Charli Damelio is a very popular TikTok star with over 84 million followers. She is the most followed Tiktok star and has been trending recently due to her recent partnership with Dunkin Donuts. The two collaborated and have released the new drink "The Charli". This drink has now been featured on Charli Damelios page and has gotten massive attention from consumers. All across the country, Dunkin Donuts shops are getting completely sold out of not only their new Charli drink but coffee in general. There has been a huge spike in consumer demand since the collaboration and I predict it will have a huge impact on Dunkin donuts next quarter earnings. Travis Scott has recently collaborated with McDonalds and I'm sure it will have a similar effect, however McDonalds is a much bigger company so I don't think the effect will be as drastic but I could be wrong. What are your thoughts? Do you think this was a smart move by Dunkin Donuts? Do you believe Dunkin Donuts is being slept on by all of Wall Street? Dunkin Donuts (ticker symbol DNKN) is currently trading at just over $77 but I predict it could reach as high as $90 after earnings are announced...
https://www.delish.com/food-news/a33896138/dunkin-charli-damelio-drink/
I think it was extremely smart on Dunkin Donut's part because Charli is known for always drinking their coffee and she is an idol for many teens all over the world. This was a great marketing strategy to increase revenues for the company. I feel that they are already pretty well known, but it is great to hear that they are now being noticed for something other than their normal coffee. It is hard to tell how long this "trend" will last though because it is a fad.
ReplyDeleteI agree with Libby, that it was a smart move to partner with Charli in terms of marketing and increasing revenues. I also want to note, that Dunkin has plans to close close to 800 locations in the future, many of which were in gas stations, as a response to social distancing and shifting consumer trends. They have recognized that customers are adapting to ordering from their drive-thur and remote ordering. Therefore, even if Charli is a fad, the company is setting them self up to be successful in the future by paying attention to their customers.
ReplyDeleteI agree with both Libby and Hannah that this was a good move for them to make. I don't think that I've ever seen one of Charlie's videos but I still have heard of her and this new drink. This deal has drawn in new revenue for Dunkin as many of Charlie's fans want to experience this connection with her. The product is only available for a limited time which makes people want to get it while they can; however, it is not hard to alter a regular cold brew to recreate the drink once its gone. I think that this partnership can help bring in new customers and increase the frequency of current ones; but the hype surrounding the drink will eventually wear off.
ReplyDeleteI think that in the long run, this will not have a large impact on the industries. I think that quickly, consumer spending on these goods will return to normal. Both companies consistently create new advertising, but I do not think the impact on the economy will be much of anything.
ReplyDeleteI believe that fast food chains like this are desperately trying to reach out to the millenial / Gen Z market. McDonalds even confirmed so through leaked documents about the Travis Scott meal before it was announced. I think it is just a fad right now and most likely will not create lasting customers once their star power fades.
ReplyDeleteI definitely agree with Scott and Ethan. I think that a lot ads are targeting millennials /gen z because our interests, including health and what we are consuming, are far different than previous generations. Both of the companies' markets are large to begin with, so I think this will be a momentary spike in interest. Although there could potentially be a spike in interest, I feel that it is less likely to happen than in a growing industry.
ReplyDeleteI agree with Rachel on this being a temporary spike. Charli is very popular and a social influencer so people are following her and spending their money at Dunkin. Their sales could stay this high but I think that once the hype behind Tik Tok and Charli dies down, so will Dunkin's sales.
ReplyDeletei definitely think that once this fad dies down so will Dunkin's sales but i'm sure Dunkin is trying to find a way to retain some of the customers from this hype.
ReplyDeleteIt's interesting to see large-scale brands and companies collaborate with different celebrities to see which consumer group they want to target. Dunkin Donuts, however, has played the game very intelligently by partnering with Charli D'Amelio because of the sheer power her posts hold. By waving Dunkin to her 80m+ fans, they instantly drop their Starbucks drink and head to Dunkin to "find out what the hype is about". Similarly, as Gen Z / Millenials are large consumers of coffees, frapps, etc., it's a powerplay by Dunkin Donuts as their competitors are looking for new ways to drive back the masses.
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