Dunkin' Brands' president said selling Starbucks creamer would strengthen its brand's association with hot coffee and drive more hot coffee sales. The coffee creamer market is affected by trends of home brewing and advanced brewing systems. Starbucks should enter the creamer market because consumers are willing to pay higher prices, it has established distribution channels, and outperforms Dunkin' Donuts on key metrics like taste, variety, and quality. The report recommends Starbucks launch a creamer called "Affogato" and a marketing campaign to introduce the new product.

1. STARBUCKS
COFFEE
CREAMER

2. “…strengthen [the] brand’s association with hot coffee, increase [its]
visibility at grocery stores around the country, and ultimately drive more
hot coffee sales when consumers visit [its] restaurants.”
- John Costello, Dunkin’ Brands’ President, Global Marketing
and Innovation

3. Coffee Creamer Market
SWOT Analysis
Choice Drivers
Market Entrance
Recommendations
EXECUTIVE SUMMARY

4. 1971
1992

5. FORCES AFFECTING COFFEE CREAMER MARKET
Sociocultural:
54%
Focus on
home
brewing
Technological:
50%
Advanced
brewing
systems
Economic:
1.6%
Future of
declining
input costs

6. S W
TO
• Expansive network
• Drink variety
• Brand recognition
• My Starbucks IDEA
• Higher priced items
• Social stigmas
• Brand dissolution
• Number of competitors
• Diversify product offerings
• Foreign market expansion
• Partnerships
• Mobile technology
• Competitor market position
• Production costs
• New product acceptance
• Low margin business

7. STARBUCKS CHOICE DRIVERS
Favorability of
STARBUCKS
Probability to
Purchase
STARBUCKS
9.357
R2 = .173
Quality
STARBUCKS
Brand
R2 = .225
TASTE
Variety of
Flavors
R2 = .520

9. ATTRIBUTE PERFORMANCE
4.87 4.91
3.61
5.17
4.59
4.86
4.37
5.77 5.79
4.13
3.35
5.28
5.91
5.64
TASTE VARIETY OF
FLAVORS
QUALITY PRICE NUTRITIONAL
CONTENT
PACKAGING BRAND
Dunkin' Donuts Starbucks

10. PRICE FREQUENCY
$1.00-3.00 $3.00-4.00
$4.00-5.00 $5.00-6.00
$6.00-7.00 $7.00-8.00
$8.00 and above
DEMOGRAPHIC FACTORS
Dunkin’ Donuts Gender Education Age
Favorability towards DD 0.421 0.957 0.625
Probability of Purchasing
DD Coffee Creamer
0.706 0.932 0.403
Max Price willing to pay for
DD
0.194 0.343 0.956
Starbucks Gender Education Age
Favorability towards
Starbucks
0.932 0.602 0.148
Probability of Purchasing
Starbucks Coffee Creamer
0.635 0.305 0.655
Max Price willing to pay for
Starbucks
0.585 0.410 0.901

11. $4.99

12. STARBUCKS Should Enter Coffee Creamer Market
Willingness to Pay Higher Price
Pre-established Distribution Channels
Outperforming DD on Key Metrics
Logical Product Extension ✔
✔
✔
✔

13. AFFOGATO
BY
STARBUCKS

14. “DROWNED”
ENHANCESWEETEN
DECADENCE LUXURY RICHNESS

15. It’s AFFOGATO
AFFOGATO Signature!
MARKETING CAMPAIGN

16. PRODUCT OFFERING EXPANSION