Dunkin' Donuts and Harley-Davidson value propositions and marketing concepts

Managing Profitable Customer Relationships

Marketing: Managing Profitable Customer Relationships

After viewing the Dunkin' Donuts video, describe its "value proposition." In other words, what does Dunkin' Donuts offer to its customers?

The founder of Dunkin' Donuts William Rosenberg initially defined the value proposition of this business as delivering excellent products at an affordable price, delivered with exceptional service. Mr. Rosenberg was careful to make sure the exponential growth of the Dunkin' Donuts chain was kept in check and free of arrogance or pretension. Realizing that exceptional service was based on humility, the company today strives to be approachable and not impressed with its own success. According to the present CEO, this is one of the critical differentiators of the Dunkin' Donuts brand as it moves up-market into flavored coffees and cappuccinos.

What the value proposition offers customers is predictability and trust. Consumers know they will get excellent coffee every time at Dunkin' Donuts and exceptionally good donuts and other bakery items. It was with great foresight that Mr. Rosenberg focused on having service is a critical part of their value proposition. The growth of premium coffee retail outlets, led by Starbucks' and their exponential retail location growth is credited in the video as a factor in expanding the market. Yet for anyone who has ever been to a Starbucks'. The arrogance of some baristas there and the use of specific and often confusing language can be intimidating. Dunkin' Donuts, by concentrating on being unpretentious and nurturing a culture that focuses on hard work and staying with common language, is continually strengthening their unique value proposition.

Can you relate Dunkin' Donuts to marketing concept? Why or why not?

The Dunkin' Donuts marketing concept is approachable, appealing and despite the tougher economic times the country is going through right now, still makes one see spending a few dollars with them as OK. The quality of the coffee, bakery products and service, and the fact that they strive to be unpretentious all work in their favor. Their marketing concept literally lets the quality of what they serve and the quality of service speak for themselves. I find it refreshing that they are not going in the direction of having their own language for their products and keeping the service more focused on the customer rather than the snob appeal of the brand, as other coffee chains attempt to do.

Harley Video

Based on the Harley-Davidson video, describe its value proposition.

The essence of the Harley-Davidson brand is associating owning a motorcycle with freedom and independence to go where you want, when you want to. it's a powerful brand message of personal and individual freedom, one that resonates across many demographic audiences and foreign countries. With this unique value proposition that focuses on individual freedom is the opportunity to be yourself and do what you want, how you want to do it. The Harley-Davidson brand is one of the consistently top ten most valuable brands in the U.S. when measured on brand equity alone.

Compare and contrast the strategies employed by Dunkin' Donuts and Harley-Davidson.

Where Dunkin' Donuts is selling the convenience and comfort of getting excellent coffee and bakery goods as a morning meal or a snack, Harley-Davidson is selling freedom and the opportunity to be yourself. Both are comparable in terms of their success in changing consumers' attitudes and behaviors on a regular basis, and both stress individuality and quality of products and services. Both also consistently exceed their customers' expectations, hence the financial and branding success both enjoy.

In contrast, Harley-Davidson is selling more of an experience and also a lifestyle change. For Harley, the open road and freedom is the catalyst of their unique value proposition. For Dunkin' Donuts, the trust they have created and sustain makes them a perfect choice for millions of consumers rushing to work in the morning who may have skipped breakfast at home. Harley-Davidson is all about a lifestyle change and freedom while Dunkin' Donuts has become a trusted source of excellent coffee, bakery items and excellent service.

American Express Video

After viewing the American Express video, can you identify a card that might fit your needs?

The Optima card which allows a card holder to carry a balance would be best, as the work I do has unequal payment dates. Freelance work pays irregularly so the Optima card would work best.

Also describe a credit card that you have. Is the credit card specifically for a customer like you? Or is it just a typical card everyone might have?

The credit card I have is a typical one anyone might have. It is not specifically tailored to my needs. In fact I don't use it because they just increased my interest rate. I paid it off this month and cancelling it, as much as I would love to, would hurt my credit rating. I hold onto it and pay it off in full every month, trying not to use it. I really have begun to hate my credit card company for jacking up my interest rate. If it would not hurt my credit rating I would cancel it, but today I don't use it anymore. I should just cut it up.

Summary

In your opinions, what are the important environmental marketing factors that affect you personally? Describe those factors and how they affect you. Be specific and brief.

Environmental factors that influence me the most are the commitments that company's unique value propositions imply and the performance of companies relative to those claims. Take for example the unique value proposition and the environmental marketing factors involved in Southwest Airlines. The promise of on-time flights, staffed with friendly and even humorous flight attendants, flown safely by pilots and supported by flight crews committed to performance, is a high commitment for any company to make. The majority of flights I have been on with Southwest have supported this value proposition. The flights have been on time, even when weather was an issue, and gate turn-around times have been remarkable. The environmental marketing factors that impact an airline are too numerous to mention here; yet the systems that Southwest has in place to compensate for them and still deliver exceptional on-time service is noteworthy.