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Dunkin' Donuts Marketing Strategy

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This report explains and analyzes the current marketing strategies of Dunkin' Donuts including suggestions for future brand imaging and promotions.

Text of Dunkin' Donuts Marketing Strategy

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    Justin Dizon

    MKT 3260-01

    Spring 2013

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    Table Of Contents

    Cover Page ................ 1

    Table of Contents ................. 2

    Part I .............. 3 - 5

    Store History, Background, & Mission Statement ..... 3

    Relationship Marketing & Underlying Strategy ...... 3 - 5

    Part II ..................... 5 - 7

    Ownership Structure & Store Based Strategy Mix ..... 5 - 6

    Online Site vs. Physical Site .......... 6 - 7

    Part III ............... 8 - 10

    Target Market & Store Location ........... 8 - 9

    Management Structure ........ 9 - 10

    Human Resource Planning ...... 10

    Part IV .................. 10 - 17

    Merchandising Strategy. 10 - 12

    Pricing Strategy.. 12

    Promotional Strategy ... 13

    Retail Image .................. 14 - 15

    Retail Future & Suggestions ...16 - 17

    References .................. 18 - 20

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    PART I

    Store History, Background, & Mission Statement

    Founded by William Rosenberg in the year 1950, the first Dunkin Donuts store

    was opened in Quincy, Massachusetts. Over the next five decades, Dunkin Donuts

    continues to expand their brand by introducing a wide variety of choices on their menu.

    These introductions brought muffins, bagels, breakfast sandwiches, Munchkins, and

    different sorts of beverages both hot and cold. Through the years and continued

    expansion of Dunkin Donuts, they have successfully forever cemented their name in

    modern society. Becoming the worlds leading baked goods and coffee chain, Dunkin

    Donuts has become one of the most recognized and loved brands.

    The mission statement of Dunkin Donuts stores was originally derived from the

    original founder himself stating, Make and serve the freshest, most delicious coffee

    and donuts quickly and courteously in modern, well-merchandised stores. In addition

    to this statement, Dunkin Donuts follow twelve key values and principles as a guide to

    further success. The values include: honest, transparency, humility, integrity,

    respectfulness, fairness, and responsibility; while the principles consist of: leadership,

    innovation, execution, social stewardship, and fun.

    Relationship Marketing & Underlying Strategy

    Relationship marketing has always been an area Dunkin Donuts has excelled in

    as a company. Building customer relationships and striving for customer loyalty is

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    an important aspect for Dunkin Donuts when it comes to marketing their brand. To

    make this possible, Dunkin Donuts takes multiple steps through different outlets of

    marketing including promotions, partner and sponsorships, and social media. Probably

    the most important area in their marketing strategy is through email and social media

    where they can constantly keep customers informed while also receiving feedback.

    Through the various outlets of online communication, it allows Dunkin Donuts to offer

    any special offers, promotions, coupons, or sweepstakes that customers can participate

    in. An example of this would be the Dunkin Donuts Perks Card and Loyalty Program

    where customers receive one Dunkin Dollar for every $20 spent at a Dunkin Donuts

    store location.

    Moreover, Dunkin Donuts has held multiple contests online on their official

    website to not only attract customer participation but in hopes of gaining new ones.

    These contests and sweepstakes have been important especially the past decade when

    building customer relationships. Creating the next donut was one contest held online

    where individuals had the opportunity to make the next Dunkin donut in hopes of

    winning, along with a cash prize. Furthermore, Dunkin Donuts is continuing to expand

    their image in the social network world through an official Mobile App and multiple

    social media sites including Facebook, Twitter, and Foursquare.

    In recent years, Dunkin Donuts has partnered up with sports teams based on

    store locations. Such as in the Northeast of the United States, Dunkin locations

    organize partnerships with the New York Giants, Yankees, Mets and Jets with

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    sweepstakes and even team-themed donuts. Also, promoting upcoming movies like

    Captain America and Men In Black through customized themed beverages. One current

    promotion taking place today is a free donut with a purchase of a large coffee for all

    AARP members. All in all, Dunkin Donuts underlying strategy mainly centers a

    customer driven strategy. Through the continuation of these many marketing outlets

    and practices, Dunkin Donuts will continue to attract the 3 million customers they serve

    per day and more to come in the future.

    PART II

    Ownership Structure & Store Based Strategy Mix

    When it comes to the ownership structure of Dunkin Donuts, nearly all locations

    are franchisee owned and operated. Moreover, the store-based strategy mix can

    actually be composed of more than one of the types of retailers. Looking at Table 5-1 in

    the Retail Management textbook, it can be concluded that Dunkin Donuts is a food

    oriented convenience store with aspects of a specialty general merchandise store.

    Looking at Dunkin Donuts as a convenience store, it perfectly fulfills all necessary traits.

    Most Dunkin Donuts stores are well-located, food-oriented that are open long hours,

    and carry a moderate number of items. Many Dunkin Donuts are typically located in a

    neighborhood location but can also sometimes be in a business district. Moreover,

    many Dunkin Donuts are open 24 hours, 7 days a week for customer convenience and

    carry different food items such as donuts, breakfast sandwiches, and most importantly,

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    coffee.

    On the other hand, Dunkin Donuts can also be a specialty general merchandise

    store. Their specialty goods dominantly being food and beverages or broken down

    more specifically, coffee and donuts. In addition, Dunkin Donuts has demonstrated

    scrambled merchandising where goods or services that may be unrelated to each other

    are added to the firms original business. Especially in recent years, Dunkin Donuts has

    introduced new menu items as well as limited time seasonal items. New menu items

    vary depending on seasonal and holidays from pumpkin muffins, dark hot chocolate,

    turkey sausage breakfast sandwich, apple orchard donuts, and French toast bagels.

    Other non-food items include travel mugs and tumblers, Christmas ornaments, Keurig K-

    Cups, and official Dunkin t-shirts. All in all, Dunkin Donuts practices an assortment

    with a narrow width and a deep depth.

    Online Site vs. Physical Site

    The online presence of Dunkin Donuts has been an important and growing

    aspect to the company especially the past few years. Not only does Dunkin Donuts

    provide an official website but, they also offer several different online outlets especially

    in the social media world. Social media websites like Facebook, Twitter, and Instagram

    are used for promotions, customer interaction, and special contests. When comparing

    Dunkin Donuts online presence with its store presence, there are definitely some

    similarities and differences between the two. One key feature kept consistent in both is

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    the colors that represent the Dunkin brand: orange, pink, and brown. Also, specific

    activities that can be done at both sites include gift card registration and balance,

    viewing the full menu, and buying particular merchandise such as coffee grounds,

    thermoses, and coffee mugs. Both sites also promote identical products and new items

    that are available at the physical site.

    The difference between the online site and physical site more than anything else

    is the ability to receive the actual product physically in your hands. While in a physical

    Dunkin Donuts store, you have the opportunity to actually consume any food or

    beverages while online you cannot whatsoever. In addition, while in a physical store

    you are able to see and smell the products and environment in person, which may add

    an important dimension in the shopping experience. The online website also offers an

    elaborate nutrition catalog of all food items offered which is limited at a physical site.

    Apart from physical stores and the online website, Dunkin Donuts is limited

    when it comes to selling through other outlets. Any other Dunkin Donuts branded

    merchandise that can be seen outside of a Dunkin store will narrowly be grounded

    coffee bags at local neighborhood supermarkets. Ready to eat donuts, sandwiches, and

    coffee are exclusives available only at Dunkin Donuts store locations.

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    PART III

    Target Market & Store Location

    Since its conception, Dunkin Donuts has grown to have a very broad target

    market that covers a wide range of individuals. The one specific location I personally

    visited and also work at draws this very kind of audience. We serve almost every one of

    all ages, races, genders, and occupations; from families with children to business people

    going to work. Most customers, if not all, come to Dunkin Donuts as a stop during a

    trip to get a quick fix whether it is coffee or a quick snack. This particular Dunkin