Dunkin' Donuts Supermarket Coffee Is Hot!

The chain's foray into grocery store distribution has racked up first-year sales of close to $200 million after its launch in early 2007. Yet some Dunkin' Donuts franchise owners may only be able to see product cannibalism, where a consumer buys a bag of coffee beans and makes a brew rather than visit the local Dunkin' shop for a cup.

The move to put Dunkin' Coffee into orange bags at the neighborhood supermarket makes it to AdAge's 50 Marketing Case Studies of things for marketers to take note of. Ms. Audra Schlegel, brand manager for joint venture partner P&G discusses the mechanics that helped this product take off.

Ms. Schlegel cites strong TV and print advertising from Hill Holliday; publicity by RF Binder Partners; packaging that stood out on the shelf bearing the shops' distinctive look; and an extensive in-store and event demo effort. "Once people try it," she says, "they come aboard."

That's a lot of marketing success driving consumers to relate good coffee and Dunkin' Donuts. More consumers who don't have time to make a cup of joe themselves may actually visit a franchise for one as good or better.