Fast Company article on Coffee Wars and Donuts (mmmm - donuts... what'll they think of next)

Sometimes re-writing your story may not be enough if you don't understand the cast of characters. While Dunkin Donuts can deliver the same product faster and for 40% cheaper may not be enough for Starbucks loyals to switch. People looking to buy a Hummer for 70K are not going to be swayed by a Santa Fe that costs 1/3 - even though they both function exactly the same on a macro level... transportation. Part of the reason for owning is the fact that they paid a lot for it. (Design plays a HUGE part as well, but we are comparing only price/functionality)

I hope that Dunkin Donuts also rewrites the story of their stores as well. Starbuck's has a cozy, intimate atmosphere with modern colors and well appointed stores. DD is a brightly lit white donut store. The name has such strong connotations as well...

It will be fun and interesting to see how they work at changing thier profit model from pastry-centric to beverage-centric. Taking on Starbucks, McDonalds and the corner convenience market is a mighty task. Personally, I like DD donuts better than KK and I very seldom go to Starbucks as I am not a coffee drinker (and personally I find the long wait for a cup of coffee a time waster).

Read the whole article... you will get some interesting perspectives on re-branding and storytelling.

It's Not About the Doughnuts: "If you're going to take on Starbucks, the leviathan of the coffee business, you need an edge. And Dunkin' Donuts, the 54-year-old New England chain famous for its Boston Crème doughnuts and award-winning beans, thinks it's found the key to being a contender: speed and price. So this, then, is the new management team's new strategy: be the faster, cheaper, user-friendlier alternative to Starbucks -- the average Joe's average joe.

Sounds logical, right? No silly faux Italian. No lattes that require an Amex mogul card. Just value and speed. But Dunkin's strategy is already raising concerns among some industry observers. The idea that the latte-drinking customer will respond to speed and price is, they say, an out-moded view of the market. Sure, it worked for McDonald's, a pit stop for customers with little time, many kids, and thin wallets. But for trendy coffee aficionados, those features may be missing the point."