CASE STUDY 1 DUNKIN DONUTS & BASKIN ROBIN

The most successful co-branding stories in the United States are Dunkin Donuts and Baskin Robins, a match made from heaven-especially when we consider the direct combinations of the product, i.e. ice-cream flavoured coffee. Some difficulty was met, however, when the two separate operations were placed in the same physical location without the integration of workforce and services. When Nick was only a teenager, his family made a huge move from New Jersey down to the Tampa, Florida area. His parents dream was to start a Dunkin shop that would serve more than forty thousand customers in the surrounding area. Unfortunately, Nicks father was diagnosed with cancer soon after starting the business and passed away shortly thereafter. Nicks mother didnt give up, though. With the help of her son and their amazing resilience, the family saw the business through an incredibly difficult time, somehow still managing to expand their reach into the state of Florida. Under Nicks management, the Florida chain grew to fourteen, strong stores, many of which included the Baskin Robins brand.

According to Nick, it simply made sense for the two brands to share space in a building; the difficult part, however, was getting the two to incorporate seamlessly with each other. As Nick discovered, its more often the location and demographics that determine whether or not a physical co-brand will be fruitful.

Each brand had a general and regional manager, and it was of the utmost importance that they work together in the co-branded locations. This was sometimes a hit or miss, depending on the staff reacted and how easily it was for customers to accept the new combination. Communication is one of the most important things to focus on if you want to have a successful co-branding experience. Just picture this combination its the ultimate, one-stop dream for consumers on the go: sandwiches, coffee, and ice cream all in one shop. Its quite common in co-branding for marketing to come up with an idea that seems brilliant upon conception but turns out impossible in practice. This brand combination was no exception.

With the three brands mentioned, this theoretical brand would be serving 1) morning commuters, 2) the lunch customer, and 3) the soccer moms, birthday kids, and general housing developments. Most day-parts would be covered, and all of the items seem to flow together. Upon further inspection, however, one notices that the site location for such a shop is very difficult to find.

While your morning commuters and office lunch break customers will likely want something in the heart of the commercial district, the ice cream consumers wont want to drive quite so far for a quick sugar fix. As it was discovered, the real estate side to this co-branding coin had needs that were nearly impossible to satisfy. In fact, he went so far as to say that a site satisfactory for a trombo was an elusive unicorn!. Co-branding is a process that will take a good amount of time if you want to do it right. Its best to do in-depth demographic analyses so that you know whether or not the population can even support the combination youre looking to achieve! Unfortunately, physical businesses are not a standard case of build it and they will come; you have to build what people already want.

When planning a co-brand, one should not ask can we, but rather should we. In addition, forcing a co-brand should not be done to accommodate senior-level bonus checks to meet development goals. One should be considering the long-term goals of any co-branding operation. After all, a failed co-brand not only affects your bottom line as a business director but also the lives of the employees of a new shop that opens up and is forced to close.

QUESTION 1.

1. Explain what is co-branding and the factors that need to be considered by Dunkin Donuts and Baskin Robins prior to co-branding?

Answers:

(10 marks)

2. Based on the case study, explain the challenges that Dunkin Donuts and Baskin Robins might encounter in co-branding strategy.

Answers: (5 marks)

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