Dunkin donuts case study PDF

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Case study, SWOT , segmentation, 4 p’s...

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Dunkin’ Donuts Hussain Alawazim & Abdullah Alzahrani Work has done equally

I.INTRODUCTION

History In 1950, Bill Rosenberg opened the first Dunkin' Donuts restaurant in Quincy, Massachusetts. It aims to "make the freshest and tastiest coffee and donuts quickly and courteously and serve them in a modern and fully equipped shop." In 1955, the first Dunkin' Donuts franchise opened. Since then, the market has grown to more than 12,400 restaurants in 46 countries. Dunkin' Donuts today Today, Dunkin' Donuts is a popular place to buy coffee and pastries across the United States. The brand still uses the unique Coffee Blend recipe created by its founder, and serves about 2 billion cups of hot and iced coffee worldwide each year, making it the best coffee craft in the industry. It has sexual standards. In addition, Dunkin' Donuts offers a wide variety of espresso drinks, including lattes, macchiatos, cappuccinos, various frozen drinks, premium hot teas, iced teas, sandwiches and delicious pastries. The brand is constantly updating itself and introducing delicious new flavors and menu options available throughout the day. Background Dunkin' Donuts Story The Dunkin' Donuts story begins in 1948 at a donut and coffee restaurant called "Open Kettle" in Quincy, Massachusetts. Founder William Rosenberg offers 5 cents for donuts and 10 cents for premium coffee. After brainstorming sessions with executives, Rosenberg changed the restaurant's name to "Dunkin' Donuts" in 1950. Their goal was to "serve and serve the freshest and tastiest coffee and donuts in a modern commercial store quickly and courteously." This is also true today. The first Dunkin' Donuts franchise opened in 1955, and in just 10 years the number of restaurants had grown to more than 100. After reaching this milestone, in 1972 Dunkin' Donuts launched its wide offering of the iconic Munchkins® donut. Since then, Dunkin' Donuts has expanded its menu and added a variety of food and drink options to keep guests entertained throughout the day. Dunkin' Donut coffee is available in several delicious flavours, from classics like hazelnut and French vanilla to seasonal flavors like the popular pumpkin. All-day dining options include innovative menu items such as Big N'Toasted™, as well as many other breakfast sandwiches and bakery products. Recent menus include Rainforest Alliance Certified™ Dark Roast Coffee, Cold Brew, Macchiato and Croissant Donut Platform. Dunkin' Donuts has also been a leader in digital innovation. The Dunkin' Mobile®

app allows guests to pay directly from the app with a virtual Dunkin' Donut card. This app allows guests to access their DDPrks® account to browse menus, find nearby Dunkin' Donuts restaurants, or find coupons and mobile coupons. In 2016, Dunkin' introduced on-the-go booking. These DD Perks allow members to place mobile orders up to 24 hours in advance, select the desired location, then drive or drive to a Dunkin' Donuts restaurant. Since 1950, Dunkin 'Donuts' restaurants have grown to more than 12,000 worldwide and are located in 45 countries. The company supplies approximately 1.9 billion cups of hot and iced coffee annually, setting the highest standards for coffee quality in the sector. In the longer term, the company plans to double its presence in the United States, bringing the number of restaurants to more than 17,000. Mission 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. We provide our guest, the elegant service and unforgettable experience to meet their expectations in every single visit. Vision To be always the desired place for great coffee beverages and delicious complementary donuts & bakery products to enjoy with family and friends Internal/External Analysis Dunkin Donuts has consistently shown great growth in revenue and a steadily large margin holding around 33% for a couple of years running. This indicates effective strong sense of direction for the company. Revenues are on a high growing pattern that indicates expansion opportunities for Dunkin. However, Dunkin Donuts is battling a large amount of debt that could affect the sustainability for them. External Starbucks and Krispy Kreme are two of Dunkin’s direct competitors in their market. Starbucks is dominating the market with billion dollar revenues and fast paced global expansion. Dunkin Donuts still has a bit of an edge on Krispy Kreme in terms of size and revenues. Dunkin falls in the middle range within its market competitors. Starbucks is benefiting from a very strong and sophisticated distribution channel that is keeping them ahead of the pack. Dunkin Donuts is still making waves to expand domestically and continues to move west in the United States. Corporate leadership needs to develop a good distribution strategy to support these expansion goals. Dunkin is fairly concentrated in the eastern United States with some international locations as well so preparing a Plan that can take on competition head to head is crucial for Dunkin to not pile any more debt while looking to grab more of the market.

Marketing Demand and Opportunities Dunkin’ Donuts is one of the brands that give you the best journey. It never fails to satisfy your sweet cravings for donuts. It’s soft, flavorful, and yummy classic and premium donuts are surely among your favorites for years. Aside from serving you the sought after all-time favorites and the usual half a dozen or dozen box that is a choice for pasalubong or personal consumption, Dunkin’ Donuts never fails to upgrade its product line and promotions, keeping its patrons excited and clamoring for more. Just recently as seen on Dunkin’ Donuts Philippines website, it’s offering the following exciting products and service. PRODUCT AND SERVICE DONUTS Glazed Donut Get it for 5 SAR each. With a great unique glaze and soft dough. Mini Dunkin’ donuts Get it for 1 SAR each with a great 3 flavors, chocolate, glazed and powdered sugar for 1 SAR/per piece Coffee Enjoy their amazing Dark roast/ original Hot Coffee from 7 to 9 SAR or their other iced drinks as cold brew and iced caramel machiatto with prices starting from 14 to 17 SAR.

Franchising Nearly all of Dunkin' Brands' locations are franchises. Licensed Starbucks stores are disproportionately located outside the United States, as corporate owned and operated stores account for 59% of stores in the U.S and 48.6% of locations overseas. Dunkin' Donuts' higher exposure to franchise and rental income leads to a fundamentally different business than Starbucks' largely owner-operator model. This has major implications for revenue streams, cost structure and capital spending. Company-operated stores have different operational and capital expense structures from franchised locations. Cost of goods sold (COGS) and store operating expenses are a much larger percentage of sales for Starbucks than Dunkin'. Because COGS is so much more prominent in Starbucks' expense structure, its profits are more severely impacted by changes in coffee bean prices. Starbucks also has a higher capital expense burden than Dunkin' Donuts, which is not obligated to purchase kitchen equipment for franchise locations.

Segmentation and Branding Dunkin' Donuts markets itself primarily as a coffee seller that also offers donuts and food, a fact made apparent by a coffee cup prominently featured on the company's logo and executive management's explicit assertion that Dunkin' Donuts is a beverage company. Despite building an identity as a coffee seller, food is still an important element of Dunkin' Donuts' offering. In recent years, Dunkin' Donuts has focused increasingly on nontraditional food options with the hopes of attracting customers outside of breakfast hours. The introduction of steak to its menu in 2014 was a step toward incorporating heartier food items alongside a growing number of sandwich options. Dunkin' Donuts' interiors are designed differently from Starbucks stores, with the former often resembling fast food stores in furnishings and decor. Starbucks brands itself primarily as a beverage provider that offers a more typical coffee house dining experience. Starbucks locations are designed with the comfort of their customers in mind. Free internet access and inviting decor offer a more enticing option for those looking for a place to read, relax or chat with friends. This also makes going to Starbucks a potential social activity, turning the stores into a destination rather than a simple distribution location. This appeal to customers seeking a premium experience. Typically, these customers have higher disposable incomes and are more willing to pay extra for higher quality materials. In economic downturns, people with lower disposable incomes are more likely to alter their consumption habits than people with larger financial cushions. While Starbucks is undeniably impacted by the macroeconomic environment, it is firmly established with a more resilient and less price- sensitive customer base, which helps to dampen the blows brought on by economic cycles. Like Dunkin' Donuts, Starbucks has also shifted focus to include more products aimed at afternoon and evening customers. These include small plates and sandwiches as well as wine and beer. Both companies have doubled down on strategic tech initiatives like mobile ordering and delivery, explaining Dunkin' Donuts' partnering with Alphabet Inc.'s Quality Starbucks has built a more premium brand than Dunkin' Donuts. Starbucks offers a more extensive menu and more product customization, which is reinforced by writing each customer's name on the side of their cup. The company offers a comfortable and quiet environment with free wireless Internet access, encouraging customers to stay to socialize, work, study, browse media or listen to music while consuming their Starbucks product. Taken together, these factors form a more premium experience and command a higher price point. Dunkin' Donuts has More competitive pricing, focusing on the middle class. In company filings and Earnings conference calls, Dunkin' Donuts' management has described its intent to be the lowest cost provider in the market while maintaining quality above an acceptable minimum. Product in the Marketing mix of Dunkin Donuts

Although the brand name states that stone foods are the company's main food product, they account for only eight percent of total sales. About 25 percent of these products are edible, including specialty pastries. The company's revenue is twice as likely that beverages, especially coffee, will retain their appetite with customers at a distance. Dunkin 'Donuts sells about a million specialty coffees each year. The menu of this international restaurant chain includes almost a thousand dishes. Healthy treats are popular with all ages because they are fresh and unique. The sandwich range includes wraps, branded sandwiches and baked toasts perfect for any occasion. The 52 types of pastry include biscuits, cakes, pies, munchkins and muffins. Consumers will be served hot and cold drinks. Iced drinks include iced coffee, latte and tea, but iced drinks are available for chilling and coffee. The restaurant is also popular for a variety of hot drinks, such as coffee, tea, salad and hot chocolate. They are of particular interest to their customers, who are still children, because it affects their parents' eating habits. Fresh food is tasty and healthy and is loved by children and parents alike. Walnut, grape and almond bags are among the most popular products with and without sugar. Add a Dunkin 'Donuts marketing mix Much attention has been paid to opening Dunkin 'Donut stores in strategic locations that are important for increasing the customer base. It is true that easy access from the store will help attract a healthy customer base. For this reason, all places are places that people can visit quickly. Dunkin 'Donuts has opened almost 11,000 stores in many parts of the world. It has spread to thirty-three countries around the world. In the United States, the company has only 7,600 versions. The ownership and control system applies to all stores. The store will be open to popular venues such as restaurants, supermarkets, department stores and Walmart stores, as well as petrol stations around the airport. South Korea is one of Dunkin Donut's largest food markets with 40 percent of global sales. It is an international coffee factory with approximately 900 organized shops throughout the country. The company has opened stores in countries such as Saudi, India, China, Japan and Brazil. Value in the Dunkin 'Donuts Marketing mix

The company strives to maintain a fair pricing policy for all its products in order to build a reliable and strong customer base. In order to offer its customers the best, the company keeps the right price so that the average person can shop at Dunkin 'Donut stores without worrying about costs. A clean environment, new products and real value have helped generate significant revenue. Prices for each meal are different so that each customer can find something according to their budget. The fee will continue to maintain the purchase price and tickets and prices will be issued from time to time on selected items. Consumer demand and productivity will be maintained.

The company's goal is to provide quality products and services below the level of competition. This is possible because the costs can be divided into several components. The company has a strict sales policy that automatically reduces costs. Contract delivery is also a complex process that reduces product costs. Close and careful communication with customers will help maintain control of the supply chain, which is considered a great way to reduce costs. Promotion in the Marketing mix of Dunkin Donuts Dunkin 'Donuts' advertising strategy includes print media advertising, such as popular magazines and newspapers. The coffee mug with the company logo in pink and orange color makes it memorable. He also made it appealing The slogans are broadcast on television and radio. Some of his famous slogans are Always Dunkin ', Time to Make the Donuts; It’s worth the trip, you’re Dunkin ’and America is moving to Dunkin’. Previously, Ray Allen joined as an ambassador for his brand and the company has served as a sponsor for a number of professional teams such as the Liverpool Football Club and the New York Mets. In 2007, John Goodman also cast his vote in Dunkin 'Donut commercials and later replaced David J. by transferring O'Brien's voice. The company also created an ad for a coffee called Joe Dunkin. In recent years, the company has been able to create a number of high-profile ads, along with social media. Various contests like "Make Dunkin's Next Donut" have maintained their popularity in the advertising market. The success of its advertising strategy should be attributed to its fan base, which is always in the middle of most multi-activity ads. The company keeps in touch with its loyal fans via Twitter and Facebook and through numerous promotional activities. Operations / Production Analysis Dunkin 'Donuts SWOT Analysis Dunkin ’Donuts is one of the world’s leading fast food restaurant brands, with more than 20,000 distribution points in more than 60 countries around the world. This brand offers hot and cold coffee and ice cream. The 100% franchise business model offers some strategic and financial advantages. The company runs restaurants under the Dunkin 'Donuts and Baskin Robbins franchise. There is fierce competition from many restaurants and convenience stores that sell similar products. Its 100% franchise model allows it to focus on menu innovation and reduce brand pressure. This business model yielded strong results in 2016. This performance was the result of a large margin on the coffee and beverage menu. The brand continues to grow nationally and internationally, with tremendous growth in U.S. retail sales. Dunkin ’Donuts is a SWOT study that examines its main strengths and weaknesses along with the potential for growth and potential threats. Strength: Its continued domestic and international presence continues to grow - 317 new units were added to the net outside of the U.S. in 2016, while 415 new Dunkin 'Donuts franchises were added to the U.S. in the fall.

Innovative high-profit menu - Side coffee and beverage menu offers. Focus on Better Marketing and Customer Experience - Brands focus on marketing and customer service to increase sales and reputation. Focus on Franchise Profitability - Help franchisees make more informed decisions by providing analytical data on pricing and hotel purchasing decisions. Supply Chain Management - Centralized manufacturing designed to support the development of the Dunkin 'Donuts brand. Franchised and operated facilities for the manufacture of donuts and central confectionery products provide fresh baked goods daily to Dunkin ’Donuts restaurants. Signed to ensure consistent quality products and streamline restaurant-level operations. Disadvantages: Big Debt - As of December 31, 2016, Dunkin ’Donuts has a total debt of $ 2.5 billion under our Guaranteed Loan Service, $ 25.9 million in outstanding loans and $ 74.1 million in unused collateral. except Weak franchising relationships and legal litigation against franchisees: While the merchant model is growing and declining, it has its drawbacks. There are management and control issues. In the past, Dunkin’s franchisees have filed numerous lawsuits against them. Slow growth in fast-growing or emerging economies: Dunk’s international growth rate is still slow. This will benefit new emerging economies by spreading the message faster. Weak growth rates are a major weakness of developing countries. Options: Global Market Expansion: Global market expansion is a major source of revenue and growth for Dunkin’s and Baskin Robbins. There are many places in the world where Dunkin ’Donuts are not significantly available. Healthy Menu to Attract Millennial Customers: A healthy menu can be more appealing to a healthy millennial generation. This will help increase sales and revenue. Digital technology for better and innovative customer service: Digital technology has helped build a good brand reputation through marketing and customer service. Dunk can also use these opportunities to get better results. ` Threats: High level of competition with other brands, such as Starbucks and Krispy Kreme has a significant risk to. Most of them are spread all over the world and have a high market share. Internal inspection Earnings for the last 3 years

Revenue and growth Saudi Arabia is a huge market for Dunkin 'Donuts. However, we will look at how the company created a huge growth. Dunkin 'Donuts has more space in the United States than international markets. In 2014, Dunkin '76% of the brand's revenue came from the Dunkin 'Donuts concept. Dunkin 'Donuts had gross income from national and international units 9,569 million in 2014. Of this, about 8,548 million are US. Came from the market. Sales of soft drinks in the summer and spring and high sales of hot drinks in the winter and fall are subject to certain Dunkin 'Donuts seasonal conditions. Dunkin 'Brand Dunkin' retails its branded coffee at donut shops and grocery chains. Company development Dunkin 'Donuts works under its own brand name to update activities. She has simplified her menu, expanded her beverage offerings and even played half the donut name. Finally, the coffee and confectionery industry announced the next planned steps in this direction and announced the official three-year development plan, in which operating income is expected to grow from low to medium and medium to medium. - Single room with high interests. It also expects to add 1,000 new Dunkin 'Donuts addresses to the United States by the end of 2020. 90% of them are outside the traditional North East Company stronghold.

References

 Allison, Melissa. (2008, March 9). Starbucks co-founder talks about early days, launching Redhook and Seattle Weekly, too. The Seattle Times. Retrieved from old.seattletimes.com/html/businesstechnology/2004269831_bowker09.htm l.  https://ivy...