Dunkin' Donuts Taps Digitas for Loyalty Marketing

Publicis Groupe Agency Hired After Launch of Chain's First National Loyalty Program

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The Boston office of Publicis Groupe 's Digitas has been hired by Dunkin' Donuts to handle loyalty marketing.

The moves follows the launch by Dunkin' in April of its first national loyalty program, DD Perks Rewards. Dunkin's creative and media agency of record is Interpublic's Hill Holliday, and its digital agency is WPP's Studiocom. Digitas is expected to work on customer relationship management, contact strategy and digital.

Said Dave Tryder, director of interactive and relationship marketing, in a statement to Ad Age : "Dunkin' Donuts is partnering with Digitas to work on a project focused on the development of an enhanced loyalty strategy. Dunkin' Donuts is a daily ritual for many of our guests and we're dedicated to offering them a program that celebrates and rewards their passion for the brand."

Digitas' other loyalty marketing clients include American Express and Delta. In August, Digitas picked up creative and media duties for Equifax's consumer business and, in May, the agency picked up the digital account for Chili's.

Dunkin' Brands, which is the parent company of Dunkin' Donuts and Baskin-Robbins, went public in July. In the third quarter, its first full quarter as a public company, Dunkin' posted a 6% increase in U.S. same-store sales for Dunkin' Donuts, up from a 2.7% increase in the same quarter the prior year. Baskin-Robbins posted a 1.7% increase in same-store sales, up from a 5.8% decline for the same quarter in 2010.

Despite the increased sales, Dunkin Brands has been trimming its ad budget. In 2010, it spent about $121 million in measured media in the U.S., down almost 9% from the prior year, according to Kantar. About $6 million of that figure was devoted to Baskin Robbins. The company spent about $57.8 million on measured media in the first six months of 2011.

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