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Pedro Espino Vargas y dunkindonuts


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  • 1. •Eddie Suchevits•
  • 2.  In 1950 William Rosenburg opened the firstDunkin‟ Donuts in Quincy, MA 1990 – Allied Domecq (UK) purchasesDunkin‟ Dounuts Create Dunkin‟ Brands Includes Baskin-Robbins and Togo‟s 2005 – Pernod Ricard, a French wine &spirits company, purchases Allied Domecqand sells off Dunkin‟ Donuts Bain Capital Partners, the Carlye Group andThomas H. Lee Partners bring Dunkin‟ Brandsback the United States at a cost of $2.4
  • 3.  Dunkin‟ Brand HQ: Canton, Massachusetts Claims to be the “world‟s largest coffeeand baked goods chain.” Serving 2.7 million customers per day 5,769 U.S. locations 20 countries Wholly owned private
  • 4.  Economic Consumer are more likely to pay 99¢ over StarbucksPrices ( Legal Must comply with FDA regulations Competition Coffee: Starbucks Donuts: Krispy Kreme Limited-Service Restaurants: McDonald’s Technology Face-scanning advertising ( Cultural “Dunkin’ Democrats” vs. “Starbucks Democrats”
  • 5. (in thousands) 2003 2004 2005 2006 2007Industry Revenue $120,873,894 $127,892,600 $134,200,000 $142,745,100 $150,100,000Industry Profits $3,626,217 $3,197,315 $3,623,400 $4,710,588 $5,403,600Industry ProfitMargin3.0% 2.5% 2.7% 3.3% 3.6%Dunkin’ DonutsRevenue$3,200,000 $3,616,000 $3,800,000 $5,000,000 $5,220,000Dunkin’ DonutsProfits$277,360 $289,600 $311,600 $440,000 $475,020Dunkin’ DonutsProfit Margin8.7% 8.0% 8.2% 8.8% 9.1%Sources:,,,,,
  • 6. $0$50,000,000$100,000,000$150,000,000$200,000,0002003 2004 2005 2006 2007Industry RevenueIndustry Revenue$0$2,000,000$4,000,000$6,000,0002003 2004 2005 2006 2007Dunkin Donuts RevenueDunkin thousands)
  • 7. $0$2,000,000$4,000,000$6,000,0002003 2004 2005 2006 2007Industry ProfitsIndustry Profits$0$100,000$200,000$300,000$400,000$500,0002003 2004 2005 2006 2007Dunkin„ Donuts ProfitsDunkin thousands)
  • 8.  Dunkin’ Donuts’ products are consumershopping goods Consumers must spend some purchasing effort Majority of products are only available in Dunkin’Donuts shops Stage of the product life cycle Maturity due to industry profit
  • 9. McDonalds, 7.7%BurgerKing, 2.4%Subway, 2.2% Wendys, 2.2%Starbucks, 2.0%Taco Bell, 1.7%KFC, 1.5%Pizza Hut, 1.5%Applebees, 1.3%DunkinDonuts, 1.3%Other, 76.1%Top Restaurant Chains,2006:dunkindonuts.comSource: Market Share Reporter 2008
  • 10. dunkindonuts.comStarbucks43%Dunkin Donuts27%KrispyKreme5%TimHortons2%Other23%Gourmet Coffee Sales, Source: Market Share Reporter 2008
  • 11. DunkinDonuts, 28.5%TimHortons, 27.9%DairyQueen, 20.2%Baskin-Robbins, 8.6%KrispyKreme, 6.8%Cold StoneCreamery, 3.1%JambaJuice, 2.6%TCBY, 2.3%Leading Donut/Ice Cream Source: Market Share Reporter 2008
  • 12.  Product Development Breakfast sandwiches toexisting breakfast crowd Market Development Targeting coffee enthusiast withcappuccinos, espressos, and lattes Diversification Offering flatbread sandwichesand personal pizzas Market Penetration Coupons / Coupon
  • 13. Donuts, Food, andOnline SalesPackaged CoffeeProducerDistributorRetailerProducerConsumerConsumer(Proctor & Gamble)(Wal-Mart, Kroger)
  • 14.  Dunkin Donuts would be Channel Captain Expert Referent Legitimate Contracts with franchisees and Proctor & Gamble Selective Distribution Strategy Products except coffee require some purchaseeffort Packaged coffee is moving toward intensivedistribution strategy Now available in grocery stores and
  • 15.  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 found through telephone interview)
  • 16.  Target Market ( Men Over 50 years of age Rural Eastern US > $20,000 Strivers Makers Frame of Reference Donuts Krispy Kreme / Tim Horton‟s Coffee Starbucks / McDonald‟s Point of Difference Diverse menu with a wide range of coffeeand tea
  • 17. High QualityLow QualityHigh PriceLow Price(3.33, $5.49)(4.33, $7.49)(3.09, $6.99)(4.00, $7.75)Price based ona dozen glazeddonutsQuality based onconsumer ratingsat found through telephone interview)
  • 18.  Promotion Objective Create Preference Offering a wide menu Reinforce conviction Through Dunkin‟ Beat Starbucks campaign Promotion Strategy Pull Advertising directly to
  • 19.  Web Marketing Advertising Dunkin‟ Beat Starbucks Print Ads Promotion Red Sox Win, You Win Sponsorships Boston Red Sox “Dunkin’ Dugout”
  • 20.  Direct Marketing Coupon Books / Coupons “FREEquent” visit cards Personal Selling All 5,769 franchised restaurants in the UnitedStates Public Relations Press Release (website) Tribune