and adapting to their insights, they have been able to stay ahead of the curve. In 2021, Dunkin’ Donuts partnered with Charli D’Amelio, a TikTok influencer, to produce “The Charli”. D’Amelio’s social media platform allowed Cold Caramel Brew to reach TikTok fans and Dunkin’s target audience effectively. Charli’s cold brew sales grew by 45% by the afternoon of the second day (Ahuja, 2022). Within five days of the campaign’s launch, thousands of drinks were sold.

Additionally, Dunkin distinguishes itself from other brands by partnering with local heroes. In 2020, the world had to deal with the covid pandemic, so Dunkin created the “Heroes Campaign” to highlight the heroic people who are battling this crisis on the front lines and to bring light and hope to the victims of the pandemic with simple acts of kindness (Dunkin Website, 2023).

To achieve its strategic goals, Dunkin uses social media to generate sales. It uses reels, stories, memes, and influencers to effectively promote its brand on Instagram, which has a following of over 2 million users. Dunkin has created signature hashtags like #MyDunkin to encourage further consumer interaction as well.

Let’s talk about Starbucks

Quality coffee and beverages are known to Starbucks. Besides offering quality coffee and a wide selection of beverages and pastries, Starbucks is also known for its strong branding and storytelling, as well as its use of social media to connect with its customers.

The Starbucks social media activity is intended to establish a personal connection with its customers and convey Starbucks’ relatability.

In general, both Dunkin and Starbucks use social media to differentiate their brands and meet strategic goals. They partner with communities, and both use social media to promote and drive e-commerce sales. In contrast, Dunkin emphasizes community and social responsibility, whereas Starbucks emphasizes branding and storytelling to connect with consumers. Despite fierce competition in the coffee market, both brands have differentiated themselves.

Ultimately, I’d pick Starbucks, but what would you choose?

References:

Ahuja, M. (2022, March 6). Dunkin’ runs on Social Media. Medium. Retrieved July 16, 2023, from https://medium.com/marketing-in-the-age-of-digital/dunkin-runs-on-social-media-bf4e69a9ce43

Meet the expert behind Dunkin’s Social Media Strategy. Khoros. (n.d.). Retrieved July 16, 2023, from https://khoros.com/blog/meet-melanie-cohn-social-expert#:~:text=Meet%20Melanie%20Cohn%3A%20the%20Social,Behind%20Dunkin’%20Brands’%20Digital%20Innovation&text=Dunkin’%20is%20a%2068%2Dyear,Consumer%20expectations%20are%20constantly%20evolving.

The Dunkin’ heroes campaign celebrates the heroes within our communities. Dunkin’. (n.d.). https://news.dunkindonuts.com/blog/heroes-campaign


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