Dunkin Donuts: Strategy and Strategic Management Analysis

Dunkin’ Donuts is an American planetary ring company and coffehouse concatenation based in Canton, Massachusetts. In 1948, William Rosenberg opened his first eating house as Open Kettle in Quincy, Massachusetts. In 1949, the name was changed to Kettle Donuts, and in 1950, the corporate name Dunkin’ Donuts was adopted.

Rosenberg sold franchises of Dunkin’ Donuts to others. In 1959, he began buttonholing for Dunkin’ Donuts at the International Franchise Association, and in 1963, the chain’s 100th eating house opened.

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Dunkindonut.org was founded by a client for dissatisfied consumers and employees to lodge complaints about the company. In 1999, the site appeared before the company’s own website in many search engines and received national media coverage before being purchased by Dunkin’ Donuts.

In 2002, Rosenberg passed away from bladder cancer at the age of 86 in his Mashpee, Cape Cod home. In 2004, the company’s headquarters were relocated to Canton. In 2006, Dunkin’ Donuts began using the motto “America Runs on Dunkin”, which continues to be used in many advertisement campaigns.

In 2007, Dunkin’ Donuts featured tear-off pieces on its java cups and created a promotional campaign centered on a java cup named Joe Dunkin. In 2008, Dunkin’ Donuts opened its first “green” eating house in St. Petersburg, Florida that is Leadership in Energy and Environmental Design (LEED) certified.

On December 10, 2008, Nigel Travis was appointed Chief Executive Officer of Dunkin’ Donuts’ Brands, and Dunkin’ Donuts offered a 99 cent latte, cappuccino, and espresso promotion from 1-10 pm.

In 2009, Nigel Travis assumed the role of Dunkin’ Donuts President. Dunkin’ Donuts temporarily stopped the sale of Dunkaccino and hot chocolate because of concern of a possible salmonella toxic condition at a supplier’s facility. The Kainos Partners Holding Co., which owned and operated 56 Dunkin’ Donuts, filed for bankruptcy.

In 2010, Dunkin’ Donuts’ global system-wide revenues were $6 billion. In 2011, Dunkin’ Donuts ranked first for customer loyalty in the java category by Brand Keys. In 2012, Dunkin’ Donuts switched its drink supplier from PepsiCo to The Coca-Cola but Canadian eating houses. Dunkin’ Donuts launched its first-ever mobile application for payment and gifting for iPhone, iPod touch, and Android smartphones.

In 2013, Nigel Travis assumed the role of Chairman of the Board, and Paul Twohig was appointed President of Dunkin’ Donuts U.S. & Canada. Dunkin’ Brands was bought by French drink company Pernod Ricard S.A. The Dunkin’ Donuts chain in Thailand used an advertisement that contained a photo of a woman in black face-paint and was criticized by racists. In 2014, Dunkin’ Donuts is owned by Dunkin’ Brands Inc. that also owns Baskin-Robbins.

As for the SWOT analysis of Dunkin’ Donuts, the group found that the brand image itself, a product called doughnut, is a strength. Loyal customers of Dunkin’ Donuts are sufficiently secured, as much as the pre-emption, and there is confidence in selling as well as maintaining the top spot in the confectionery industry. In addition, the ability of marketing is of first standards.

However, the possibility of developing market potency has a number of advantages. Finally, let’s examine the portion of the menace.

Fast food doesn’t have a good reputation, and due to the recession, consumer sentiment has been shrinking. Due to the preemption of coffee saloons in the coffee market, the market will be larger for those who are anxious.

Next, the group will explain the 4P strategy. First, let’s look at the Price aspect of the 4P. Donut has maintained the price of 700-900 won.

Coffee is priced between 1900-2900 won, which is much lower than traditional coffee brands. This leads to a competitive product that can combine delicious coffee and doughnuts. The price of a cup of Starbucks coffee is 4000 won. However, the image of coffee is of poor quality and cheap.

Therefore, Dunkin’ Donuts is trying to produce a new product for picky domestic consumers. Reasonable price in terms of taste and quality, as well as Dunkin’ Donuts’ advantage.

In terms of the product, Dunkin’ Donuts is the core of about 50 donuts and a more diverse range of coffee. They only use Al Rabika John coffee beans, with strict directions and keeping periods, and use only high-quality packaging. Dunkin’ coffee is always made with the utmost care and freshness. In addition, the basic idea of Dunkin’ Donuts is QSC.

Q stands for quality of the product (Quality). S is for all services (Service). C is the most important aspect in food, cleanliness (Cleanliness). In order to protect QSC, in addition to making doughnuts in each region’s ten factories twice a day to produce fresh doughnuts, they limit distribution to 12 hours per day.

They only sell doughnuts made on the same day to consumers with strict internal control. In the third aspect, Dunkin’ Donuts targets office workers and college students in their 20s and 30s, who are the most important core layer.

Dunkin’ Donuts’ important locations include Jongno, university territory, and Gangnam. They opened a shop in these areas, with a store rate and stay of less than 5%. They are also running the first to ensure the distribution chain. However, just as important as increasing the number of shops is the atmosphere of the shop. They have gone to great lengths to make the image work and positioning of the shop, and have advertised through various media in the center of the shop.

The strategy of creating a comfortable third place has been successful in the same way as the positioning. The gentrification of these places is just as important as the quality of the product. Finally, the promotion is essential for linking to consumer consciousness in order to consolidate its position as one of the existing markets. There was a large-scale advertising executive. It achieved great results by appealing to the busy office workers in their 20s and 30s.

When you eat a doughnut, you should also enjoy it with coffee. Women in their 20s and 30s like Lee Byung Hun and Kim Jae Won have been attracted to advertisements that put a strong message, with executives like the handsome young Otani Ryohei.

Dunkin’ Donuts is challenging Starbucks. Tony Fabez, the COO of Dunkin International, said, “You can drink fresh brewed coffee that has only passed 2-4 weeks at Dunkin, while you drink coffee made from beans that have passed 6 months since roasted.”

Dunkin really originally sold coffee, but Dunkin challenged the king of the coffee shop market, Starbucks. So, Dunkin is a new entrant in the coffee market. Dunkin’s competitive advantage is the overwhelming number of franchises and lower prices.

Starbucks’ original coffee costs $2.5, while Dunkin’s original coffee costs $1.9. Primarily, the coffee market has a low entry barrier.

I learned in the society category that a coffee-producing state can’t set a fixed price because coffee is easy to grow. Rivalry among existing companies is intense. There are so many coffee stores like Starbucks, Holly’s Coffee, Tom and Tom’s Coffee, etc.

In other words, a large number of coffee stores show the high demand for coffee. As you know, there are abundant coffee bean suppliers, and buyers can easily get coffee beans. Additionally, competitors can easily obtain coffee beans. In fact, coffee providers sell it for too cheap, so buyers take too much benefit.

Except for coffee bean providers, there are coffee roaster providers, but I think their small companies can’t exert influence on major companies.

Regarding buyers, I think those companies should take care of their customers. The buyers’ preferences are sensitive to taste and price, but they take a serious view of availability, service, awareness, and atmosphere. Dunkin has better availability, but if buyers first meet a friend in a long time or meet people in business, they will go to Starbucks, not Dunkin! This means Starbucks’ competitive advantage is its formality.

Substitute products- What can substitute coffee? There are no tea franchises. Except for alcohol, there aren’t any ‘hot’ drinks like coffee. In the last five years, the coffee importing market has become three times bigger. I think nothing can substitute coffee yet. Dunkin’ Donuts covets Starbucks’ immense financial power and distribution network.

The coffee business doesn’t require heavy investment and decision-making. Dunkin acquires bigger companies and invades other markets. But the coffee market has a low entry barrier. Dunkin could be threatened by bigger companies at any time. If Dunkin wants to survive in the market, it should develop its own competitive advantage.

For example, Starbucks distributes soluble coffee with the Starbucks brand. Dunkin’ Donuts often partners with a select group of retailers, such as Stop & Shop and Wal-Mart. This activity has found another new market in those people who need to have a break while shopping. Cooperative strategies are very useful in a fierce market.

It can lower the cost of opening new coffee shops and increase profit. Dunkin’ Donuts has been partnering with many theme parks, all parks, important places, and lodges. They have also expanded to sporting venues like Fenway Park and the TD Banknorth Garden. Partnering with popular companies and organizations helps them gain popularity and shows how popular places support Dunkin’ Donuts.

Dunkin’ Donuts has come up with a superb new strategy for growth within the coffee industry. In 2002, the company formed an alliance with Stop & Shop Supermarkets. The agreement allowed Dunkin’ Donuts to have a full-service coffee shop in over 5,000 stores throughout Massachusetts, Connecticut, Rhode Island, New York, and New Jersey.

This partnership benefited the Stop & Shop Supermarket’s business because it added value for customers who wanted to drink gourmet coffee while grocery shopping.

Expand into new markets utilizing a disciplined approach. They believe that the western portion of the U.S. represents an important growing opportunity for Dunkin’ Donuts.

Specifically, in the near-term, they intend to keep a focus on development in immediate markets that are next to their existing base, and by and large, travel outward to less-penetrated markets in a patterned advance.

Supplying for selling and supply chain, Dunkin’ Donuts has designed a strategy of cost leadership. Cost leadership is defined as offering the same product of equal or better quality at a price that is equal to or less than the competition. Since most consumers today are very price/cost conscious, this type of business strategy is very appealing to them.

It makes for a lower profit margin but allows for a greater volume of sold merchandise. This strategy can be difficult to achieve as it requires great discipline in controlling costs and expenses. The overall operations of the business must be kept in check at all times to maintain a lower price over its rivals.

Dunkin’ Donuts produces more merchandise sales than Starbucks, its nearest rival. All prices at restaurant chains are fixed, but because Dunkin’ sells a higher volume of merchandise, they are able to maintain overall profitability. Dunkin’ carries only a limited number of items, which allows for better controls along with superior customer service.

Like its rivals, Starbucks and McDonald’s, Dunkin’ Donuts offers the same great service at each one of its independently owned locations. Most Dunkin’ Donuts stores are strategically placed in centers with a lower rent factor. Furthermore, since all of Dunkin’s products come from the same sellers, costs can be easily controlled. Should any of these sellers choose to increase prices, Dunkin’ can easily find new sellers.

Ring market is Dunkin Donut is the first store in Itaewon in 1994. Dunkin is 10 years; the donut market has been monopolized. But the slayer is Dunkin’ Donuts. Krispy Kreme doughnuts are made in Korea market entry in 2004. Broke an official Dunkin=Donuts, Krispy Kreme doughnuts could ground against because the only way to distinguish mode. Hard and we have domesticated white powder doughnuts. Fluffy and warm doughnut is the impact of new.

Dunkin’ Donuts does not have a special representative of the product. Unlike Krispy Kreme, made straight from the shop screaming hot representative of the original glossy products, bed was aiming passion. Besides, instead of having undue criticism, PPL ad, a neon sign is turned on “hot now” giving away free doughnuts, hot offers, and events.

Consumers are prepared to look at a doughnut unveiled. Because of this differentiated strategy, Krispy Kreme donuts in the domestic market in two years gross grew by 200%. While Dunkin’ Donuts’ market share declined and there was no gross growth. More, Dunkin’ Donuts’ number of shops is often compared to its rivals; however, gross can be compared to its rivals as the third.

More difficult for the economy, the doughnut market has a booming. Dunkin’ Donuts since 2010, a day 3-5 times straight from the shop baked doughnuts supplying clients with the introduced system PFD (Premium Fresh Donuts). Made at the mill was seeking to get out into the image. While Krispy Kreme donuts, making the product straight to retail shops, is an expansion difficult to run.

Distribution. You can rapidly bring forth a little doughnut store that was opened in a fresh store. As a consequence, its programs to increase market portion. Dunkin’ Donuts shops are aware of the latecomers to bake doughnuts. Straight from the shop, Krispy Kreme, as its rivals, is a threat. These days, the focus is on the side of java than doughnuts. So, customers will get lost in a batch of doughnuts. Krispy Kreme makes it easy to find the customers if you expand the number of shops. One will be able to go higher than the top of the industry.

7 V. Dunkin’ Donuts does not have a special representative of the product. Unlike Krispy Kreme made straight from the shop, shrieking hot representative of the original glassy merchandise bed was aiming passion. Besides, instead of having undue criticism PPL ad, a neon sign is turned on “hot now” giving away free doughnuts, hot offers, and events.

Consumers are prepared to look at a doughnut unveiled. Because of this differentiated scheme, Krispy Kreme donuts in the domestic market in two years gross grew by 200%. While Dunkin’ Donuts market share decreased, and there was no gross growth. Moreover, Dunkin’ Donuts’ number of shops is frequently compared to its rivals.

However, gross can be compared to its rivals, which is the third. More difficult for the economy, the doughnut market has a booming. Dunkin’ Donuts since 2010, a day 3-5 time straight from the shop baked doughnuts, providing clients with introduced the system PFD (Premium Fresh Donuts). Made at the mill was seeking to get out into the image.

While Krispy Kreme donuts, making the product straight to retail shops is the expansion hard to run. So, distribution, you can rapidly bring forth a little doughnut store that was opened in a fresh store. As a consequence, its programs to increase market portion. Now almost all Mister Donut shops have changed their names to Dunkin’ Donuts, and Mister Donut no longer exists any longer in America.

However, before Mister Donut was acquired, both Dunkin’ Donuts and Mister Donut had started to do business in Japan in the 1970s. Dunkin’ Donuts was run by a food company, Yoshinoya, which mainly provides a meal known as a beef rice bowl. Mister Donut was run by a cleaning company, Duskin, in Japan.

Dunkin’ Donuts failed in Japan and withdrew, but Mister Donut succeeded and dominated the ring industry in Japan. Even now, Mister Donut continues to be the most popular ring chain in Japan, even though you can’t find it any longer in America. On the contrary, you can’t find any Dunkin’ Donuts in Japan, even though it is the world’s biggest ring chain.

Reuters reports that Dunkin’ Donuts has dropped PepsiCo drinks in favor of Coca-Cola products at its 9,000 Dunkin’ and Baskin Robbins shops across the US. Terms of the trade haven’t been disclosed. Reuters notes that the move probably left a bad taste in the mouths of Pepsi executives.

In January, Dunkin’ revealed plans to double the number of existing Dunkin’ Donuts shops over the next two decades, according to The Consumerist. Still, Pepsi released a polite statement, noting that “Dunkin’ Donuts has been a valued partner of PepsiCo over the last five years, and we’ve enjoyed being part of its success.”

Enterprise News reports that the Dunkin’ Donuts trade will cover Coke’s juice, energy drink, and water brands, including Powerade, Minute Maid, Simply, Dasani, and Vitaminwater. Coke drinks will appear at Dunkin’ Donuts and Baskin-Robbins stores by late spring, and all Pepsi drinks will disappear by August.

Regarding consumer preferences, instead of rice and miso soup, I started to lean towards bread and coffee. Moreover, it has the characteristics associated with the take-out culture, especially with coffee and an easy-to-eat doughnut from Dunkin’ Donuts.

The greatest opportunity is that the donut market’s potential customer acquisition is extensive, but rivals in the market for doughnuts are relatively small. While competitors often market beans, the potential for development of the possible market also has a number of advantages.

Dunkin’ Donuts has its own strategy, and they have grown as the ring market leader. Despite several rivals and new entries, they have continuously developed their strategic management. To fulfill customers’ demands, they will analyze the best strategy from now on.

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Dunkin Donuts: Strategy and Strategic Management Analysis. (2017, Jul 23). Retrieved from https://graduateway.com/dunkin-donuts-strategy-and-strategic-management-essay/