Indonesia has experienced a mobile revolution in recent years, but the percentage of smartphone penetration remains low. Dunkin’ Donuts Indonesia used location-based advertising to send SMS messaging (available on every mobile phone) to consumers as they walked by brand locations.
Objective and Context:
Dunkin’ Donuts Indonesia is a market-leading donut QSR in Indonesia, with more than 270 outlets nationwide. The brand sought to sustain its business leadership by increasing its market share in Indonesia’s donuts market. To achieve this objective, the brand needed to generate a 30 to 50 percent increase in transaction for its outlets.
With this objective, Dunkin’ Donuts Indonesia created a campaign called “The Push Coupon Campaign,” which sent a geo-targeted SMS to user’s mobile phone whenever they were around a Dunkin’ Donuts Indonesia outlet.
This approach attracted spontaneous buyers by sending targeted SMS using location-based advertising to consumers who walked within 300 meters of Dunkin’ Donuts Indonesia participating outlets.
The primary target of this campaign was mostly family members with a focus on parents. The campaign targeted financially stable adults aged 25 years or above. Indonesian parents, especially those who lived in big cities, were usually working moms and dads. It is almost a habit for the parent who works to bring home snacks for their children, as a gift. In Indonesia, it has become a culture to bring a present (usually food) if a person is visiting relatives or friends.
The creative strategy was built on reaching the intended consumers while they were around a specific outlet. Giving gifts (usually food) is common in Indonesia’s culture, and donuts were a perfect gift to give. Targeted mobile messaging to passersby suggested they purchase a box of donuts as a gift for loved ones.
The strategy and channel are right for the audience since the technology used in this particular campaign is very simple, which is SMS (text) and phone call, a feature that every mobile phone has. The audience didn’t need to download an app or pay for anything in order to receive this SMS, nor did they have to own a smartphone to redeem the promo.
Overall Campaign Execution:
Twenty-three Dunkin’ Donuts Indonesia outlets participated in the campaign, from May 1st to 15th in 2015.
According to redwing-asia.com, Indonesia has more than 278 million mobile subscribers, 125 million of which are daily internet users. However, only 15 percent of the mobile users are using smartphones. This was the reason why the use of a simple technology proved effective.
The most strength of this strategy – aside from the amount of free donuts – was the effect that the target audience had after receiving a targeted SMS, which lead to impulse purchasing.
This was the first year of the “Push Coupon Campaign” with Dunkin’ Donuts Indonesia. Other efforts by Dunkin’ Donuts Indonesia never succeeded in producing more than 100 percent sales uplift. Although the brand commanded close to 50 percent share of the market, each of its retail outlet produced around 50 percent of its capacity.
The campaign generated an average sales uplift of 200 percent per outlet. The production line was also increasing, from 50 percent to more than 100 percent capacity.
The Push campaign also revealed the actual market size for Dunkin’ Donuts products in Indonesia, which was actually three times bigger than the consumer database they had. The flow of process in the campaign was very simple, yet effective. It gave the market a revolutionary and frictionless way of receiving and redeeming promotions.
The combination of SMS and phone call technology reinvented the way consumers connect with retail brands.