Dunkin Doughnuts Marketing Strategy Case Study
Overview of Dunkin doughnuts
Being a 65 years old organization, Dunkin Donuts established itself as America’s most favorite shop for coffee and baked food items. Dunkin Donuts is a leading retailer of chilled and ice coffee. Likewise, it is one of the largest baked food and coffee chains in the universe.
Original Dunkin Donuts include a Single cup of coffee with doughnuts. Now it deals with coffee and coffee-related beverages. But, they still follow their coffee blend recipe as proposed by the founder.
It has more than 19,000 outlets worldwide working under the umbrella of Dunkin Donuts. Dunkin Brands Group has two brands namely Baskin Robbins under its group company namely Dunkin Donuts and Baskin Robbins. All the stores are 100% owned by the franchises.
Key Facts of Dunkin Donuts
The vision of Dunkin Donuts
It wishes to place itself as the most lovable brand providing delicious bakery items and beverages, which you can enjoy with your close ones.
The mission of Dunkin Donuts
Dunkin Donuts aims to be the global provider of a comprehensive range of beverages and bakery products.
Marketing Strategy of Dunkin Donuts
Dunkin Donuts operates its business in over 42 countries and includes more than. This extensive network reaches helped the company not to be over-dependent on the UK market.
The franchises import the materials independently to comply with the standards set by Dunkin Donuts. Majority of the franchises sources donuts from dependable third-party suppliers in the market.
Dunkin Donuts compete in the fast-service segment in the industry. It faces tough competition from the outlets and convenience stores, which are operating in the muffin, ice-cream, donuts, and coffee.
Brand Equity in the Marketing Strategy
It earned recognition for having the maximum customer engagement in the out-of-the-home beverage category. Being a global leader in the selected category, helped Dunkin Donut to publicize the menu through social and online media.
It boosted brand awareness and increased the avg revenue per individual.
The fast-food chain market is filled with companies that are giving neck-to-neck competition to each other. Since the businesses operate on the franchise model, their ups and fall solely depend on the franchise. Companies like Mcdonalds, Taco Bell, Burger King, Wendy’s compete in this industry.
Target customers of Dunkin Donuts are the mid-aged individuals who are interested in dining in fast-food restaurants. The majority of the consumers are school or college-going youngsters.
Target customers for the Dunkin doughnuts are the youngsters and the professionals within the middle age group. People who are always running to catch the bus, and even driving to the office colleges. Age-wise Market of the Dunkin doughnuts are:
- Young adults age between 18 to 45
- Individuals aging between 15 to 18
Marketing mix of Dunkin doughnuts
Product in the marketing mix
Even though the name suggests that the donuts are the main products supplied by the brand, it covers only 8% of the total revenue generated by the Company.
25% of the products sold by Dunkin doughnuts are the Food items like delicious baked items. The main product of the Dunkin doughnuts is the drinks, especially the Coffee that gets double brewed and retains its original taste.
It is the main attraction for customers from far and wide to visit the Dunkin doughnuts stores. The evidence says that special coffee generates about 1 million Euro revenue every year.
Furthermore, the menu of the global food retailer includes about 1000 dishes.
Healthy snacks among people of all age groups due to freshness and uniqueness.
Place in the marketing mix
The company made thoughtful decisions on opening the outlet in important places, which would attract the maximum number of clients from all over the world. In other words, food retailers open outlets that make it easy for one to visit and have a grab.
Reportedly the brand has 600 outlets all over the United States of America. The franchising system is prevalent in all the outlets. These are located in popular areas like around the airports in the USA, Petrol pumps, and hypermarkets.
As of now South Korea has the largest number of Dunkin doughnuts stores and contributes about 44% of the total revenue generated.
Likewise, the company has outlets in countries like Brazil, India, and Japan.
Price in the marketing mix
To acquire a loyal and strong customer base, the food retailer follows a fair pricing policy for all the products. The Products available at an affordable price rate, so that all the customers can easily buy from the outlets without thinking about the product prices.
A clean environment, reasonable prices, and fresh inventory always helped in generating maximum revenue for the company.
Promotion in the marketing mix
With an attractive logo and bright-colored coffee cup made the brand is exceptional. Dunkin doughnuts also exploited certain advertisement media like journals and Magazines.
radio and TV advertisements gained popularity among the people. Made use of catchy taglines like you’re donut or America runs on a donut that Played well for the company’s promotion.