• by Nina Lentini  @Nina_Lentini, April 11, 2008

On the heels of rival Starbucks' free coffee offer, Dunkin' Donuts will offer a free donut with any coffee purchase on Tuesday as a way to lessen the burden of Tax Day. And one month later, on May 15, Dunkin' will give away free iced coffees.

Frances Allen, brand marketing officer at Canton, Mass.-based Dunkin' Donuts, says the Tax Day promotion is one way the company is rewarding its loyal customers--particularly during an economic recession. Another way is through the company's frequent buyer card program, which is seeing an uptick in redemption.

"We're seeing a lot of inquiries about our frequency card programs and in registration for our perks program," says Allen. "We're having fun with our customers and with our Dunkin' Deals. We're just trying to help our tribe's dollars go a bit further."

The company is weathering the economic downturn because it offers something that many consumers still want to buy, she says: morning coffee. "We've consistently offered a great cup of coffee that is part of a daily ritual at an affordable price," she says.

Comparing Dunkin' to rival Starbucks, Allen says there is a "value equation between the two main coffeehouses and certainly in drip coffee--we sell more than the other even though they are national." And she cited the company's reputation for appealing to the common person as another reason for Dunkin' Donuts' ability to grow.