Value on the go
This past quarter showcased two key components of Dunkin’s go-forward marketing strategy, which focuses on platforms rather than limited-time offers and value that leverages a high-low pricing strategy.
In April, Dunkin unveiled its first national value platform in company history. Dunkin’ Go2s, live throughout the entire quarter, delivered stellar breakfast sandwich results, among other positives. Go2s launched April 2 and allowed guests to pick from among three of the brand’s most popular breakfast sandwiches, and purchase two of their “go-to” favorites. Average checks for the menu hovered around $8–$9.
“It's a proprietary way that reinforced the overall brand positioning,” Tony Weisman, CMO, said in the call. “Right now, we're testing a variety of ideas around that value platform to really make sure we're addressing consumer needs and choice. We liked the fact that there was a variety of choice on it and the consumers select both the item and the price that match them. So look for us to stay committed to that the platform concept as we look for the optimal ways to package it that meet consumer demand.”
Hoffmann said more than 75 percent of breakfast sandwich transactions included a beverage. Throughout the rest of the year, Dunkin’ said it would continue to test various constructs of Go2s at the local level, while pulsing at different national value offers. Weisman said there are some beverage-driven Go2 tests in pilot currently.
And starting next week, Dunkin’ is introducing its next national value platform—the Dunkin’ Run. This $2 snacking menu is aimed at reinvigorating Dunkin’s afternoon daypart, Hoffmann said. The menu was home to the highly publicized Donut Fries. Munchkins that could be dipped in chocolate sauce, pretzel bites with honey mustard, waffle-breaded chicken tenders, gluten-free brownies, and ham-and-cheese rollups, were also being touted.
Dunkin’ has identified the afternoon daypart as an important priority for the brand long-term. In May, it kicked off summer with a $2 offer on small Coolattas, and also tried a cosmic flavor innovation.
“Our frequency is much different than the frequency of some of the other burger [quick-serves]. So our customers come in and look for a lot of variety, and we want to make sure that we can continue to offer really good compelling value,” Hoffmann said.