| Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
Chapter 7 | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
Real Marketing 7.2 ad agency. The Starbucks customers that
Earthlings,” says an executive from Dunkin’s
Dunkin’ paid to switch were equally uneasy in Dunkin’ shops. “The Starbucks people couldn’t
Dunkin’ Donuts: bear that they weren’t special anymore,” says
Positioning for the Average Joe the ad executive.
Such opposing opinions aren’t surprising, given the differences in the two stores’ cus-
A few years ago, Dunkin’ Donuts paid dozens ate its traditional customer base. There are no tomers. Dunkin’s customers include more of faithful customers in Phoenix, Chicago, and
couches in the remodeled stores. And Dunkin’ middle-income blue- and white-collar workers Charlotte, North Carolina, $100 a week to buy
renamed a new hot sandwich a “stuffed melt” across all age, race, and income demograph- coffee at Starbucks instead. At the same time,
after customers complained that calling it a ics. By contrast, Starbucks targets a higher- the no-frills coffee chain paid Starbucks cus-
“panini” was too fancy; it then dropped it al- income, more professional group. But Dunkin’ tomers to make the opposite switch. When it
together when faithful customers thought it researchers concluded that it was more the later debriefed the two groups, Dunkin’ says it
was too messy. “We’re walking [a fine] line,” ideal, rather than income, that set the two found them so polarized that company re-
says the chain’s vice president of consumer in- tribes apart: Dunkin’s tribe members want to searchers dubbed them “tribes,” each of
be part of a crowd, whereas members of the whom loathed the very things that made the
sights. “The thing about the Dunkin’ tribe is,
Starbucks tribe want to stand out as individu- other tribe loyal to their coffee shop. Dunkin’
they see through the hype.”
Dunkin’ Donuts’ research showed that al- als. “You could open a Dunkin’ Donuts right fans viewed Starbucks as pretentious and
though loyal customers want nicer stores, they next to Starbucks and get two completely dif- trendy, whereas Starbucks loyalists saw
were bewildered and turned off by the atmo- ferent types of consumers,” says one retailing Dunkin’ as plain and unoriginal. “I don’t get
sphere at Starbucks. They groused that crowds expert.
it,” one Dunkin’ regular told researchers after
Over the past several years, each target- visiting Starbucks. “If I want to sit on a couch,
of laptop users made it difficult to find a seat.
They didn’t like Starbucks’ “tall,” “grande,” ing its own tribe of customers, both Dunkin’
I stay at home.” and “venti” lingo for small, medium, and large Donuts and Starbucks have grown rapidly, rid- Dunkin’ Donuts has ambitious plans to
coffees. And they couldn’t understand why ing the wave of America’s growing thirst for expand into a national coffee powerhouse, on
anyone would pay so much for a cup of cof- coffee. However, the recent recession has par with Starbucks, the nation’s largest coffee
fee. “It was almost as though they were a highlighted differences in the positioning chain. But the research confirmed a simple
group of Martians talking about a group of strategies of the two chains. Dunkin’ Donuts fact: Dunkin’ is not Starbucks. In fact, it doesn’t want to be. To succeed, Dunkin’ must have its own clear vision of just which customers it wants to serve (what segments and targeting strategy) and how (what positioning or value proposition). Dunkin’ and Starbucks target very different customers, who want very dif- ferent things from their favorite coffee shops. Starbucks is strongly positioned as a sort of high-brow “third place”—outside the home and office—featuring couches, eclectic music, wireless Internet access, and art-splashed walls. Dunkin’ has a decidedly more low-brow, “everyman” kind of positioning.
Dunkin’ Donuts built itself on serving sim- ple fare at a reasonable price to working-class customers. But recently, to broaden its appeal and fuel expansion, the chain has been mov- ing upscale—a bit but not too far. It’s spiffing up its more than 6,500 stores in 34 states and adding new menu items, such as lattes and flatbread sandwiches. Dunkin’ has made dozens of store-redesign decisions, big and small, ranging from where to put the espresso machines to how much of its signature pink
Differentiation and positioning: Starbucks is strongly positioned as a sort of high-brow
and orange color scheme to retain and where
“third place”; Dunkin’ Donuts has a decidedly more low-brow, “everyman” kind of
to display its fresh baked goods. However, as it
positioning. Dunkin’s “not going after the Starbucks coffee snob”; it’s “going after the
inches upscale, it’s being careful not to alien-
average Joe.”
Continued on next page
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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