Tag Archives: global marketing

Dunkin’ Donuts Will Get Rid of Foam Cups by 2020

We know Planet Earth is in trouble with changing weather patterns, and a significant problem with plastics polluting and harming the oceans. The planet deserves the respect, and need the help, of all citizens and corporations.

One significant problem faced around the globe is the increased use of foam packaging, which has often been cited as a source of many environmental problems. A number of environmentally-focused organizations have challenged global companies to reduce or eliminate their use of polystyrene.

One company heeding the call is Dunkin’ Donuts. The company recently announced its plan to eliminate all polystyrene foam cups throughout its global supply chain by 2020. The coffee giant will replace foam coffee cups with double-walled paper cups. The majority of the company’s international operations have already begun using paper cups; New York City and California will be adopting the new cups this year.

The move to eliminate foam cups is a significant change in the company’s supply and distribution chains. This is no small matter – there are more than 9,000 Dunkin’ Donuts restaurants in the U.S. alone – that’s a lot of coffee cups!

Group Activities and Discussion Questions:

  1. Discuss setting SMART objectives (specific, measureable, achievable, realistic, and time-bound).
  2. Show video about Dunkin’ Donuts switch: https://youtu.be/3kAP01BeRo4
  3. What are the SMART objectives set by Dunkin’ Donuts?
  4. Divide students into teams. Have each team develop five SMART objectives for a product of their choosing. Have the goals reflect various strategies including growth, sustainability, profitability, etc.
  5. Discuss the objectives. How would the objectives change if a different strategy was used?
  6. Debrief the exercise.

Source:  Sustainable Brands (9 February, 2018). Dunkin’ Donuts to eliminate foam cups by 2020.

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Where’s the Chicken?

In what might arguably be one of the most ironic situations faced by a restaurant, KFC ran out of chicken and had to close more than half of its 900 restaurants in the UK. Yes, you read that right – Kentucky Fried Chicken ran out of chicken (which I guess makes it KF instead of KFC).

The supply chain issue that closed the 562 outlets was blamed on switching KFC’s delivery contract from South African-owned distribution group Bidvest Logistics to DHL. DHL blamed “operational issues” for the snafu. Some of the outlets were able to remain open, but with a limited menu.

Indeed, one can understand that it is a complex task to get fresh chicken to 900 restaurants across the country. According to news reports, the GMB union warned KFC that switching suppliers was a mistake. It certainly appears that they were right.

(Update: As of Feb. 28, 97% of KFC stores were open, but according to Reuters the company is now reporting facing another shortage… this time it’s gravy!)

Group Activities and Discussion Questions:

  1. In order to be successful, companies must be able to physically get a product into the hands of the customers. Discuss how a distribution channel works.
  2. Show the video of the KFC issue: https://youtu.be/jM53cQJACCg
  3. For KFC, what distribution channels are used now?
  4. How can the channel be expanded? What approach could be used?
  5. Divide students into teams. Have each team draw a flow chart for the distribution of the product.

Source:   BBC (19 February, 2018). Chicken chaos as KFC closes outlets.

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Are Followers Real or Fake?

Marketers are under increasing pressure to increase a brand’s number of followers. Of course, marketers want the followers to be real and involved, but what if that isn’t possible? Well, there are companies that sell followers on Facebook, Twitter, and other social media platforms. However, all is not as it seems. Many companies sell the names, profiles, pictures, and other details of real users, but with some variations, and unbeknownst to the actual user who is being impersonated. The result: fake users are sold to many companies to help increase the tweets, retweets, likes, etc.

All social media platforms seem to be infected with fake users. According to a recent article in the New York Times, nearly 15% of Twitter’s active users (48 million) are actually automated accounts that simulate a real person. And, in November 2017, Facebook stated to investors that it has twice as many fake users than it had previously estimated, bringing the count to roughly 60 million fake accounts.

The fake accounts are known as ‘bots’ and can be used to build audiences and influence opinions. The bots are purchased for the purpose of increasing the followers, and thus the influence of the person or brand purchasing the bots. Bots can be programmed to post at a scheduled time, monitor trends and post as needed, and amplify clients’ accounts by following, retweeting, and like tweets.

Which would you rather have: real, engaged followers or bots that are not engaged?

Group Activities and Discussion Questions:

  1. Begin by having students read recent news articles about fake users. Here is an article by the New York Times: https://www.nytimes.com/interactive/2018/01/27/technology/100000005704904.app.html?emc=edit_ta_20180127&nl=top-stories&nlid=65703977&ref=cta
  2. Why is this an issue in digital marketing?
  3. How does the topic of “fake users” impact the marketplace?
  4. Should companies/brands “buy” followers? Why or why not?
  5. How valuable are followers in digital marketing?
  6. What would you do if told to increase followers? Would you buy them?
  7. Have students go online and research “how to buy followers.” What are their findings?

Source: Confessore, N., Dance, G., Harris, R., & Hansen, M. (27 January, 2018). The follower factory. New York Times.

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