el concepto en dunkindonuts

1. •Eddie Suchevits•
dunkindonuts.com
dunkindonuts.com

2.  In 1950 William Rosenburg opened the first
Dunkin‟ Donuts in Quincy, MA
 1990 – Allied Domecq (UK) purchases
Dunkin‟ Dounuts
 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 Carlye Group and
Thomas H. Lee Partners bring Dunkin‟ Brands
back the United States at a cost of $2.4 billion
dunkindonuts.com
dunkindonuts.com

3.  Dunkin‟ Brand HQ:
 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
dunkindonuts.com
themarketingguy.wordpress.com

4.  Economic
 Consumer are more likely to pay 99¢ over Starbucks
Prices (abc2news.com)
 Legal
 Must comply with FDA regulations
 Competition
 Coffee: Starbucks
 Donuts: Krispy Kreme
 Limited-Service Restaurants: McDonald’s
 Technology
 Face-scanning advertising (guardian.co.uk)
 Cultural
 “Dunkin’ Democrats” vs. “Starbucks Democrats”
dunkindonuts.com
dixiedining.wordpress.com

5. (in thousands) 2003 2004 2005 2006 2007
Industry Revenue $120,873,894 $127,892,600 $134,200,000 $142,745,100 $150,100,000
Industry Profits $3,626,217 $3,197,315 $3,623,400 $4,710,588 $5,403,600
Industry Profit
Margin
3.0% 2.5% 2.7% 3.3% 3.6%
Dunkin’ Donuts
Revenue
$3,200,000 $3,616,000 $3,800,000 $5,000,000 $5,220,000
Dunkin’ Donuts
Profits
$277,360 $289,600 $311,600 $440,000 $475,020
Dunkin’ Donuts
Profit Margin
8.7% 8.0% 8.2% 8.8% 9.1%
Sources: allbusiness.com, restaurant.org, nytimes.com,
rimag.com, dunkindonuts.com, RMA
dunkindonuts.com

6. $0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
2003 2004 2005 2006 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
dunkindonuts.com
(in thousands)

7. $0
$2,000,000
$4,000,000
$6,000,000
2003 2004 2005 2006 2007
Industry Profits
Industry Profits
$0
$100,000
$200,000
$300,000
$400,000
$500,000
2003 2004 2005 2006 2007
Dunkin„ Donuts Profits
Dunkin' Profits
dunkindonuts.com
(in thousands)

8.  Dunkin’ Donuts’ products are consumer
shopping 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 fluctuations
dunkindonuts.com dunkindonutsobx.com
dunkindonuts.com

9. McDonald's, 7.7%
Burger
King, 2.4%
Subway, 2.2% Wendy's, 2.2%
Starbucks, 2.0%
Taco Bell, 1.7%
KFC, 1.5%
Pizza Hut, 1.5%
Applebee's, 1.3%
Dunkin'
Donuts, 1.3%Other, 76.1%
Top Restaurant Chains,
2006:
dunkindonuts.com
Source: Market Share Reporter 2008

10. dunkindonuts.com
Starbucks
43%
Dunkin' Donuts
27%
Krispy
Kreme
5%
Tim
Horton's
2%
Other
23%
Gourmet Coffee Sales, 2005:
dunkindonuts.com Source: Market Share Reporter 2008

11. Dunkin'
Donuts, 28.5%
Tim
Horton'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
2005:
dunkindonuts.com Source: Market Share Reporter 2008

12.  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
dunkindonuts.com
dunkindonuts.com
dunkindonuts.com

13. Donuts, Food, and
Online Sales
Packaged Coffee
Producer
Distributor
Retailer
Producer
Consumer
Consumer
(Proctor & Gamble)
(Wal-Mart, Kroger)
dunkindonuts.com

14.  Dunkin Donuts 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.
interstatelogos.com

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 Objective
dunkindonuts.com
dunkindonutsobx.com
Themarketingguy.wordpress.com
(Prices found through telephone interview)

16.  Target Market (independentsources.com)
 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 coffee
and tea beverages
dunkindonuts.com
dunkindonuts.com

17. High QualityLow Quality
High Price
Low Price
(3.33, $5.49)
(4.33, $7.49)
(3.09, $6.99)
(4.00, $7.75)
Price based on
a dozen glazed
donuts
Quality based on
consumer ratings
at rateitall.com
dunkindonuts.com
krispykreme.com
timhortons.com
spyur.am
dunkindonuts.com
(Prices 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 consumers
dunkindonuts.com
dunkindonuts.com
dunkindonutsobx.com

19.  Web Marketing
 www.dunkindonuts.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”
bostonherald.com
flickr.com
jennylafer.com
flickr.com
video.aol.com

20.  Direct Marketing
 Coupon Books / Coupons
 “FREEquent” visit cards
 Personal Selling
 All 5,769 franchised restaurants in the United
States
 Public Relations
 Press Release (website)
 Tribune Democrat
dunkindonuts.com