Client: Dunkin’ Donuts
Category: Restaurants, Fast Food, Grocery Stores
Agency: Telkomsel Digital Advertising
Dunkin’ Donuts Indonesia, a leading donut chain with more than 30 years’ experience and more than 270 outlets nationwide -- needed to increase its market share in order to prolong its domination of its market. The objective was to generate a 30-50 percent increase in transactions.
Dunkin’ Donuts Indonesia partnered with Telkomsel Digital Advertising, a unit of mobile phone network operator Telkomsel, to create an initiative called The Push Coupon Campaign. Telkomsel sent a targeted location-based ad via SMS to users’ mobile phones whenever they were near a Dunkin’ Donuts outlet. The ad offered each person targeted six donuts free for every six donuts purchased.
As part of the biggest telecommunication provider in Indonesia -- with more than 140 million subscribers -- Telkomsel Digital Advertising optimized this campaign by targeting subscribers using big data analysis. By doing this, only targeted and potential consumers received the SMS promotion, thus increasing the redemption rate.
The primary target of this campaign was parents, male or female, ages 25 years old and over and financially stable. Secondarily, the campaign also targeted others in that age bracket. Indonesian parents, especially those who live in big cities, usually both work. It is almost a habit for working parents to bring home snacks for their children as a gift. In Indonesia, it is also part of the culture to bring a present -- usually food – when visiting relatives or friends.
Telkomsel would send the targeted SMS containing the promotion whenever users were within 300 meters of a Dunkin’ Donuts Indonesia outlet.
The target consumer had to show the SMS to Dunkin’ Donuts Indonesia staff when they went to a nearby outlet. Outlet staff then would dial a secret number on the consumer's phone, and, once the SMS had been verified, the consumer would then receive a notification of redemption status. Next, the cashier would process the payment and hand over the donuts to the consumer. The offer could only be redeemed once.
The strategy and channel were right for the audience since the technology used in this particular campaign was very simple, consisting of an SMS and a phone call, things every mobile phone can do. According to redwing-asia.com, Indonesia has more than 278 million mobile subscribers; 125 million of which are daily internet users. Only 15 percent of mobile users have smartphones. The audience did not need to download an app or pay for anything in order to receive the SMS, nor did they have to own a hi-tech device or be Internet savvy. This is probably the reason why the use of such simple technology made a big impact with consumers.
Twenty-three Dunkin’ Donuts Indonesia outlets participated in this campaign, which ran from May 1-15, 2015. For every transaction completed, Telkomsel Digital Advertising received five cents. The campaign only ran in mobile advertising.
The campaign was very successful. During the period it ran, the campaign showed an average sales uplift of 200 percent per outlet, and the production line increased from 50 percent to more than 100 percent of capacity.