Dunkin Donuts: Time To Make A Change

Dunkin' Donuts: Time to Make a Change

1. The environmental forces affecting Dunkin Donuts are:

Socio-Cultural- Due to the numerous cultures present in Dunkin' Donuts' target market, the company as a whole must be in continuous change in order to keep up with its consumers. Dunkin Donuts must keep in mind the age, income, occupation, and most importantly the lifestyles of their customers if they wish to succeed in such a competitive market. As an answer to this problem, the company has implemented several changes aimed at keeping and attracting a new customer base. Many restaurants are looking towards centralized kitchens to maximize space and reduce costs, consequently cutting product costs, thus saving the customer money. The restaurant chain is also adapting many of its stores to the lifestyles of many of its customers. Through renovations, customers are able to relax on comfortable couches and chairs while tuning into the daily news on televisions at any time of the day. This noticeable addition will attract those who are looking to relax as well as retain those customers who are more interested in a grab and go style system.

Economic- In order to attract and retain its customer base, Dunkin' Donuts must continuously pay special attention to the economic state of this, and every other country in which their stores are located. Because many Americans are in a position where money is tight and sometimes scarce, Dunkin Donuts has to develop a strategy where the customer's dollar can go as far as it possibly can. By offering coffee, baked goods, and a wide range of specialty goods at fairly lower prices than most of its competitors, Dunkin' Donuts is able to gain access to a wide consumer base. With the addition of their cafй theme, Dunkin' Donuts also allows its customers to purchase a coffee or baked good and enjoy it in the store, giving them a chance to relax, read, or watch TV, ultimately adding value to their experience. Massachusetts' franchise owners are also finding help from MassDevelopment, the state's economic development agency. Through this agency, the franchise owners are able to apply for tax-exempt loans in order to build central baking facilities. This statewide act not only helps the company but the state of Massachusetts as well.

Technological- With technology developing at such a rapid pace, it has become very important, especially for trendy cafй style restaurants, to keep up with this advancement. In order to attract customers, management has decided to install television sets that can be enjoyed by their customers. Because they realize many people don't have the time to sit down and read through a newspaper, Dunkin' Donuts broadcasts day-long local and world news so customers can quickly absorb any sort of news that may be important at that time. Although not mentioned in the article, many popular cafes are starting to provide wireless internet complimentary to their customers. With Dunkin' Donuts' plan towards a relaxing and inviting atmosphere, I suspect that it will not be too long before we see these Wi-Fi networks in almost every store. Also with an increase in technology, management has come up with a way to create space for additional seating as well as increase the chain's efficiency through centralized kitchens. Through these kitchens, Dunkin' Donuts can easily take advantage of the latest in baking, inventory, and transportation technology.

Competitive- In order to create a competitive advantage over similar restaurants, Dunkin' Donuts has come up with ways to add value to their product in ways that their competition has not. For starters, Dunkin' Donuts aims to sell a high quality product at lower rates than top competitors, such as Starbucks. By selling a high quality product at fairly low prices, management feels it has created a niche that will attract and retain their customers. To further compete with stores such as Starbucks, Dunkin' Donuts has and is continuing to expand their menu to offer their customers a larger selection. Rather than only serving coffee and donuts, Dunkin' Donuts now serves smoothies, lunch items, and even espresso drinks. To further compete with similar stores, Dunkin' Donuts has begun a renovation process that they feel will change the retail image and design of their store. By eliminating bolted down seating, blinding fluorescent lights, and a gray-on-gray finish, Dunkin' Donuts is now promoting a more "cafй-like" atmosphere that will hopefully attract those customers looking for that quick pick me up break. Most importantly however, Dunkin Donuts plan to triple its number of stores over the next decade. By increasing its number of stores and therefore its popularity, Dunkin' Donuts will have a sure fire competitive lead over all other similar cafй-like restaurants.

Regulatory- Because of different laws and acts regarding fair competition, Dunkin' Donuts must do everything they can to promote their quality product ethically. By advertising real products at realistic rates, Dunkin' Donuts believes their slogan "America runs on Dunkin" may just catch on. Other laws enforce the company to serve quality food in a clean and healthy environment; one more thing Dunkin' Donuts prides itself in doing. This also means that food must arrive at each store in a short amount of time after being made out of store to protect the health of their consumers. Dunkin' Donuts also prides itself in this department as well.

2. At this point in time, I feel that the force from competition is by far the most important factor regarding Dunkin' Donuts' business. At a time when the trend for cafй-like restaurants is hotter than ever before, it is crucial for Dunkin' Donuts to strengthen their reputation for quality service and product. If Dunkin' Donuts were to sit back and keep to their old style of business, I believe that they would get lost among other similar restaurants. By updating their menu and revamping stores, Dunkin' Donuts always has the ability to offer something new and exciting to its customer base. I also feel that by doubling or even tripling its number of stores nationwide, Dunkin Donuts is incapable of letting competition take over their current market success. With competition from Starbucks, McDonalds, and other coffee shops, it is crucial that Dunkin' Donuts stays one step ahead of their competition.

3. Dunkin' Donuts' competitors at the brand, class, and indirect levels.

Brand- Starbucks, Krispy Kreme Doughnuts, Tim Horton's,