“As for Dunkin’ Donuts, its customers areconcerned with speed.”Dunkin’ Donuts was begun in 1050 by Bill Rosenberg with asingle shop in Quincy, Massachusetts. He began franchisingadditional outlets in 1955, and by 1979 there were a thousandDunkin; Donuts outlets in the Northeast. Through a series oftransactions in the 1980s and 1990s, Dunkin’ Donuts, along withBaskin-Robbins (ice cream) and Togo’s (sandwiches) becamethe quick service restaurant operation of the British firm, AlliedDomecq PLC. In 2002, as Allied Domecq looked for growthopportunities, it’s Dunkin; Donuts (DD) business wasdescribed as a “sleeping giant” as much for its fiercely loyalclientele as its $2.8 billion in sales and more than 3,800 U.Soutlets.
More about Dunkin’ Donuts Page (165)Q1. Should Dunkin’ Donuts’ pursue a single-segment or multiple-segmentstrategy?Answer: From my point of observation and understanding, Dunkin’ Donuts’ should pursue amultiple segment strategy i.e coffee and dunets business because both coffee and donuts runseach half of the dunkin donuts business. One of the main competetors is Starbucks and TimHortons because they also focus on coffee consumers i.e starbucks coffee house chain based inseatel one of world largest and about 19435 stores in 58 countries. Where as timehorton asCanadian fast food casual restaurant also known for the coffee and daunuts. Jhon lutherimplemented certain qualities to out run their competetors by typing to make Dunkin Donutschange to super fast service mistake proof while also focusing on wellness mobility andprofitability.Q2. Given Dunkin’ Donuts’ positioning, what types of firms should be consideredcompetitors?Answer: Mostly the fast food chains and coffee selling firms are seen as a threat to theirbusiness because also half of the dunkin donuts business is run by selling coffee.its importancecan be weighed by the statement of Jon luther when he set aside Krispy Kreme business byexplaining “ its not really in the coffee business” Tim Horton and Starbucks viewed as theirfierce competitors. To out run them jon luther made some changes to dunkin donuts. Mainfocus changes from giving meal to snacks. Changed to super fast , mistake proof, installedespressive machines at various locations so people don’t have to wait in lines or pay more asthey do at Starbucks especially focusing on custumers that are developing newly taste forcoffee. They also centralized their kitchens that serves number of shops which benefited inconstant quality, standardize freshness and less waste. And also combined few of their outletswith Baskin-Robbins and Togo Sandwiches.