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Scott

Levine, Callie Eidler, Daniel Schloss


E- Marketing MAR649
Pace Lubin School of Business
5/6/2013
someone@example.com

Dunkin Donuts

Executive Summary
The Dunkin Donuts mission statement is "To
become the dominant worldwide of high quality
doughnuts, compatible high quality bakery, fresh
snacks products and beverages.1 Over time, the
primary products of Dunkin Donuts has become coffee, beverages and of course donuts.
William Rosenberg founded Dunkin Donuts in 1950. The company began with 5
locations and now has reached 6,000 stores in 30 countries. It has also become the leader
in retail of coffee, donuts and bagels.2
Dunkin Donuts has enjoyed a steady increase in revenue since it became public in
July 2011. 3 The company states in its 10-K filing that its positioned to capture
additional coffee market share through an increased focus on coffee offerings.4
In the marketing realm, Dunkin Donuts plans to: increase social media presence,
increase mobile presence, expand westward, redesign unattractive stores, and increase
healthy options.

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Table of Contents
Executive Summary ....................................................................................................... 1
Mission, Qualitative Goals, Quantitative Objectives ..................................................... 3
CRM Objectives ............................................................................................................. 4
SMART Marketing Objectives ........................................................................................ 4
SWOT ............................................................................................................................ 5
Marketing Problems and Opportunities, including necessary research ....................... 6
Identification of Target Market/Market Segments for various CRM programs ............ 8
Marketing Action Plan to Drive Customer Equity Upward .......................................... 10
Integrated Marketing Communications ...................................................................... 10
Distribution/Fulfillment of Marketing Messages, Material and Incentives ................ 13
Customer Retention/CRM Plan as appropriate based on objectives .......................... 15
Technological Infrastructure and Data Requirements ................................................ 17
Evaluation Metrics ...................................................................................................... 20
Budget required to implement this plan ..................................................................... 22
Implementation Timetable ......................................................................................... 23
Bibliography ................................................................................................................ 24

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Mission, Qualitative Goals, Quantitative Objectives


Now that Dunkin Donuts has solidified their presence in
the Northeastern portion of the United States they have set
aggressive goals to expand outward from their core market to
the West, Southwest and Midwest over the next three years.
To reach this goal Dunkin has made it their mission is to
Ensure continuity of supply of high quality food, beverage
& equipment, while improving franchisee profitability to
enable Westward expansion.5 To benchmark their progress
a number of qualitative and well as quantitative goals and objects have been set to keep
their strategy on track.
From a qualitative aspect Dunkin Donuts largest goal is to begin contiguous U.S.
Store expansion to develop a national footprint. In order to reach this goal they will be
focusing on three key areas: Franchisee Relationships, Operations and Franchisee
Profitability. By focusing on these factors Dunkin Donuts will be able to select the right
franchisees to grow the Dunkin Brand while developing a people and guest first culture
that will enhance the overall customer experience. Their internet marketing strategy
described in later paragraphs will lead the marketing charge into new these new markets
to create buzz around the opening of these stores. A number of communities and some
big-name celebrities have already made pleas to Dunkin Donuts to expand throughout the
country to give them their favorite coffee fix.
From a quantitative aspect they have set aggressive expansion goals to meet by 2015.
At the end of 2011 Dunkin Donuts had roughly 7,000 locations, mainly concentrated in
the New England area. In their expansion plans they have set the expectation to have

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over 15,000 locations across the United States by the year 2015. To achieve this they are
actively seeking franchisees to open Dunkin Donuts restaurants to keep this goal on
track.

CRM Objectives

Acquire customers in a growing market (mostly expanding westward in the


United States)
Expand social media presence
Gain greater market share in the coffee industry
Give customers ease of use with mobile apps and rewards program thus gaining
increased customer loyalty
Provide healthier alternatives to capitalize on the health food craze (thus expand
menu options)
Create more attractive stores to help entice customers to come to Dunkin Donuts

SMART Marketing Objectives

Specific
o Gain more franchises, increasing presence throughout the world
o Incorporate social media presence and mobile prevalence
o Increase healthy food options (thus expanding target markets)
o Re-design unattractive locations
o Localize menus for regional tastes

Measurable
o Amount of franchise
o Social media hits (re-tweets and Facebook likes), website hits and mobile
downloads
Physical DD card usage
Online store purchases
Email registrations
o Purchased food items (which items purchased and how often)
o Re-designed locations
o Customer satisfaction (in forms of surveys, etc.)

Achievable
o All above goals listed are realistic for Dunkin Donuts
The size of Dunkin Donuts and the number of employees that are
employed, allows the company to take on multiple objectives at once

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Realistic
o Dunkin Donuts has the capital and resources to achieve all goals

Time Frame
o Various objectives have varying time frames
Healthy food options and localizing menus have the most immediate and
realistic potential implementations
Re-designing unattractive locations is a long but calculable time table
Gaining more franchises, social media presence, mobile improvements
and improvements in market share is an ongoing and endless endeavor

SWOT

Strengths

Customer loyalty
Strong Brand Recogni]on
Dunkin Donuts has a long standing
reputa]on for brewing high quality coee
products
Sports gures as promoters and franchisees
Strong local marke]ng to connect with
local customers and drive sales (Red Sox,
Cowboys, Milwaukee Brewers, Uconn,
Patriots) Use partnerships with major to
provide dieren]ated messages to select
markets.
Na]onal marke]ng

Opportuni]es
Variety of tea
losing much business to Starbucks since
they hold tea varie]es
expansion to other markets
beginning westward expansion and in few
countries, but other coee companies are
moving faster
on the go dinner/snacks
Starbucks like bistro boxes
variety of containers
own machine
Starbucks has verissimo
healthier food alterna]ves

Weaknesses

Low market penetra]on outside of the
northeast core region
Lack of varie]es
Lack of healthy food alterna]ves
Many stores seem outdated

Threats
The growing health food industry, people are
trying to stay away from high calorie and high
sugar foods.
Companies in direct compe]]on such as
Starbucks, Tim Horton's and Krispy Kreme sell
similar items. This could cause customers to
want to buy their products from these
compe]tors rather than Dunkin Donuts.
The threat of subs]tu]on, many people may
decide they rather brew their own coee at
home rather than go to Dunkin Donuts. Also
many of Dunkin Donuts compe]tors sell things
like tea and other low calorie items that DD
does not have, thus people may switch to
those items/convenience rather than what DD
oers.


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Marketing Problems and Opportunities, including necessary research

As the competition in the coffee market continues to become increasing fierce,


Dunkin Donuts has had to spend some time to reassess what their brand stands for and
how their customers perceive them in the marketplace.
In order to get a better idea who their core customer base is, Dunkin Donuts has
conducted a series of market research studies to find out directly from its customers what
the essence of the brand is. Based on the results of numerous focus groups and
customer surveys, Dunkin Donuts consumer insight team compiled a list of attributes
that apply to the DDs brand and its customers. The results of study (shown below)
provided Dunkin Donuts with some of the insight they needed to prepare themselves for
a marketing overhaul to better align themselves with their current customer base figure
out ways to expend into new markets.
Dunkin Donuts Brand Attributes:
Not driven by status
Simple and no-frills
Down to earth
Regular average people
Love routines
Efficient
Non-judgmental
Proud to have things to do and places to go
Don't worry about fitting in

Based on the customer feedback Dunkin Donuts has also been able to determine that
the company was perceived to have a blue collar soul.6 This discovery spurred the
creation tagline America Runs on Dunkin which they felt embodied the spirit of their
core customer group who are focused on getting up and running every day to get the job
done.

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These focus groups also revealed some of the issues in Dunkin Donuts current
marketing program and revealed how they could turn these flaws into opportunities. One
of the largest issues that Dunkin Donuts faces is that many people perceive the Dunkin
Donuts food products as unhealthy. As more and more importance is being placed on
eating right and maintaining a healthy lifestyle this could become a larger issue for DDs
if not addressed. Because of this Dunkin Donuts has created the DDsmart menu to enter
into the health and wellness space. This menu currently has 12 items all under 300
calories and although this menu is not expected to be a large seller, it allows Dunkins
Donuts to show they have healthy alternatives for the health conscientious buyer.
Jon Luther, the Executive Chairman of Dunkin Brands has been the driving force behind
the research referenced above as well as the brands revitalization efforts since joining
Dunkin Brands in 2003. Luther was quickly able to recognize that the Dunkin Donuts
customer experience also needed to be enhanced as the stores and the brand were
beginning to look outdated. As such Dunkin Donuts marketing efforts moving forward
will need to focus both on updating the brand as well as capitalizing on the opportunities
to gain more market share.
To accomplish the objectives, Dunkin Donuts is currently in the process of
experimenting with a number of designs to update the look and feel of their stores; in
addition they are updating their social media marketing presence and mobile capabilities
update their marketing strategies to also reflect their new up-to-date feel.
Simultaneous to these revitalization efforts, Dunkin Donuts is making a push to expand
their U.S. presence westward. The graphic below provides visual representation the
large growth opportunities outside of the Dunkin Donuts core Northeastern markets.

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The marketing efforts involved in the Dunkin Donuts revitalization and expansion
efforts will we outline in greater detail throughout this report.

Identification of Target Market/Market Segments for various CRM


programs
Dunkin Donuts has ironically become better known as a coffee company than a
doughnut company. While this may seem odd, it is partially because of the gigantic
target market provided in the world of coffee. Over half of Americans over the age of
18 drink coffee everyday.7 After oil, coffee is the second most valuable commodity
in the world.8
This also ties in greatly with other Dunkin Donuts breakfast menu items (English
muffins, bagels, etc.). This is because of these coffee drinkers 65% of them drink coffee
during breakfast hours. 9
Dunkin Donuts focuses on simpler coffee drinks than specialty ones offered by other
companies primarily (such as Starbucks). This may be a wise idea since 100 million
Americans are coffee drinkers, but only 30 million drink specialty coffees. 10 In fact 28%
of Americans go to lower-price outlets (McDonalds, Dunkin Donuts, etc.)11 for their
coffee needs.
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This focus on coffee is not to say that Dunkin Donuts should not be focusing on donut
sales. Americans eat close to 10 billion donuts every year. Thats an average of 35
donuts per person.12
Dunkin Donuts does not pretend to be a premium coffee chain. Instead they are a
working class chain. Their main target market, which is adults from 25-55 years of age,
working class, all races and all genders.13 Their products are also very affordable
which grabs so many consumers.14
The niche Dunkin Donuts branded themselves as, as a place to stop in and get your
coffee, donut, etc. boost inspired the slogan: America Runs on Dunkin. College
students are also notoriously on the run to class and wherever else they may be
heading. Thus Dunkin Donuts has begun targeting colleges and opening locations on
campuses. It has stores on campuses such as Emory University, Boston University and
New York University and has plans to open at more universities.15
In 2003 Dunkin Donuts introduced the Dunkin Donuts card. The gift card has
experienced double-digit percentage sales increases and has evolved to be a multichannel
experience for the cardholder, encompassing e-mail, online and in-store interactions.#
With this card Dunkin Donuts has encouraged reloading. David Tryder (Dunkin
Donuts manager of interactive and relationship marketing) said regarding reloading:
We have customers coming in multiple times a week, which makes us different from
most other gift card issuers. So reloads are an important piece of the program, and we put
a lot of emphasis on it throughout the year.16
Besides the convenience of continually having the Dunkin Donuts card on your cell
phone or in physical warm with a customer 24/7, it has the benefit of giving various
rewards in the form of promotions year-wide (which they are notified of via

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email). Auto-recharge is also an opportunity for Dunkin Donuts to gain easily


dependable money, as well offer customers the ease of not thinking about refilling the
card.
Tryder said:
We have customers coming to us, in many cases, every single day for their morning
coffee. ... And the card is a great vehicle. It has branding on it, so you've basically got
Dunkin' in your pocket for your everyday purchasing. ... That dynamic isn't necessarily
true for all of the different gift card issuers that are out there; which I think, therefore,
gives us the opportunity to have that relationship-building aspect [and] be a little bit
richer, a little bit deeper. We can get a little bit more creative, from a marketing
perspective, about the way that we attack it and use it as a relationship--building tool.17

Marketing Action Plan to Drive Customer Equity Upward


Integrated Marketing Communications


Dunkin Donuts, like many other brands, uses multi-channel marketing to help
maintain a form of retention among its customers. The company relies on both traditional
and online media channels to reach its customers and daily. Some traditional marketing
channels that the company continues to use are television advertisements, newspapers
and billboards but they have expanded to using online media channels such as their
website, Facebook, Twitter mobile apps and email.
The first channel of marketing that Dunkin Donuts uses is television advertisements.
These advertisements are seen daily by consumers and many can be seen during specific
holidays (Christmas, Valentines Day, St. Patricks Day, etc). During these holidays,
many new products are unveiled to entice customers to come to the store and try them.
Television advertisements have also been used recently to advertise the companys new
breakfast options, as the slogan says America Runs on Dunkin, people who are going

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to work and are in a rush are interested in seeing meal options that are appropriate for
their mornings besides donuts and other sweets options.
The second channel of marketing that Dunkin Donuts uses is newspapers. The
companys advertisements can be found in local newspapers usually accompanied by
coupons for various drinks and food products. This use of traditional advertising shows
how important it is to not throw out old channels though there are many new channels
that can be used. Using newspapers advertisements is a great way to reach all different
types of target market customers/non-customers in all states and cities. The incentive of
giving coupons is also enticing for those who have never tried Dunkin Donuts products
to come and try them. It is the companys hope that this will as a result make this people
returning customers.
The third channel of marketing that Dunkin Donuts uses is billboards. Billboards are
a great way in reaching customers while on the road in their cars and even just walking
around in big cities. Most recently, Dunkin Donuts premiered a digital billboard in Times
Square in New York City which features 1.6 million LED lights and weighs 14 tons.#
According to John Costello, chief global marketing and innovation officer for Dunkin
Brands Inc., the billboard gives us the opportunity to communicate with guest in the
New York area (a huge market for us) and the millions of travelers and tourists who
visit. By premiering this billboard and using billboards across the world, Dunkin
Donuts is segmenting themselves in a different way than other companies of the same
nature are doing.
Dunkin Donuts also has evolved to using online marketing channels in the hopes of
retaining more customers. The first channel it uses is its website. The website mainly

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allows for visitors and customers to see what types of products the company sells but it
also has links to buying a registering a Dunkin Donuts DD Card and getting Dunkin
UpDDates The DD card allows customers to pay for their drinks on the card and they
can even buy one as a gift for a friends. First time visitors and customers can also sign up
for the Dunkin UpDDatess , which would keep them up to date on current promotions,
offers and news. When you first sign-up for these updates, one can receive a free medium
beverage of choice and again on their birthday. This is a very enticing customer retention
strategy for those who like Dunkin Donuts products.
Dunkin Donuts has also made use of social media tools such as Facebook and
Twitter in their goal of retaining customers. The company has its own social media team
that works to provide engaging content and media in order to promote a two way
dialogue between the brand and its passionate fans.18 The company also uses social
media tools such as Google+, Instagram, YouTube and Pinterest. Facebook and Twitter
have been its core social media tools that it has used to reach customers. Facebook,
Dunkin Donuts has over 8.5 million fans and on Twitter they have over 150,000
followers. On these sites they have launched many successful campaigns such as
promotions and sweepstakes. One campaign launched in 2012 was the What Are You
Drinkin? campaign. This allowed fans to visit the Facebook application every day and
say what, why, where and when they are drinking at Dunkin Donuts. Once these answers
were submitted, they became shareable and people could respond to them. In addition,
one fan would be selected each day to win a $100 Dunkin Donuts card and a customized
mug with the persons What Are You Drinkin? response on it. Each response was then
in the running for a grand prize of that persons picture on the new digital Times Square

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Billboard, a weekend in New York City with three friends and free Dunkin Donuts
coffee for a year.19
Dunkin Donuts has also tapped in to the world of mobile applications. As mentioned
previously, Dunkin Donuts has its own DD card that can be used to purchase products
but this card can also be used on ones phone through Dunkin Donuts application.
Dunkin Donuts believes this is a great step for the since they are an on-the-go brand.20
According to their director of interactive and relationship marketing, David Tryder.
Dunkin Donuts has also launched mobile applications to allow customers to be able to
check-in at Dunkin Donuts and for that customer to ask their colleagues and friends if
they want anything while that person is at the store. A digital order then can then be made
and shown to the cashier.21
Lastly, Dunkin Donuts relies heavily on email to reach their customers. By using this
channel, the company is able to go into its database (after a person has signed up for a
card or other information) and send an email to them that is customized to what is
important in the local market at that particular time.22 Just by signing up Dunkin
Donuts is able to offer new and existing customers access to promotions, coupons, and
prizes by email all the time.

Distribution/Fulfillment of Marketing Messages, Material and Incentives


On the internet, Dunkin Donuts is striving to make itself stand out among its
competition by being loyal to its customer following, offering incentives to keep its
customers coming back and by being able to maintain constant communication as to its
newest endeavors.

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As previously mentioned, the internet has been a main driving force in Dunkin
Donuts being able to communicate with its customers. Tools such as social media, email
and their website have been the most used in maintaining the constant contact necessary.
With its avid Twitter and Facebook following, customers are able to receive daily updates
from the company about new products, sweepstakes, promotions and incentive offers. For
example, when Dunkin Donuts re-launched its some of its Coolata iced beverage
flavors, the company asked its customers through Facebook to take a picture of
themselves with the Coolata and post it on the page. Each week a prize was given for the
best photo. Dunkin Donuts especially likes social media because it is very cost
#

effective to them and allows for two way communication between themselves and the
customers. With this type of communication in place, customers understand that the
company takes its business seriously and will be open to sharing their thoughts with
them. Dunkin Donuts is constantly trying to find new ways to stand out on the internet
and is continuing to explore how it can enhance its online presence.
In terms of customers being able to share its thoughts, on its Facebook page, the
company uses forums as a way to ask its customers to test new products and then give
feedback on them. Dunkin Donuts did this when it launched it DD Smart product line.
Brand managers and those on the culinary team were then able to answer questions.
Dunkin Donuts has also been using email as a source of distributing its messages. By
using this form of communication, the company is able to communicate quickly with its
customers on a daily basis and in a more personalized manor. The emails are designed for
that specific person, giving detailed information and offers that are tailored to that
persons specific purchase history when using their Dunkin Donuts card. Offers are also
sent when new products come out as well as when its the persons birthday.
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Lastly, Dunkin Donuts uses its website to communicate its messages and incentives.
The website offers information specifically on the products it serves, where it is located
across the world, what a DD Card is, what it offers in their online shopping section, and a
place to sign up for Dunkin UpDDate. With all this information written clearly and
looking aesthetically pleasing on the page, customers will have an easier time finding the
information they desire and thus convince them to come to the store, sign-up for even
more information, buy a DD card and purchase from the shopping section.

Customer Retention/CRM Plan as appropriate based on objectives


Quality and Customer Service as required to execute this plan


In order to be successful in their marketing action plan Dunkin Donuts must remain
focused on improving the guest experience to maintain the loyalty they have achieved
over the years.

As previously outlined, Dunkin Donuts has begun to implement a

marketing plan with a heavy focus on online and mobile media to keep up with the
behavior and preferences of their evolving customer base. As an added benefit to this
marketing method, Dunkins online media sites have also become a platform for
improving customer service. From the beginning Dunkin Donuts made a strategic
decision that their online presence should be more fan centric than sales centric.23 The
idea behind this decision was to obtain new customers on a referral basis rather than by
selling to them. As a result of this strategy Dunkin Donuts has one of the most engaging
social media presences in the coffee market, remaining in direct communication with
their customers as much as possible.

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Dunkin Donuts Twitter account (@DunkinDonuts) is vigilant in keeping any eye out for
complaints and has the ability to react to them almost immediately. One customer
posted his Dunkin Donuts Twitter experience in an online forum:
@DunkinDonuts was amazing in their ability to react to my tweet earlier this year.
Despite ordering a coffee with milk and no sugar, my coffee had a ton of sugar in it.
Within 45 seconds of tweeting, I was DM'd by DD and they then called me and
apologized and offered to conference in the store manager. They sent me a $10 gift card
for my trouble. I've told the positive story to hundreds of people24
This is a prime example how a customer centric approach has proved to be a successful
tactic is not only increasing customer loyalty but also promoting the brand potential new
customers. Online actions like these have helped maintain Dunkin Donuts ranking as the
number one brand for customer loyalty in the coffee category for five years running.
In addition to Dunkin Donuts strong online customer service presence they are also
striving to increase their in-store customer service. A company by the name of Netbase
social analytics assists Dunkin by monitoring online postings to reveal customer
sentiment. Based on these social analytics Dunkin was able to determine that what
products people were enjoying and monitor areas where there seemed to be inconsistency
in the quality of their service or food beverage. With this information Dunkin Donuts has
been able to gather specific information on why a customer liked a product or not and
pinpoint particular instances when a customer received poor customer service. This
provided Dunkin Donuts with important details that would not be available through
customer service surveys alone. Because of this wealth of information Dunkin has been
able to quickly adapt to sales trends and respond poor service experience. As a result of
this Dunkin Donuts reported a 20% improvement in overall satisfaction scores over the
past 2 years.25

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Technological Infrastructure and Data Requirements


When operating a corporation the size of Dunkin Donuts, there is obviously a great
amount of technology and data required to make the company run. As Dunkin Donuts
expands with their current marketing exploits, they will need to add to their infrastructure
and data.
Part of their direction in marketing is creating a great relationship with their
franchises and expanding franchises quickly. Nigel Travis said, we are moving from
selling franchises to supporting franchisees throughout their lives.26 To help with the
expansion of successful franchises Dunkin Donuts has created new software. It allows
the managers and salespeople to realize problem areas for franchise selling and helps
them target these areas and realize new ways to close deals. Dan Sheehan, CIO of
Dunkin Donuts, compared the system to a CRM application with a scorecard built on
top.27 He said: When you look at the a.m. market, we've been a leader in the Northeast.
Now we'll take that leadership and go across the country and the world.
Dunkin holds a great amount of business analysts. In fact they hold more than the
amount of technologists they hold in their intelligence team. They use technologies such
as data warehousing to help Dunkin' Brands and its franchisees better understand sales
trends and identify new opportunities.28
Creating a mobile app, which allows ease of payment is clearly a great part of
Dunkins technological infrastructure. Since apps are clearly important for customers
and promote ease of use, they are very important to move quickly in. However, Dunkin

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has been a bit slow in this market. Synchronization with Apples Passbook occurred in
February 2013 for Dunkin Donuts, when it occurred in October of 2012 for Starbucks.29
One of the important things for Dunkin Donuts is having a quality product. Clearly
distribution is important. To ensure quality they have multiple distribution centers.
Each regional center is an independently owned nonprofit corporation.30 They account
for all weather conditions. They have a specialized transportation management system
(TMS) from Appian Logistics Software, Oklahoma City,31 which uses ResourcePRO.
This works in conjunction with various software programs including TerritoryPRO and
Appians Direct Route.
As with any company, their website and social media platforms are important for
Dunkin Donuts. They have a blog, which features various items such as recipes using
Dunkin Donuts items on the website. Their social media is kept very active. There is
also a dashboard showing their latest tweets, Facebook posts and YouTube videos on the
homepage of the Dunkin website.
The design of a store is very important and Dunkin is starting to realize its
importance. They are now offering a variety of store designs and non-traditional stores.
Creating the layout for multiple store designs, which are enticing for customers is
important and requires great data research and analytic/architectural minds.
There are various ways Dunkin gains customer intelligence, which makes much of
decisions listed above (such as new store designs). One such way is by creating surveys
on the bottom of receipts, which customers can take and copy the number of in exchange
for one free donut with the purchase of a medium or larger beverage.32

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Another way of gaining customer intelligence is by giving their most loyal


customers VIP status at dunkinvip.com. They are dubbed the Dunkin advisory panel,
which provide candid opinions on a variety of topics related to Dunkin' Donuts. As a
member of the panel, you will receive invitations to participate in on-line surveys and
discussion groups.33 As a reward, the VIPs are the first to see new advertising
campaigns, learn about new products, and receive valuable rewards like Dunkin' Donuts
Gift Cards.34
Here is a diagram of the technical infrastructure:

Here is a diagram of the data required as well:

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Evaluation Metrics

Once Dunkin Donuts has figured out what the data they are acquiring is and how to

acquire it, the organization then must be able to measure the data. Metrics rely on
numbers to evaluate or assess business success.35 With the many online platforms that
Dunkin Donuts uses such as their website and social media outlets, there are many
different metrics that it can use to obtain valuable data for its business. Some of the
metrics that the Dunkin Donuts chooses to evaluate are its website activity (which
includes traffic, audience and campaign data), social media activity and mobile activity.
In terms of website activity, Dunkin Donuts uses the data it collects about its traffic,
audience and campaigns to ultimately improve and manage its website. Dunkin Donuts
uses the traffic data to understand metrics regarding the types of visitors it obtains, those
visitors who are signing up for newsletters and DD cards, the length of page sessions and
views and what information is most sought. Some key traffic metrics that are measured in
helping to evaluate the website are hits, page views, sessions, and click-throughs.
Audience data relates to a persons behavior while they are on the website, such as
how one gets to the site and what actions they take while there. Some of the key audience
metrics measured are total number of people who visit the site, unidentified or identified
users (a new visitor or registered supporter), and behavior on the website. The audience
data evaluates the demographics and behaviors of the visitors rather than traffic data
which focus more generally on the website activity.36
Campaign data refers to the effectiveness of marketing efforts37 though
communication channels, offers or search. The results of these efforts can be measured
through the number of page views, sales and the number of visitors. This type of data is
best measured during specific periods of time such as over an hour, day or week. Once

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this has been set such as the number of visitors per day, number of page views a month,
and average visitor session length can be measured.
Dunkin Donuts also evaluates its social media metrics. Social media metrics are
quite new when it comes to the techniques to analyze them and they are highly favorable
in that they are not costly and the information is readily available. The use of social
media tools such as Twitter, Facebook and YouTube allows for analysis of clickthroughs, time spent on the page, video views, number fans or followers, etc. Among the
various social analytics and monitoring tools that Dunkin Donuts uses, three platforms
its uses are Buddy Media, Radian6 and Co-Tweet.38
Buddy Media is a platform that empowers chief marketing officers and agencies
to organize their teams and optimize their social media marketing programs. With this
platform, Dunkin Donuts is able to publish content, improve their social advertising and
measure the effectiveness of their social media programs.39 In return, the company is
able to effectively understand what content engages its visitors and customers most, test
out strategies they have been coming up with and see which campaign are giving them
the greatest return on investment.40
Radian6 is a social media monitoring tool, which aids companies in engaging
actively with its customers through social media monitoring platforms.41 With this tool,
Dunkin Donuts is able to analyze conversations on the web from blogs to twitter
accounts. These comments are then seen as scalable to the organization in that they allow
the comments to be within the business to areas such as marketing, customer service, etc.
Co-Tweet is used in conjunction with a companys Twitter account. This tool,
allows multiple people to communicate through corporate Twitter accounts and stay in
sync while doing so.42 With this tool, Dunkin Donuts is able to collaborate with people

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Dunkin Donuts

in the company, work collectively with other departments, assign tasks and follow-up,
focus on the important conversations that occur on the account, track exchanges and
make updates.
Lastly, Dunkin Donuts uses mobile metrics to help evaluate its business strategy.
Dunkin Donuts uses its mobile metrics to evaluate who is using their mobile application,
how many people use application regularly, how often does it have problems that need to
be worked out, what type of people use the application, what do people purchase most
while using the mobile, etc.

Budget required to implement this plan


The budget required for Dunkin Donuts will clearly be extraordinary. The plan to
move westward includes new brick and mortar locations, which although being
franchised is as always, extremely costly.
For instance, Dunkin Donuts will still need to gain new distribution plants in the
areas. This requires great amounts of capital (even if they are just contracting out the
plants). The price of these plants will obviously need to be determined via contract
negotiations and rent prices depending on the area so to give a dollar amount is nearly
impossible. This is however the cheapest way to expand for them westward. Privately
owned companies would not be feasible.
The amount of people in the IT department and working on marketing for
Dunkin obviously costs a decent amount of revenue. Revamping store designs and
furniture quickly adds up. Analysts, designers, etc. al add to the necessary budget as
well.

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Dunkin Donuts

23

Dunkin is no stranger to spending great amounts on advertising and marketing.


In 2009 Dunkin began a $100 million marketing campaign. 43This was the beginning of
a signification of Dunkin being willing and able to spend more money on marketing.
When their new CEO arrived in 2009 marketing spending rose 5%.44
This marketing budget tends to always pay off for Dunkin. The chief of global
marketing for Dunkin (John Costello) believes that ROI should come first and ROI has
always been positive for Dunkin in recent history.45

Implementation Timetable
Dunkin Donuts has set the ambitious goal to expand to the West coast by 2015.
In order to achieve this goal the following implementation timetable will be followed:


2012

7,000 Stores
Core Markets in Northeast
Merge regional co-ops into na]onal disrub]on and prodcurement coopera]ve
Begin to implement "Flat Pricing" with 6 month increments
Establish cross- fuc]onal Marke]ng plan

2013

2014

Eec]ve Na]onal Marke]ng Programs


Fill in loca]ons in "Core" & "Established" Markets
Establish Distrubion Networks Moving Westward
Develop na]onal & regional lender rea]onships

Implement Local Marke]ng Eorts


Rigrous franchisee selec]on
Begin Selling Franchise Loca]ons in "Emerging & "West" Markets.
Arkansas, Loisiana, Iowa, Denver

2015

15,000+ Stores
Na]onal Presence
Flat Na]onwide Pricing
Realize supply chain eciencies to reducte cost of goods sold

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