GROUP MEMBERS
o ALI AKRAM AWAIS IQBAL
o NABEEL MUNAWAR ALI RAZA
o RABIA PERVAIZ AQSA NAEEM
oMUAZ IJAZ

• DEPARTMENT OF MANAGEMENT SCIENCES
• BACHELOR IN BUSINESS
ADMINISTRATION
• GOVERNMENT COLLEGE UNIVERSITY
• FAISALABAD
• SAHIWAL CAMPUS
• Session 2013-2017

TOPIC
DUNKIN’DONUTS
PRESENTATED TO.
MAM.NIDA SYED

Contents

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

History
• In 1950 William Rosenberg opened the
first Dunkin’ Donuts in Quincy, MA
• 1990 – Allied Domecq (UK) purchases
Dunkin’ Dounuts

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

Background
• 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

MISSION STATEMENT
• "Make and 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.”

Hierarchy Style

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.

Vision and Performance
We provide our guest, the elegant service and
unforgettable experience to meet their expectations
in every single visit

Performance
$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

Profits
$0
$2,000,000
$4,000,000
$6,000,000
2003 2004 2005 2006 2007
Industry Profits
Industry Profits
$0
$200,000
$400,000
$600,000
2003 2004 2005 2006 2007
Dunkin‘ Donuts Profits
Dunkin' Profits

Market share
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
2011:

Market share
Dunkin
Donuts
43%
Starbucks
27%
Krispy Kreme
5%
Tim Horton's
2%
Other
23%
Gourmet Coffee Sales, 2011:

Product & product strategies
• 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

Product Strategies
• 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 Book

Dunkins’ Competition
Dunkin’ Brands Market 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

Competitive Advantages
 Strong Brand
 High Consumer Loyalty
 Increasing use of technology
 Alliances and partnerships

STP % MARKET COMMUNICATION
• 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

MARKET COMMUNICATION
• Target Market (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

MARKET COMMUNICATION
• Promotion Objective
– Create Preference
• Offering a wide menu
– Reinforce conviction
• Through Dunkin’ Beat Starbucks campaign
• Promotion Strategy
– Pull
• Advertising directly to consumers

S.W.O.T
• STRENGTH
– 1.Strong Brand 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

S.W.O.T
• Weakness
– 1.Competition from 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

Opportunity
– 1.Increase its presence 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

Threats
• 1.People moving to 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

PESTEL
• Political/Legal:
• The way 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.

PESTEL
• Economical:
• The industry 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.

• Technological:
• As there 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.

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

4p’s
• PRICE
• 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

4p’s
• Place
• 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.

4p’s
• PROMOTION
• Website Marketing
– 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

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"

CONCLUSION
• To concluding my 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

RECOMMENDATION
• To focus on 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