Chapter 7- Business Marketing

            Even though Dunkin' Donuts manufactures their own products, they still need to purchase raw goods with which they use to make their own products which are sold to the customers. Just to make their doughnuts, DD needs to purchase things like flour, sugar, butter etc.; and since the company offers more than doughnuts to it's customers, they need to purchase a lot more than those three ingredients. In order to have a steady supply of raw goods, DD needs to maintain a strong professional strategic alliance with those whom the company does their business with.

            In order to get more customers, Dunkin' Donuts have collaborated with many sports teams, such as the NY Giants, NY Jets, NY Mets and last but not least the NY Yankees. When it comes to their beverages Dunkin' Donuts does their business with Coca Cola Company. That way those of us who enjoys the taste of Coca Cola  drinks, can grab one while they are at DD. Moreover, DD has collaborated with Baskin Robbins, that way both companies gets the benefit of gaining even more customers. For example, recently DD has launched their Mint chocolate chip iced coffee, this flavor will bring in both ice cream lovers and coffee lovers to DD. 

            The reason Dunkin' Donuts company has so much success throughout out the years in because DD focuses on customer satisfaction. The company reaches out to their customers from every angle. Not only will you see a Dunkin' Donuts store a couple of blocks apart in NYC, but DD advertises all over the media, whether it be television, radio or even the Internet. If customers sign up with DD using their e-mail address, then DD sends coupons as well as updates to that customer. In addition, DD is on Facebook, YouTube and even on Twitter. No wonder Dunkin' Donuts have so many loyal customers.

Chapter - 8 Segmenting and Targeting Markets

            Dunkin' Donuts primarily targets the areas that are populated, and places where people tends to commute to and from work; so that way, these customers can grab their coffee and/or food and run.

 

            When Dunkin' Donuts started their company in 1950, their target market was working class men and women of all races, and ages starting from twenty-five years old. Since these customers generally need a little extra boost of coffee to help them get up and get their days started in the morning. 

           
            However as the time progressed, although keeping their timeless selection of coffee and doughnut, DD did update their menu to fit the modern lifestyle and healthy choices of their customers while staying true to their roots and being affordable. If you walk into a Dunkin' Donuts shop today, you will find products for kids starting from ages as early as three years old. DD wants to make sure people of all ages and with different taste buds, can come in to their store and and find something that they like.


            Dunkin' Donuts' also lets their customers know, that you don't have to spend lot of money to eat healthy and enjoy something you like. That is why Dunkin' Donuts positioned the DDSmart, which the company markets as the Better for You Choices that Keeps You Running. This particular line draws in customers who likes to make healthy choices. 

Chapter 11 - Developing and Managing Products

            Doughnuts have been around for ages, however Dunkin' Donuts comes up with various ways to differentiate this deep fried sugary goodness, by putting their own spin on it. DD has many diverse kinds of donuts. The company also makes many other types of food, which they modifie to fit their customer's healthy and fast lifestyle. For example DD came up with a line that is called 'DD Smart'; this particular line carries food that are nutritionally beneficial, as well as being low in calorie, saturated fat, sugar or sodium at least by 25 percent then other choices at the DD menu. 

            One thing about Dunkin' Donuts is that, they are not scared to take risks when it comes to their food; the company will go out of their way to please their large demographics. If a certain new line does not sell well, DD just simply takes it out of the menu and tries again. 

            For example, a few months ago Dunkin' Donuts came up with the idea of selling bakery sandwiches. Even though sandwiches are nothing new, DD still thought their customers will appreciate it and the new line seems to be doing well so far. When it comes to food business, I think it's hard to invent a whole new type of food, so if we modify what we already have, that is refreshing also and DD knows it.

Chapter 16 - Promotional Planning for Competitive Advantage

            When it comes to promotional planning for competitive advantage, Dunkin' Donuts is up there with their competitors. The company make sures, their current and potential customers are aware of DD's latest product and it's price. In order to promote their product, Dunkin' Donuts uses persuasive promotion to reach their customers. That is why DD advertises all over the radio and television, and even bill boards. 

                                                                                                                       First DD commercial

            Dunkin' Donuts launched their first commercial in 1983, featuring 'Fred the Baker'. The part of 'Fred' was played by Michael Vale, the actor played 'Fred the Baker' for 15 years, until his retirement in 1997. 

            Dunkin' Donuts has made many more commercials since then, featuring many celebrities such as Eli Manning and the Giants, Rachel Ray from Food Network, and the New York Mets and the New York Yankees.

            Dunkin' Donuts also uses catchy slogans to draw people in.  In the 1950s, the company started out with the slogan "Only at Dunkin' Donuts". Over the years their slogan changed, and the latest slogan which they started in 2007 is "America Runs On Dunkin". 

Chapter 10 - Product Concepts

            The product concept of Dunkin' Donuts is to sell the best cup of coffee at a convenient price. Not only are Dunkin' Donuts coffee and doughnuts affordable, but they are also very tasty. All these products are thought-out carefully to meet the customer's wants and needs. Since Dunkin' products are sold all over the world, the creators of DD has to make sure their product meets the diverse taste buds of their customers. That is why when DD feels the customers are not satisfied with a certain product, the company modifies it or removes it from the menu. Not only that, the company updates with the health conscious world and modifies it's products to be healthy. 

                         When it comes to purchasing DD product, customers can buy it at the many DD store locations or even online. Purchasing DD product online allows people to enjoy Dunkin' Donuts coffee, right from the comfort of one's home.

            It is a fact that Dunkin' Donuts is the America's largest retailer of coffee-by-the-cup, the company sells about 1.5 billion cups of brewed coffee each year. It shows that the people who run DD knows what they are doing, that is why they are at the top.

Chapter 18 - Sales Promotion and Personal Selling

            Depending on the time of the month or the year, Dunkin' Donuts has many sales and promotions for its customers. The company believes that one should not have to spend too much, to enjoy something that they like. 

            That is why when one is signed up with Dunkin' Donuts, not only does the company sends many coupons for that customer; But they also give a free medium drink of their choice just for signing up. In addition, on the month of that customer's birthday DD sends a coupons for that customer to enjoy a free coffee or hot chocolate on the house. 

            Also, for those customers who are AARP members, they get a special discount of a free doughnut, when they purchase a large or an extra large beverage.

           For the year 2013, along with their usual sales and  promotions Dunkin' Donuts is promoting their iced coffee in Boston, by giving away free home team tickets to people caught drinking DD Iced Coffee.

Chapter 17 - Advertising and Public Relations

            When it comes to advertising and public relations, Dunkin' Donuts makes it their business to let the public know of their product. Starting with the media, DD creates good relationship with the press. To the press the company sends news of their upcoming event hosting, coupons for their products such as doughnuts and coffee for the public, background information and even pictures. Dunkin' Donuts also uses billboards to reach out to people who are on the road. In addition DD, uses many commercials, to introduce all of their products to the public.

            Because Dunkin' Donuts believes children are our future, the company contributes to their community by raising money for the Children's Hospital. For this upcoming May 22, 2013, DD urges people to buy an Iced coffee. So that way for every cup of Iced coffee sold, DD will donate $1.00 to the Children's Hospital to create a Family Room for the kids.

Chapter 15 - Retailing

            Even though Dunkin' Donuts is not a retail store, the company has partnered with Proctor and Gamble to sell packaged Dunkin' Donuts coffee in retail stores nationwide. 

            Recently I myself have ventured out to the local grocery store that I have been going to since I was 8 years old, its called the Ittadi Grocery store. Even before one enters the store, one can see all the fresh fruits and vegetables displayed right outside of the store. 

            Upon entering the store, one can see different types of chips and other snacks right up front for hungry eyes to see. Behind them are freezers full of frozen food. Hiding behind those, lounges piles of bags of rice, potato, onions and other good stuff. 

            All around the store there are friendly emploies who are waiting to help you. In addition, even the store's loyal customers are willing to assist you any way they can. 

            Looking to the left of the store, one can see a long row of refrigerators full of cold drinks and other products needed to be stored in cool temperature. Along the line of refrigerators, lies rows of shelves full of products ranging from variety of spices, to bath soap and laundry detergent, to coffee and hot chocolate to enjoy with cookies and biscuits.

            To the right is the counter where variety of candy are displayed for kids to desire, while their parents wait in line to pay the cashier. Behind the cashier, one can find products ranging form cigarettes to Krazy glue, batteries and even handsoap. 

            For those of us who are meat eaters, in the way back of the store lies a large deep freezer the size of a large walkin closet. One can also find a couple of butchers around for those who likes having their own butcher. In the cool basement, the butcher will curve your choice of meat or fish, any way you want it. Also if you have purchased too much to carry, the store offers free service to help you carry them to your destination.

            Last but not least, in the back corner of the store lies a small bathroom for faithful customers and the employes to use.

            Overall, the experience at the Ittadi is worthwhile and a must. 

Chapter 6 - Consumer Decision Making

            There are many reasons that drive people to buy Dunkin' Donuts products over any other coffee shop's product. One must consider price, product and customer value. For something that one buys everyday, people want that thing to be cheap and good at the same time, and DD delivers just that. DD products is cheap and it tastes good and is healthy all at the same time. In addition, customer value is very important, people want to feel like they are wanted when they enter a store. That is why, when a guest walks into a DD shop and the shop worker recognises them and treats them with respect, the customer keeps coming back.

            Moreover, DD recognises  special days to clebrate their customers. For example in order to celebrate this upcoming St. Patrick's Day, the company has created Irish Cream coffee beverages and green doughnuts for those who wants to celebrate the day.

Eli Manning

            Furthermore, Dunkin' Donuts uses celebrities such as Giants Quarterback Eli Manning and Food Network's Rachel Ray to promote their product. So when people see all these famous people consuming DD, they want to be like them too and purchase Dunkin' Donuts.

Rachel Ray

Chapter 5- Developing a Global Vision

            The Dunkin' Donuts company has been serving to it's loyal customers, since they first opened their doors in 1950. Few years after that in 1955, the company first spread its wings when they opened their first franchisee in Worcester; and DD has been expanding ever since. By now, Dunkin' Donuts has over 10,000  stores open in over 33 countries (including USA) worldwide, and about 3,000 of those stores are international. 

            When it comes to their product, Dunkin' Donuts hold about the same goodies in all of their stores. However, the company does hold snacks that are modified for customers with diverse taste. In early 2011, DD started a partnership with Jubilant FoodWorks Limited; JFL is India's largest food service company. In 2012, Dunkin' Donuts opened their first stores in India.

            For this year in 2013, Dunkin' Donuts plans to open between 330 to 360 new domestic units. In addition, this January 30th, 2013, DD signed a franchisee agreement with Vietnam Food in order to open stores in Vietnam. The company already has about 1450 stores, in Southeast Asia.

            Looking at the future, in 2015 Dunkin' Donuts plans to open their first store in California, since they last closed there in 2002. In the next 20 years, DD plans to double their stores to 15,000 outlets domestically. 

         

Chapter 4 - The Marketing Environment

            Ever since they opened their doors in 1950, the Dunkin' Donuts company has been known for their doughnuts and coffee. Their target market is people of both genders. The store has something for everyone to enjoy, that is why when one walks into a DD shop, they can find something that they like. 

            In the past when one walked into a DD shop, the grownups drank their coffee, while kids only ate their doughnuts. Today, their coffee still focuses on people ranging from ages of about 25 to 55 year old; since these particular customers like to start their day with an extra boost of energy. For its younger customers such as children and teenagers, DD has decided to offer other beverages such as their hot chocolate; which they can enjoy with their yummy doughnuts. 

            It seems Dunkin' Donuts knows their external marketing environment pretty well, the company has adjusted to it's ever changing consumers. DD has added many different kinds of food for it's diverse customers, such as flat bread melts and many other healthy choices in the menu to satisfy the DD customers.

            According to Daily News, apparently Dunkin' Donuts has been "booming" despite the city's 2007 recession. In addition Forbes reports that the company's revenue has been steadily growing ever since. If things continue the way they are now, then it is expected that by 2016 DD will have in an average of $1 million of revenue. 

Chapter 3 - Ethics and Social Responsibility

            For years the Dunkin' Donuts company has contributed to it's community in various ways. From feeding the homeless and the hungry, to awarding doughnut gift-certificates to elementary school students who works hard all year long to get good grades in their report cards.

            Dunkin' brands also focuses on it's environment. In 2009, the company joined CSR ( a network of investors, environmentalists, and public interest groups that works with companies to address sustainability challenges.) The year DD joined CSR, the company started using napkins that are made from 100% recycled fiber. DD also introduced new napkin dispensers which reduces 25% of waste annually by controlling it's usage. The company also strives to offer their packaging, that minimizes the impact on the environment.

            In 2010 DD provided a $70,000 grant to the Rainforest Alliance. Which provided technical assistance and infrastructure improvements, to groups of small farmers from three coffee growing communities in Colombia. Dunkin' Donuts also focuses on human rights and makes sure there are no child laborers in any part of their company. The company also does not hold any discrimination towards who they hire.

            When it comes to natural disasters and the time when people are in dire need for help, Dunkin' Donuts stands besides them. When hurricane Sandy came and left many helpless, DD donated $100,000 grant to the American Red Cross. In order to help people furthermore, the company announced an additional $100,000 to Feeding America, so no one will be left to go hungry. 

            In addition, Dunkin' Brands also has a long history of honoring and respecting America's servicemen and women. DD has donated more than 230,000 pounds of coffee to our troops overseas. The company also holds monthly random drawings every month to select at least 50 United States military members to receive one 24 pound case of DD coffee. During the holiday season, DD sends additional coffee to the troops. The company has also donated $10,000 to USO.

            For the future, Dunkin' Donuts is working towards reducing their carbon foot print. They are developing holistic approach to their food source. They plan to establish an animal welfare policy and to use cage-free eggs as well as gestation crate-free pork. They would furthermore like to improve their cups even more to help the environment. 

Chapter 2 - Strategic Planning for Competitive Advantage

            Dunkin' Donuts makes it their business to please it's customers. As the Valentines Day starts to roll around, the company advertises and sends e-mails to their customers, letting them them know how DD can help them celebrate the day. The fast food restaurant baked heart shaped doughnuts specially for customers to enjoy. As for those customers who are on the Facebook, DD gives them a chance to send their loved ones personal messages through virtual doughnut.

SWOT Analysis of the Dunkin' Donuts:

            Strengths- Dunkin' Donuts has a strong brand name. The company has over 1000 varieties of doughnuts, and it's stores are an ideal place for having breakfast and coffee. They have world wide franchisees, totaling to more than 10,000 locations across 32 countries.

            Weakness- Competition from other international snacking joints means they have a limited market share growth. They also tend to have constant rift with franchisees owners.

            Opportunities- They are introducing new low calorie snacks, for those customers who are health health conscious. In addition, DD is trying to come up  with ways to create cups that are environmentally friendly. Furthermore, since the company is expanding it's business to newer countries, they have new market.

            Threats- Increase in the cost of raw materials and competitions from other cafes and bakeries such as Starbucks are threats to DD. 

 

Competitive Advantage:

            The Dunkin' Donuts company has lasted since the year 1950. Many companies go into business and does not even make it past the first 10 years. One of the many reasons Dunkin' Donuts has survived for all these years includes their usage of fresh raw material to make their product, and they do it with a smile. In like manner DD makes it their business to be practically on every street corner, so that if anyone is in the mood for good coffee Dunkin' Donuts is there. No wonder DD is so recognizable to everyone.

Strategic Direction: 

            Doughnuts and coffee are the cash cow for Dunkin' Donuts, the Dunkin' Donuts company is known for these two products. Worldwide people are familiar with the taste of Dunkin' Donut coffee.

Target Market: 

            Dunkin' Donuts targets customers of both gender and people of all income who enjoys drinking amazing coffee with mouth watering doughnuts.

The Four Ps of Marketing:

            Product- Dunkin' Donuts offers variety of fresh doughnuts, coffee and many other snacks and drinks to it's customers when they visit their store.

            Place- Dunkin' Donuts stores are almost at every street corner, and they are spread around 32 countries with over 10,000 store worldwide. Many people are familiar with them.

            Price- In all of their stores Dunkin' Donuts tries to sell their product around the same price; at all times the prices are affordable for basically everyone.

            Promotion- When it comes to promoting their business, Dunkin' Donuts does a good job at making their advertisements in the television and radio, even on bill boards. They even  use famous TV personals to endorse their product.

Effective Strategic Planning:

            Dunkin' Donuts is one of the largest fast food empires that is known all over the world. Their signature orange and pink "Dunkin' Donuts" sign can be spotted easily from far away. DD stuck to their original ways of making fresh coffee and doughnuts, which keeps their customers loyal to them. The company is always improving themselves for the benefit of their customers, the  community and for our environment.

Chapter 1 - Overview of Marketing (Brief History and Mission Statement)

                                                                          

Brief History:

            It all started when William Rosenberg opened a doughnut restaurant named "Open Kettle" in 1948, in Quincy, Massachusetts. Two years later in 1950, the restaurant was renamed as "Dunkin' Donuts". Five years after that in 1955, the first franchise of the restaurant was signed in Worcester. 

The original Dunkin' Donuts restaurant 

            By 1963, the 100th franchise store was opened and 16 years later the 1,000th store opened it's door. Today, even though there are over 10,000 of franchises world wide, the head quarter of Dunkin' Donuts still remains in Massachusetts; even though the company did relocate their cities from Quincy to Canton.

1970s Dunkin' Donuts store

Mission Statement: 

            Dunkin' Donut's mission statement is to "Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores." So far the company has managed to keep their end of the deal. DD coffee and doughnuts are very fresh and delicious, in addition the service is quite courteous and quick.

                                                                          

Dunkin' Donuts