Dunkin' Donuts takes on Starbucks

Multinational Starbucks Coffee Co. has grown familiar to criticism from anti-corporate hipsters and coffee lovers. Now competitor Dunkin' Donuts takes its shot at one of the most recognizable brands in the world with a new ad campaign that battles Starbucks on taste and preference.

In a nationwide taste test conducted by Dunkin' Donuts, 54.2% of participants preferred DD's coffee, while the remaining 39.3% went with Starbucks. The company's Starbucks-bashing is anything but subtle, with ads featuring phrases like "Friends don't let friends drink Starbucks" or their website title, "DunkinbeatStarbucks.com" - a very nice looking website surprisingly. However, the "anti- " strategy to me is not sustainable, and the "angry" campaign could shadow Dunkin's true brand image and damage the relationships with Starbucks customers who also eat at DD. However, the company is going all out, using words like "truth" in their messege of spreading 'the truth' about Starbucks.

While I believe the comical aspect is a creative approach for Dunkin', it shouldn't become the focus of the company's marketing communication strategy. Their strategy should highlight those taste-test results as well as align the Dunkin' brand with the needs of their market. Expanding market share while pleasing the originial customers is one of the hardest challenges retailers face. Dunkin' has the right idea here, the brand ID/design is cute and modern, with a vintage feel. They are at least taking the steps to create something new and continue to remind customers why Dunkin' Donuts matters.

Whole Foods needs to refocus as 1Q earnings drop

High-end organic grocer Whole Foods must begin to operationally change its cost structure in order to survive the economic recession. Sales have taken a hit as cost-conscious shoppers moved away from the higher priced foods and traded down. As a result, the value of the company's shares have fallen almost 75% in the past year.

However, upper management has made a conscious effort to cut costs this summer and decrease capital spending, as well as make in-store changes to help manage the company through the difficult economy. Whole Foods will have to adjust to lower sales volumes and continue to improve its balance sheet. Challenges came in stores in areas with high foreclosure and unemployment rates, forcing the retailer to begin offering lower-priced products, private-label lines, coupons, and other value-related marketing to attract customers.

Analysts project that despite the economic climate, Whole Foods can generate long-term growth due to their wise investments in infrastructure. However, future expansion plans have been scaled down and new stores planned for the United Kingdom will be put on hold.

I am confident retailers like Whole Foods can survive the economic downturn and hopefully remain true to their core values and provide customers with a variety of all natural and organic food. As the fastest growing food segment in the US, all-natural/organic products can not only help the health of this nation but stimulate the economy as a growing, innovative industry.

From Forbes.com

Coca Cola: Classic red and... green? Praised for reducing emissions, Coke is going Green

Coca-Cola's South Bronx distribution center is the celebrated site for its newest of Green successes. Mayor Bloomberg visited the site to see the addition of five new hybrid-electric trucks and to commend the team for reducing carbon emissions.

This is especially important since Coke is an international company, seen and respected by millions globally. This news not only helps Coca-cola but will also help New York City's image. Since NYC is a well-known city around the world, it's significant when it takes the lead on issues like air pollution and global warming.

The new trucks use 32% less fuel and are powered solely on electricity, producing zero emissions, and traveling at low speeds. This mark a trend for global companies that originated in the US and might help move the rest of the world to engage in similar practices. The United States' entrepreneurial environment is an ideal place for new technology and innovation to become a reality.

However, Coke may have just seen this as a PR opportunity and a chance to show a better side of a giant multinational company. Regardless, it's always nice to read these stories and let's hope for a greener future and more corporate responsibility!

"When in Doubt, Wal Mart" from Barron's online

While other retailers are suffering from dismal sales figures, Wal Mart has remained to stay ahead of the curve. Bouncing back from a disappointing December sales report, Wal Mart has achieved a record 2.1% increase in same-store sales growth for January. Despite fairly low sales expectations, theses days not losing is winning in the retail game.

However, in the wake of unpredictable consumer spending, Wal Mart has opted to abandon monthy sales forcasts and only use quarterly updates. This move in guidence has raised some conern on Wall Street, but Wal Mart insists the move is a way to get consistant with long-term growth forcasts. The concern arises when a strong retailer like Wal Mart decides basically to release less information less frequently to investors and the public. In this current economic climate, Wall Street wants nothing to do with uncertainty in information and has become weary of moves like this.

The article also reports on Target's performance, and although similar to Wal Mart is expected to be one of the losers in the retailing sector. This is of particular interest to me since I have stock in Wal Mart but am a loyal customer at Target. Analysts warn that earnings won't meet prejected quarterly sales, some say because Taregt can't convince shoppers that their model is actually similar to Wal Mart, and low prices exisit in both retailers. This is a testiment to Wal Mart's strong business model and has proved to be a company that evolves with the changing market environment.