NEW BUSINESS PITCH BRIEF

JANUARY 2018
THE DATA Dunkin’ Donuts starts
Creative Review

YOU NEED
TO WIN
THIS PITCH
Dunkin' Donuts has put its U.S. creative business up for
review and aims to complete the process by the end of the Creative
first quarter of 2018.
The review begins this month and could mean that Dunkin'
will no longer run on Hill Holliday, which has handled creative
for the brand since April 1998 and introduced the tagline
"America Runs on Dunkin'" in 2006. Media, which has also
been under Hill Holliday since 1998, will not be affected by Global
this review.

Hill Holliday was invited to participate in the invitation-only

review, which is focused on national creative services,
Dunkin' Donuts said. Interpublic Group of Cos' Hill Holliday
deferred comment to Dunkin' Donuts. The longtime Dunkin' December 4, 2017
Donuts agency will compete in the review, according to
people with knowledge of the matter.
CLIENT PROFILE / MARKET

COMPANY BACKGROUND FINANCIAL OVERVIEW

Dunkin' Donuts is an American global donut company and 2016 Sales (mil) 829,000
coffeehouse based in Canton, Massachusetts, in Greater Boston.
It was founded in 1950 by William Rosenberg in Quincy, 2016 Employees 11,163
Massachusetts. Since its founding, the company has grown to
become one of the largest coffee and baked goods chains in the Employee Growth Percent -

world, with more than 12,000 restaurants in 36 countries. The

Assets (mil) -
chain's products include donuts, bagels, other baked goods, and a
wide variety of hot and iced beverages.
Net Income Growth Percent -
As of 2014, Dunkin' Donuts is owned by Dunkin' Brands Inc., which
also owns Baskin-Robbins and previously owned the Togo's chain. Sales Growth Percent -

D E C I S I O N M A R K E R S by MAIN COMPETITORS

Ms. Tony Weisman

Chief Marketing tony.weisman@dunkinbrands.com
Officer

Ms. Elleen Cawley

Digital Marketing and elleen.cawley@dunkinbrands.com
Innovation
 INDUSTRY OVERVIEW

Dunkin’ Donuts brand competes in the QSR segment categories and subcategories that include
coffee, donuts, muffins, bagels, and breakfast sandwiches

$ 282 +1% +2%

BILLION

TOTAL TOTAL CAGR TOTAL CAGR QSR

QSR SALES QSR DAYPART VISITS MORNING MEAL
DAYPART VISITS

Source: NPD Group

 OUT-OF-HOME COFFEE MARKET

+8
BILLION
4% RESTAURANTS
70%
TOTAL SERVINGS OF OF SALES ARE
COFFEE COFFEE IN 2016 GENERATED BY
SERVINGS THE TOP 5
CAGR OPERATORS

86%
ATTRIBUTABLE TO
QSR SEGMENT
 COFFEE CONSUMERS

2.97
46% AVERAGE CUPS OF
COFFEE DRUNK
OF COFFEE IS DAILY BY
CONSUMED SPECIALITY COFFEE
OUT-OF-HOME CONSUMERS

( 2.24 i n 2 0 1 1 )

59% 30%
UNDER 35 ARE
OF COFFEE MORE LIKELY TO
CONSUMED IS DRINK COFFEE IN
SPECIALITY A C A F E’ / D O N U T
SHOP
BREAKFAST CONSUMPTION

5% 17%
GROWTH IN CONSUMPTION OF AMERICANS EATING 17% MORE
BREAKFAST THROUGH 2019 MORNING SNACKS VS. 2010

30% 48%
CONSUMERS AGREE THAT GOING OUT
BREAKFAST ARE CONSUMED
FOR BREAKFAST/BRUNCH IS AN
ON THE GO
OPPORTUNITY TO INDULGE
 DUNKIN‘ DONUTS

$ 528,889 6.6% 8,928 3,430

MILLION

TOTAL SYSTEMWIDE SYSTEMWIDE DUNKIN’ DONUTS DUNKIN’ DONUTS

SALES 2016 SALES GROWTH POINTS OF DISTRIBUTION INTERNATIONAL
IN U.S. POINTS OF DISTRIBUTION
 A BEVERAGE-LED / ON-THE-GO BRAND

TOTAL ICED / HOT COFFEE SYSTEMWIDE SALES COMING

+ 1.7 b SERVED IN 2016 58 % FROM COFFEE / BEVERAGES

SIX - PART GROWTH PLAN

DRIVING
TARGETED
COFFEE PRODUCT LEADING RESTAURANT PACKAGED
VALUE SMART
CULTURE INNOVATION IN DIGITAL EXPERIENCE GOODS AND
PRICING
CHANNELS
COFFEE CULTURE

DUNKIN’ DONUTS LAUNCHED ITS

COLD BREW COFFEE IN 2016

Espresso-based beverages, are our greatest

growth opportunity. We continue to be a market
leader in iced coffee, and we further
strengthened this position with the launch of
Cold Brew in 2016.
 CPGs AND NEW CHANNELS

In 2016, DD announced the launch of

Expecting to deliver
a line of branded ready-to-drink iced
coffee beverages in the U.S. nearly 2.6 billion
The ready-to-drink bottled iced coffee, cups of coffee
which is being manufactured,
through the sale of
distributed and sold by The Coca-Cola
Company along with its bottling Dunkin’ K-Cups,
partners, began arriving in January bagged coffee, and
2017 in grocery chains, gas, drug and
ready-to-drink
convenience stores, and Dunkin’
Donuts restaurants nationally. bottled iced coffee
GROWING DIGITAL

$ 1b + 50% + 70%

SYSTEMWIDE ORDERS MOBILE

SALES USING ON MOBILE PAYMENTS
A DD CARD YoY

As of last year, DD also launched On-the-Go ordering

nationally. On-the-Go is an offering reserved for our DD Perks
members and enables them to order ahead and speed past
the line in-store.
TOP CAMPAIGN AND BUDGET

for National Donut Day 2017, Dunkin Donuts nailed a

digital-heavy campaign across multiple platforms.
Users could have sent the word “donut” to Zo on Facebook’s
or Kik’s messaging platforms to find out which of Dunkin’s
classic donuts bests fits the user’s personality.
Snapchat users turned themselves into a donut with a
special brand Lens.
Kik users leveraged real-time video stickers where Dunkin'
fans virtually 'ate' donuts mid-call or signal a stream of
sprinkles to be 'fed' straight into their mouth.

$ 150
MILLION

BUDGET SNAPCHAT KIK ZO.AI

 DUNKIN DONUTS‘ AUDIENCE

TOP
FEMALE
64.1% PSYCHOGRAPHICS

45-54 YEARS OLD

23.7%
FOOD BEAUTY & MONEY
LOVERS WELLNESS AWARE SAVERS

LIVING IN THE
NORTH EAST REGION
36.5%

SEE THE FULL PROFILE

 MILLENNIAL
BREAKFAST LOVERS

Millennial consumers
FOOD LOVERS interacting with
4.1x breakfast food brands
on social media and
agreeing with the
attitude statement
“breakfast is more
BEAUTY & WELLNESS AWARE important than lunch
or dinner”.
3.7x

FASHION LOVERS
2.9x

ENTERTAINMENT JUNKIES
2.5x
 FEMALE
73.6%
MILLENNIAL
BREAKFAST
LOVERS U. S. S T A T E M A P
89%
LIVING IN

DEMOGRAPHICS URBAN AREAS

61%
WITH CHILDREN

37%
SINGLE
GET FULL INSIGHTS
 TOP BREAKFAST GENRES

MILLENNIAL
BREAKFAST FROZEN PANCAKES /
FRENCH TOAST

LOVERS
FOOD INSTANT
BREAKFAST
TOP BREAKFAST
PRODUCT

SHOPPING BEHAVIOR

2.6x Swayed by coupons

GET FULL PROFILE
15%
2.4x I like to try new drinks

DRUNK ICED COFFEE IN

THE LAST 6 MONTHS

“I am the first one among my

2.3x friends to try new food products”
 TOP APP GENRES

MILLENNIAL HEALTH & FITNESS FOOD & DRINK

BREAKFAST 1.6x 1.6x

LOVERS
MOBILE FIRST

1.9 x

MOBILE
APP HAPPY
GET FULL PROFILE

“I think of my phone as a “I like to receive coupons on my

1.7x source of entertainment” phone based on my location” 1.6x
 TOP TV CONTENT TYPE

MILLENNIAL FAMILY ORIENTED

REALITY SHOWS
SHOWS
BREAKFAST 1.8x 1.2x

LOVERS
ENTERTAINMENT

MOST ENGAGING
MOST ENGAGING MEDIA
O N L I N E C E L E B RI T Y

COSMOPOLITAN 4.66 x

INSIDER FOOD 4.64 x

GET FULL INSIGHTS

SCARY MOMMY 4.54 x

E! NEWS 4.33 x

4.3x
ALONZO LERONE
HOT MOMS CLUB 4.24 x
 CONSUMER
INSIGHTS
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