Dunkin' Donuts is considering expanding from the US to the UK. While there are some similarities between the two cultures, there are also differences that Dunkin' must address. Specifically, the British have different breakfast preferences and are primarily tea drinkers rather than coffee drinkers. Therefore, Dunkin' will need to adapt its menu to offer more tea options and items like fried breakfast sandwiches that appeal to British tastes. Marketing will target coffee and tea drinkers, as well as focusing on locations near commuters in major cities. The pricing strategy will be slightly higher to account for increased shipping costs from overseas suppliers in Brazil and China.

1. DUNKIN’ DONUTS
The Move to the United Kingdom
Jacob R. Smith

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Executive Summary
For over 60 years, Dunkin’ Donuts has been serving its customers from the east coast to
the west coast, from north to south. Dunkin’ Donuts coffee shop is a quality, affordable, quick
shop for the morning commuters to work or for coffee lovers. With over 10,000 shops in only the
USA, we are looking to move overseas into a very similar country as the US, the United Kingdom.
We feel as a company that our sales will shoot up because we are going to adapt our menu to
the needs of the customers. Being new to the area, I think the British will love our coffee and our
new teas we will be providing. Dunkin’ Donuts will adapt to the British culture and thrive.
Overview
The UK would be a good placefor Dunkin’ Donuts to enter
into for a couple reasons. First, it is just like the United States
because they are in the Anglo culture cluster with the US. The UK
and US have consumers that are generally willing to spend if they believe it is worth while, so
they don’t want to buy things that would be useless to them. Dunkin’ Donuts is not a company
that would be useless to people. Consumers get coffee and food for a reason, they are either
tired, love coffee, or are hungry and thirsty and need something quick and good. Dunkin’ Donuts
should move to the UK secondly because the British economy is growing at a good rate, so it
would be a prime time for companies to move into the UK and start their business. One reason
that Dunkin’ Donuts should not move to the UK is because the British aren’t necessarily coffee
drinkers, one of the main products Dunkin’ Donuts has. The Brits are huge tea drinkers, and even
though Dunkin’ Donuts has tea options, if we want to succeed in the UK, they will need to change

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their menu to adapt to their lifestyle.Another reason it would be hard is becauseof the currency.
The Brits use the British Pound instead of the US dollar. This isn’t one of the main reasons, but
we have to keep this in mind when we are getting ready to buy the space in the UK.
Economic Environment
UK has a shared import/export policy with others through the European Union (EU).
Countries in the EU work together to negotiate trade agreements with non-EU countries, US or
Canada. Since UK doesn’t have any trade restrictions, it should be fairly easy to get our supplies
from Brazil and China (mentioned later). UK’s economy right now is going down, so the value of
the British Pound is going down. So, I plan on taking a loan out to cover the upfront expenses,
then I plan to pay it off and own the shops in the next 5 years. In the past month the value of
pound is staying relatively the same, no major jumps. However, in the past 5 years, its been
valued at 1.38 all the way to 1.72.
Cultural Environment
Since the UK and the US are in the same cultural cluster, there are some similarities within
each culture, but there are also many differences. For example, they both speak English, even
though in the UK they speak it with an accent. Also, Americans and Brits both pride themselves
on their individuality. They both are very individual, meaning they like having their own space,
they don’t have to be around people all the time. As I said before, there are some differences
also, like the Brits drink a lot of alcohol compared to the US. They are considered very heavy
drinkers in the UK. Another difference would be everyone is polite so customer service is always
very good. One major thing in the UK that would be different from the American culture would
be you don’t have to tip the waiter/waitress. One more difference, the tax is already put into the

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dollar amount listed, so you actually do pay that exact price, must be nice. The Brits really love
their peas, potatoes, and sausage, and the eggs aren’t refrigerated.
According to Martha Cliff (Daily Mail, June 2014) Brits tend to stick with their own kind of
breakfast. On weekdays, they like stuff quick, for example some toast with some cereal. On the
weekends are when they love a big breakfast. They like eggs, fried bread, hash browns, sausage,
bacon, and either region black or white pudding with tea. A survey of 2,000 British adults by The
Cooperative Food, revealed that 17% like greasy breakfast food because it helps cure hangovers
(see they are heavy drinkers). Sixth on the list was just a simple croissant and coffee. This survey
also revealed that 36% of respondents agreed that breakfast is a rush affair, and 1/3 of adults
actually sat down at the kitchen table to eat breakfast. That shows a target market for Dunkin’
Donuts. To go along with their food culture, the British has some specific rules for dating and
marriage. Brits cannot marry if they are 16 or 17 and do not have parental consent. They can take
place usually in Churches, but also can happen in homes or other places. The trend today is for
them to marry later in life rather than early in their lives. Most
weddings take place on Saturday afternoons because it is considered
a “peak period” (Dating and marriage customs in Britain). In the UK,
Dunkin’ Donuts will have the same furniture as they do here in the States. They want every
Dunkin’ Donuts to look the samerather than have every store have different furniture. The colors
will maintain the same in the stores as well.
Competition
Dunkin’ Donuts has a couple main competitors with a few side competitors. The main
competitors would be in the coffee and food industry and the side competitors would be just in

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the food and beverage industry. For example, Starbucks, Whitbread PLC,CostaCoffee,CafféNero
Group Ltd are some of the main competitors while McDonalds and Krispy Kreme are a couple of
the side competitors. Here are our four main competitors in the UK.
1) Starbucks
a) Well-known brand globally
b) Middle-to-Upper Class
2) WhitBread PLC
a) Well known only in UK
b) Located in about 650 hotels
c) Known as a “luxury” type of coffee
3) Costa Coffee
a) Limited stores in limited countries
b) Higher end prices
4) Caffé Nero Group Ltd
a) Only in UK
b) Strong brand name
c) Low-to-Middle Class.
I am going to compare Starbucks and Dunkin’ Donuts since they are both American companies
and they are pretty similar. Starbucks have a variety of drinks to choose from, such as bottled,
brewed teas, chocolate beverages, expresso, and a couple more. I’m focusing more on the
brewed teas they offer sincethe Brits are heavy tea drinkers. Dunkin’ Donuts offers just hot, iced,
and frozen drinks, however, in their iced section, they only have 3 tea options. Starbucks has 10

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brewed tea options. In order for Dunkin’ Donuts to be successful in the UK, they will have to
develop a new menu that includes many more tea options, such as English Breakfast Tea, Mint
Blend Tea, or Chai Tea. Costa Coffee in the UK offers 6 types of tea as well as different kinds of
coffees, like frappuccino’s and lattes. This is the main part that we will have to develop, a new
menu to cover the needs and wants of our customers.
Marketing Strategy
Target Markets
For marketing, I will target mainly to coffee drinkers, low-to-middle class families, and
workers on their morning commute. Since the British are tea drinkers, I will also target tea
drinkers even though there are a lot of them. I plan to have Dunkin’ Donuts be a combination of
Starbucks and Whitbread PLC in the fact that they are well known brands, have what the
customer wants, and have many locations. I plan to have Dunkin’ Donuts in airports, hotels, and
in the big cities (London, Manchester, Liverpool, Oxford) so Dunkin’ Donuts will be as close to my
target market as possible.
Product Adaptations
Dunkin’ Donuts product line will need to be adapted a tad bit like I have mentioned
earlier. It will have the same idea, such as beverages and breakfast foods. However, it will need
to change to have more tea drinks and fried breakfast sandwiches instead of just traditional
breakfast sandwiches. The traditional full English breakfast includes bacon, poached or
scrambled eggs, tomatoes, fried mushrooms, fried bread or toast with butter, sausage, baked
beans. Along with black pudding, hash browns, and tea or coffee.
Pricing Strategy

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For pricing, the prices for Dunkin’ Donuts in the UK would have to a little bit higher
because they get their coffee beans from Brazil, the UK is farther away and they have to ship
across the ocean, shipping expenses will be little more. Dunkin’ Donuts wants to keep their
margins the same, so the prices would be higher. Studies show that the Brits are willing to pay a
little more than the US. UK does not have a restriction on the pricing of coffee in their country,
so we don’t have to worry about that. The Brits use the British pound, so for every $1.39 so it is
relatively the same. I don’t think the exchange rate to British pounds will be an issue.
Distribution Strategy
For distribution, Dunkin’ Donuts will get their coffee beans from Brazil, like I said earlier,
and they will get their special Dunkin’ Donuts cups, plates, napkins, and other items from China.
Buying in bulk will make things cheaper to use. We won’t have to worry much about distribution
because people can’t order hot coffee or tea online. They can buy our Keurig pouches online
however. That could be another hit market that we could target in order to get more revenue
and sales. Keurig is a hot thing in the market today. We could sell those for the middle-to-high
class in order to maximize revenue.
Promotion Strategy
For advertising, mouth-to-mouth marketing will be huge, as well as social media. Mouth-
to-mouth because the Brits like to talk about what they got and the quality. So once Brits start
buying coffeefrom Dunkin’ Donuts, the word willget out about how good the quality is.For social
media, a lot of Brits use socialmedia, soTweeting, and using Instagramto show pictures of coffee
and tea and breakfast sandwiches will be necessary. Dunkin’ Donuts will be better on aa local

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campaign just so that the local people will be able to recognize the company rather than trying
to get the Chinese to like Dunkin’ Donuts since there isn’t even one there.
Our main goal as a company in our move to the UK is to increase market share. Starbucks owns
majority of the market but we think we can capture some of their customers. In order to do this,
we are going to have to promote our company and our product because we think it is better than
Starbucks. We will do this by giving out coupons, starting a rewards program, and taste testing.
For coupons we will start by doing buy one get one 50% off. That will get our target markets
attention first. Next, the rewards program. A lot of stores in the US do this. Buy 10 products from
us and get one free. Once you get your free one, we will send
you coupons via email or mail, then give you another card. By
sending our customers coupons, I think they won’t forget
about us and they will continue to use our service.
In conclusion, Dunkin’ Donuts is going into anew market and culture. We won’t only have
to adapt our menu and products, but our customs as well. Adapting to their culture will be more
important than the product because if we harm their culture there will be no chance for our
company. Dunkin’ Donuts has the ability to grow to a globally known brand and have a lot of
success.

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Works Cited
"Coffee Concepts Can Target Lunch Guests with Demographic Data." QSR Magazine. N.p., Aug.
2014. Web. 18 Mar. 2016.
"Home | Dunkin' Donuts." Home | Dunkin' Donuts. N.p., n.d. Web. 12 Mar. 2016.
"Marketing Mix of Dunkin Donuts." Marketing91com. N.p., 11 Aug. 2015. Web. 13 Apr. 2016.
"NAFTA." North American Free Trade Agreement. N.p., n.d. Web. 26 Apr. 2016.
Reuters. "Dunkin' Donuts Beats on Quarterly Revenue and Profit." Business Insider. Business
Insider, Inc, 22 Oct. 2015. Web. 27 Mar. 2016.