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banashefskiblog · 2 years

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Holiday Coffee Wars-Dunkin vs Starbucks

Coffee drinkers know that holiday season is quickly approaching as Dunkin and Starbucks have started their media blitz introducing their new seasonal menu items. These coffee chain giants have established themselves as two prominent players in their industry and will be duking it out over the next few months to determine which company has won the Holiday Coffee Wars.

In marketing their new holiday items, Dunkin is using a Product Expansion strategy. This strategy is used when brands create new products intended for their current target markets. Dunkin’s first new introductory product is called the Cookie Butter Cold Brew which “features Dunkin’s slow-steeped, ultra-smooth cold brew, along with notes of sweet brown sugar and baked cookie flavors. Cookie butter cold Foam, adding the flavor of warm holiday spices and finished with cookie butter crumbles.” It looks and sounds delicious! This cold brew can be paired with Dunkin’s new Cookie Butter Donut which will complete a rich Cookie Butter experience.

Another new featured product being introduced by Dunkin is their Pancake Wake Up Wrap, which Dunkin describes on their website as a “pillowy pancake featuring a hint of sweet maple flavor, filled with egg, melted cheese, sausage or bacon, and served with a side of syrup.” Yummy! To coincide with these new holiday menu items, Dunkin is offering free coffee Mondays to further entice their loyal customers. Their website states “To keep Monday’s merry this holiday season, Dunkin’ is bringing back Free Coffee Mondays for Dunkin’ Rewards® members. Beginning November 7, members will get a free medium hot or iced coffee with any purchase on Mondays through November 28.” I think this is a great way for Dunkin to reward their loyal fandom and spread good cheer during the holidays.

Dunkin can prove to be very successful as consumers are intrigued and receptive when new Limited Time Offerings (LTOs) are released for a specific season’s menu. LTO’s are usually leveraged during different seasons and are super important for businesses in the fast food or fast casual industries. These limited products capture consumer’s attention, generate a buzz about the new offerings, and create a sense of urgency to buy this product before it is gone.

An article on the Food and Drink Resources website discusses why LTO items, such as McDonald’s Shamrock Shakes are so effective. It states “The fear of missing out (FOMO) is one of the top reasons limited time offers work. By stressing the fact that the offer is for a limited time, you make your customers feel special while imparting the message that they must act quickly to enjoy the savings you’re offering.” The holiday inspired drinks and doughnuts that Dunkin has either reintroduced or has newly created is a great way to generate excitement around the brand.

Dunkin has created strong marketing strategies in order to drive awareness about their new holiday menu items. To start, they revamped their holiday cups. The hot cups come in four colors this year; white, red, green and pink. This is a major improvement from their holiday cups last year as all their designs were white with similar logos. But, this year by incorporating the traditional green and red Christmas colors into the cup designs, it helps communicate and spread holiday joy.

Dunkin is also busy promoting their menu items on their social media pages. The company relies on using current social media trends and humor to connect with their target market. One of their recent posts features Santa Claus vigorously pulling a sleigh which is carrying their Peppermint Mocha Drink. The text above the picture states, “Me when I hear Peppermint Mocha is back”. This meme style post is extremely effective in targeting young adults ages 18-25 as they can appreciate this type of humor and holiday message in enticing them to go enjoy a Peppermint Mocha.

Dunkin made a genius move to tie their new holiday drinks with the release of the blockbuster Yellowstone season 5 TV series. Dunkin posted a video clip from the show where the main character says, “Decide with your heart” and the caption is “Peppermint Mocha or Toasted White Chocolate Signature Latte? @Yellowstone season 5 premieres TONIGHT at 8/7c on @ParamountNetwork #YellowstoneTV” This post is extremely effective for several reasons. First, it is referencing the popular TV show in order to connect Dunkin’s products to Yellowstone’s massive loyal fan base. This post also urges users to be engaged with the ad by encouraging them to provide their opinion on which holiday drink they enjoy more by posting their comments. Additionally this is a video form post. Social Sprout discusses how effective Instagram video posts are and states that videos get 49% more engagement than regular photo posts. Lastly, this post provides Dunkin with real time feedback on which of their holiday products consumers prefer more. This important exchange with consumers will assist Dunkin in developing next year’s holiday menu, and will ensure they better address their customer’s wants.

Next we will analyze Starbucks’ holiday menu items and marketing tactics. Starbucks is leaning heavily this year on their holiday LTO’s that have proven to be extremely popular with their consumers. To kick off their holiday menu, their Peppermint Mocha has returned as a featured product. Starbucks’ website states that this coffee has become “one of the most beloved holiday beverages on the menu”. This is the 20th year the Peppermint Mocha has been offered. Other returning beverage staples of the Starbucks holiday lineup include: The Caramel Brulee Latte, The Chestnut Praline Latte Toasted White Chocolate Mocha, and The Irish Cream Cold Brew. Starbucks also decided to bring back the Iced Sugar Cookie Almond Milk Latte, after it debuted last year and was a huge success. As previously mentioned, Starbucks is taking advantage of their limited time seasonal drinks to create excitement and give the consumers what they love!

In addition to beverages, they offer holiday inspired food items as well. One of their new product developments is their Chocolate Pistachio Swirl which has “creamy chocolate filling with notes of cinnamon swirled into a butter brioche-inspired dough, topped with chopped pistachios.” Along with this new creation, they are returning their Reindeer Cake Pop, Sugar Plum Cheese Danish, Cranberry Bliss Bar, and Snowman Cookies.

One marketing strategy that Starbucks executed extremely well, and Dunkin failed to do, is the redesign of their website for the holidays. When a user clicks on Starbucks' site, they are greeted with a message that says “Merry Everything”. Then all of the Christmas beverages are featured which includes a description and a picture of the drink. The entire page is filled with traditional holiday colors and portrays a warm and cozy feeling. This redesign of their website shows that the brand is committed to spreading holiday cheer and leaves the consumer with a positive user experience.

Starbucks has had a long history of designing unique, holiday cups, and it has become a tradition that consumers look forward to every year. This year is significant for Starbucks because they are celebrating 25 years of Starbuck’s Holiday cups. The company began designing their holiday cups in 1997, and it made a huge impact on pop culture. This year they offer four hot cup designs which feature signature holiday symbols such as Christmas trees, snowflakes, and ornaments in addition to the red, green and white traditional colors. Starbucks’ creative director Gary Jacobson discussed their commitment to spreading holiday cheer and creating a positive experience for consumers. He states “We are really focused on creating a joyful experience throughout the entire Starbucks experience – whether a customer is visiting at our drive-thru or in our café…Whatever we can touch, we want to make sure that we make someone’s day a little bit brighter in a holiday way.” Consumers will always appreciate and remain loyal to a brand who provides them with a consistent, positive experience.

Additionally, Starbucks made a huge splash on social media outlets, such as Instagram to promote their holiday menu items. Their Instagram aesthetic is more polished and professional compared to Dunkin’s. When a user lands on their page, they can first view Starbucks’ pinned posts which all promote their holiday drinks. This “pin” tool is extremely useful when companies want to keep certain posts pinned at the top of their page rather than being lost in the feed. Furthermore, the photography and graphic design on their page is high quality, original and well planned out with no duplicate designs. Starbucks clearly utilizes their brand book to create consistent social media posts that promote their holiday beverages and pastries.

All in all, both coffee giants are creating delicious holiday beverages and pastry items to help consumers celebrate the season with yummy decadence. Additionally, they are both effectively utilizing numerous marketing tools to ensure their holiday menu items are prominently showcased to bring warmth and holiday cheer to their customers as well as to their bottom lines. Not sure who will ultimately win this year’s Holiday Coffee Wars, but in the end it really doesn’t matter, consumers just need to enjoy the tasty goodness of the season.

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