GROUP MEMBERS

o ALI AKRAM AWAIS IQBALo NABEEL MUNAWAR ALI RAZAo RABIA PERVAIZ AQSA NAEEM

oMUAZ IJAZ

• DEPARTMENT OF MANAGEMENT SCIENCES

• BACHELOR IN BUSINESS ADMINISTRATION

• GOVERNMENT COLLEGE UNIVERSITY

• FAISALABAD

• SAHIWAL CAMPUS

• Session 2013-2017

TOPIC

DUNKIN’DONUTS

PRESENTATED TO.

MAM.NIDA SYED

Contents• Introduction/History• Background• Mission statement• Hierarchy style• Vision and performance• Product and product strategies• Competitors • Stp and market communication• Swot • Pestel • Marketing mix• TQM factors• Conclusion• Recommendations

Introduction

• Dunkin' Donuts is a business in food retail. They are the world's largest coffee and baked goods chain.

History

• In 1950 William Rosenberg opened the first Dunkin’ Donuts in Quincy, MA

• 1990 – Allied Domecq (UK) purchases Dunkin’ Dounuts

History

–Create Dunkin’ Brands• Includes Baskin-Robbins and Togo’s

• 2005 – Pernod Ricard, a French wine & spirits company, purchases Allied Domecq and sells off Dunkin’ Donuts

– Bain Capital Partners, the Carlie Group and Thomas H. Lee Partners bring Dunkin’ Brands back the United States at a cost of $2.4 billion

Background

• Dunkin’ Brand HQ:– Canton, Massachusetts

• Claims to be the “world’s largest coffee and baked goods chain.”– Serving 2.7 million customers per

day– 5,769 U.S. locations– 20 countries

• Wholly owned private subsidiary

MISSION STATEMENT

• "Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores.”

• “Dunkin’ Donuts will strive to be the dominant retailer of high quality donuts, bakery products and beverages in each metropolitan market in which we choose to compete.”

Hierarchy Style

Vision and performance• To be always the desired place for great

coffee beverages and delicious complementary donuts & bakery products to enjoy with family and friends

– To be the leading provider of the wide range delicious beverages & baked product around the kingdom in a convenient, relaxed, friendly environment, that insures the highest level of quality product and best value for money. 

Vision and Performance

We provide our guest, the elegant service and unforgettable experience to meet their expectations in every single visit

Performance

2003 2004 2005 2006 2007$0

$20,000,000 $40,000,000 $60,000,000 $80,000,000

$100,000,000 $120,000,000 $140,000,000 $160,000,000

Industry Revenue

Industry Revenue

2003 2004 2005 2006 2007$0

$2,000,000

$4,000,000

$6,000,000

Dunkin' Donuts Revenue

Dunkin' Revenue

Profits

2003 2004 2005 2006 2007$0

$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000

Industry Profits

Industry Profits

2003 2004 2005 2006 2007$0

$100,000$200,000$300,000$400,000$500,000

Dunkin‘ Donuts Profits

Dunkin' Profits

Market share

Dunkin' Donuts; 28.5%

Tim Horton's; 27.9%Dairy Queen; 20.2%

Baskin-Robbins;

8.6%

Krispy Kreme;

6.8%

Cold Stone

Cream-ery; 3.1%

Jamba Juice; 2.6% TCBY; 2.3%

Leading Donut/Ice Cream Chains2011:

Market share

Dunkin Donuts

43%

Starbucks27%Krispy

Kreme5%

Tim Horton's

2%

Other23%

Gourmet Coffee Sales, 2011:

Product & product strategies• ProductDunkin Donut serves the following items :1) Donuts2) Fritters3) Crullers4) Biscuits5) Munchkins6) Bagels7) Muffins8) Danish pastry 9) Cookies10) Brownies11) Bagel Twists12) Breakfast sandwiches13) Hash browns14) Oven toasted items15) Coffee beverages16) Bulk Coffee17) Espresso, Cappuccino, and Lattes18) Iced Coffee19) Iced Lattes20) Latte Lite Espresso

Product Strategies• Product Development

– Breakfast sandwiches to existing breakfast crowd

• Market Development– Targeting coffee enthusiast with cappuccinos,

espressos, and lattes• Diversification

– Offering flatbread sandwiches and personal pizzas

• Market Penetration– Coupons / Coupon Book

Dunkins’ CompetitionDunkin’ Brands Market Cap: $31.37 BillionStarbucks Market Cap: $28.5 BillionKrispy Kreme Market Cap: $25.75 MillionMcDonald’s Market Cap: $20.8 BillionPanera Bread Market Cap: $10.2 Billion

Competitive Advantages Strong Brand High Consumer Loyalty

Increasing use of technology Alliances and partnerships

STP % MARKET COMMUNICATION

• STP

Segment People looking to have western style breakfast and coffee

Target Group Middle and upper middle class people and families

PositioningA place offering good quality and fresh D donuts and other baked items along with coffee

MARKET COMMUNICATION• Target Market (independentsources.com)

–Men– Over 50 years of age– Rural Eastern US– > $20,000

»Makers• Frame of Reference

– Donuts» Krispy Kreme / Tim Horton’s

– Coffee» Starbucks / McDonald’s

• Point of Difference– Diverse menu with a wide range of coffee and tea beverages

MARKET COMMUNICATION

• Promotion Objective– Create Preference• Offering a wide menu

– Reinforce conviction• Through Dunkin’ Beat Starbucks

campaign• Promotion Strategy– Pull• Advertising directly to consumers

S.W.O.T• STRENGTH

– 1.Strong Brand name, recognized world over2. Brand loyalty amongst customers3. Over 1000 varieties of dunkin donuts4. Popular for a number of bakery products like pastries, bagels, muffins, biscuits, etc. and hot beverages like coffee, tea

– 5.Ideal place for having breakfast and coffee

– 6.Innovative ways to retain customers by issuing coupons and discounts

– 7.Worlwide chain of franchisees totaling to 10,000 locations across 32 countries

– 8.One of the most experienced in the industry– 9.Association with major sports teams– 10.Effective marketing and advertising strategies

S.W.O.T

• Weakness– 1.Competition from other international

snacking joints means limited market share growth

– 2.Constant rift with the franchisee owners and numerous instances of suing them

– 3. Still hast penetrated into the emerging economies which can be a huge segment

Opportunity

– 1.Increase its presence in newer countries and regions of the world

– 2.To introduce low calorie snacks

– 3.Increase in disposable income of people in developing countries

– 4.Increase its reach through effective online marketing

Threats

• 1.People moving to healthier ways of eating

• 2.Competition even from local cafes and bakeries

• 3.Increase in the cost of raw materials

• 4.Diificult to change the snacking habits of people in certain countries like India and China

PESTEL

• Political/Legal:• The way coffee houses produce coffee is becoming more and

more submitted to high standards of quality. Also, there is an important pressure on trading in an more ethic way. For example, at Starbucks, their strategy is totally based on this trend:

• “Business Ethics and Compliance is a program that supports Our DUNKIN Mission and helps protect our culture and our reputation by providing resources that help partners make ethical decisions at work.”

• Also, there are more and more people asking for fair trade coffee and it’s a good way for coffee houses to difference themselves through fair products. For example, Dunkin’ Donuts’ espresso beans are 100% Fair Trade Certified™ and selected from only the finest, high-quality Arabica beans.

PESTEL• Economical:• The industry of coffee is a high and growing market in the world. As

there are some big leaders such as Starbucks, Dunkin Donuts and now McCafé, they are all fighting each other in order to gain more and more market shares. It seems that there is a high potential in the new emerging markets such as Asian countries and South America for example. Moreover, the rising price of coffee beans might be a threat for those industries. 

• Social:• In terms of social trends, we can think that there is a high concern

today regarding health issue. In fact, coffee can be seen as a bad beverage for health so people are looking for new drinks such as fresh juices or maybe more tea and de-cafe drinks. Coffee houses are more and more proposing those kinds of new healthy products. For example, you can now buy fresh fruits, Dunkin Donuts dedicates a whole section on its website to nutritional information. They also launched “Get Running with Runner’s World® and DDSMART” which proposes customers a training plan.

• Technological:• As there is a high and growing variety of products in coffee

houses, they need to always develop new machines and high-tech equipment in order to stay up-to-date. Some beverages are so complicated to make that they require high standards of quality in terms of technology. 

• Environmental:• Since a few years, all the coffee houses have taken new

measures in terms of environment. In fact, they all have developed policies in term of recycling, reducing waste, building green…

• Starbucks: “By building environmentally sound stores and facilities, conserving the energy and water we use and purchasing renewable energy credits, we’re pushing ourselves to reduce the environmental footprint of our operations”. Their goal is to ensure 100% of its cups to be reusable or recyclable by 2015. 

MARKETING MIX 4p’s

• PRODUCT• Product Development– Breakfast sandwiches to existing breakfast crowd

• Market Development– Targeting coffee enthusiast with

cappuccinos, espressos, and lattes• Diversification– Offering flatbread sandwiches and personal pizzas

• Market Penetration– Coupons / Coupon Books

4p’s• PRICE• One Dozen Glazed Donuts:

• Dunkin’ Donuts: $7.49• Krispy Kreme: $6.99

» Altoona• YUM YUM Donuts: $7.75

» Waynesburg• Tim Horton’s: $5.49

» Erie

• Market Place Environment:• Limited-Service Restaurants: Differentiated Competition• Donut/Ice Cream Chain Industry: Oligopoly

• Skimming Strategy• Profit-Oriented Objective

4p’s• Place• Dunkin Donuts would be Channel Captain– Expert– Referent– Legitimate

• Contracts with franchisees and Proctor & Gamble

• Selective Distribution Strategy– Products except coffee require some

purchase effort• Packaged coffee is moving toward intensive

distribution strategy– Now available in grocery stores and online.

4p’s• PROMOTION• Website Marketing

– www.dunkinfdonuts.com– www.dunkinbeatstarbucks.com

• Advertising• Dunkin' Beat Starbucks• Print Ads

• Promotion• Red Sox Win, You Win• http://www.youtube.com/watch?v=SzWIvxXsuYw

• Sponsorships• Boston Red Sox• "Dunkin' Dugout"

• Direct Marketing• Coupon Books/ Coupons• "Frequent" visit cards

• Personal Selling• All 5,769 franchised restaurants in the US

• Public Relations• Press Release (website)• Tribune Democrat

TQM Factors• Dunkin' Donuts is creating a long term consumers relationships

within building strong profitable. In this regard the Dunkin' Donuts enhance the marketing plan and strategies, thus the Dunkin' Donuts should conclude how to superlative generate the worth for it is selected aiming marketplace,

• thus Dunkin' Donuts must connect within their consumers to coming up with and powerful the consumers affiliations. In regard of focus on the customer

• Dunkin' Donuts targeting the marketplace among the global coffee in addition to donut seller, and it is positions them self on their customer mindset by serving the coffee/donuts for the consumers those are anxious about the reasonable "Low-cost prices for Merchandise", available "Suitable Sites" with huge superiority merchandises "Quality Control"

CONCLUSION

• To concluding my research I perceive that the Dunkin' Donuts owning an active leadership in the doughnuts war, while will need lots of efforts to growing again with sustainable improvement

RECOMMENDATION• To focus on its new target market of

college students who crave caffeine but also want convenience, low prices, quality, and taste, Dunkin’ Donuts will need a new marketing strategy..

• As for promotions, Dunkin’ Donuts does offer free ice coffees and has coupons like most of its competitors. However, it is our suggestion that Dunkin’ consider doing late night study deals for students