Through the Eyes of Nick Apostaleres and Chad Maali
Probably one of the more successful co-branding stories in the United States, Dunkin’ Donuts and Baskin Robins, is a match made in heaven – especially when we consider the direct combination of products: ice cream flavored coffee. Some difficulty was met, however, when the two separate operations were placed in the same physical location without the integration of workforce and services. Nick and Chad share some of their experiences with the co-branding of Dunkin Donuts and Baskin Robins.
Nick Apostaleres – Dunkin Donuts & Baskin Robins
When Nick was only a teenager, his family made a huge move from New Jersey down to the Tampa, Florida area. His parent’s dream was to start a Dunkin’ shop that would serve more than forty thousand customers in the surrounding area. Unfortunately, Nick’s father was diagnosed with cancer soon after starting the business and passed away shortly thereafter.
Nick’s mother didn’t give up, though. With the help of her son and their amazing resilience, the Apostaleres family saw the business through an incredibly difficult time, somehow still managing to expand their reach into the state of Florida. Under Nick’s management, the Florida chain grew to fourteen, strong stores, many of which included the Baskin Robins brand.
Co-Branding Dunkin Donuts and Baskin Robins Makes Sense
According to Nick, it simply “made sense” for the two brands to share space in a building; the difficult part, however, was getting the two to incorporate seamlessly with each other. As Nick discovered, it’s more often the location and demographics that determine whether or not a physical co-brand will be fruitful.
Each brand had a general and regional manager, and it was of the utmost importance that they work together in the co-branded locations. This was sometimes a hit or miss, depending on the staff reacted and how easily it was for customers to accept the new combination. Communication is one of the most important things to focus on if you want to have a successful co-branding experience.
Chad Maali – Dunkin’ Donuts, Baskin Robins and Togo’s
Just picture this combination – it’s the ultimate, one-stop dream for consumers on the go: sandwiches, coffee, and ice cream all in one shop. It’s quite common in co-branding for marketing to come up with an idea that seems brilliant upon conception but turns out impossible in practice. This brand combination was no exception.
Demographics
With the three brands mentioned, this theoretical brand would be serving 1) morning commuters, 2) the lunch customer, and 3) the soccer moms, birthday kids, and general housing developments. Most day-parts would be covered, and all of the items seem to flow together. Upon further inspection, however, one notices that the site location for such a shop is very difficult to find.
While your morning commuters and office lunch break customers will likely want something in the heart of the commercial district, the ice cream consumers won’t want to drive quite so far for a quick sugar fix. As Chad discovered, the real estate side to this co-branding coin had needs that were nearly impossible to satisfy. In fact, he went so far as to say that a site satisfactory for a “trombo” was an elusive “unicorn”!
The Take-Away
Co-branding is a process that will take a good amount of time – if you want to do it right. It’s best to do in-depth demographic analyses so that you know whether or not the population can even support the combination you’re looking to achieve! Unfortunately, physical businesses are not a standard case of “build it and they will come”; you have to build what people already want.
Chad Maali also mentioned that, when planning a co-brand, one should not ask “can we”, but rather “should we”. He says that forcing a co-brand “should not be done to accommodate senior-level bonus checks to meet development goals”. One should be considering the long-term goals of any co-branding operation. After all, a failed co-brand not only affects your bottom line as a business director but also the lives of the employees of a new shop that opens up and is forced to close.
Is Complimentary Branding Right For You
To learn more about finding the right combination of brands and how to properly implement them, check out this previous post or leave me a message on our Contact page. If you’d like to discuss the opportunity to co-brand with Topper’s Craft Creamery, feel free to give me a call.