Guide Questions:

1) If you were a manager for Baskin-Robbins, how would you evaluate a request from a

local partner in India to add a sugar-cane-flavored ice cream to its menu? What cultural

factors would you look at?

Answer:

2) Do you think Dunkin’ Brands should let local operators make their own decisions

regarding flavors for ice creams, donuts, and other items to be sold in-country? How

would you recommend that the company’s global management assess the cultural

differences in each market? Should there be one global policy?

Answer:

I. Case Summary

When a company is successful in a local or regional market and wants to expand beyond,

specifically across international lines, they must carefully gauge their marketing plan and

strategy to not fail. A great example that they gave in the opening case was, the example of

“Dulce de Leche” flavor, and how they successfully introduced it in South America because of

the demand. For Dunkin’ Brands, executing a “new flavor” launch, and having it be individually

successful, but also elevate the overall success of the brand is the goal. Out of the hundreds of

international, regional and local requests, they must assess what is going to be the most intuitive

addition to their brand. This is a common challenge for businesses that have a cultural aspect to

their identity to deal with, when they attempt to go international. Conducting market research,

and forecast analysis to determine first, if it will fit with the overall identity of the brand; and

second to see if it is an economically viable option, is extremely important to the survival of

many international businesses.

II. Case Problem

III.Case Facts

 Two of the most visible American exports are the twin brands of Dunkin’ Donuts and

Baskin-Robbins.

 Dunkin’ Brands, Dunkin’ Donuts and Baskin-Robbins have been sold globally for more

than thirty-five years.

 Dunkin’ Donuts and Baskin-Robbin has more than 14,800 points of distribution in forty-

four countries with $6.9 billion in global sales.

 After an eleven-year hiatus, Dunkin’ Donuts returned to Russia in 2010 with the opening

of twenty new stores.

 One of the overall strategies of the twin brands was to have the morning market covered

by Dunkin’ Donuts and the afternoon-snack market covered by Baskin-Robbins.

 In Russia, Japan, China, and most of Asia, donuts, if they were known at all, were

regarded more as a sweet type of bakery treat, like an éclair or cream puff.

 In China, there was no equivalent word for “donut” in Mandarin, and European-style

baked pastries were not common outside the Shanghai and Hong Kong markets.

 In Japan, sweet corn and red bean ice cream were approved for local sale and became hot

sellers, but the two flavors never made it outside the country.

 A challenging balance for Dunkin’ Brands is to enable local operators to customize

flavors and food product offerings without diminishing the overall brand of the

companies.

 Russians are largely unfamiliar with donuts, so Dunkin’ has created several items that

specifically appeal to Russian flavor preferences for scalded cream and raspberry jam.

 Baskin-Robbins ice cream chain boasts 143 shops in Russia, making it the No. 2 Western

restaurant brand by number of stores behind the hamburger chain McDonald’s

Corporation.

IV. Alternative Courses of Action

 Based on studies, two different countries with almost the same habits and mannerisms tend to

have same preferences like in foods. The Company should focus on researching and survey each

countries taste preference so they can come up to the flavours that they can sell on more than one

country. With the help of local pastry chefs, and businesses they can make the most appealing

variant to the taste buds of its target consumers.

Putting different variants in each country should not also violate the terms in acquiring the

main ingredients for its products, like what happened in the mango issues. Some cultured

countries preferred eating donuts with their own native products with it. Bringing the mango

flavoured donut to those countries participated in the market analysis, which mangoes are not

chosen, will be an attack to their own pride food. The company must respect its local market to

get a harmonious relationship within the country.

Dunkin Brands can also accept suggestion or self-made variants from its local partners for

each country to test on. It will not only be a specialty donut for that country that help to increase

sales of Dunkin Brands but they it can also help local pastry/businessman to showcase their own

talents. Giving a timeframe for the test trial of the product if it will be patronized by the

consumers or not, if not at least they can try another until get a specialty. A give and take action,

maybe a risk but sometimes bigger risk grants bigger rewards.

V. Solution and Recommendation

To sustain the products’ relevance to their varied customers, the company has to adapt the

products to the local markets, which is further enhanced by the presence of Baskin-Robbins in

countries where several Dunkin’ Donuts restaurants operate. To gain local consumer patronage

and loyalty, suiting the local consumers’ taste is imperative.

For example, in Peru, Dunkin’ Donuts serves Delirium, a decadent chocolate covered

doughnut with pecans, vanilla garnish and filled with manjar blanco (dulce de leche), a rich

milk-and-sugar based custard.

In some Asian countries you’ll find Asian-inspired doughnuts. In South Korea they have rice

doughnuts as well as charcoal doughnuts. Because the Koreans customers are fond of spices, the

restaurant also offers kimchi-stuffed savory doughnut and jalapeno sausage pie doughnut.
 In China you can find fish flake doughnuts while in Thailand, mango doughnuts are

available. Thais are also able to buy Fruity Paradise, which is a classic glazed doughnut made

special by the addition of pineapple, kiwi, cherries, whipped cream and toasted almonds.

Another special creation is Kai Young, also a glazed doughnut with Thai chili paste and

shredded, dried chicken.

If you’re a chocolate lover, Dunkin’ Donuts restaurants in Colombia offer triple chocolate

doughnuts. In India, they sell saffron-infused icing on Surprising Melody doughnut together with

a sprinkling of pistachios.

Rose cream doughnuts are sold in Lebanon and in Indonesia, they offer black cheese

doughnut. When you’re traveling around Netherlands, try the stroopwafel doughnut or if you

want something familiar (but still unique), have some Kit Kat doughnuts in Spain.

You can only find the Mochi Ring doughnut in Japan. It is made with glutinous rice in several

flavors, including mango, banana, chocolate and green tea.

But whichever country you’re in, you’ll be able to find Boston Cream doughnuts!

The unique doughnut creations that fit the taste of local consumers not only have their

own special flavor combinations; you will find that they are available in special designs as well.

Doughnuts are typically sweet, so you’ll be surprised at the taste of a Dunkin’ Donut covered in

pork floss, which is available in China.

Each Dunkin’ Donut market is different and the company employs teams to do research

in order for the product to adapt to local tastes – in terms of flavor and design. In some areas the

company sells more beverage than doughnuts, while in other areas, the company receives a

higher revenue from the doughnuts, sandwiches and other bakery items. In other territories, the

company focuses on improving their coffee sales.

Dunkin’ Donuts does not only adapt their products to their different markets. In some

locations, they also incorporate local culture, like using Delft tiles in a Dunkin’ restaurant in

Holland.

The company localizes its menu in different territories, presenting them in English and the

translation of the menu entries. The brand name remains the same. Dunkin’ Donuts remain a
global success because it is able to adapt its products and information to fit preferences of

consumers in all its international markets.

VI. Conclusion