Dunkin Donuts

Dunkin’ Donuts is the world’s largest coffee and backed goods chain, serving more than 3
million customers per day. It was founded in 1950 by Bill Rosenberg. The first Dunkin’ Donuts
shop was opened in Quincy, Massachusetts, USA. In 1955 first Dunkin’ Donuts franchise was
sold and ten years later (i.e. 1965) the first international branch was opened in Canada.

At the end of 2008, Dunkin’ Donuts had a total of 8835 franchised restaurants including 2440
international shops in 31 countries. Dunkin’ Donuts has sales of over 4 million donuts a day and
it had sales of 5.5 billion US dollars in the fiscal year 2008. Its international head office is
located in Canton, Massachusetts.

In 1998, First branch of Dunkin’ Donuts was opened in Karachi. In January 2004, Dunkin’
Donuts opened its branch in Faisalabad and it closed down in April 2005.

The Closure of Dunkin’ Donuts Faisalabad Branch could have been due to one or more
following reasons:

 Bad service
 Unhygienic conditions
 Expensive
 Low food quality
 Environment was not suitable
 Bad location
 Failed to develop taste of people

Mission Statement

Dunkin’s mission statement is

To be the leading provider of the wide range of baked foods & beverages
Vision Statement

Dunkin’s vision statement is

“To be always the desired place for great coffee beverages and delicious complementary
doughnuts & bakery products to enjoy with family and friends.

Competitors:

 Starbucks
 McDonald’s
 KFC
 Subway
 Pizza Hut
 Domino’s pizza
 Burger king

Segmentation, targeting, positioning in the Marketing strategy of Dunkin donuts

Dunkin doughnuts use geographic segmentation strategies to cater to the needs of the
consumers in 40+ countries worldwide.

It uses undifferentiated targeting strategy so as to make the same menu available globally
irrespective of the geographic boundaries.

Dunkin donuts have positioned itself based on the kind of product it has in its product portfolio.

SWOT analysis of Dunkin Donuts

Strengths:

A strong niche: Fast food is a competitive segment in retail. But even in fast food, Dunkin
Donuts concentrated on a unique niche which is why it could explore its own potential. This
niche was Desserts like Donuts, Pastries, Bagels, Muffins, Cakes and whatnot everything related
to a bakery. Besides bakery items, coffee is a very big hit too. In fact, after 2003, Dunkin donuts
started concentrating more on its Coffee then on its donuts.
Smart marketer: A positive thing going for Dunkin donuts was the fact that they are very smart
marketers. Right from the logo, to the colors used to the way they have marketed themselves to
the “Blue Collar crowd” while keeping the “White collared people” in mind is a thing to learn
from them.

Excellent Supply chain: Dunkin Donuts sells bakery products, which are sweet and easily
infected. Thus, it needs to plan its logistics and supply chain in such a manner that it reaches the
retailers Just in time. It cannot afford a lot of wastage of food items during transportation and
the product has to be served fresh to the customer. At one time, All bakery items were made
within the shop. The transport was upgraded too to ensure that the product is always kept at the
right temperature.

Weaknesses

Localized Competition in new territories: Although Dunkin Donuts dominates in several

countries; it has delayed its expansion in others due to which a lot of competitors have popped up
in geographical areas not covered by Dunkin Donuts.

Direct competition: From Starbucks which has a large chunk of the coffee and breakfast or
snack segment to Costa coffee , there are many direct competitors for Dunkin Donuts. It has to
keep its eyes on its shoulders to survive against these competitors.

Indirect competition: A major worry for Dunkin Donuts is the indirect competition. From pizza
hut, KFC and McDonalds which has a large chunk of the fast food segment to various local food
outlets or even branded ones, every customer who goes into these food chains is an indirect
competitor (these chains do not serve coffee or bakery products. Hence indirect competition).

Opportunities

Expand the market: Products are good, but market expansion is needed especially as earning of
people rise and consumption of branded products is increasing. Dunkin donuts is one such world
renowned brand that people will like to consume from.

Target the health segment: Bakery products are essentially heavy in calories. But
like Subway did it in sandwiches, Dunkin donuts can have a separate low calorie range. From
Coke to Pepsi to other products and franchise’s, everyone is recognising the potential for healthy
snacks

Expand the menu: There is always potential in the food segment, especially in the desserts and
sweet market. So Dunkin donuts can always add fresh and yummy snacks to its menu to increase
footfalls in stores.

Threats

Shelf life: Being bakery products, the shelf life of Dunkin donuts products are quite less when
compared to McDonalds or KFC or Pizza hut which are made on order basis. This affects the
bottom line.

Competition: Like any other brand, direct and indirect competition is a major threat to Dunkin
donut. But one of the worrying factors for the brand is, it is not expanding as fast as its major
competitors like Starbucks, KFC, Pizza hut, McDonalds, Burger king or others.

Marketing mix of Dunkin Donuts

Product

Although, the brand name suggests that Donuts are the main food product of the company, but in
reality it occupies only eight percent of the total sales. Twenty five percent of the products are
the other food items including the specialized baked products. The main earner for the company
is its drinks, specially the coffee that is Double Brewed to retain its original flavor and for which
the customers come from far and wide. The estimated sale of the special coffee at Dunkin
Donuts is estimated at nearly one million annually.

The various sandwiches include the all-time favorite Wraps and Oven toasted sandwiches. The
fifty-two variants of baked goods include Cookies, Bagels, Doughnuts, Munchkins and Muffins.
Beverages are served to the customers in both hot and cold forms. The iced drinks include iced
coffee, latte and tea whereas the frozen drinks are available as coolants and coffee.

Hot drinks are also very popular in these restaurants including various types of coffee, tea, latte
and hot chocolates. The company has given special attention to its customers who are children as
they are capable of influencing the eating habits of the parents. Food items that are fresh as well
as tasty and healthy are hits with both the children and their parents. Nutty Donuts is one such
popular item made with walnut, raisin and almond that is available in both sugar and sugar-free
variety.

Place

Special attention has been given to the opening of Dunkin Donut outlets at strategically
important locations to generate the maximum number of customers. It is a given fact that easy
accessibility of the outlets will help in attracting a healthy customer base. Therefore, all the
outlets are located at places where a person can quickly avail himself to a bite. Dunkin Donuts
have opened nearly eleven thousand outlets in various parts of the world.

These outlets are opened in popular locations like gas stations, food courts in and around
airports, Supermarkets, malls and Walmart Stores.

Price

In order to create a loyal and strong customer base the company has tried to maintain a
fair pricing policy for all its products. To provide its customers ultimate satisfaction the company
has kept the pricing reasonable so that an average person can easily buy from a Dunkin Donut
outlet without thinking about the expenses.

The clean environment, fresh products and realistic prices have helped in generating maximum
revenues. The pricing of every food item is variable so that every customer can find something
or the other that might suit his budget. In order to maintain the volume of sales the prices are
kept realistic and coupons and discounts on selected items are periodically provided. These keep
the customers interested and leads to profits.

Promotion

The promotional strategy of the Dunkin Donuts includes advertisements through print media like
popular magazines and newspapers. The pink and the color orange in the logo of the company
along with a coffee cup have made it a memorable one. It also has created catchy slogans that are
aired at television and radios. Some of its famous slogans are Always Dunkin, Time to make the
Donuts; it’s worth the trip,
The company keeps in touch with its loyal fans through Twitter and Facebook and through
various other promotional activities.