Best Repositioning
Running on Dunkin’ Strategy
Three dollars gets you much more than a doughnut and coffee combo
at Dunkin’ Donuts these days. With the debut of its new tagline, “America
Runs on Dunkin’,” in April, Dunkin’ Donuts kicked off
a campaign aimed at transforming the brand from a workingman option into
an everyman one. Once focused on

the morning daypart, Dunkin’s
menu now features snacks (smoothies and yogurt parfaits, for example)
suited for all-day consumption. The chain is also sporting a new look,
one that says upbeat coffee house than blue-collar coffee shop. Two-thirds
of the 650 stores Dunkin’ plans to open in Fiscal 2007 will be
based on a model unveiled early this
summer. Though decidedly more upscale than previous designs with its
open floor plan and muted nod to Dunkin’s
signature orange and pink, the new design is no chi-chi coffee house.
Dunkin’ is staying true to its roots: no roaring fires, no plushy
armchairs, and no wireless service here. What the new design does have
is a smaller footprint, 1,850 square feet down from 2,250; deli-style
coolers for grab-and-go drinks; in perhaps the biggest departure from
heritage Dunkin’ units, a station where customers can add their
own cream and sugar to their coffee. Combined the new tagline, menu,
and look should be the jolt Dunkin’ needs as it moves forward with
its aggressive plans to take on its coffee competitors.
Best Team Effort
Auntie Anne’s New Direction
Thirteen months after he purchased Auntie Anne’s
Inc., CEO Sam Beiler rolled out a new logo, new signage, new packaging,
new uniforms, a new website, and a new marketing campaign hailing his
company’s signature item as “Pretzel Perfect.” And he
managed to re-brand 750 of Auntie Anne’s 900-plus locations with
the new look in the summer of 2006 alone. Not bad for a year’s work,
right? Well, Beiler had some help. A team of 17 franchisees, nominated
by fellow operators, and Auntie Anne’s executives worked together
with Dallas-based ad agency, The Richards Group, to evolve the Auntie
Anne’s brand. Even crewmembers got in on the effort; their input
resulted in a mix–and–match uniform program. By involving
those most impacted in re-branding efforts, Beiler got the buy-in that
corporate efforts—industry wide—often lack.
Best Reconnection
PJ’s Coffee’s Ties to New Orleans
Though owned by Atlanta-based Raving Brands, PJ’s
Coffee is a 28-year New Orleans native. And so when the brand became PJ’s
Coffee of New Orleans in July 2006, the move was as much a show of solidarity
with its beleaguered hometown as a brilliant marketing move. With the
name change comes identification with all that it’s good about the
Big Easy—its distinctive coffee, for example—and a connection
with the city’s rebuilding efforts. The brand took the connection
a step further in the fall when it introduced four new coffee bags featuring
iconic New Orleans imagery: a Canal Street trolley, Jackson Square Chapel,
a Bourbon street jazz band, and an antebellum Garden District home.
Best Launch
Phillips’s Express Strategy
Phillips Seafood has delved into the quick-casual segment
before—with somewhat lackluster results. The Maryland-seafood supplier
and restaurant operator launched its Phillips Famous Seafood limited-service
concept in 2003, but melding the quality of the Phillips brand with the
price points of quick-service proved to difficult. Still, when longtime
licensing partner HMS Host approached about developing an express unit,
Phillips was willing to give quick-service a second try. This time, they
got it right. Lessons learned from Phillips Famous Seafood helped; working
with an experienced partner on the menu development and operations proved
invaluable. The first Phillips Seafood Express opened in May 2006 in HMS’s
Maryland House. HMS reports the unit sold 6,800 crab cakes and 5,800 crab
pretzels in the 100 days between Labor and Memorial Day. The concessionaire
declined to share any other specific sales numbers, but did say Phillips
has “slightly more than doubled” sales of the previous tenant.
Additional units in other travel centers and airport locations are planned.
A kiosk version of the concept is also in development. All will serve
some version of the express menu co-developed by HMS and Phillips. The
seafood sampler (crispy shrimp, spring rolls, and crab slammers for $6.99)
is a customer favorite. Fast-food seafood players, however, may breathe
a sigh of relief: Phillips has no plans to bring the concept to the streets.
Best Pioneering Move
Captain D’s Upgrade
In August 2006, Captain D’s Captain D’s
added the words “Seafood Kitchen” to its logo and grilled
seafood to its menu. The move was much needed, not only for Captain D’s,
which saw a -1.5 percent systemwide sales decrease in 2005, but for the
segment at large, which saw its own sales drop in 2005. New items on the
re-christened and -decorated Captain D’s Seafood Kitchen menu include
salmon, tilapia, catfish, and shrimp skewers, plus pasta dishes. Sides
like cheddar broccoli casserole and macaroni and cheese suggest an alternative
to Boston Market rather than Long John Silver’s. It remains to be
seen if customers take the bait. Perhaps the free WI-FI service will lure
them in.
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