Tuesday, April 24, 2007

[ The Kids Are Alright.........And Craving Crullers ]

MTV recently celebrated its 25th anniversary...by not celebrating it. At all.

MTV figured out long ago that it was not Music Television, but rather Youth Television – reflecting, and just as often directing, the culture of America’s teenagers. It’s tied itself to an identity as a rebellious upstart. So MTV wisely realized that to celebrate its 25th birthday would be to mark itself as old, as square, as an institution, as “The Man”...in other words, to compromise its brand credibility. And preserving that credibility is more than worth skipping a birthday...even one this landmark.

Brand credibility matters to consumers, despite the artifice inherent in brands themselves. Or rather, perhaps because of that very artifice: having agreed to identify with an image, and having sealed the deal with a purchase, consumers react fiercely when that image – and their wallets – are betrayed. Rolling Stone has anchored its brand around its reputation as the chronicler of rock throughout the decades; indeed, they’ve seemingly turned every other issue into a top-100 countdown or anniversary extravaganza. MTV, “the rebel,” cannot afford such nostalgia. Today’s teenagers and 20-somethings may know their parents watched the same channel, but they certainly don’t want it pointed out.

Maintaining brand credibility is even more challenging for an organization trying to grow or change. So Dunkin’ Donuts’ rebranding makes for fascinating viewing. After problematic pairings with Baskin-Robbins and Togo’s, Dunkin’ now craves the high-end clientele of Starbucks. But, as The Wall Street Journal recently reported, market research finds that Starbucks and Dunkin’ regulars are practically two separate “tribes” – the former disdaining Dunkin’ Donuts’ impersonal character and standardized offerings, the latter feeling confused by Starbucks’ arcane lingo, specialized choices, and sheer cost.

So how do you expand that loyal customer base? Can you expand your business to make it more appealing to a wider range of customers, but without alienating your core? Without making your regulars feel (as one Dunkin’ focus group member said of Starbucks’ overstuffed chairs and laptop-heavy atmosphere) as though they were “celebrating Christmas with people [they] don’t know?"

The answer for Dunkin’ Donuts has been carefully considered baby steps. It is going after the casual coffee drinker who wants some of the menu options Starbucks offers. It’s phasing in store redesigns, making franchises feel more open, warm, and inviting, with lots of natural light. It’s expanding the menu to include a wider variety of drinks and toying with including lunch foods. It’s staying true to the quick, no-frills service that its customers love – including push-button espressos that take half the time of Starbucks’ manual machines. And with new advertising – an updated logo, They Might Be Giants providing music, and John Goodman lending his voice – Dunkin’ is shooting for hip without ever shooting from the hip.

Dunkin’ no longer wants to simply own their customers’ mornings. They want to supply their coffee and metabolic energy needs at all hours. “America Runs On Dunkin'” goes the new tagline – a claim that both newcomers and Dunkin’s Boston-area diehards can embrace.

So what’s your brand? Chances are it’s not your name or your mission statement. On what does its credibility rest? And do you know how you can grow but still stay true to your brand promise? MTV knows it’s about youth, and is determined to deliver. Dunkin’ Donuts is about something more than donuts and coffee...and over time is very carefully and cannily discovering just what that something is.

 
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