Dunkin Donuts

Information

Dunkin donut is an American global doughnut company and coffee house chain based in canton Massachusetts. In 1946, bill Rosenberg founded industrial luncheon services ,a company that delivered meals and snacks to workers in the boston area. The success of industrial luncheon services convinced Rosenberg to to atart the open kettle,a doughnut shop in quincy, Massachusetts.Two years years later, the open kettle changed its name to dunkin donuts. Today Dunkin Donuts store store can be found in over 32 countries, and they serve almost almost 70 varieties of doughnuts ,along with hot and cold coffee drinks bagels, breakfast sandwiches and other baked goods .Dunkin Donuts parent company, Dunkin brands Inc., also franchises Baskin robbins and the two concepts are sometime co- branded. William Rosenberg sold franchise of Dunkin Donuts as early as 1955.It started growing in 1955, which led Rosenberg to lobby for Dunkin Donuts at the international franchise association. In 2008 Dunkin Donut opened its first green restaurant in st. Petersburg, Florida that is leadership in energy and environmental design certified. The recently Dunkin Donuts switched its beverage provider from previously served PepsiCo products to Coca-Cola company since rivals increasingly served pepsico products the United states; PepsiCo‟s  Gatorade remained on the menu.

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Dunkin donuts launched mobile application for payment and gifting for i-phone, ipod touch and android smartphones. At Dunkin brands, community is the one of the important thing. Dunkin Donuts established the Dunkin Donuts and Buskin Robbins community foundation. This foundation serves the basic needs of their communities through food for the hungry, safety and children‟s health.

Recently NAACP and great wolf lodge announces partnership with Dunkin brands. Dunkin brands has more than 1100 corporate employees to support their franchise system worldwide with more than 18000 points of distribution in nearly 60 countries worldwide. Dunkin  brands group Inc. is one of the world‟s leading franchisor of quick service restaurants restaurants serving hot and cold coffee and baked goods. At the end of 2013 Dunkin brands nearly 11000 Dunkin Donut restaurants and 7300 buskin robbins restaurant. For the full year 2013, the company had franchisee reported sales of opportunity $9.3 billion.  Now the chairmen & CEO of dunkin Donut is Nigel Travis.

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Corporate Social Responsibility (CSR) Corporate social Responsibility provides Dunkin' Brands with a central frame of reference for organizational decisions, strategic goal setting and behaviors that respect a ll of our stakeholders. Corporate Social Responsibility is also a way to formalize ou r tradition of doing what's right for our consumers, franchisees, employees and the communities we serve.

Our Priorities: Our People: From our employees and franchisees to the farmers who grow our coffee, we believe in treating everyone with respect and fairness so they are empowered to reach their goals.

Our Guests: We are passionate about offering our guests delicious products they will enjoy, giving them plenty of menu options, and providing accurate nutrition information so they can make the best choices for themselves.

Our Neighborhoods: We are dedicated to serving the basic needs of our local communities –  from providing f ood for the hungry and support for children‟s health and wellness, to ensuring our neighborhoods are safe and secure.

Our Planet: We recognize that everything we do has an impact on the environment. From the materials we use, to the way we construct and operate our stores, we are committed to adopting  better, more sustainable approaches whenever possible.

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Corporate Governance Generally, The business of the Company is conducted by management under the direction of the Chief Executive Officer. The Board‟s responsibility is to oversee, on behalf of stockholders, the conduct of the Company‟s business, to provide advice and counsel to the Chief Executive Officer and senior management, to protect the Company‟s best inter ests and to foster the creation

of long-term value for stockholders.

Decision-Making Responsibilities Among other things, the Board‟s decision-making responsibilities include:

a) Review and approval of the Company‟s mission, strategies, objectives and policies, as developed by the Chief Executive Officer and senior management;  b) Approval of director candidates for election by stockholders at the annual meeting.

c) Approval of material investments or divestitures, strategic transactions and other significant transactions not in the ordinary course of the Company‟s business.

Oversight Responsibilities: Among other things, the Board‟s oversight responsibilities include monitoring:

a) The Company‟s performance in relation to its mission, strategies, financial and nonFinancial objectives.  b) The performance and effectiveness of the Company‟s management team ; Succession and development plans for key Company executives, including the Chief Executive Officer. d) The Company‟s financial reporting processes, internal controls and risk management

 processes.

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e) The Company‟s compliance with legal and regulatory requirements.

In carrying out their responsibilities, Board members shall exercise their business judgment and act in ways that they reasonably believe will serve the best interests of the Company and its stockholders. As appropriate, the Board shall also consider the interests of other stakeholders, including franchisees, customers and the members of the communities in which the Company and its franchisees operate.

BOARD COMPOSITION Selection of Chair of the Board The Board may select its Chair in its discretion at any time. The Chair may also be an executive officer of the Company.

Size of the Board The Board believes that it should generally have no fewer than three and no more than 17 directors, subject to the provisions of the Company‟s Certificate of Incorporation and its Bylaws. This range permits diversity of experience without hindering effective discussion or diminishing individual accountability.

Board Membership Criteria  Nominees for director shall be selected on the basis of their character, wisdom, judgment, ability to make independent analytical inquiries, business experiences, understanding of the Company‟s

industry and business environment, time commitment and acumen. Board members are expected 5|Page

to become and remain informed about the Company, its business and its industry, rigorously  prepare for, attend and participate in all Board and applicable committee meetings. The Board shall be committed to a diversified membership, in terms of both the individuals involved as well as their various experiences and areas of expertise.

Director Independence An “independent” director of the Company shall be one who meets the qualification

requirements for being an independent director under applicable laws and the corporate governance listing standards of The NASDAQ Global Select Market including the requirement that the Board must have affirmatively determined that the director has no material relationships with the Company, either directly or as a partner, stockholder or officer of an organization that has a relationship with the Company. To guide its determination as to whether or not a business or charitable relationship between the Company and an organization with which a director is so affiliated is material, the Board, or designated committee of the board, may from time to time adopt categorical standards of independence.

Percentage of Independent Directors on Board The Board shall consist of such number of directors who are independent as is required and determined in accordance with applicable laws and regulations and requirements of NASDAQ.

Selection of New Directors The entire Board shall be responsible for nominating candidates for election to the Board at the Company‟s annual meeting of stockholders and for filling vacancies on the Board that may occur

 between annual meetings of stockholders. The Nominating & Corporate Governance Committee shall be responsible, in consultation with the Chairman of the Board and the Chief Executive Officer, identifying, recommending, recruiting and selecting, or recommending that the Board select, candidates to fill open positions on the Board consistent with the Board-approved criteria and qualifications for membership. Notwithstanding anything contained herein to the contrary, at any time at which the Company is party to an agreement pursuant to which a stockholder or

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stockholders have the right to nominate a candidate or candidates for election to the Board, such agreement shall prevail.

SWOT Analysis

Strength 1. Strong Brand name, recognized world over 2. Brand loyalty amongst customers 3. Over 1000 varieties of doughnuts 4. Popular for a number of bakery products like pastries, bagels, muffins, biscuits, etc. and ho t  beverages like coffee, tea 5. Ideal place for having breakfast and coffee 6. Innovative ways to retain customers by issuing coupons and discounts 7. Worldwide chain of franchisees totaling to 10,000 locations across 32 countries 8. One of the most experienced in the industry

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9. Association with major sports teams 10. Effective marketing and advertising strategies.

Weakness 1. Competition from other international snacking joints means limited market share growth. 2. Constant rift with the franchisee owners and numerous instances of suing them. 3. Still hast penetrated into the emerging economies which can be a huge segment.

Opportunity 1. Increase its presence in newer countries and regions of the world 2. To introduce low calorie snacks 3. Increase in disposable income of people in developing countries 4. Increase its reach through effective online marketing

Threats 1. People moving to healthier ways of eating. 2. Competition even from local cafes and bakeries. 3. Increase in the cost of raw materials. 4. Difficult to change the snacking habits of people in certain countries like India and China.

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Mission, Vision, Goal and Values Mission Statement of Dunkin’ Donuts: The original mission statement of Dunkin‟ Donuts came straight from the founder:

"Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores.” Today, because 100% of the 10,000+ Dunkin' Donuts stores located around the world are franchisee-owned and operated, each individual Dunkin‟ Donuts store could have its own mission statement. But as the parent company of the Dunkin‟ Donuts franchise, Dunkin‟ Brands has 12 Values and Principles that the company believes should guide the decisions of everyone associated with Baskin-Robbins retail outlets, and lead all Dunkin‟ Donuts  franchisees to success.

Vision Statement: „‟Serving Responsibly. To be recognized as a  successful company that responsibly serves our guests, franchisees, employees, communities, business partners, and the interests of our planet.‟‟

To serve consumers res ponsibly, Dunkin‟ Donuts offer a variety of menu options, through designing delicious food products including nutrition information. This shows that the company considers and feels responsible to the consumer‟s food taste, food quality and nutrition levels. As the vision statement is also a roadmap for strategic planning, it may impact consumers‟  perspectives positively. Consumers may believe they are benefitting from the company‟s

constant aim to provide them with the best choices. The vision statement is a source of inspiration for the employees, as one of the main values of Dunkin‟ Donuts is translated -

employees and franchisees must treat others with respect and fairness. From the early production stages to business operations, respect and fairness given to farmers to board of directors must be equal in order to “empower others to reach their goals”. As the company strives to act

responsibility towards all, better relations in the company itself, or between the company and loyal business partners may be created and maintained.

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Dunkin‟ Donuts aims to serve the society responsibly over a long period, through the use of

more sustainable approaches in store materials to become more environmentally-friendly. The  public will recognize that the company is becoming responsible towards our planet, which will allow the company to gain better public image at the same time.

Goals: Goals of Dunkin Donuts are given below: 1. Expanding the brand nationally 2. Achieving the position of business leader. 3. Growing internationally with focus and discipline. These goals can be reached through the completion of the short term operational tasks. By investing in product development, production, sales and marketing, Dunkin Donuts will be able to expand the brand through introducing new products, sale strategies and increasing  productions. The growth in the company will be created by establishing nutrition filter and goals, encouraging balanced lifestyle options to consumers, identify new product opportunities, reduce carbon footprint and introduce employee training programs. The above are also the operational objectives of Dunkin‟ Donuts. By following the stages of completing operational objectives to

strategic objectives, the aims of the company will be reached over time.

Values: Our Company has certain values. These are how we achieve our visions. 

Honesty - Embrace the truth about oneself and the world.

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Transparency  - Demonstrate openness and vulnerability.

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Humility - Acknowledge own mistakes and commit to learning.

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Integrity  - Say what you think and do what you say.

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Respectfulness  - Honor the dignity, inclusion, and diversity of others.

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Fairness  - Do what is right based on common principles.

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Product of Dunkin Donuts Menu: Beverages:

1. Hot Beverages 2. Iced Beverages 3. Frozen Beverages 4. At Home Brewing

Food: 1. Bakery 2. Sandwiches

Hot Beverage: 1. Box O' Joe 2. Cappuccino 3. Dunkaccino

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4. Espresso 5. Hot Chocolate 6. Hot Coffee 7. Hot Tea 8. Latte 9. Mint Hot Chocolate 10. Salted Caramel Hot Chocolate 11. Vanilla Chai

Iced beverage : 1.Iced Coffee 2. Iced Latte 3. Iced Tea 4. New Iced Green Tea 5. Sweet Tea

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Frozen beverages: 1. Blue Raspberry Coolatta 2. frozen caramel coffee coolatta 3. frozen coffee coolatta 5. Frozen French Vanilla Coffee Coolatta 6. Frozen Hazelnut Coffee Coolatta 7. Frozen Mocha Coffee Coolatta 8. Minute Maid Orange Coolatta 9. New Frozen Arnold Palmer Coolatta 10. Oreo Frozen Coffee Coolatta 11. OREO Vanilla Bean Coolatta 12. Strawberry coolatta 13. vanilla bean coolatta 14. Watermelon Coolatta

Home brewing:

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1.K-Cup Packs Coffee 2. Packaged 3. Packaged Tea

Bakery:

1. Bagels 2. Cookies 3. Danishes 4. Donuts 5. Hash Browns 6. Muffins 7. Munchkins 8. Pretzel Twist

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Breakfast Sandwiches :

1.Bacon Egg and Cheese 2. Egg white flatbread multigrain 3. Egg White Flatbreads 4. Egg and Cheese 5. Glazed Donut Breakfast Sandwich 6. Ham Egg and Cheese 7. Sausage Egg and Cheese 8. Sliced Turkey Breakfast Sandwich 9. Southwest Steak Breakfast Burrito 10. Turkey Sausage Breakfast Sandwich 11. wake_up wrap 12. Bakery sandwiches : 13. Bacon Ranch Chicken Sandwich 14. chicken-salad

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15. Chicken Salad Sandwich 16. Chicken Sandwiches 17. Ham & Cheese 18. New Grilled Chicken Flatbread 19. Grilled cheese three 20. Texas Toast Grilled Cheese 21. Tuna Salad & Chicken Salad Wraps 22. Tuna Salad Sandwiches 23. Turkey, Cheddar & Bacon

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Marketing Strategy Dunkin‟s Donut is America‟s favorite food and all-day stop for coffee and baked goods. It is a

leading retailer of hot and iced regular coffee by the cup in America and it also the largest coffee and baked goods chain in the world. The original Dunkin‟s Donuts was a single cup of coffee with a donut. Now Dunkin‟s Donut offers a wide range of coffee or coffee related beverages,

 baked goods and an expanding all day Oven Toasted men.

Market Segmentation; Many types of customers appear in any market, and most firms cannot satisfy everyone‟s needs.

For instance, among Internet users, some do research online, some shop, some look for entertainment, and many may do all three. Each of these groups might be a market segment consisting of consumers who respond similarly to a firm‟s marketing efforts. The process of

dividing the market into groups of customers with different needs, w ants, or characteristics-who therefore might appreciate products or services geared especially for them-is called market segmentation

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Target Market: A firm‟s marketers find a need through careful and continuing study of the individual and

 business decision mak ers in the potential market. Dunkin Donut‟s target market is high and middle income bracket people. As they are serving product in an average price so it is feasible for middle income people to grab the desired product.

Implement Marketing Mix and Allocate Resources; When the firm has identified and evaluated different growth opportunities by performing an STP analysis, the real action begins. It has decided what to do, how to do it, and how many resources should be allocated to it. In the fourth step of the planning process, marketers implement the actual marketing mix-product, price, promotion, and place-for each product and service on the  basis of what they believe their target markets will value. At the same time, they make important decisions about how they will allocate their scarce resources to their various products and services.

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Product: Products, which include services, constitute the first of the four Ps. B ecause the key to the success of any marketing program is the creation of value, firms attempt to develop products and services that customers perceive as valuable enough to buy. Amazon.com, for example, developed the first e-book reader, the Kindle, to enable customers to read anything they wanted to by downloading it onto this new mobile reading device.

Price: Recall that the second element of the marketing mix is price. As part of the exchange process, a firm provides a product or a service, or some combination thereof, and in return, it gets money. Value-based marketing requires that firms charge a price that customers perceive as giving them a good value for the product they receive. Clearly, it is important for a firm to have a clear focus in terms of what products to sell, where to bu y them, and what methods to use in selling them. But pricing is the only activity that actually brings in money by influencing revenues. If a price is set too high, it will not generate much volume. If a price is set too low, it may result in lowerthan-necessary margins and profits. Therefore, price should be based on the value that the customer perceives. Dunkin donuts use their pricing strategy quite effectively. The y aware of competitor‟s pricing and determine their price according to their strategy. Dunkin Donuts

sometimes use odd pricing to grab the customer‟s attention.

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Place:

The third p of marketing mix is place or outlets. Place is a very essential part of the marketing mix. If the outlet is not available enough it will not work properly even though the other p‟s are

used in a proper manner. And Dunkin Donuts use their outlets very effectively, for instances the y set up their retail chain shop in busy areas such besides the shopping malls or in down towns.

Promotion: The fourth and last P of the marketing mix is promotion. Marketers communicate the value of their offering, or the value proposition, to their customers through a variety of media including television, radio, magazines, sales forces, and the Internet. Dunkin donuts use their promotional strategy very effectively to inform as well as to educate their customers in regular basis.

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Competitive Advantage According to the strategic management specialist Michael Porter, there are three generic strategies that, if properly implemented, can create a strong competitive advantage for a company. Theses generic strategies include the differentiation strategy, the cost leadership strategy, and the focus strategy. While the cost and differentiation strategies are implemented industry wide, the focus strategy is only used for individual business segments. In this model, cost leadership and product differentiation are mutually exclusive. Therefore, each company can only choose one as their overall business strategy. Dunkin' Donuts has focused on becoming a cost leader in the U.S. coffee and snack shop industry which is defined as "offering the same or  better quality product or service at a price that is less than what any of the competition is able to do." There are three main ways that Dunkin' Donuts is able to charge lower prices for their  products compared to their competitors. The first is that they produce more which results in a higher asset turnover. Also by producing more, they are able to spread out their fixed costs over a larger number of units. In addition, Dunkin' Donuts offers a variety of standardized products which limits the amount of product and service customization they have to do. Finally, by buying in bulk, bidding competitively over contracts, and working with vendors to keep inventories low, Dunkin' Donuts is able to keep a tight control over their supply chain. Having strong relationships with suppliers is a vital way to keep costs low. Although Dunkin' Donuts has a strong presence in Northeastern U.S., they do not have a strong  presence in other areas of the country. The map below depicts the abundant amount of stores in the East compared to the rest of the country. By 2020, however, they plan to have a total of 15,000 stores in the United States which would almost double their current U.S. presence. In addition to the United States, Dunkin' Donuts has been serving customers internationally for over 40 years and currently operates over 3,100 stores in 32 countries. Their growth is successful due to their store consistency and strong franchises; out of their approximately 10,000 stores worldwide, about 7,000 of them are franchises. Therefore, consistency between these stores is of great importance.

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Recommendation Dunkin Donut is one of largest chains coffee and baked goods in the world.Starbucks is the main competitor of Dunkin Donuts. Increasing consumers facilities and reaching newer countries and regions will make them able to compete with starbucks. They can increase their selling through effective online marketing. They can attract City Co nvenience‟s customers, who purchase coffee  based on specialty beverage options, by offering unique, specialty beverage options at Dunkin‟

Donuts. Our research also indicated a correlation between coupon promotions and the tendency for respondents to purchase coffee at Dunkin‟ Don uts. By continuing to provide coupon  promotions, Dunkin‟ Donuts can also retain its current customers.Dunkin' Brands, through

Dunkin' Donuts and Baskin-Robbins generates revenue through franchise royalties and rent  payments, sales of, ice cream products to franchisees, and sales at company-owned stores. Dunkin donut is the second largest global beverage and snack chain.

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Appendices B

Product 19

Board Composition 5, 6

Price 19

C

Place 20

CSR 3

Promotion 20

Corporate Governance 4

S

D

Strength 7

Decision Making Responsibilities 4

T

G

Threat 8

Goal of DD 10

Target Market 18

I

V

Information 1

Vision 9

M

Values 10

Mission Statement 9

W

Marketing Segmentation 17

Weakness 8

O

Oversight 4 Opportunities 8 P

Product Menu 11, 12, 13, 14, 15, 16

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References 1. Scott R. (Apr 24,2008) , Dunkin' Donuts: Reinventing Itself One Cup at a Time, Ret rieved from http://www.minyanville.com/investing/articles/Wen-coffee-KKD-BAGLdonuts/4/24/2008/id/16879?refresh=1 2. Dunkin' Donuts Market Profile (2009), Retrieved From http://www.ivycohen.com/MarketingCoach/BrandTransformationDunkinDonuts.html

3. Dunkin' Donuts, Retrieved From http://en.wikipedia.org/wiki/Dunkin%27_Donuts 4. Susan A. ( January 10, 2013) , Dunkin' Donuts Takes On The World: Leadership Lessons From The CEO, Retrieved from http://www.forbes.com/sites/susanadams/2013/10/01/dunkin-donuts-takes-on-the-worldleadership-lessons-from-the-ceo/ 5. Tim S. (July 13,2012) , How Dunkin’ Donuts Uses Social Medi a , Retrieved From http://socialtimes.com/how-dunkin-donuts-uses-social-media_b100752 th

6. Louis E. Boone, David L Kurtz, Contemporary Business, 14  Edition.

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