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DONUT
DUEL
A Social Media Marketing Analysis
Mary McPartlan
October 19, 2016
Market Overview 3
Brand Introduction 4
Social Mention 5
Dunkin' Donuts 8
Krispy Kreme 10
Dunkin' Donuts 13
Krispy Kreme 15
Dunkin' Donuts 18
Krispy Kreme 20
YouTube
Dunkin' Donuts 23
Krispy Kreme 25
Mobile App
Dunkin' Donuts 28
Krispy Kreme 29
Final Vote 31
References 32
2
MARKET OVERVIEW
Doughnut Store Industry
Whether you spell it doughnut or donut, a doughnut is a donut. For the sake of consistency
- and to remove any bias towards Dunkin' Donuts - I will be referring to all fried rings of
delicious dough as doughnuts. According to the latest IBIS World Report, Dunkin' Brands
and Krispy Kreme dominate the doughnut store industry, at 61.1% and 4.9% of market
share, respectively (Alvarez, 2016). As seen from the figure below, this multi-billion
dollar industry houses over 7,000 businesses, indicating the importance of maintaining a
competitive advantage over other businesses in the industry (Alvarez, 2016). Despite the
industry title of ‘doughnut stores’, over 50% of sales at doughnut stores come from
products other than doughnuts (Alvarez, 2016). This means that these companies are
constantly expanding and adapting to consumer behavior by introducing new products and
offerings. In order to maintain their success, these brands must reach their target market
through various channels, especially social media. Throughout this paper, I will walk
through the various social media platforms that Dunkin' Donuts and Krispy Kreme utilize
3
BRAND INTRODUCTION
Dunkin' Donuts v. Krispy Kreme
Originating in Quincy, Massachusetts, Dunkin' Donuts expanded from a single doughnut shop to a
multi-million dollar company providing 11,300 restaurants worldwide ("Company Snapshot," 2016).
Dunkin' Donuts is referred to as more than just a doughnut shop, as majority of sales come from
beverages, while doughnuts account for only 15-20% of store sales (Alvarez, 2016). Dunkin' Donuts
has become one of the largest coffees and baked goods chains in the world. However, Dunkin'
Donuts is actually a subsidiary of Dunkin’ Brands, Inc, a leading franchisor of quick service
restaurants, whose business model includes both Dunkin' Donuts restaurants and Baskin Robbins
Krispy Kreme has a bit more of an interesting origin story, as it was not originally intended to be a
business to consumer doughnut shop. In 1937, Vernon Rudolph bought a secret yeast-raised
doughnut recipe from a New Orleans French chef ("Our Story," 2016). He then rented a building in
Winston-Salem, NC to sell Krispy Kreme doughnuts to local grocery stores, but the overpowering
scent of doughnut production led people to stop and ask if they could buy fresh, hot doughnuts
("Our Story," 2016). Rudolph cut a hole in the wall of his building and sold hot doughnuts directly
to people on the sidewalk ("Our Story," 2016). Since then, Krispy Kreme has become the leading
branded retailer and wholesaler of doughnuts and packaged sweets (Alvarez, 2016). For Krispy
Kreme, doughnuts account for 88% of sales, while beverages account for just over 10%, a near
4
SOCIAL MENTION
Dunkin' Donuts v. Krispy Kreme
Before diving into a breakdown of individual social platforms, it’s important to gain an overall
understanding of the sentiment that consumers have about the brands. To do this, I used Social
Mention to analyze the strength, sentiment, passion, and reach of user-generated content around the
brands. Strength is a simple measurement indicating the likelihood that the brand is being mentioned
in social media, while sentiment is the ratio of generally positive mentions to generally negative
mentions. Passion measures the likelihood that people will talk about the brand repeatedly, which
provides insight into the loyalty that consumers have towards the brand. Finally, reach measures the
overall range of influence the brand has, providing information on the number of unique individuals
who are talking about the brand. The following metrics included are based on the
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Dunkin' Donuts has strong, consistent metrics across the board.
Not only are people talking about the brand positively, but they are
and if you talk like a pirate, you will receive 1 free original glazed
43% 3:1
Kreme, I recorded their Social Mention data the day after this
event. The data for this day showed strong social sentiment, at a
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Despite being in the industry for longer, Krispy Kreme falls short on overall social
mention, allowing Dunkin' Donuts to take the lead on this one. Even on one of
Krispy Kreme’s most successful day, Dunkin' Donuts still had them beat on
passion and nearly matched Krispy Kreme on strength and sentiment. The
the consumer, something Dunkin' Donuts has demonstrated they are fully capable
of doing.
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FACEBOOK
Dunkin' Donuts
1,957,030
doughnuts may be for all ages, Dunkin' Donuts is
53,348
occurrence. The content posted is quality, branded
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FACEBOOK
Krispy Kreme
1,203,301
check-ins
makes the effort to repost content from location specific
49,952
more than once per day. Their Facebook posting content
mp ion
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r ti f ie
C e FACEBO
OK
Facebook is all about having a conversation with customers and Krispy Kreme
does a great job of this. They are constantly using reposted content, questions in
captions, and personalized comments to make the customer feel involved. Krispy
Kreme does not just make noise on this platform, they take a step back and listen to
what people have to say, which makes followers feel valued. Despite having
significantly fewer followers than Dunkin' Donuts, Krispy Kreme has nearly as
many people talking about the brand and checking in, meaning they are effectively
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TWITTER
Dunkin' Donuts
likes
59.4 K
tweets
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TWITTER
Krispy Kreme
267 K
many users as Dunkin' Donuts, which may be due to
32.1 K
tweets
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Krispy Kreme takes the win on Twitter, in large part due to their creative
utilization of the platform in engaging customers. Their all day trivia game was an
and to the customers. Followers were able to play a game and potentially win a
prize, while Krispy Kreme was able to gain engagement and mentions to increase
brand reach. Despite having a lower following than Dunkin' Donuts, Krispy Kreme
engagement rate in some cases. Additionally, Krispy Kreme makes the effort to
'like' user content. Dunkin' Donuts has liked just over 6,000 tweets, while Krispy
Kreme has liked over 33,400 tweets. A little goes a long way with consumers and
this touch point contributes heavily to long term engagement. Overall, Krispy
Kreme provides quality content on a frequent basis, giving them the Twitter
advantage.
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INSTAGRAM
Dunkin' Donuts
users, but ensures that these posts follow along with their
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INSTAGRAM
Krispy Kreme
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Dunkin' Donuts sweeps the board on Instagram with their seamless integration of
user-generated content and artistically valuable images. They fully understand what
Instagram should be used for and they put it into practice by maintaining a
consistent Instagram account with a common theme. Krispy Kreme definitely has
some work to do on their Instagram account and to start, they need to develop a
central focus on the types of images they want to post. Not all user-generated
customer. Dunkin' Donuts images are colorful, appealing, and add value to
viewers. They look beyond simply promoting their product and instead provide a
unique viewpoint for their brand. Dunkin' Donuts essentially brings people together
busy cities, the Dunkin' brand stays the same, uniting people through coffee and
doughnuts. They remain consistent in what they plan to deliver and they follow
22
YOUTUBE
Dunkin' Donuts
30,788
Dunkin' Donuts uses their YouTube channel to create
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YOUTUBE
Krispy Kreme
the first video and are called to check back for more.
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Dunkin' Donuts has a long term, viable programming strategy in place. They are
gain credibility with this demographic and increase their brand reach. The
YouTube channel page is well organized and easy to navigate, so viewers have an
enjoyable user experience and are willing to return. Dunkin' Donuts works to
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MOBILE APP
Dunkin' Donuts
471 ratings
Dunkin' Donuts last updated their mobile app in August 2016 in an attempt to increase user
experience, but this update was met with just as many unhappy customers. These negative
reviews add up, leaving Dunkin' Donuts with an overall rating of 1.5 stars. Upon first opening
the app, users are met with a message promoting DD Perks. However, this same message will
pop up every time the app is opened, so unless you decide to enroll, you will constantly need to
dismiss the message. Dunkin' Donuts does a good job in presenting a visually appealing app.
They have a consistent theme and their menu graphics allow users to easily find what they are
looking for. New formatting and design seem to be what Dunkin' Donuts held in the highest
regard when developing this app, rather than what the customer really needed. Many reviews
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MOBILE APP
Krispy Kreme
277 ratings
The Krispy Kreme app is simply designed with the consumer in mind. Upon first
opening the app, users are met with a summary of the number of points
One of the main, unique features of this app is the Hotlight function. Users can
select a Krispy Kreme location and receive alerts on when the "Hot Now" sign is
activated. This app has proved incredibly successful, as it has received a 4.5 star
rating. In their next update, Krispy Kreme should expand their app features to
include the menu. Users want to be able to browse before arriving, so providing a
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Krispy Kreme takes the lead on mobile, as their app is easy to use, unique, and well
formatted. Users are not overloaded with information or options when they first
open the app. The Hotlight feature is something that differentiates Krispy Kreme
from other brands and they have done a great job of integrating this aspect of the
brand into their digital media marketing strategy. While visually appealing content
is important, Dunkin' Donuts made the mistake of prioritizing it over the needs and
make or break a brand, as users take those experiences and translate them into
reviews. Krispy Kreme has developed an app that adds value to the consumer and
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FINAL VOTE
Krispy Kreme
EST. 2016
Overall Champion
SOCIAL MEDIA
After being named the Certified Champion of Twitter, Facebook, and Mobile App interface, Krispy
Kreme takes home the gold for overall social media utilization. Success should be measured by
quality, not quantity. So while Krispy Kreme may have smaller numbers, they have stronger
consumer relationships. Krispy Kreme is doing a great job at engaging their audience across all digital
marketing channels. Their content is interesting and engaging for users to follow, which allows the
brand to reach new markets. Their social media presence does not simply cater to
current customers or doughnut enthusiasts. Rather, they provide content that is all around
entertaining and visually appealing, so even if you're not a huge fan of doughnuts, you may find
yourself following and subscribing to their platforms. Krispy Kreme holds consumers in the forefront
of their social media strategy, as seen through their user-generated content, Twitter trivia, social
comments, and quick response time across all platforms. When it comes down to it, Krispy Kreme
works hard to develop strong customer relationships that lead to long term success, while Dunkin'
Donuts cares more about their products. Social media is about conversation and Dunkin' Donuts is
interested in hearing themselves talk, while Krispy Kreme is interested in hearing their customers
talk. They have a clear strategy in place to ensure content is being posted consistently, which gives
users a reason to follow or subscribe. Krispy Kreme has done a great job of developing a specific
brand image, allowing them to develop a strong following for continued success.
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REFERENCES
Dunkin' Donuts v. Krispy Kreme
Alvarez, A. (2016, March). Doughnut Stores in the US. Retrieved October 19, 2016, from
http://www.ibisworld.com/industry/doughnut-stores.html
https://www.dunkindonuts.com/content/dunkindonuts/en/company.html
Osbon, J. (n.d.). Social Media Marketing Strategy Audience Development [PowerPoint slides].
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