Tag: Dunkin’ Donuts

  • Why Dunkin’ and Lego rebrands succeeded – but X missed the mark

    The X logo atop the company’s headquarters. From a tweet posted by CEO Linda Yaccarino

     

     

    By Matthew Pittman

     

    Twitter has swapped the fluffy bird that used to symbolise the social media platform for a spindly black X. Ditching the company’s well-known logo and changing its name to a letter often associated with danger, death and the unknown is only the latest user-aggravating step CEO Elon Musk has taken since he bought Twitter in October 2022 for US$44 billion.

    But it’s the most visually jarring one.

    The reaction has mainly been a mix of ambivalence, ridicule and scorn. For the most part, longtime Twitter users are unhappy at what they perceived as another unnecessary change that’s eroding their enthusiasm for the social media platform. It’s hard to find anybody praising the change so far, except perhaps some of Elon Musk’s most devoted fans. Twitter co-founder Jack Dorsey signaled that he was finding the uproar overblown.

    I’m paying close attention to this corporate pivot because I’m a scholar of design who researches social media and brand campaigns. Logos and brand names change all the time and rarely cause this much commotion. But because these changes go deeper than most, I believe the risks of damage to the company are greater.

     

    X’s clumsy design

    X might strike you as a weird brand name, and the change may seem to have happened out of the blue, but Musk has long been smitten with the letter.

    In 2000, the founders of PayPal ousted him as CEO for trying to change its name to “X,” his Tesla models are famously named S, 3, X and Y – which displayed together basically spell out the word “SEXY,” and one of his many children is named X on his birth certificate.

    I would describe the new logo, submitted by a Twitter user, as a white-on-black, sans-serif X consisting of two strokes. It’s minimal and modern – and a stark departure from Twitter’s iconic blue-and-white bird. That shade of blue makes you feel calm and serene; black conveys sophistication and mystery.

    And yet even people who know nothing about design are poking fun at the logo’s simplicity and unprofessional execution. To me, the logo looks suitable for a metaverse strip club or a dating app for robots.

     

    Facebook’s Meta journey

    Oddball branding is hardly unusual for a big tech company.

    When Facebook rebranded itself as Meta in 2021, it was part of a comprehensive, strategic and long-term plan. The transformation signified the company’s aspiration to shift from a social media platform to an enterprise focused on the metaverse.

    While the goal of a vibrant metaverse remains more theoretical than imminent, the rebranding still gave Meta some momentum as it now seeks to shift its focus to artificial intelligence.

    Meta’s rebranding highlights the importance of staying relevant and embracing innovation. The company discerned the changing landscape and demonstrated a willingness to adapt in response to shifting consumer needs and preferences. When it realized the metaverse wasn’t materializing, the company focused elsewhere.

    Perhaps that openness to trying new things explains why the rollout of Threads, Meta’s new competitor for the social media platform formerly known as Twitter, is apparently off to a strong start.

     

    Our headquarters tonight pic.twitter.com/GO6yY8R7fO

    — Elon Musk (@elonmusk) July 24, 2023

    Tweet posted by Elon Musk. Also see: A pile of characters removed from a sign on the Twitter headquarters building seen in San Francisco on July 24, 2023. Photograph viewable at https://www.latimes.com/opinion/letters-to-the-editor/story/2023-07-30/twitter-x-elon-musk

     

    From dunking to Dunkin’ and rebuilding Lego’s brand

    When Dunkin’ Donuts trimmed its name to Dunkin’ in 2018, the reception was mostly positive. Its customers seemed to get that the company wanted to move away from being closely associated with donuts – a high-calorie pastry with little nutritional value – and toward becoming a “beverage-led, on-the-go brand.”

    That rebrand succeeded, and the company has also stuck with the slogan it adopted a dozen years earlier: “America runs on Dunkin’.”

    Lego had another rebranding effort that business school students learn about as a model.

    Lego was profitable, popular and beloved for the entire 20th century, but around 2003 its sales began to wane. Presumably, kids had too many other toys and digital devices to play with and simply didn’t have the time or patience to assemble small, colorful, plastic blocks anymore.

    Undeterred, Lego conducted extensive market, ethnographic and psychological research to better understand how people in general, and children in particular, play with its wares. The company’s management realized that Lego products can be tied to just about anything.

    Lego blocks are used both in original ways – kids make their own creations – and derivative ways, whether it’s recreating a pirate ship or a dinosaur seen in a beloved movie.

    So the company began to partner with “Star Wars,” Nintendo, “Jurassic Park” and other brands to market special Lego sets. It also released a movie in 2014 that grossed nearly $500 million – boosting Lego sales and profits.

    The orange Dunkin' logo see on a big brown building.
    The Dunkin’ brand name and logo no longer includes the word ‘donuts.’
    Gary Hershorn/Getty Images

     

    BP rebrand crashed and burned; American Airlines had low altitude

    Many corporate rebrands either don’t work or don’t do much to help their companies.

    In 2000, BP changed its branding from British Petroleum to Beyond Petroleum.

    Despite efforts to reposition itself as an environmentally responsible company, its actions revealed a contradictory truth. While BP reportedly invested over $100 million in the rebranding effort, it continued to spend billions more on oil exploration than renewable energy initiatives. BP abandoned the campaign a few years after its massive 2010 oil spill in the Gulf of Mexico.

    After merging with US Airways in 2013, American Airlines rebranded away from its iconic 1968 logo, which had blue and red letters and an eagle between them symbolizing American power and ingenuity, to a sleek red-and-blue stripe with an abstract eagle beak separating the company’s colors.

    The company called the new logo a “flight symbol.” Some design experts dubbed it a travesty.

    Despite the contention, the company retained the new look.

     

    Ultimate fate of X

    I doubt the X rebrand will succeed – and not just because I dislike the new name and logo.

    There are some challenging legal issues with naming a major company a letter of the alphabet. The letter X’s use as a brand is already banned in certain countries because of its prevalence in pornography branding.

    And the rollout has been messy on the company’s own website. Musk reportedly swiped the @x handle from its original user without offering any compensation.

    What’s more, many users had already left the platform because of technical glitches and increased hate speech; the switch to X could make them less likely to come back and won’t make others more eager to stick around.

    In Musk’s quest to create what he says will become an app that “does everything,” I believe that his X rebrand took Twitter one more step toward being good for hardly anything.The Conversation

     

    Matthew Pittman is Assistant Professor of Advertising and Public Relations, University of Tennessee. This article is republished from The Conversation under a Creative Commons licence. Read the original article. The views by the writer are personal.

     

  • Pivot or Perish… Using your business moat to survive in the pandemic

     

    By Bhuvi Gupta

     

    Bhuvi GuptaAs a marketer for the last decade if there is one thing that I can attest to be true is that marketing jargon comes and goes with an average lifespan of a year or two. The jargon du jour is backed by stellar logic, often introduced by a book, or a widely respected businessperson, and has wide applications in the entire gamut of business strategy.

     

    The latest buzzword is the concept of the ‘moat’ as espoused by Warren Buffett. While he first shared this concept during a Berkshire Hathaway shareholder meet in 1995, it has seemed to catch on in pandemic. (Maybe, because being stuck at home is like a having a moat around you?). Mark my words, we are just at the beginning of the lifecycle of this jargon and you’ll see multiple applications in interviews, podcasts, CEO roundtables et al in the coming times. 

     

    What are economic moats?

     

    The usage comes from ancient times, when a moat was a water body built around a castle so as to give the king some time to plan his defense when attacked by an invader.  The concept itself is golden, as most espoused by Buffett are – An economic moat is a distinct competitive advantage a company has over its competitors, which allows it to protect its market share and profitability over the long term. Companies can build moats by strengthening their brands like Apple and Coca-Cola, achieving economies of scale like Amazon, or even lobbying for special status from the government like Patanjali.

     

    Economic moats have existed since commerce has, but in the digital age, using data, network effects, online marketplaces, search, and social networks can help create wider and longer-lasting moats.

     

    According to a report from CBInsights, moats can be classified into four types –

     

    Network Effect– those products whose value increases the more people who use it. All social media networks have network moats, which explains why a Telegram has not replaced WhatsApp despite offering some advantages

    Cost Moats– when users have a high sunk cost in the product or service (high one-time or recurring membership fee) which make them reluctant to switch

    Cultural Moats– when consumers buy into the product for the brand promise and the values it represents. For e.g. people consume Dove because it promotes ‘real beauty’, Coca-Cola due to its great emotional marketing which talks about happiness

    Resource Moats– due to patents or preferential treatment on account of a governing body. Typically why pharmaceutical companies have huge lobbying budgets

     

    How companies have used their moats in India to remain relevant in the pandemic

     

    The pandemic has been a death knell to the global economy – USA’s economy has contracted by a third, in its largest quarterly contraction since 1921. India is not expected to fare any better, when numbers release later this month.

     

    Companies are being forced to be agile and leverage their business moats, and pivot to newer consumer behaviors to remain afloat. Many companies have successfully pivoted their products, launched line and brand extensions to have new health and immunity claims, which is why we even have Chyawanprakash and Haldi ice-cream now (from Amul and Dairy Day Plus). This has come easier to the behemoths like ITC and Dabur, which have both Innovation teams sitting on years of research, and vacant factories to put into use.  As a result, in the last three months, ITC has launched six, and Dabur 15 new products. Such companies also have the business advantage of well-established supply chain and distribution channels.

     

    How companies which don’t have a moat can remain relevant in the pandemic

     

    A July 2020 McKinsey survey found that an overwhelming 91% of consumers reported trying a new shopping behavior in India due to the pandemic. Two key trends that stand out from the survey are an acceleration in the rate of digital adoption which has seen a 10+ percent growth in online customer base during the pandemic & a new DIY culture in the middle class which was reliant on household help or access to almost everything via a few taps on their mobile screens. New product categories for fruit & veggie wash, contactless dispensers, dishwashers which would have years of promotion and audience interactions have seen demand rise exponentially.

     

    These two are the life jackets for Indian companies that can help save them in the coming months.

     

    The pandemic has facilitated trials (often via e-commerce) as well as repeat buys in the 5+ months of its duration. This is one of the silver linings of the pandemic because categories and products, which would have taken companies years to launch and for consumers to adopt, especially in a value-conscious market like India, have launched overnight.

     

    Restaurants, which are arguably the worst hit, have started retailing recipe and ingredient kits and sauces. Pictured above are the ready-to-cook sauces, and gravies launched by Jubilant FoodWorks (which runs Domino’s Pizza and Dunkin’ Donuts in India)

     

    Indian companies, especially the beleaguered ones, must leverage this time to pivot, because even if some of these consumption shifts are pandemic specific, many new behaviours will stick because, getting consumer trials is one of the most difficult parts in a product’s lifecycle.

     

    Talking from personal experience, now that I have been forced to realise that I am not a half-bad cook, I have often wondered why was I so reluctant to cook earlier and why was I so dependent on my cook or ordering food in. If the rough survey of my social circle is to be believed, I know I am speaking for scores of us in the middle class. These cooking sauces and cheaper dishwashers are only helping to cement this new-found realisation into a resolve to be more independent.

     

    Bhuvi Gupta is a marketer with over 10 years across industries, of which the last six have been in Media & Entertainment. She has been a part of many launch marketing campaigns – specifically at the Times of India group, Republic TV and the latest in marketing a Bollywood film. She will write on A&M (mostly marketing, but often on advertising too) every other Tuesday. Her views here are personal. She tweets at @bhuvigupta3

     

  • Dunkin’ Donuts to introduce savoury products at outlets in India

    By Sarah Jacob

     

    Quick service restaurant company Dunkin’ Brands will localise its menu in India to have savoury products, said John Costello, Dunkin Brands’ chief global marketing and innovation officer.

     

    In China, for instance, Dunkin’ Donuts not only retails chocolate-flavoured doughnuts but also rice-based doughnuts called Mochi rings and milk tea. In Singapore, it offers Kaya (coconut-based) doughnuts.

     

    The American firm which has a presence through its 462 Baskin-Robbins outlets in India, will open its first Dunkin’ Donuts store in New Delhi in the first half of 2012. It is betting on NBA player Lebron James to promote both brands in India, besides China, Taiwan and South Korea.

     

    Mr Costello said India’s economy and growing middle class presented a significant opportunity for the $8.4-billion company to partner Jubilant Foodworks and the Indian firm’s success with Dominos Pizza added to it. It plans to have 500 Dunkin’ Donuts outlets in India over 15 years.

     

    “This is our largest national store commitment,” said Mr Costello. As part of the master franchise agreement, Dunkin’ would provide brand, product and marketing expertise and Jubilant Foodworks would build, own and operate the stores in India. Dunkin’ Brands operates 16, 800 outlets globally.

     

    Of this, the Asia-Pacific region accounts for over 5, 400 outlets, driven by brand Baskin Robbins. Mr Costello said the company intends to expand store count to 7,000 in the region by 2015.

     

    Source: The Economic Times

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