Dunkin Donuts Competitive Analysis

Competitive Analysis - Dunkin Donuts

1.1 Target Markets

Dunkin Donuts target market is the blue collar workers (18-60) of America who likes the quick service that Dunkin Donuts provides. Also within its target market are kids, highly due to its name. Recently Dunkin Donuts has been targeting the market of affluent women and professionals.

1.2 Description of Products & Key Benefits

Variety of menu

* Dunkin Donuts offers something people enjoy (donuts) with their coffee/beverage. (Based on Baskin-Robbins twenty four flavors, Dunkin Donuts offers fifty-five)

Variety of coffee products

* Their coffee list is extensive, offering just about any flavor desired.

Level of service

* Dunkin Donuts operates on a high level of customer service. They take pride in the fact that they can quickly service any needs of their customers

Cost -Effective

* Dunkin Donuts cost to the consumer is at least twenty percent cheaper than Starbucks. With a potential recession and rising prices this factor becomes huge.

New Technology

* New and upgraded equipment has improved Dunkin Donuts efficiency on serving the customer.

1.3 Promotional Budgets - size and allocations

Cost of advertising expenditures - $65 million dollars. Due to Dunkin Donuts being a private company their allocations are not disclosed to the public. (No SEC filings)

1.4 Current Advertising, Sales Promotion, Public Relations and Direct Marketing

* Sales and premiums on the new coffee brands

* A highly successful regional program with Curt Schilling, the Boston Red Sox All-Star baseball player.

* Rebrand the chain campaign - Dunkin Donuts paid participants $100 to make the switch from Starbucks to Dunkin Donuts and from Dunkin Donuts to Starbucks to learn what patterns emerged.

* Partnership to distribute coffee on Jet Blue airlines.

* Hiring chef and talk show personality Rachel Ray, who's frequent in Dunkin Donuts commercials.

* Dunkin Donuts and in-car GPS manufacturer Tom-Tom allowing customers to download Dunkin Donuts logos onto their in-car GPS systems so the chains show up on the driving map when a store is in the vicinity.

* America Runs on Dunkin - The America that we're talking about here are the everyday folks who get things done.