Dunkin\' Donuts - Marketing Management Presentation

1. Dunkin’ Donuts® •Eddie Suchevits• dunkindonuts.com dunkindonuts.com

2. Company history: In 1950 William Rosenburg opened the first Dunkin’ Donuts in Quincy, MA 1990 – Allied Domecq (UK) purchases Dunkin’ Dounuts Create Dunkin’ Brands Includes Baskin-Robbins and Togo’s 2005 – PernodRicard, a French wine & spirits company, purchases Allied Domecq and sells off Dunkin’ Donuts Bain Capital Partners, the Carlye Group and Thomas H. Lee Partners bring Dunkin’ Brands back the United States at a cost of $2.4 billion dunkindonuts.com dunkindonuts.com

3. Background: Dunkin’ Brand HQ: Canton, Massachusetts Claims to be the “world’s largest coffee and baked goods chain.” Serving 2.7 million customers per day 5,769 U.S. locations 20 countries Wholly owned private subsidiary themarketingguy.wordpress.com dunkindonuts.com

4. Environmental Factors: Economic Consumer are more likely to pay 99¢ over Starbucks Prices (abc2news.com) Legal Must comply with FDA regulations Competition Coffee: Starbucks Donuts: Krispy Kreme Limited-Service Restaurants: McDonald’s Technology Face-scanning advertising (guardian.co.uk) Cultural “Dunkin’ Democrats” vs. “Starbucks Democrats” dixiedining.wordpress.com dunkindonuts.com

5. Sic: 5812 (Eating places)NAICS: 722211(limited-service restaurants) Sources: allbusiness.com, restaurant.org, nytimes.com, rimag.com, dunkindonuts.com, RMA dunkindonuts.com

6. Revenue: dunkindonuts.com (in thousands)

7. Profits: dunkindonuts.com (in thousands)

8. Product: dunkindonuts.com Dunkin’ Donuts’ products are consumer shopping goods Consumers must spend some purchasing effort Majority of products are only available in Dunkin’ Donuts shops Stage of the product life cycle Maturity due to industry profit fluctuations dunkindonuts.com dunkindonutsobx.com

9. Market Share: dunkindonuts.com Source: Market Share Reporter 2008

10. Market Share: dunkindonuts.com Source: Market Share Reporter 2008 dunkindonuts.com

11. Market Share: Source: Market Share Reporter 2008 dunkindonuts.com

12. Product Strategies: Product Development Breakfast sandwiches to existing breakfast crowd Market Development Targeting coffee enthusiast with cappuccinos, espressos, and lattes Diversification Offering flatbread sandwiches and personal pizzas Market Penetration Coupons / Coupon Books dunkindonuts.com dunkindonuts.com dunkindonuts.com

13. Distribution channels: PackagedCoffee Donuts, Food, and Online Sales Producer Producer Distributor (Proctor & Gamble) Retailer Consumer (Wal-Mart, Kroger) Consumer dunkindonuts.com

14. Distribution: Dunkin Donuts would be Channel Captain Expert Referent Legitimate Contracts with franchisees and Proctor & Gamble Selective Distribution Strategy Products except coffee require some purchase effort Packaged coffee is moving toward intensive distribution strategy Now available in grocery stores and online. interstatelogos.com

15. Price: One Dozen Glazed Donuts: Dunkin’ Donuts: $7.49 Krispy Kreme: $6.99 Altoona YUM YUM Donuts: $7.75 Waynesburg Tim Horton’s: $5.49 Erie Market Place Environment: Limited-Service Restaurants: Differentiated Competition Donut/Ice Cream Chain Industry: Oligopoly Skimming Strategy Profit-Oriented Objective dunkindonutsobx.com (Prices found through telephone interview) dunkindonuts.com Themarketingguy.wordpress.com

16. Marketing Communication: Target Market (independentsources.com) Men Over 50 years of age Rural Eastern US > $20,000 Strivers Makers Frame of Reference Donuts Krispy Kreme / Tim Horton’s Coffee Starbucks / McDonald’s Point of Difference Diverse menu with a wide range of coffee and tea beverages dunkindonuts.com dunkindonuts.com

17. Positioning Map: (Prices found through telephone interview) spyur.am High Price (4.00, $7.75) dunkindonuts.com Price based on a dozen glazed donuts krispykreme.com (4.33, $7.49) (3.09, $6.99) timhortons.com (3.33, $5.49) High Quality Low Quality Quality based on consumer ratings at rateitall.com dunkindonuts.com Low Price

18. Marketing Communication: Promotion Objective Create Preference Offering a wide menu Reinforce conviction Through Dunkin’ Beat Starbucks campaign Promotion Strategy Pull Advertising directly to consumers dunkindonuts.com dunkindonutsobx.com dunkindonuts.com

19. Promotion mix tools: Web Marketing www.dunkindonuts.com www.dunkinbeatstarbucks.com Advertising Dunkin’ Beat Starbucks Print Ads Promotion Red Sox Win, You Win http://www.youtube.com/watch?v=SzWIvxXsuYw Sponsorships Boston Red Sox “Dunkin’ Dugout” jennylafer.com bostonherald.com flickr.com video.aol.com flickr.com

20. Promotion Mix Tools: Direct Marketing Coupon Books / Coupons “FREEquent” visit cards Personal Selling All 5,769 franchised restaurants in the United States Public Relations Press Release (website) Tribune Democrat dunkindonuts.com

21. Questions? Thank you!