John Costello, president Global Marketing and Innovation at Dunkin’ Brands kicked off the 2014 ANA Multicultural Marketing & Diversity Conference in Miami. To Costello “investing in Multicultural Marketing with a Total Market approach has been one of Dunkin’ Brands most powerful techniques.” Costello advised fellow marketers to put their best ‘general market’ marketing executives to work in Multicultural Marketing.
Costello explained that even though his company has a very diverse franchise basis its marketing used to be mostly New England centric. That is why now product innovation is a core element in Dunkin’ Brands marketing. “You need to take risks and invest in innovation,” he said. Product innovation is a particular important driver when it comes to attempt to please Multicultural guests. In fact Costello said that some markets where Dunkin’ has done early tests like Florida, have performed the best. Dunkin’ spends a little bit less than half of its marketing budget in local markets.
According to Costello, coffee is a key element of Dunkin’ Brands offerings. “60% of our business is coffee and 20% bakery,” he said. In fact when it comes to the Hispanic market coffee is even more important:”Hispanics consume two and half times more Expresso than the average general market consumer,” Costello noted. “We have learned that there are huge emerging populations of Latin customers all over the United States,” he concluded.
Dunkin’ Brands’ Multicultural Marketing Director Xavier Turpin on Budgeting: “The challenge is to find the right investment balance”