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DUNKIN’DONUTS
- 2. GROUP MEMBERS o ALIAKRAM AWAIS IQBAL o NABEEL MUNAWAR ALI RAZA o RABIA PERVAIZ AQSA NAEEM oMUAZ IJAZ
- 3. • DEPARTMENT OFMANAGEMENT SCIENCES • BACHELOR IN BUSINESS ADMINISTRATION • GOVERNMENT COLLEGE UNIVERSITY • FAISALABAD • SAHIWAL CAMPUS • Session 2013-2017
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- 6. Introduction • Dunkin' Donutsis a business in food retail. They are the world's largest coffee and baked goods chain.
- 7. History • In 1950William Rosenberg opened the first Dunkin’ Donuts in Quincy, MA • 1990 – Allied Domecq (UK) purchases Dunkin’ Dounuts
- 8. 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
- 9. Background • Dunkin’ BrandHQ: – 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
- 10. MISSION STATEMENT • "Makeand 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.”
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- 12. 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.
- 13. Vision and Performance Weprovide our guest, the elegant service and unforgettable experience to meet their expectations in every single visit
- 14. Performance $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 2003 2004 20052006 2007 Industry Revenue Industry Revenue $0 $2,000,000 $4,000,000 $6,000,000 2003 2004 2005 2006 2007 Dunkin' Donuts Revenue Dunkin' Revenue
- 15. Profits $0 $2,000,000 $4,000,000 $6,000,000 2003 2004 20052006 2007 Industry Profits Industry Profits $0 $200,000 $400,000 $600,000 2003 2004 2005 2006 2007 Dunkin‘ Donuts Profits Dunkin' Profits
- 16. Market share Dunkin' Donuts, 28.5% TimHorton's, 27.9% Dairy Queen, 20.2% Baskin-Robbins, 8.6% Krispy Kreme, 6.8% Cold Stone Creamery, 3.1% Jamba Juice, 2.6% TCBY, 2.3% Leading Donut/Ice Cream Chains 2011:
- 17. Market share Dunkin Donuts 43% Starbucks 27% Krispy Kreme 5% TimHorton's 2% Other 23% Gourmet Coffee Sales, 2011:
- 18. Product & productstrategies • Product Dunkin Donut serves the following items : 1) Donuts 2) Fritters 3) Crullers 4) Biscuits 5) Munchkins 6) Bagels 7) Muffins 8) Danish pastry 9) Cookies 10) Brownies 11) Bagel Twists 12) Breakfast sandwiches 13) Hash browns 14) Oven toasted items 15) Coffee beverages 16) Bulk Coffee 17) Espresso, Cappuccino, and Lattes 18) Iced Coffee 19) Iced Lattes 20) Latte Lite Espresso
- 19. Product Strategies • ProductDevelopment – 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
- 21. Dunkins’ Competition Dunkin’ BrandsMarket Cap: $31.37 Billion Starbucks Market Cap: $28.5 Billion Krispy Kreme Market Cap: $25.75 Million McDonald’s Market Cap: $20.8 Billion Panera Bread Market Cap: $10.2 Billion
- 22. Competitive Advantages StrongBrand High Consumer Loyalty Increasing use of technology Alliances and partnerships
- 23. STP % MARKETCOMMUNICATION • STP Segment People looking to have western style breakfast and coffee Target Group Middle and upper middle class people and families Positioning A place offering good quality and fresh D donuts and other baked items along with coffee
- 24. MARKET COMMUNICATION • TargetMarket (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
- 25. MARKET COMMUNICATION • PromotionObjective – Create Preference • Offering a wide menu – Reinforce conviction • Through Dunkin’ Beat Starbucks campaign • Promotion Strategy – Pull • Advertising directly to consumers
- 26. S.W.O.T • STRENGTH – 1.StrongBrand name, recognized world over 2. Brand loyalty amongst customers 3. Over 1000 varieties of dunkin donuts 4. 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
- 27. S.W.O.T • Weakness – 1.Competitionfrom 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
- 28. Opportunity – 1.Increase itspresence 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
- 29. Threats • 1.People movingto 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
- 30. PESTEL • Political/Legal: • Theway 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.
- 31. PESTEL • Economical: • Theindustry 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.
- 32. • Technological: • Asthere 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.
- 33. 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
- 34. 4p’s • PRICE • OneDozen 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
- 35. 4p’s • Place • DunkinDonuts 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.
- 36. 4p’s • PROMOTION • WebsiteMarketing – 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
- 37. 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"
- 38. CONCLUSION • To concludingmy 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
- 40. RECOMMENDATION • To focuson 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