Dunkin Donuts Company Profile

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Dunkin Donuts Company Profile

Dunkin Donuts is a subsidiary of Dunkin Brands focusing on a wide range of espresso beverages, including lattes, macchiatos and cappuccinos, frozen beverages, such as frozen coffee and chocolate, premium hot teas and iced tea, sandwiches and wraps, and baked goods, including donuts, muffins, and bagels.

Company Overview

  • The company was founded in 1950 in Quincy, Massachusetts by Bill Rosenberg and has since maintained its headquarters in Canton, Massachusetts.
  • Dunkin Donuts maintains a global presence with over 13,100 restaurants spread across more 41 countries in various regions including Latin America, Asia, and the European region.
  • The company's vision is to "deliver high-quality food and beverages quickly, affordably and conveniently in a welcoming environment."

Dunkin Donuts SWOT Analysis

Strengths

  • Dunkin Donuts has maintained a strong niche in the competitive fast-food industry by focusing on baked goods and premium beverages. The company offers more than 50 varieties of doughnuts alone, in addition to the wide range of beverages, bagels, and breakfast sandwiches it offers.
  • The company enjoys a large presence both locally and internationally. In the US alone, Dunkin Donuts operates more than 9,600 restaurants while the total number of international restaurants is more than 3,200. The company also enjoys a large social media following including 1.8M followers on Instagram, 15M on Facebook, and 1.2M on Twitter.
  • Dunkin Donuts is a proven brand with a long-established franchising model, having opened its first franchise five years after being founded. The company runs a series of loyal and successful franchises supported by a team of experienced and dedicated professionals. The company's franchising model involves an effective and straightforward process built upon the availability of market, relevant experience in food service or retail, passion and dedication towards operational excellence, and availability of resources.
  • Brand heritage is another of the company's strengths. Dunkin Donuts has been in operation for over 70 years which has enabled it to amass vast experience in the food-service industry and also establish brand loyalty among its customers.
  • Dunkin Donuts also maintains a consistent quality of offerings across all its restaurants through centralized production which enhances and supports brand growth. The company runs franchisee-owned factories that deliver fresh baked goods to the company's restaurants daily, further simplifying the restaurant-level operations of the company.
  • Dunkin Donuts offers a wide range of healthy eating options in its menu for the health-conscious customers, such as multi-grain bagels and made-to-order wrap sandwiches. These products contain at least an ingredient with additional nutritional value or have a full 25% reduction in their fat, calorie, saturated fat, sugar, or sodium content.
  • Dunkin Donuts is constantly innovating to adapt to different markets and offer guests new perks and menu options to maintain their customer base. The company issues customer reward perks such as bonus-point offers on purchases made and other rewards that are unlocked through debit/credit, cash, or Dunkin Donuts card payments. The company also incorporates local culture and slight menu changes to fit the local preferences across each of its restaurants.

Weaknesses

  • Dunkin Donuts has poor franchising relationships evident in the series of lawsuits that have seen the brand exit markets, for instance, Canada. The brand was sued by a group of Quebec-based franchisees citing the company's insufficient promotion of its brand and offerings in Canada, ending in a dissolution in 2016 after appeals from the company and an award of $18M to the franchisees.
  • Dunkin Donuts' expansion into developing markets, such as India and Africa has been relatively poor. The company launched its operations in South Africa in 2016 but has since applied for voluntary liquidation following its failure to adapt its products to the local tastes and preferences.

Opportunities

  • Dunkin Donuts has an opportunity to expand its market to more countries including growing economies. Despite the initially failed launches in countries such as China, India, and South Africa, the company has an opportunity to adapt to local food tastes and preferences to grow its market.
  • The company also has an opportunity to expand its menu outside the current beverages and baked goods offerings. Following the current trends in healthier diet adoption, the company has an opportunity to grow its segment of healthier options.

Threats

  • Dunkin Donuts faces stiff competition from other quick-service restaurants such as Krispy Kreme, Starbucks, and McDonald that threaten its market share both locally and internationally.
  • Additionally, the food industry has low barriers to entry making it highly attractive to new business entrants and setting the company up for stiff competition from any local restaurants in its various operational locations.
  • The current global food trends revolve around people moving to healthier diets such as low fats and sugar, therefore, threatening the company's core business of selling baked goods that are generally high in calories and sugar.
  • The company also faces expansion difficulties in some economies such as China and India due to the difficulty in changing people's snacking habits, therefore, hindering its expansion efforts.

Dunkin Donuts Marketing Strategies

  • Dunkin Donuts markets itself as the "world's leading baked goods and coffee chain" on its website. It prides itself as the "market leader in the sales of hot, decaffeinated and flavored coffee, iced coffee, bagels, donuts, and muffins."
  • The company also markets itself as a company loved by its customers who "stick with Dunkin at the highest rate in the Quick Service Restaurant (QSR) industry."

Krispy Kreme Doughnuts Inc Marketing Strategies

  • Krispy Kreme Doughnuts Inc is a global premium-quality doughnuts and coffee retailer operating around 12,000 merchant stores in the US and around 1,400 in 33 countries. The company is a direct competitor to Dunkin Donuts through the offering of similar products and having a similar target market.
  • Krispy Kreme markets itself on its website as the home of original glazed doughnuts. The company prides itself on making the "original glazed doughnut the way they always have, because it’s the right way, the fun way, and they love doing it that way for the customer."
  • The company's marketing messages include "happiness through doughnuts" and "fun, fresh and warm."
  • The company markets itself on social media platforms including Facebook, Instagram, Twitter, YouTube, and LinkedIn.
  • Examples of the company's advertising can be found here and here.

Starbucks Corporation Marketing Strategies

Tim Hortons Marketing Strategies

  • Tim Hortons is a Canadian-based restaurant chain offering coffee, baked goods, and other fast foods, including salads and sides, soups, sandwiches, and wraps. The company's brand Canadian identity, which gives it a competitive advantage in the Canadian market, majorly contributed to the ouster of Dunkin Doughnuts from Canada.
  • The company markets itself on its website as offering Canada's best coffee and lattes that are "simply delicious and handcrafted for the customer."
  • The company's marketing messages include "always fresh, always" and "proud to be Canada's favorite coffee."
  • The company markets itself on social media platforms including Facebook, Instagram, Twitter, YouTube, and LinkedIn.
  • Examples of the company's advertising can be found here and here.

McDonald's Corporation Marketing Strategies

  • McDonald's is a global fast-food restaurant chain offering various food products, including soft drinks, coffee, and a breakfast menu, including salads, fish, wraps, smoothies, and seasoned fries in over 37,000 locations in more than 100 countries. The company is an indirect competitor to Dunkin Donuts by serving alternative food products in a shared target market.

Caribou Coffee Marketing Strategies

Panera Bread Company Marketing Strategies

  • Panera Bread is a chain of bakery-cafes offering baked goods and other fast foods, including made-to-order sandwiches, soups, custom roasted coffees and cafe beverages, salads, and pasta dishes in more than 2,000 locations in Canada and the US. The company is a direct competitor to Dunkin Donuts through the offering of similar products and having a similar target market.
  • The company markets itself on its website as serving "good food, food one can feel good about, and one that can bring out the best in all people." It markets itself as "offering food that is served in a warm, welcoming environment, by people who care."
  • The company's marketing messages include "let us come to you. Order Panera for delivery," and "to us, that’s good eating and that’s why we’re here."
  • The company markets itself on social media platforms including Facebook, Instagram, Twitter, Pinterest, and YouTube.
  • Examples of their advertising can be found here and here.

Peet's Coffee Marketing Strategies

Au Bon Pain Marketing Strategies

  • Au Bon Pain is an international fast-casual chain of restaurants that offers coffee, sandwiches, bread, pastries, salads, and soups in more than 250 locations in the US and globally, 80 of which are in Thailand.
  • The company markets itself on its website as using the best ingredients to offer quality food products that are best-tasting to its customers. The company also prides itself as offering good bread and producing "food from good bread,"
  • The company's marketing messages include, "simply put, Bon, means good."
  • The company markets itself on social media platforms including Facebook, Twitter, and Instagram.
  • Examples of the company's advertising can be found here and here.
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