Dunkin Donuts Report

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Dunkin Donuts Marketing Strategy Report

Course BU.450.710.82.FA14

Marketing Strategy

The Johns Hopkins Carey Business School

Professor Haiyang Yang

C.R.A.K. Consultants

Jianlan Chen, Ramy El-Refai, Azmina Rahemanji, Kaan Zaimoglu

December 9, 2014

Table of Contents

Executive Summary……………………………………………………………………………………....2

Current Business Situation……………………………………………………………………………….3

Firm’s Objectives………………………………………………………………………………………...5

Marketing Strategy & Implementation…………………………………………………………………..6

Analysis of Marketing Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Future Opportunities…………………………………………………………………………………….11

Future Challenges……………………………………………………………………………………….13

References………………………………………………………………………………………………14

Appendix………………………………………………………………………………………………..16

Executive Summary                                                                                      [pic 2]

“You can’t buy happiness, but you can buy coffee and that’s pretty close” – Anonymous

Fifty four percent of Americans over the age of 18 drink coffee every single day. (http://www.statisticbrain.com/coffee-drinking-statistics/). The warm touch on a cold morning, the sweet aroma, the robust flavor, and last but not least the caffeine boost that everyone craves in the morning, coffee is not just a beverage but a part of everyday life. The start to a day. Dunkin’Donuts is one of the world’s leading beverage and snack chains in the world selling quality coffee, donuts, breakfast items, bakery items, snacks, and other beverages at a value cost.

The significant insights that will be described in the following report are important to learn because this organization enhanced their strategy year after year and continued to grow despite the amount of competition they face. Many firms that sell commodity products face fierce competition throughout their lifecycle. It’s important to uncover what strategies will sustain the company and the strategies that can be implemented to change or maintain positioning and achieve long-term growth and success. C.R.A.K. Consultants found it interesting to study Dunkin’Donuts because as much of a commodity as coffee is, coupled with the amount of market saturation, based on annual data, Dunkin’Donuts remains successful, and not just in terms of revenue, but have an extensive expansion plan to have 15,000 stores across the globe by 2025 in addition to one of the highest rates of customer loyalty in the United States.

Insights will include Dunkin’s expansion plan, unique marketing strategies, consumer segmentation and targeting, advertising campaigns, competitive landscape, marketing strategy analysis, and future challenges and opportunities.

Dunkin’Donuts has rich history, longevity, and has used the same positioning for the last 65 years.  Dunkin’ was founded in 1950 by Bill Rosenberg, has expanded globally, extended their menu breadth, created a strong reputation and brand equity and today has 11,000 worldwide locations and operate in 33 countries and 40 states in the United States.

Current Business Situation

Owned by one of the world’s leading franchisors of quick service restaurants, Dunkin' Brands Group, Inc, Dunkin’Donuts founded in 1950 is an all-day, everyday stop for coffee and baked goods. Dunkin' Donuts is a market leader in the hot regular/decaf/flavored coffee, iced coffee, donut, bagel and muffin categories. They have earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for eight years running. The company has nearly 11,000 restaurants in 33 countries worldwide. For the full-year 2013, Dunkin' Donuts' restaurants had global franchisee-reported sales of approximately $7.4 billion. ()

Consumers: The beauty of a commodity firm in the quick food service industry is that they can merely serve anyone. Dunkin’Donuts has products for adolescents all the way up to the elderly. If you don’t like coffee, they have tea or frozen beverages as well as food, snacks, and of course, donuts. DD’s main positioning is the convenient, quick, and simple place to get great tasting coffee. Unlike their competitors, they do not strive to be a destination, but rather, be the place people can conveniently stop on the way to their main destination. (https://www.swipely.com/blog/dunkin-donuts-loyalty/)