Dunkin ’Donuts ha estado operando como una cadena de restaurantes durante casi cincuenta años.

Dunkin
Donuts pudo establecer una relación de clientes a largo plazo al mantener sus valores originales creados hace
50 años por el fundador Bill Rosenberg. Se han adherido a sus valores al proporcionar al consumidor una
excelente experiencia de servicio al cliente con facilidad de acceso y asequibilidad. Dunkin ’Donuts pone
primero el control de calidad al hacer esto; Son capaces de proporcionar una taza de café consistente en
cualquier lugar. A través de los años, Dunkin ’Donuts se ha expandido a nivel nacional y global. Dunkin
’Donuts también ha agregado nuevos sabores de café. Dunkin ’Donuts pudo adaptarse a la nueva generación
de consumidores de café, pero lo ha hecho simple al hacerlo. Aunque la cadena ahora ofrece café helado,
sándwiches de desayuno, batidos, galletas gourmet y Dunkin Dawgs. Han continuado dando al cliente el valor
que estaban buscando.

Situation

The company’s core product, donuts, was becoming less desirable to consumers.
Sales, traffic, and profits were declining. The coffee category was enjoying tremendous
growth in the marketplace with new entrants including Starbucks and Peets, and
expanded coffee products such as flavored and frozen beverages.

Solution

Andrea McKenna, Director of Advertising & Sales Promotion, led the team in developing
an integrated marketing program with a new positioning “coffee and…” featuring coffee,
with a secondary emphasis on the namesake product.

 Introduced new products in coffee and expanded the category to hot, cold, iced,
flavored and frozen choices with various roasts

 Introduced complimentary baked goods as “add-ons” to coffee

 Expanded purchase cycle to other times of day with appropriate new products

 Expanded target market and frequency of purchases

Results

 Highest comp store sales increases in the Quick Service Restaurant category

 Grew franchisee sales and profits by changing the product mix with emphasis on higher
profit, less labor intensive products

 A re-positioned, relevant brand with multi-generational appeal

ABSTRACT

Dunkin’ Donuts is a global retailer of coffee and bakery products. Thecompany is

99 per cent franchised and has used the franchising system as aroute to market
entry and expansion worldwide. The original historic roots of the company are in
the USA and despite wide international expansion sincethe 1970s, the US market
continues to serve as a testing ground for innovations prior to international roll-
out. Based on observation and keyinformant interviews with core members of the
management team during avisit to Richmond Project in 1994, the case explores the
initial phase of theintroduction of a central production facility as an innovative
route to pre-eminence in one test market. Strategic and operational issues are
discussed,highlighting the differences and efficiency gains of the central
productionfacility cum satellite store approach compared to the traditional stand-
aloneon-site production approach. Implications for future developments
arediscussed.

Dunkin' Donuts is a business in food retail. They are the world's largest coffee and baked goods

chain. Dunkin‟ Donuts have been in business since 1950 and have been

franchising since 1955.This franchise serves more than 2 million customers a day. Dunkin' Donuts sells
52 varieties of donuts and more than a dozen coffee beverages as well as bagels, breakfast sandwiches
and otherbaked goods.

It is important to look at consumer usage and future trends before entering into the market.Dunkin
Donuts is part of the snack shop market. The snack shop market had almost 10 billion issales worldwide
in 2003 alone. Snack shops have an advantage because they are popular amongall consumer groups.

Dunkin‟ Donuts has retained a consistent database of customers, while also

gaining additional consumers through the progression of time and emergence of newer markets.

The report discusses task environment that Dunkin‟ Donut operates in

. It describes thecompetitive environment and its customer base. The company follows different
competitionstrategies and has goals to achieve through them. We also discuss the external environment
of the company which includes the socio-cultural environment and the global environment.T

he environmental effects of Dunkin‟ Donuts is

also discussed. We describe the degree of change and complexity and the effects of competitive rivalry.
Lastly, we analyze the Porter‟sFive Forces in terms of the industry Dunkin‟ Donuts operates in.

HISTORY

Dunkin‟ Donuts was

begun in 1050 by William Rosenberg with a single shop in Quincy,Massachusetts. In 1946, he

founded Industrial Luncheon Services, a company that deliveredmeals and snacks to workers in
the Boston area. The success of Industrial Lucheon Servicesconvinced Rosenberg to start the
Open Kettle, a doughnut shop in Quincy, Massachusetts. Two

years later Open Kettle changed its name to Dunkin‟ Donuts.

He began franchising additionaloutlets in 1955, and by 1979 there were a thousand Dunkin; Donuts
outlets in the Northeast.Through a seri

es of transactions in the 1980s and 1990s, Dunkin‟ Donuts

became the quick service restaurant operation of the British firm, Allied Domecq PLC. In 2002, as Allied
Domecq

looked for growth opportunities, it‟s Dunkin; Donuts (DD) business was described as a “sleepinggiant”
as much for its fiercely loyal clientele as its $2.8 billion in sales and more than 3,800 U.S

outlets

Dunkin’ Donuts, At-A-Glance

Dunkin Donuts is owned by Dunkin' Brands Group, Inc. (NASDAQ: DNKN), one of the

world's leading franchisors of quick service restaurants. Dunkin„ Brands is the parent companyof both
Dunkin„ Donuts and Baskin-Robbins

Dunkin' Brands Group, Inc. is heartquartered in Canton, Massachusetts.

At the end of 2011, Dunkin' Brands Group, Inc. had franchisee-reported sales of approximately $8.3
billion.

- Dunkin' Brands, the parent company of Baskin-Robbins is one of the largest QSR (Quick Service
Restaurant) companies in the world with nearly 7,000 retail shops in nearly 60 countries worldwide.

ere are more than 10,000 Dunkin‟

Dunkin' Brands Group, Inc. has a nerly 100 percent franchised model.

There are more than 10000 Dunkin Donuts restaurants in 32 countries.

Mission Statement

“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.”

Products

Dunkin Donut serves the following items :1) Donuts2) Fritters3) Crullers4) Biscuits5) Munchkins6)
Bagels7) Muffins8) Danish pastry9) Cookies10)
Brownies11) Bagel Twists12) Breakfast sandwiches13) Hash browns14) Oven toasted items15) Coffee be
verage

16) Bulk Coffee17) Espresso, Cappuccino,

and Lattes18) Iced Coffee19) Iced Lattes20) Latte Lite Espresso21) Turbo
STRENGHTS

The franchise model is a hit – The reason Dunkin Donuts could

become a big name in the food industry was because of its excellent
Franchise model. The four things which Dunkin Donuts requires a
franchise to have are – an Available market, Prior experience of running
a food service, Passion for business excellent and the right resources.
Below is an excerpt on applying for franchising from the page of Dunkin
Donuts.
Franchise relations are poor – Although the company is known for its
fantastic supply chain and operations management, still it is known to be
poor in developing franchise relations, a problem which has resulted in
the franchise’s expanding slowly then competition.
3.Increase in the cost of raw materials

STRENGTHS WEAKNESESS
1. Strong brand name 1. Unhealthy reputation
2. Succesful and popular 2. No online sales
quality products lines 3. Poor franchise relations
with affordable prices.
 3. Brand loyalty
4. Franchise model
5. Strong brand portfolio
6. Variety of flavors.
OPPORTUNITIES SO
1. High growth rates in S1, S2, S6, O1. Utilize financial
emerging markets. power and brand image to
2. High growth potential expand in emerging markets.
of the single-serve S1, S3, O1 Market the brand
coffee market. heavily in the less penetrated
3. High growth potential areas.
of flavored coffee in S1, O3, O4 Exploit market
the U.S. segments using innovation and
4. Health trend. product diversification.
5. Product diversification S2, S6, O3.Utilize the wide
6. Techonological variety of flavors and succesful
advances to improve product lines to penetrate the
products innovation. flavored coffee market in the
U.S.
THREATS ST
1. Increased competition S2, S3, T3 Take advantage of its
from local coffee leadership of customers’ loyalty
companies and maintaining its quality and low
international entrants prices so that to avoid customers
in emerging markets. switch off to better substitutes.
2. High bargaining power S1, S2, T1 Spend in marketing,
of suppliers raises advertising and promotion
prices of coffee beans. campaigns to maintain brand
3. Substitute products. loyalty.
4. New technologies
developed by
competitors.
5. Change in consumer
tastes and preferences.
4. Not proper financial
planning
5. Gaps in the product
range.
WO
W1, O4, O5 Refute unhealthy
reputation by offering new low-
fat and sugar free options
making consumers recognize
potential for healthy snacks.
W5, O3, O4 Expand and
diversificate products range
developing new options of
beverages and snaking.
introducing more premium
offerings and strategic
promotions to boost sales.
W3, S1 Stablish better
franchisees relationships
worldwide.
WT
W2, T1 Develop an app for
mobile ordering, so that
customers could pre order and
pay with their smartphones.