Don’t Worry About the Competition

by | Dec 26, 2016

This morning I drove by two donut shops right next to each other on the same side of the stret and all. One shop is a local, one location only, donut shop. The other one is a Dunkin Donuts so it’s a franchise which is technically locally owned but obviously part of a national chain.

Now, my first instinct would be to think what a mistake it is for the local shop to be right next to a Dunkin Donuts. They will never survive.However this particular morning the line at both was non-stop.

Since I personally don’t like Dunkin I decided to give the other one a try. I was very pleased that their donuts were fantastic, I could tell they had just been made a few hours earlier and a great recipe, great variety of flavors, reasonably priced.

So after trying them out I could better understand why this shop seems to be doing so well even though it has a major competitor right next to it. And the Dunkin seemed to be doing just fine, well because it’s a Dunkin, has a drivethrough and it’s a brand so many recognize.

The point is that in marketing things aren’t always logical.

Consumers don’t always behave in logical ways. And some times there are factors like high demand, traffic patterns, word of mouth and many more that can turn conventional marketing wisdom on it’s head.

In this case both shops sit on a road that is very busy, on their side of the road from 7am to about 10am (Cobb Parkway, for you locals). Since this was rush hour, there were two lanes packed with cars going 5mph. This gives potential consumers plenty of time to be exposed to these shops number one marketing strategy: their big bright signs!

So even though I had never been to this donut shop, because I was sitting in this traffic and my personal weakness for donuts, and it was super convenient to pull in since I was already right in front of them anyway, I caved. They got me. Big win for their marketing strategy.

Of course the second most importatn thing was that the donuts were delicious so I am sure to come back when in the area.

This is guerilla marketing at it’s finest.

So should this business owner be concerned that a Dunkin Donuts opened right next to him? Not a bit.

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