Situation
The company’s core product, donuts, was becoming less desirable to consumers. Sales, traffic, and profits were declining. The coffee category was enjoying tremendous growth in the marketplace with new entrants including Starbucks and Peets, and expanded coffee products such as flavored and frozen beverages.
Solution
Andrea McKenna, Director of Advertising & Sales Promotion, led the team in developing an integrated marketing program with a new positioning “coffee and…” featuring coffee, with a secondary emphasis on the namesake product.
- Introduced new products in coffee and expanded the category to hot, cold, iced, flavored and frozen choices with various roasts
- Introduced complimentary baked goods as “add-ons” to coffee
- Expanded purchase cycle to other times of day with appropriate new products
- Expanded target market and frequency of purchases
Results
- Highest comp store sales increases in the Quick Service Restaurant category
- Grew franchisee sales and profits by changing the product mix with emphasis on higher profit, less labor intensive products
- A re-positioned, relevant brand with multi-generational appeal
