1. Crafted by Hand & Heart
A New Direction for Dunn Brothers Coffee Advertising
Prepared for
Amelia Reigstad
Professor of Marketing Communications
University of Wisconsin-River Falls
River Falls, WI 54022
Prepared by
Kinni LLC
Phill Banken
Molly Deering
Sam Husby
Tevin Tolzien
Bekah Wynveen
University of Wisconsin-River Falls
River Falls, WI 54022
December 20, 2016
2. Table of Contents
Executive Summary
Situation Analysis/Strategic Research
Organization
History and Background
Objectives
Marketing Objectives
Market Research
Market Competition
Product Research
SWOT Analysis
Advertising Campaign Objectives
Target Audience
SMART Goals
Increase Store Traffic
Increase Sales
Increase Brand Recognition
Justification
Creative Strategy
Advertising Message Appeal
Message Format
Print Ads
Radio Ads
Transit Ads
Motivational Appeal
Campaign Content
Pandora Script
Regional Script
Transit Ads
Print Ad
Media Schedule and Budget
Media Strategy
Media Objectives
Media Mix
Evaluation Strategy
Summary/Conclusion
3. Crafted by Hand & Heart
A New Direction for Dunn Brothers Coffee Advertising
Executive Summary
The objective of this campaign is to share Dunn Brothers Coffee’s passion through
specific, measurable, attainable, realistic and timely goals. By maintaining a local,
craft, and passionate atmosphere, Dunn Brothers Coffee will gain a better outlook on
who they are reaching and who they have not reached yet. In this campaign, the
message is brought to the consumer across platforms such as radio broadcast, print
and transit advertisements. In doing so, a variety of potential customers will be
exposed to our advertisements, therefore expanding Dunn Brother’s reach. In order to
successfully achieve the campaign’s objectives, the advertisements revolve around the
idea that Dunn Brother’s Coffee is Crafted by Hand & Heart.
4. Situation Analysis/Strategic Research
Organization
Dunn Brothers Coffee is a national coffee chain that franchises to independent
owners. They are located primarily in the midwest, but also in Texas and Tennessee.
Although this company owns seventy-two locations across the country, Dunn Brothers
is most highly concentrated in the Twin Cities metropolitan area of Minnesota.
History and Background
The company was founded by two brothers, Ed and Dan Dunn, in 1987. The first store
was opened in St. Paul, MN on Grand Avenue. The first store featured a 1950s Probat
Coffee Bean Roaster. This is where the in-store fresh roasting began. Dunn Brothers
has always valued coffee as an art. Dunn Brothers refuses to make an Italian roast
based on the fact that it often times tastes burnt or charred which is just one of the
many things that sets this company apart from it’s competitors.
Objectives
Craft, local and expertise. These are the values that Dunn Brothers stands on, and feel
that in-doing-so they can create the perfect coffee drinking experience. The craft
comes from the in-store roasting. Their local decorating reminds you of your
hometown and gives off the small coffee shop feel. Their expertise comes from the
passion put into every cup, starting with the Equal Exchange business that they utilize
letting you trace a cup of coffee back to its country of origin. The objective of the
organization is to deliver the best cup of coffee to their customers. Dunn Brothers
strives for absolute transparency with the customer, letting them know that they give
everything they have to create the best cup of coffee possible.
Advertising Objectives
The objective of this campaign is to increase foot traffic in the store by 20%. We want
our customers to enjoy their food and beverages in store, we want 35% of all purchases
to be bought by sit and stay customers. We want Dunn Brothers to appeal to a younger
demographic, specifically we want 25% of all purchases to be made by people between
the ages of 18-34. The increase in foot traffic will be calculated by a sensor in the door
frame, that counts every time someone walks in and out. It will be placed there one
month before the campaign starts and stay there until the end of the campaign. The sit
and stay objective will be measured by the barista asking if the order will be “for here
or to go?” and the results will be entered into the cash register. The younger
demographic will be judged by the app, Dunn Brothers and Sisters. When the
customer signs up for the rewards program they will be asked a series of questions
5. about their demographics. For the less technologically advanced and those who are
not interested in being a rewards member, the barista will direct them to the survey
on the receipt that will give them a free pastry with the purchase of a drink on their
next visit.
Market Research
Coffee and snack shops in the United States is a 39.6 billion dollar industry. Where the
top two companies, Starbucks and Dunkin’ Brands Inc. own over 60% of the market.
The demand for coffee shops has increased at a fast rate due to higher disposable
incomes and confidence in the economic outlook and is projected to keep growing. It
is projected that by 2021 the industry will have grown 2.7% making it a 45.4 billion
dollar industry.
Market Competition
Starbucks and Caribou hold a huge portion of the market share and are present in the
Midwest where the majority of Dunn Brothers are located. While they directly
compete with Dunn Brothers, this company should also be concerned with coffee
shops that have a similar atmosphere and target the same consumers as Spyhouse
Coffee, Kopplin’s, The Ginkgo, and other small shops. These shops don’t have as large
of a regional base as Dunn Brothers’, which should help them over the competition.
Some of the similarities of these shops are that they are all offering a cool place to
hang out while you drink your coffee, as well as give off the craft feel that is popular
with millennials.
Product Research
Each cup of Dunn Brothers’ coffee contains coffee beans that were purchased through
Fair Trade USA and Rainforest Alliance. These coffee beans were checked for quality
and grown by farmers who participate in sustainable farming participates. The coffee
they produce are roasted and ground in store to ensure that each cup of coffee is
flavorful and fresh. A medium brewed coffee cost $2.39 at Dunn Brothers.
Dunn Brothers also sells coffee blends and K cups. The coffee blends offers
consumers a way to enjoy Dunn Brothers coffee in their own home. Each bags
contains roasted beans that were bought as part of the Fair Trade USA cooperation
and contains the location of the farm where the beans were grown. The starting price
for a 1 pound bag is $15.99. The K cups are compatible with Keurig and allow
consumers to make single servings of coffee without going to the store. The cups are
also designed to be eco-friendly, they use less material so there is less to throw away.
A 12-count pack of Dunn Brothers K-cups is priced at $10.99.
6. SWOT Analysis
Strengths
Dunn Brothers Coffee holds multiple strengths that enhance the consumer's coffee
shop experience. They have a small environment that gives off a craft feel, enhancing
their local atmosphere. Setting apart Dunn Brothers Coffee from their competitors,
Caribou and Starbucks, they roast their beans in house each and every day. They are
also a part of the fair trade organization and rainforest alliance, benefitting hard
working farmers around the world. Taking part in the fair trade organization means
that Dunn Brothers Coffee credits the farmers on each package of beans. It also means
giving the farmers fair compensation for their products. Being part of the Rainforest
alliance means our farmers use only environmentally friendly farming practices when
producing Dunn Brothers beans. Dunn Brothers also has a great amount of
conveniently placed locations around the Twin Cities area.
Weaknesses
Although Dunn Brothers Coffee is environment and farmer friendly, there are aspects
of the company that need improvement. Their website as a whole needs attention in
various aspects to ensure easier navigation, clear pricing and being aesthetically
pleasing. The organization of the website layout is confusing and takes longer than
necessary to find what a consumer is searching for. The average consumer would
prefer to know pricing ahead of time with easy access on the website, and Dunn
Brother’s Coffee does not have pricing located online. In order to obtain the prices,
customers need to place an order.
Opportunities
Dunn Brothers has many opportunities to take advantage of, with some tweaks they
will be able to implement. One thing that Dunn Brothers could do is expand further
across the United States. They have a lot of locations in the Midwest and a couple in
the south. Dunn Brothers could expand to other large metropolitan areas to start with
places such as New York, California and the Northwest United States are major coffee
markets that are not being taken advantage of. Dunn Brothers could also expand their
marketing. They do not have a lot of advertisements out in the world, not a lot of
people are aware of what Dunn Brothers is. Dunn Brothers also has a lot of unique
features to offer to the coffee community where they have a small coffee shop feel but
they are still a corporate company. They are unique in the sense that they appreciate
the craft this is something a lot of people are not aware of, they are not aware of the
7. difference between a starbucks of caribou and Dunn Brothers. If we could emphasize
this in marketing it would be key.
Threats
Dunn Brothers faces many threats in such a coffee driven world. One for example is
the competition. Coffee shops such as Starbucks and Caribou steal a lot of their
business. The company is not very recognizable by the public, they are not aware of a
difference between the competition and Dunn Brothers. Dunn Brothers is also
concentrated in the Midwest of the U.S. they need to expand their brand further than
the Midwest. A lack of knowledge of Dunn Brothers coffee hurts their reputation as
well, they are not able to pull customers from large corporate companies and people
who appreciate small coffee shops, because they are in between the two.
Advertising Campaign Objectives
Target Audience
Our target audience consists of young professionals and millennials because they
match with a lot of Dunn Brothers values. The millennial crowd is one of the first
generations to once again appreciate craft and Dunn Brothers thrives on producing
high quality craft products. Today, young professionals are motivated, determined,
and ambitious. Dunn Brothers stands for expertise and young professionalism, which
correlates with their brand image as does the consumer's’ personality. Dunn Brothers
is a place to sit and stay, all while being productive and measurable at the same time.
Young professionals and other millennials not only thrive in an atmosphere that
creates a soothing vibe, but at the same time can enjoy the quality products that Dunn
Brothers provides.
SMART Goals
Our goals for Dunn Brothers Coffee will ensure a positive, thriving, and successful
environment. We want to increase store traffic by 15 percent in the next 3 months,
increase sales by 20 percent in the next 3 months and inform the public on who Dunn
Brothers Coffee is by increasing brand recognition by 10 percent.
Increase Store Traffic
In order to increase store traffic by 15 percent in the next 3 months, we will increase
our advertising budget by 10 percent. This way we can get our message out to our
target audience and further our Dunn Brother’s community. We will measure the store
traffic with the help of sensors on the door, tracking customers who enter. This
technological advancement will give us analytics on our store traffic.
8. Increase Sales
In order to increase sales by 20 percent in the next 3 months, we will run a buy 5
drinks, get 1 free promotional drink. This promotion will consist of a 2x3 Dunn
Brother’s punch card that customers will utilize each purchase bringing them closer to
a free drink. In addition to that promotion, our increase in our advertising budget will
bring more prospective customers through the doors exceeding traffic and sales at the
same time.
Increase Brand Recognition
In order to increase brand recognition for Dunn Brothers Coffee by 10 percent in the
next 3 months, we will utilize creative strategies to develop and further the
understanding of customers and prospective customers of what Dunn Brothers Coffee
stands for in relation to their competitors. By informing the public on who Dunn
Brothers is, this will increase awareness and give them a competitive edge, allowing
higher brand recognition. We will also feature an exclusive print advertisement in an
edition of Rolling Stone magazine. After research, this magazine is read by the
majority of our target audience compared to other magazines today. We will measure
brand recognition through surveys and focus groups, asking participants questions
about Dunn Brothers in order to gage the understanding of who the Dunn Brothers
brand is to the public. Each participant will receive a cash compensation for their time
and cooperation.
Justification
We decided on these three main goals, because they seemed to be a few areas where
Dunn Brothers needed improvement based on our SWOT analysis. With these simple
implementations, Dunn Brothers could grow to be a more recognizable and be a
successful player in the competitive world of the coffee shop industry. Each of these
goals are smart, measurable, achievable, realistic and time bound in their own ways.
Ensuring our ability to note progress with these goals, will keep Dunn Brothers
accountable and performing at their highest potential.
Creative Strategy
Advertising Message Appeal
Our campaign is primarily transformational. With our theme, Crafted by Hand &
Heart, we talk about what the customer can expect to receive from every cup. We want
each person who walks into Dunn Brothers to feel the passion and taste the craft. Our
9. three month campaign is focused around the Holiday time of year. Our message we
want our audience to receive is for them to think back when they were young, full of
energy and playing out in the snow and coming inside to feel the warmth of their
home, with a cup of hot chocolate to warm their bodies. All while we do give some
informational background when we talk about the beans and the in-store roasting we
primarily talk about how the coffee and customers are benefited by focusing on the
craft, passion and expertise that goes into every cup. We use product image and
positioning to paint Dunn Brothers as a wholesome coffee shop. Using the features
and benefits of both the coffee and the environment we display Dunn Brothers as
being a place for customers to sit, sip and stay.
Message Format
Print Ads
Our print ads are sophisticated and friendly in a way that make the viewers feel as
though it’s their own kitchen beckoning them to come have a cup of coffee. We use
soft color tones to create a relaxed and friendly vibe. The color scheme also allow the
eye of the viewer to not feel overwhelmed with brightness or an overload of colors or
images. In the ads we use words that convey short and simple vocabulary but get to
the point. Our ads continue on with the warm, inviting and Holiday theme through
snowflakes and mittens. We don't want our viewers to be bombarded with words and
colors and have attention taken away from our original message and product. The
audience should feel the Holiday spirit when they look at the print ads.
Radio Ads
In the pandora radio commercial, a voice emerges informing listeners that Dunn
Brothers offers not only an environment that can fit their needs but a cup of great
coffee can be expected too. It uses the adjectives handcrafted and fresh to describe
the coffee stating to the listeners that they will notice the difference. The regional
radio commercial, starts off immediately telling the customers what the advertisement
is for. Dunn Brothers is where you find what your heart thirsts for. It mentions not
only the coffee by providing some information on food based menu items as well.
Using the adjectives like freshly made and handcrafted to connect the wholesome and
genuine feel of Dunn Brothers with all its products. Both radio ads use the words
fresh and handmade to inform the listeners that this company does things differently
than its competitors. The tone of the radio advertisements are genuine and friendly.
They try to capture the unique factors of the company by focusing on the feeling and
passion this company displays throughout its work.
10. Transit ads
In order to capture people’s attention, we will place transit ads around the Twin Cities
on bus stops and we will vinyl wrap a light rail car. The vinyl wrap of the light rail
includes pictures of Dunn Brothers product and the logos. Since the light rail is often
on the move we kept the design simple in order to ensure the message and images are
seen and understood. The three bus stop advertisements include a message that again
centers around the warmth and emotion we attach to the brand. There is a heart
made of coffee beans and the text describes Dunn Brother’s Coffee as being pleasing in
taste and supplying warmth to your heart. Each bus stop advertisement will be placed
in a mile radius of each Dunn Brothers Coffee store.
Motivational Appeal
Our brand and our products will be shown with an emotional appeal to better display
our company to our audience. We display the soft side of Dunn Brothers, the small
company vibe that focuses on their customers by doing things the slower, ethical and
more direct way. Our ads also try to connect to the audience, in the attempt to
persuade them that not only does Dunn Brothers want them to drink their coffee, but
Dunn Brothers is the coffee they want to drink as well. The heart and passion put into
every cup is what our customer’s desire. The unique brewing style and friendly
atmosphere is two of the benefits we depict in our ads.
Campaign Content
Pandora Radio Script: “Hey
Pandora listener (PAUSE) do
you need a place to catch up
with an old friend, work on
homework, or just enjoy a
handcrafted beverage? Well
look no further than Dunn
Brothers Coffee. Our beans
are roasted daily and you’ll
notice the difference
(PAUSE) Crafted by hand
and heart. Dunn Brothers
Coffee. Click the banner
below.”
11. Regional Radio Script: “Dunn Brothers Coffee. Where you find what your heart thirsts
for. Our daily roasted coffee beans compliment our freshly made breakfast and
handmade lunches. Sit and enjoy one of our handcrafted beverages, and you’ll notice
the difference. (Pause) Crafted by hand and heart. Dunn Brothers Coffee.”
Transit Ads
12. Print Ad
Media Schedule and Budget
Month 1 Month 2 Month 3 Total
Regional Radio Ad $5,167 $5,167 $5,166
Pandora Radio Ad $3,000 $3,000 $3,000
METRO Blue Line Ad $20,000 $20,000 $20,000
Bus Stop Ad $3,000 $3,000 $3,000
Rolling Stone Magazine $200,000 $200,000 $200,000
Total Budget $231,167 $231,167 $231,166 $693,500
13. Media Strategy
Media Objectives
The reach of this campaign is located in the Midwest, but specifically, we are focusing
the majority of our resources on advertising in the Twin Cities. The bulk of our
content is geared toward the metro area of the Twin Cities. By advertising on the light
rail Blue Line, our reach extends from the Target field in Minneapolis to the Mall of
America as well as providing impressions to travelers who can see the light rail
passing by the airport. There are also opportunities for pandora and iHeart radio
listeners to catch radio advertisements around the states, but the platforms chosen
will focus the majority of its impressions to the Midwest.
The frequency of our messages will give impressions to consumers in the Twin Cities
area at least three times a week through different media platforms. The light rail runs
daily in the twin cities and will provide some consumers with daily reminders of Dunn
Brothers. Across all the platforms chosen, consumers will be frequently hearing the
Dunn Brothers message. The times of radio advertisements vary, but target specific
times to air, including popular commuting times, lunch hour and after school/work
times. Dunn Brothers advertisements will be present in consumers life throughout
the length of the three month campaign.
Media Mix
Our choice of media classes are print, transit and radio. More specifically, our full page
print ad will be featured in Rolling Stone magazine located on one of the middle pages
of the magazine, once a month for the length of our campaign. The ad featured in
Rolling Stone will cost $200,000 a month. This ad reaches 50 percent of our target
audience of the ages 18-34 year olds, in the total circulation of the magazine at 1.5
million. The transit ad will be located on light rail METRO Blue Line for one month of
our campaign. For the light rail METRO Blue Line, the full bus wrap will cost
$20,000.00. Although the cost is high, it is estimated it will make 4.1 million
impressions in only one month. The geography of the light rail METRO Blue Line runs
from Target Field to the Mall of America, with multiple stops in between, including the
Minneapolis St. Paul Airport. The three bus stop ads will be up for 8 weeks located
downtown close to Dunn Brother stores. Three featured ads will be located at the 10th
Street Station and Platform, Nicollet Mall and Snelling Avenue Station and Platform.
Both our print and transit ads will be featured in color. Two radio commercials will be
aired through Pandora and regional radio stations. The Pandora radio advertisement
will be featured 10 times a day on specific targeted individual pandora stations. The
regional radio broadcast will be featured on KS95 and Cities 97 once a day at any of
14. these times 6:00 A.M., 8:30 A.M., 11:45 A.M., 3:00 P.M. and 5:00 P.M. Our Pandora and
Regional radio commercial has a 20 second run time. The Pandora audio ad will cost
$8.00 to $12.00 per spot. The Regional audio ad will cost approximately $173.00 per
spot.
We chose the Rolling Stone magazine because our target audience reads this magazine
and it would be the perfect opportunity to catch their attention in an already
frequently read magazine. This would also expand the reach of Dunn Brothers coffee
to everyone around the world. Our choice based on the light rail METRO Blue Line is a
unique and creative way to advertise Dunn Brothers Coffee, while the continuous
movement of the light rail will ensure many impressions. Finally, our radio choices of
Pandora, Cities 97 and KS95 are the perfect local, fun and friendly stations that our
target audience would be listening to. Whether at work or on the go, Dunn Brothers
Coffee will be apparent in everyday readings, transportation or catching some good
tunes on the radio.
Evaluation Strategy
Our pretest and posttest will be based on each individual marketing objective. To test
for foot traffic, we will insert a sensor by the door frame to count every person
entering the store. This sensor will be installed before we run our campaign to count
the daily foot traffic in our store before our advertisements. The sensor will remain
activated throughout our campaign to count and note changes in foot traffic
throughout the campaign. To record whether customers stay to drink their coffee in
store or whether they take it to go will be noted in a similar matter. Baristas checking
out the customers will ask if the drinks are for here or to go? The answers will be
recorded both before and during the length of campaign to note the changes that
occur throughout the campaign. To survey how well we reach the younger
demographic will be based on the loyalty program and app, Dunn Brothers and Sisters.
These loyalty programs require participants to input their age and gender and tracks
their purchases made throughout time. This loyalty program is already running and is
able to provide us with information about the current demographics of our customers.
Throughout the time of our campaign we can record new members and note
purchases made by all different demographics. Throughout our campaign we will also
add links to surveys at the bottom of each receipt. This survey will provide customers
with an incentive to fill out the survey and learn more about them. The survey will
include a variety of incentives such as a free pastry with the purchase of a drink, once
they enter demographic information and a review of Dunn Brother’s quality and
15. service. This will increase the amount of information we receive on each customer
and help test our campaigns effect on reaching a younger demographic.
Another way to pre and post test our campaign would be to hold focus groups and get
a sense as to how the public views Dunn Brothers before and after the campaign.
Focus groups involved customer engagement and by having an increase in engagement
will give Dunn Brothers Coffee as a company a better understanding as to who they
need to target more.
Summary/Conclusion
Our advertising campaign is unlike any other. We wanted to stray away from what
many competitors because we are different from traditional coffee companies. We
wanted our advertisements to represent our unique style through the mediums we
chose to advertise through. We advertised through radio with a one-of-a-kind voice
overs that both appeal to regional radio consumers and Pandora radio consumers. We
feel the Voice over advertisements are a great way to get our customers to possibly
look deeper or even learn a lot from them about the Dunn Brothers brand. We decided
to advertise on a bus station as well, the city is a great market for coffee drinkers. The
bus stop will also be a great place to expand Dunn Brothers brand awareness and gain
thousands of impressions each day with traffic both driving and walking by the bus
stop. The transit advertisement will basically be a huge moving billboard, with its stops
from the Mall of America to Target field the light rail will gain Dunn Brothers millions
of impressions from airport travelers to everyday commuters around the Twin Cities.
Lastly, our print advertisements will be featured in Twin Cities Business magazine
with a full page ad. Over and above all our campaign goes the extra distance to get
what Dunn Brothers wants to it's target audience. This campaign will bring in more
business to Dunn Brothers Coffee.