CHICAGO-America may "run on Dunkin," but what gets America running to Dunkin' Donuts?
John Costello, CEO of Dunkin' Brands Group (which also owns Baskin Robbins), outlined the challenge faced by his company, and it sounds strikingly familiar for credit unions: "The question for us is how to keep a 60-year-old icon relevant to customer today?"
Speaking to CO-OP's THINK '13 Conference, Costello said he has sought to build Dunkin' Donuts based on six principles he said he has learned during his career including:
1. Confront Reality. "Winners honestly assess what's working and what's not," said Costello. "A lot of us tend to be optimists and want things to be as they have always been. Ask yourself the tough questions you hope no one would ask you" As a six-decade-old company that grew as a New England brand, Costello said the company asked itself, "Who is Dunkin' for? Why should we be people's preferred choice? We found our brand personality was far more important than demographics."
2. Differentiate or Disappear. "A lot of books have been written on this, but to me brand differentiation really asks why should I choose your brand? Your co-op? Your ATM, over all my other choices? It's a good exercise to keep from over-complicating or over-thinking this issue."
3. Embrace a 360-degree approach to meeting customer needs. "Marketing is not just ads. Everthing that touches the customer defines your brand, whether you want it to or not. It starts with differentiated products customers want. They have more choices than ever before. The right customer/guest experience is critical: restaurants are our brand ambassadors. How many brand managers do we have at Dunkin'? Tens of thousands."
4. Think long-term; invest in your brand. "A brand is like a credit union," said Costello. "Brand-building tactics have to sell, and selling tactics have to build your brand. You have to ask, do your branding and selling tactics really sync up?...The key thing I have learned is that information should enhance your judgment, not replace it."
5. Build a team better than yourself. "This may seem obvious, but great teams mean great results. It can be threatening to hire someone who is more experienced or talented than yourself."
6. Have fun. "Now is the best time to build a brand. Change does create opportunity, and I think that rather than being threatened by change you should really embrace it and look for ways to distinguish yourself."
