Dunkin' Donuts Hypothetical Marketing Strategy Case

Dunkin’ Donuts was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Over the years the company expanded and now is the largest coffee and baked goods chain in the world. They serve over 5,500 retail outlets; selling more than 4 million doughnuts and 2.7 million cups of coffee daily!

Dunkin’ Donuts are famous for their many varieties of doughnuts and their wide range of bakery products - muffins, bagels and munchkinsÐ'® donut hole treats. Their products are represented by more than 6,590 worldwide points of distribution, including approximately 4,815 units in the United States alone.

History of Dunkin’ Donuts

1946: Bill Rosenberg invests $5,000, forms Industrial Luncheon Services.

1948: Bill Rosenberg opens donut shop "Open Kettle" in Quincy, Massachusetts.

1950: "Open Kettle" name changed to Dunkin’ Donuts.

1955: First franchise agreement signed and executed in Worcester, Massachusetts.

1960: Bill Rosenberg founds the International Franchising Association.

1963: 100th Dunkin’ Donuts shop opens.

1966: Dunkin’ Donuts University (DDU) is created.

1970: First overseas Dunkin’ Donuts shop opens in Japan.

1972: MUNCHKINSÐ'® donut hole treats are introduced.

1978: Introduction of freshly baked muffins. First network TV commercials are aired.

1979: 1,000th U.S. Dunkin’ Donuts shop opens.

1980: Largest Dunkin’ Donuts shop in the world opens in Thailand with seating for 130.

1982: Fred the Baker, TIME TO MAKE THE DONUTSÐ'® television campaign begins.

1990: Allied Domecq purchases Dunkin’ Donuts.

1995: 1000th international Dunkin’ Donuts shop opens in Thailand. Hazelnut and French Vanilla coffees are introduced as companions to Dunkin’ Donuts' famous Original Blend.

1996: Dunkin’ Donuts introduces freshly baked bagels.

1997: Dunkin’ Donuts revolutionizes the summer beverage category with the introduction of the COFFEE COOLATTAÐ'Ò' slush drinks

1999: Celebration of their 8 billionth cup of coffee sold since opening in 1950.

2000: Dunkin’ Donuts opens its 5,000th shop worldwide in Bali, Indonesia.

Dunkin’ Donuts celebrates its 50th anniversary.

Dunkin’ Donuts introduces Hot Chocolate and the all-new DUNKACCINOв„Ñž

2001: Dunkin’ Donuts introduces Vanilla Chai, a creamy combination of tea, vanilla, honey and spices.

Dunkin’ Donuts launches its new logo.

2002: Dunkin’ Donuts launches its new advertising tagline, JUST THE THINGв„Ñž.

Allied Domecq Alliance

Dunkin’ Donuts and was purchased by Allied Domecq in 1990. Allied Domecq is a dynamic, marketing-led branded company. They focus on delivering results by maximizing the strength of their portfolio. The company operates on a global level and operates in the business of spirits, wine, quick service restaurants. Further, they own an international chain of franchises consisting of three established brand names; Dunkin’ Donuts, Baskin Robins and Togo’s- and is among the top five players in the food and beverage industry with more than 11,300 outlets worldwide.

Dunkin’ Donuts Case Study (2-1)

The Bagel Introduction was Dunkin’ Donuts’ largest initiative ever. However, an upsurge of problems erupted mostly in the supply and distribution channels, with two weeks left before the largest advertising campaign the bagel industry had ever experienced; the supply chain dried up.

1. Defining the Product/Market Scope

Dunkin’ Donuts was first introduced as a retailer designed to bring quality donuts and the freshest coffee to consumers. They rapidly became an intrinsic part of the American culture вЂ" as much a part of growing up and eating hot dogs, hamburgers and apple pie. Dunkin’ Donuts are famous for their bakery goods- muffins, cookies, scones, donuts and munchkins donut hole treats. Dunkin’ Donuts also has a wide range of coffees- espressos, lattes and cappuccinos, which are freshly brewed and made from real espresso beans. Their new products are Bagels and the cream cheese that comes on the side. According to them, “bagels are the food of the nineties” and are the next great food platform upon which sandwiches and snacks- and greater profit- can be built.

2. Analyzing The Internal and External Environment (SWOT Analysis)

a. Strengths: Dunkin’ Donuts is very popular in its industry and has established a powerful brand and image through its efficient operations, low prices and the wide range of high quality products it offers. Moreover, the company experiences economies of scale as it has many operations worldwide. In addition they have significant bargaining power against their suppliers due to the experience they obtained and the support they acquire from Allied Domecq, one of the strongest companies in the market.

b. Weaknesses: Dunkin’ Donuts considers themselves as a retailer, for that reason, they are not well-equipped to produce the bagels themselves. They rely on outsourcing- this can have its drawbacks as they become too dependant on suppliers.

c. Opportunities: The increased acceptance and the growing demand for bagels as