mathiasescobar.files.wordpress.com · Web viewDunkin’ Donuts is known for several products. One of them is their coffee. Their main competitors are Starbucks, restaurants (Mcdonalds,

1

Marketing Plan

Mathias EscobarMarketing 101

Prof. UlmerDecember 7, 2015

2

Table of Contents

Intro 3

Analysis of Dunkin’ Donuts Marketing Environment 3

Marketing Research 4

Hoover’s Online 4

Summarized Articles 4

Dunkin Donuts Survey 6

Focus Group 10

Conclusion of Problems 11

Marketing Mix 12

Advertising 14

Works Cited 17

3

Intro

Dunkin Donuts is a coffeehouse chain and a doughnut company based in Canton,

Massachusetts. Dunkin Donuts opened its first location in 1948 in Quincy, Massachusetts as

Open Kettle by William Rosenberg. The company changed its name to Dunkin’ Donuts in 1950.

Since the day it was founded, Dunkin Donuts has grown to be one of the largest coffee and

baked goods chain in the world. They have 11,000 restaurants in 33 countries. Dunkin Donuts

is known for making and selling doughnuts, bagels, other baked goods, and hot and iced

beverages. Currently, Dunkin Donuts is slumping in sales and traffic.

Analysis of Target Marketing Environment

Dunkin’ Donuts is known for several products. One of them is their coffee. Their main

competitors are Starbucks, restaurants (Mcdonalds, locally owned coffee shops, etc), and gas

stations. These companies compete with Dunkin Donuts when it comes to quality, prices and

options available. With all these competitors that are in the market, Dunkin’ Donuts have to

keep up in order to increase their profits.

4

Marketing Research

Hoover’s Online

The information available on Dunkin’ Brands Food Inc. shows that Dunkin’ Donuts has

managed to increase its profits from 2010 to 2014. However, these profits were increasing at a

very small percentage. Gross profit is also having a small increase as well. Operating costs has

increased significantly from the year 2013-2014.

According to Dunkin’ Donuts’ balance sheet, its total assets has decreased from $3234.69

million in 2013 to $3177.383 in 2014. Total liabilities and total equity has also decreased in

2014. Dunkin’ Donuts cash flow has an increase in using its cash from 2013-2014. Dunkin’

Donuts is using most of the cash in net financing cash, which means they are paying off debts.

Summarized Articles

"Dunkin' Donuts Franchisee Closing 100 Stores." Fox News. FOX News Network, 02 Oct. 2015.

Web. 06 Nov. 2015.

Dunkin’ Brands have announced that one of its franchisees will be shutting down 100

stores across the United States in the next fifteen months. These stores are runned by a

convenience store chain called Speedway. Dunkin’ Brands commented that a spike in the cost of

eggs due to the avian flu outbreak and the rise of minimum wages across the country were a

couple of reasons that these stores are closing. With these implications, Dunkin’ Brands remain

vigilant and will continue their plan to open 410 out of 440 new Dunkin’ Donuts in the United

States. Brands, Dunkin' "Dunkin' Donuts to Close 100 Stores." CNNMoney. Cable News

Network, 1 Oct. 2015. Web. 06 Dec. 2015.

5

In this article, CNN also reported that 100 Dunkin’ Donuts store will shut down. This

article talks about Dunkin’ Donuts finances. According to this article, Dunkin’ Donuts has

lowered its same-store sales growth to 1.1%. One of the main reasons is because fewer and

fewer customers are actually going inside a Dunkin Donuts building. Dunkin’ Donuts’ shares

also fell as well. Shares have fallen by more than 12%. Dunkin Donuts disclosed this

information and Dunkin’ Donuts U.S. and Canada president Paul Twohig said the company was

disappointed with results in the U.S. The president is taking steps to improve their menu

offerings as well as offering limited edition products in order to get out of this slump and to get a

competitive advantage on their competitors. Mcdonald's has released their all-day breakfast, Tim

Hortons has shown a strong level of growth and Krispy Kreme has been struggling to keep up.

Minaya, Ezequiel. "Dunkin' Brands Results Top Views despite Weak U.S." MarketWatch. N.p.,

22 Oct. 2015. Web. 06 Dec. 2015.

Dunkin’ Donuts posted better than expected results in the 3rd quarter. However, there were

lackluster sales and a slump in traffic in their locations. The company noted a 0.7% decline in

their buildings. They also have reported a decline in same-store sales from 2.9 % in the 2nd

quarter to 1.1% in the 3rd. Dunkin’ Donuts also reported their in-store K-Cups and packaged

coffee sales has also declined. “We were disappointed with our third-quarter Dunkin' Donuts

U.S. comparable-store sales” says Nigel Travis, chief executive of Dunkin’ Brands. Overall, the

company has posted a profit of $46.2 million, down from $54.7 million a year ago.

Dunkin’ Donuts Survey

1. What is your age?

a. 18-25

6

b. 26-35

c. 36-45

d. 46-55

e. 55+

2. How often do you go to Dunkin’ Donuts?

a. Everyday

b. At least once a week

c. Once every two weeks

d. Once a month

e. A couple of times a year

f. Never

3. I find that Dunkin’ Donuts employees to be helpful and understandable

a. Strongly Agree

b. Slightly Agree

c. Neutral

d. Slightly Disagree

e. Strongly Disagree

4. I am satisfied with the prices at Dunkin’ Donuts

a. Strongly Agree

b. Slightly Agree

c. Neutral



7

5. I am satisfied with the quality of the coffee at Dunkin’ Donuts

a. Strongly Agree

b. Slightly Agree

c. Neutral



6. I am satisfied with the quality of the donuts offered at Dunkin’ Donuts

a. Strongly Agree

b. Slightly Agree

c. Neutral



7. I am satisfied with the quality of the sandwiches offered at Dunkin’ Donuts

a. Strongly Agree

b. Slightly Agree

c. Neutral



8. I am satisfied with the cleanliness inside of Dunkin’ Donuts

a. Strongly Agree

b. Slightly Agree

c. Neutral


8


9. I am satisfied with the time for my transactions at Dunkin’ Donuts

a. Strongly Agree

b. Slightly Agree

c. Neutral



10. I prefer Dunkin Donuts to any other place for coffee (Starbucks, Mcdonalds, locally owned,

etc).

a. Strongly Agree

b. Slightly Agree

c. Neutral



11. I prefer Dunkin Donuts to any other place for doughnuts

a. Strongly Agree

b. Slightly Agree

c. Neutral



11. I prefer Dunkin Donuts to any other place for sandwiches

a. Strongly Agree

b. Slightly Agree

9

c. Neutral



12. Overall, I am satisfied with my shopping experience at Dunkin’ Donuts

a. Strongly Agree

b. Slightly Agree

c. Neutral



10

Focus Group Responses

Almost all the participants that I have interviewed said that they enjoyed their experience

at Dunkin’ Donuts. All of the participants agreed that the cleanliness and orderliness in their

stores. They also were satisfied with the prices for all of the products available. Most of the

participants that these prices were reasonable compared with other competitors. However, most

of the participants also say that there could be some improvements made to the business.

One idea that most participants agree on is the lack of quality when it comes to coffee.

Most of the participants commented that the coffee available at Dunkin’ Donuts is too bland.

One participant says that they prefer Starbucks because they have more variety and flavors when

it comes to coffee. Another participant also commented that their coffees are not as fresh as the

local coffee shops are. Another idea that a couple of people agree on is the quality of doughnuts

available. One participant stated that he prefers the doughnuts available at Giant because “they

are fresh and taste better than Dunkin’ Donuts”. Another participant says that the donuts at

Dunkin’ Donuts are bland compared to the ones you buy at a grocery store. The last idea that a

couple of participants agree with is the employees. One participant states that the employees do

not pay attention to the customers. She says that they get distracted by other employees.

Another participant says that the employees use their phones during their shifts.

11

Conclusion of Problems for Dunkin’ Donuts.

Dunkin’ Donuts problems come from several different angles. The first problem that

Dunkin’ Donuts has is their coffee business. Several people, both personal and online, say that

Dunkin’ Donuts need to step it with their coffee. Most of the competition comes from Starbucks.

Starbucks is dominating the coffee business. If Dunkin’ Donuts does not change, they could

have lower revenue and loss in customers

The other problem that Dunkin’ Donuts faces is the quality of their doughnuts. Most

people say that they are not as fresh as they were before. These customers are looking for

substitutes that can satisfy their needs. Dunkin’ Donuts will continue the trend of lower and

lower profits if they keep this up.

The final problem that Dunkin’ Donuts is facing is customer service. There are

customers out there that are not satisfied with their experience. Employees are not being

attentive to their customers are being rude to them. Most employees do not realize that if they

lose a customer, they lose sales. If this issue isn't dealt with, it will keep losing customers, both

new and old.

12

Marketing Mix

Product

Dunkin’ Donuts offers a variety of products (Coffee, doughnuts, sandwiches). Dunkin’

Donuts should start offering a small variety of different types of coffee roasts (Sumatra,

Colombian, French Roast, etc.) Dunkin Donuts should also increase the number of flavored

coffee options as well. Currently, they have 17 different flavor options. The next thing that

Dunkin’ Donuts should work on is the recipe in their doughnuts. They should start having a

fresh batch every 2-4 hours every day. They should also have a few tweaks or develop a new

formula for their doughnuts. They should have a test market and let others try out the different

types of donuts. Whichever one has the most success should be released to the general public.

Price

Dunkin’ Donuts prices are fair according to customers. What Dunkin Donuts should do is have a

“deal of the week”. Every week, something in their menu is offered at a lower cost (10-20%

off). This way, customers can go to a Dunkin Donuts and buy them. This would increase sales

for the company. The same thing can be done with coffee. Every week, a different type of

coffee is on sale. People would go in and buy it and it would increase sales.

Place

There are several Dunkin’ Donuts locations throughout the United States. Dunkin Donuts should

do a population count on each Dunkin’ Donuts and see which ones are having a sufficient

amount of people coming in and out and which ones are not. The ones that are not should think

about relocating into places where there are a lot of people and that there are no other Dunkin’

13

Donuts within a 10-20 mile radius or promote more. If Dunkin Donuts would start opening new

stores that are very close to one another, these stores can quickly go under.

Promotion

Dunkin’ Donuts operates a mildly aggressive promotion strategy. The business promotes itself

on television ads, newspaper, online ads and in magazines. Most of their advertisements would

come in early in the morning for people walking and doing their daily morning routine. What

Dunkin’ Donuts should do is increase the number of ads into the afternoon, especially during

lunchtime. They should show off their sales and new products that are available as well. They

should also promote their own foundation, The Dunkin’ Donuts & Baskin-Robbins Community

Foundation. This foundation helps out local communities with hunger relief, children’s health

and safety initiatives. If they would promote their own foundation and offer incentives to

donate, customers would start showing up.

14

Advertising

(Scene opens up outside a building in a chilly early morning. Bob walks up to Steve)

Bob- Hey Steve! how are you?

Steve- I’m good. Just trying to stay warm this morning. I decided to go to Dunkin’ Donuts and

bought myself a Snickerdoodle

Bob- A what now?

Steve- Snickerdoodle! It’s really good. It’s a smooth aromatic coffee made from a blend of

cinnamon and hazelnut, Haven’t you heard?

Bob- No, I have not but that sounds really good! I have to go try one.

Steve- You should! It is one of five brand new flavored coffees available this holiday season!

Bob- Oh man tough decisions! I know what I’m doing later today.

Announcer- Come and celebrate with Dunkin’ Donuts this holiday season. Grab a medium

Snickerdoodle, Jack Frost, Peppermint, Eggnog or Gingerbread with a donut for only $1.75.

Available for a limited time. America Runs on Dunkin’

This ad by Dunkin’ Donuts should be aired on T.V every morning on channels like NBC, CNN,

ABC, CBS, FOX, ESPN and many other channels that have an early morning audience.

15

Sales Promotion

A sales promotion for Dunkin’ Donuts this holiday season is released five different

holiday coffee flavors as well as holiday style doughnuts. One of the deals they should be giving

out this holiday season is a medium holiday coffee plus any doughnut for the price of $1.75.

This sales promotion should run through January 10, 2016.

Product Placement

Dunkin’ Donuts should hire early morning t.v hosts to come in and order something for

themselves. During their broadcast, they could leave their Dunkin; Donuts coffee cup on the

desk in front of them. This person would occasionally start drinking coffee live in front of

millions of people at home.

Publicity/Public Relations

During the holiday season, Dunkin’ Donuts should advertise about their own foundation.

This promotion could earn good publicity. Reporters could go in, see where this money is going

towards and interview families that have been helped out by this program. This could improve

their image and also get more customers into the door.

Magazine Ad

16

Come celebrate with us this holiday season and order a medium Snickerdoodle, Jack Frost,

Peppermint, Eggnog or Gingerbread with a donut for only $1.75! Hurry because this offer is

only available for a limited time.

This ad would be posted on newspapers every Monday morning and magazines like Sports

Illustrated, People and U.S Weekly. This ad should also be placed online on its own website as

well as social media.

Works Cited

17

"Dunkin' Donuts Franchisee Closing 100 Stores." Fox News. FOX News Network, 02 Oct. 2015.

Web. 06 Nov. 2015.

Minaya, Ezequiel. "Dunkin' Brands Results Top Views despite Weak U.S." MarketWatch. N.p.,

22 Oct. 2015. Web. 06 Nov. 2015.

"Revenue and Financial Reports." Hoovers Online. N.p., n.d. Web. 01Dec. 2015.

States.Brands, Dunkin' "Dunkin' Donuts to Close 100 Stores." CNNMoney. Cable News

Network, 1 Oct. 2015. Web. 06 Nov. 2015.

Documents

mathiasescobar.files.wordpress.com · Web viewDunkin’ Donuts is known for several products. One of them is their coffee. Their main competitors are Starbucks, restaurants (Mcdonalds,