Dunkin' Donuts Marketing Audit

Dunkin' Donuts Marketing Audit

MKT 551

University of Phoenix

1 Executive Summary

DunkinÐŽ¦ Donuts Corporation demonstrates a commitment to excellence which enables us to deliver high quality products in addition to delivering a positive experience so that every customer will be return customer. The company has demonstrated a commitment which caters to the pallet of coffee connoisseurs. Our products will exceed local stores and franchise competitors. DunkinÐŽ¦ Donuts products are unique and tasty which none of our competitors can duplicate.

The company will maintain a focus on quality products with bottom-line growth through cost reduction and optimal performance. The company will focus on utilizing technology and innovation to ensure employees have extensive training which will allow all employees to perform proper technique and equipment operation. The corporation will maintain honesty between employees, customers, and management. Weekly team meetings will motivate and forecast growth as well as eliminate potential difficulties.

The objective of Dunkin' Brands is to lead and build great brands. To achieve this objective, the company is pursuing six key strategies including: multi-branding concept development, Dunkin' and Togo's brand revitalization, Baskin-Robbins revitalization, product innovations, accelerated brand development, improved operational effectiveness and talent acquisition.

2 Table of Contents

A. EXECUTIVE SUMMARY 1

B. TABLE OF CONTENTS 2

C. ENVIRONMENTAL ASPECTS

a. DEMOGRAPHICS 3

b. CUSTOMERS 4

c. COMPETITION 4-6

D. MARKETING

a. OBJECTIVES 6-7

b. STRATEGIES 7-8

c. TACTICS 8

d. THE 4 PÐŽ¦S

i. Product 8-9

ii. Price 9

iii. Place 10

iiii. Promotion 10-12

e. ORGANIZATION 12-13

f. SALES 14

g. MARKETING INFORMATION SYSTEMS 14-15

E. CONCLUSION AND RECOMMENDATIONS 15

F. REFERENCES: 16

C. Environmental Aspects

1. Demographics

Dunkin Donuts has set out to attract all demographic groups. They want everyone to eat their donuts. It does not matter if you are always on the go or a single mother with kids who loves donuts. Their donuts are cheap and affordable which makes it easy for low-income customers and now with the opportunity to shop online transportation is of no importance when you need or want to buy your favorite treats.

DunkinÐŽ¦ Donuts can be considered the McDonaldÐŽ¦s of quick service coffee and baked goods restaurants. Their product line extends well beyond the traditional coffee-and-a-donut coffee shop menu to include iced lattes, smoothies, and omelet sandwiches. As far as franchise opportunities go, DunkinÐŽ¦ Donuts continues to grow across North America, seeking out ÐŽ§savvy entrepreneursЎЁ to join their aggressive growth strategy. Outlet re-sales and combination stores are also available.

Although instant coffee will continue to be the dominate factor of in-home consumption, changing demographics such as the aging population will likely commence the decline of coffee drinkers as the baby boomers turn 55 years of age. This decline is the result of baby boomers cutting back on their consumption of coffee due to the low tolerance (geriatric physiology) of caffeine.

Moreover, coffee drinkers are more sophisticated then ever and thereby, their taste in coffee is requiring more then an ordinary cup of coffee. Trends of gourmet coffee made of Arabica beans and organic coffee produced without synthetic fertilizer and pesticides are the new wave of the sophisticated coffee drinker.

2. Customers

DunkinÐŽ¦ Donuts does not provide data on its customer demographic information; however, DunkinÐŽ¦ Donuts provides something for everyone. DunkinÐŽ¦ Donuts is a company that caters worldwide to individuals by providing handcrafted beverages leaving them with a unique coffee experience.

DunkinÐŽ¦ Donuts does not provide data on its customer demographic information; however, DunkinÐŽ¦ Donuts has products for everybody from babyÐŽ¦s (munchkins) to senior citizens and beyond. DunkinÐŽ¦ Donuts is a company that caters worldwide to individuals by providing quality donuts and pastries as well as hot and cold beverages leaving all customers with a unique coffee experience.

According to Steven Gray, a few years ago, a survey conducted by the Mintel International Group Ltd., revealed that 64% of American coffee drinkers preferred coffee shops where there is no waiting. This is of little surprise as most regular coffee consumers prefer to frequent coffee shops in which very little time is wasted. This is due to morning ÐŽ§trafficЎЁ which tends to be in a rush to get to work. Another process which was changed to save the customer time was credit card purchases which took an additional 30 seconds of valuable time. DunkinÐŽ¦ Donuts changed the policy so that credit card purchases under $15 no longer require a customerÐŽ¦s signature.

3. Competition

DunkinÐŽ¦ Donuts has been the leader of its market for quite some time. So, it of no surprise that DunkinÐŽ¦ Donuts has to fend off some fierce competition. DunkinÐŽ¦ Donuts has left the imploding Krispy Kreme donut company in the dust, thanks in part to better execution and a strategy that stresses quality beverages as opposed to the carbohydrate-laden doughnuts which are Krispy