Dunkin’ Donuts


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Dunkin\' Donuts - Marketing Management Presentation

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Dunkin’ Donuts

  1. 1. Dunkin’ Donuts®<br />•Eddie Suchevits•<br />dunkindonuts.com<br />dunkindonuts.com<br />
  2. 2. Company history:<br />In 1950 William Rosenburg opened the first Dunkin’ Donuts in Quincy, MA<br />1990 – Allied Domecq (UK) purchases Dunkin’ Dounuts<br />Create Dunkin’ Brands<br />Includes Baskin-Robbins and Togo’s<br />2005 – PernodRicard, a French wine & spirits company, purchases Allied Domecq and sells off Dunkin’ Donuts<br />Bain Capital Partners, the Carlye Group and Thomas H. Lee Partners bring Dunkin’ Brands back the United States at a cost of $2.4 billion<br />dunkindonuts.com<br />dunkindonuts.com<br />
  3. 3. Background:<br />Dunkin’ Brand HQ:<br />Canton, Massachusetts<br />Claims to be the “world’s largest coffee and baked goods chain.”<br />Serving 2.7 million customers per day<br />5,769 U.S. locations<br />20 countries<br />Wholly owned private subsidiary<br />themarketingguy.wordpress.com<br />dunkindonuts.com<br />
  4. 4. Environmental Factors:<br />Economic<br />Consumer are more likely to pay 99¢ over Starbucks Prices (abc2news.com)<br />Legal<br />Must comply with FDA regulations<br />Competition<br />Coffee: Starbucks<br />Donuts: Krispy Kreme<br />Limited-Service Restaurants: McDonald’s<br />Technology<br />Face-scanning advertising (guardian.co.uk)<br />Cultural<br />“Dunkin’ Democrats” vs. “Starbucks Democrats”<br />dixiedining.wordpress.com<br />dunkindonuts.com<br />
  5. 5. Sic: 5812 (Eating places)NAICS: 722211(limited-service restaurants)<br />Sources: allbusiness.com, restaurant.org, nytimes.com, rimag.com, dunkindonuts.com, RMA<br />dunkindonuts.com<br />
  6. 6. Revenue:<br />dunkindonuts.com<br />(in thousands)<br />
  7. 7. Profits:<br />dunkindonuts.com<br />(in thousands)<br />
  8. 8. Product:<br />dunkindonuts.com<br />Dunkin’ Donuts’ products are consumer shopping goods<br />Consumers must spend some purchasing effort<br />Majority of products are only available in Dunkin’ Donuts shops<br />Stage of the product life cycle<br />Maturity due to industry profit fluctuations<br />dunkindonuts.com<br />dunkindonutsobx.com<br />
  9. 9. Market Share:<br />dunkindonuts.com<br />Source: Market Share Reporter 2008<br />
  10. 10. Market Share:<br />dunkindonuts.com<br />Source: Market Share Reporter 2008<br />dunkindonuts.com<br />
  11. 11. Market Share:<br />Source: Market Share Reporter 2008<br />dunkindonuts.com<br />
  12. 12. Product Strategies:<br />Product Development<br />Breakfast sandwiches to<br /> existing breakfast crowd<br />Market Development<br />Targeting coffee enthusiast with cappuccinos, espressos, and lattes<br />Diversification<br />Offering flatbread sandwiches<br /> and personal pizzas<br />Market Penetration<br />Coupons / Coupon Books<br />dunkindonuts.com<br />dunkindonuts.com<br />dunkindonuts.com<br />
  13. 13. Distribution channels:<br />PackagedCoffee<br />Donuts, Food, and Online Sales<br />Producer<br />Producer<br />Distributor<br />(Proctor & Gamble)<br />Retailer<br />Consumer<br />(Wal-Mart, Kroger)<br />Consumer<br />dunkindonuts.com<br />
  14. 14. Distribution:<br />Dunkin Donuts would be Channel Captain<br />Expert<br />Referent<br />Legitimate<br />Contracts with franchisees and Proctor & Gamble <br />Selective Distribution Strategy<br />Products except coffee require some purchase effort<br />Packaged coffee is moving toward intensive distribution strategy<br />Now available in grocery stores and online.<br />interstatelogos.com<br />
  15. 15. Price:<br />One Dozen Glazed Donuts:<br />Dunkin’ Donuts: $7.49<br />Krispy Kreme: $6.99<br />Altoona<br />YUM YUM Donuts: $7.75<br />Waynesburg<br />Tim Horton’s: $5.49<br />Erie<br />Market Place Environment:<br />Limited-Service Restaurants: Differentiated Competition<br />Donut/Ice Cream Chain Industry: Oligopoly<br />Skimming Strategy<br />Profit-Oriented Objective<br />dunkindonutsobx.com<br />(Prices found through telephone interview)<br />dunkindonuts.com<br />Themarketingguy.wordpress.com<br />
  16. 16. Marketing Communication:<br />Target Market (independentsources.com)<br />Men<br />Over 50 years of age<br />Rural Eastern US<br />&gt; $20,000<br />Strivers<br />Makers<br />Frame of Reference<br />Donuts<br />Krispy Kreme / Tim Horton’s<br />Coffee<br />Starbucks / McDonald’s<br />Point of Difference<br />Diverse menu with a wide range of coffee<br /> and tea beverages<br />dunkindonuts.com<br />dunkindonuts.com<br />
  17. 17. Positioning Map:<br />(Prices found through telephone interview)<br />spyur.am<br />High Price<br />(4.00, $7.75)<br />dunkindonuts.com<br />Price based on a dozen glazed donuts<br />krispykreme.com<br />(4.33, $7.49)<br />(3.09, $6.99)<br />timhortons.com<br />(3.33, $5.49)<br />High Quality<br />Low Quality<br />Quality based on consumer ratings at rateitall.com<br />dunkindonuts.com<br />Low Price<br />
  18. 18. Marketing Communication:<br />Promotion Objective<br />Create Preference<br />Offering a wide menu<br />Reinforce conviction<br />Through Dunkin’ Beat Starbucks campaign<br />Promotion Strategy<br />Pull<br />Advertising directly to consumers<br />dunkindonuts.com<br />dunkindonutsobx.com<br />dunkindonuts.com<br />
  19. 19. Promotion mix tools:<br />Web Marketing<br />www.dunkindonuts.com<br />www.dunkinbeatstarbucks.com<br />Advertising<br />Dunkin’ Beat Starbucks<br />Print Ads<br />Promotion<br />Red Sox Win, You Win<br />http://www.youtube.com/watch?v=SzWIvxXsuYw<br />Sponsorships<br />Boston Red Sox<br />“Dunkin’ Dugout”<br />jennylafer.com<br />bostonherald.com<br />flickr.com<br />video.aol.com<br />flickr.com<br />
  20. 20. Promotion Mix Tools:<br />Direct Marketing<br />Coupon Books / Coupons<br />“FREEquent” visit cards<br />Personal Selling<br />All 5,769 franchised restaurants in the United States<br />Public Relations<br />Press Release (website)<br />Tribune Democrat<br />dunkindonuts.com<br />
  21. 21. Questions?<br />Thank you!<br />