Dunkin' Donuts and Starbucks

In: Business and Management

Submitted By amyfengfms
Words 330
Pages 2
For most of its existence, Dunkin' Donuts' main product focus has been implicit in its name: donuts and coffee in which to dip them. First-time customers acquainted with this simple reputation were often overwhelmed by the wide varieties of donuts stacked end-to-end in neat, mouthwatering rows. Only in recent years has the company expanded its offerings to include breakfast sandwiches, previously the sole domain of fast food restaurants like McDonald's. None of Dunkin' Donuts' moves makes much difference unless consumers buy into the notion that the company has the culinary imperative to sell more than its name suggests. If plans prove successful, more customers than ever may flock to indulge in the company's breakfast-to-go menu. If they don't, the only thing potentially worse for Dunkin' Donuts than diluted coffee could be a diluted brand image. After 60 years, the company has a reputation for doing two things simply and successfully—coffee and donuts. Even when consumers see the line of products expand into what was once solely the realm of the company's competitors, they may be unconvinced that Dunkin' Donuts is the shop to go to for breakfast. Dunkin' Donuts sells more than one billion cups of coffee a year, for 62 percent of the company's annual store revenue. Considering that coffee is the most profitable product on the menu, it's a good bet that those margins give the company room to experiment with its food offerings.
Faced with the challenge of maintaining a relevant brand image in the face of fierce and innovative competition, Dunkin' Donuts pursued a time-honoured business tradition—following the leader. The company now offers a competitive variety of espresso-based drinks complemented with a broad number of sugar-free flavourings, including caramel, vanilla, and Mocha Swirl. And considering the growing popularity of single-shot coffee makers like…...

Similar Documents

Dunkin Donuts

...Executive Report—Internal Management The acquisition of Starbucks will offer those opportunities necessary to expand Dunkin’ Donuts. Currently, Dunkin’ Donuts’ main target market is aimed at adults 25-55 years of age, working class. Our strategy is to increase market share by broadening the target age groups. A significant strategy of Starbucks is the barista training program. Starbucks accommodates their innovation and fast growth by putting in systems to recruit, hire, and train baristas and store managers. Their dedication is what makes the Starbucks’ leadership team the best in the business when it comes to leading the company into the global market. Financial Statement Highlights In past years Starbucks has shown marked improvements in key financial indicators. The company was able to increase their operating income by $857.4 million and operating margin by 7.6% since 2009. Starbucks increased their cash flow from operations from $1.4 billion in 2009 to $1.7 billion in 2010. Earning per share (EPS) increased by $.72 and Starbucks issued the first dividend in company history. In addition, the Board of Directors has authorized an extension of the share repurchase program. Since 2007, Starbucks has authorized the repurchase of 55 million shares. At present, all but 20 million have been repurchased. Altogether, Starbucks was able to return roughly $460 million to their shareholders (Starbucks 10-K). Much of the financial improvements seen are the result of a......

Words: 2081 - Pages: 9

Dunkin Donuts

...Dunkin’ Donuts: Betting Dollars on Donuts Force 1-Competitiors, Force 2-New Entrants, Force 3-Suppliers, Force 4-Customers, Force 5-Substitutes.” (Exploring Management). According to Porter’s first force, we should take a look at Dunkin’ Donuts competitors. Their top competitor is obviously Starbucks, followed by Krispy Kreme and McDonalds. “But many who have struggled to compete with Starbucks have had to do so with limited resources or only a few franchises. Not so with Dunkin’ Donuts, whose parent brand, Dunkin’ Brands, also owns Baskin-Robbins.” (Exploring Management). Dunkin’ Donuts and Starbucks are in a tough rivalry, but Dunkin’ Donuts is holding their ground and trying to come out victorious. The second Force is based on the new entrants in the coffee and donuts community. This could cause some decline in Dunkin’ Donuts business, but after everything settles in I think that they will continue to be on top and smoke their competition with their uniqueness. As long as their customers are perfedctedsdfasdfsadfasdf, the business owners and employees will be happy. Customers will keep coming back if they have a good experience with this business and they’ll buy more products and recommend them to their friends. Which brings in more money for the happy owners. The fifth and final force are the substitutes used. SUBSTITUTES!“Although Dunkin’ Donuts often partners with a select group of grocery retailers-such as Stop & Shop and Wal-Mart- to create a store-within-a-store...

Words: 323 - Pages: 2

Dunkin Donuts

...Dunkin Donuts enter to Taiwan’s Market Content I. Introduction II. Body Dunkin Donuts background and history Dunkin Donuts enter to Taiwan Market Dunkin Donuts facing the biggest issue Dunkin Donuts Locking the strategy III. Conclusion Introduction: Dunkin Donuts is one of the biggest donuts and coffee shop around the United States. A lot of people in the States would purchase from Dunkin every single morning, because it faster with low prices. However, Dunkin Donuts are not successful in Taiwanese market. The store has been enter to Taiwan’s market twice but also leave the market , This research paper we would discussion why Dunkin Donut is successful in United States market but no the market in Taiwan. Dunkin Donuts background and history: Dunkin Donuts was established in Boston at 1950 and Bill Rosenberg was founder. The name of “Dunkin Donuts” has a really meaningful meaning on the back. In the early century, people think the best way to joy the donuts is to “Dunk” into the coffee. That the reason that Bill Rosenberg names the store as “Dunkin Donuts”, however Dunkin Donuts is not the first name that Rosenberg picked. According to Dunkin Donuts then and now, Molishever mention that “In 1948 he opened his first shop selling only these products. Originally called the "Open Kettle," the name was changed to Dunkin' Donuts in 1950. Located on a highway just outside Boston, it capitalized on another trend that Rosenberg had spotted-more and......

Words: 1099 - Pages: 5

Dunkin Donuts : Betting Dollars on Donuts

...Dunkin Donuts Marketing Strategy: As a result of its social media strategy which is aimed at growing and maintaining a highly engaged global community of Dunkin Donuts. Dunkin Donuts is always evaluating new social media platforms where we can engage with our fans and celebrate how they are running on Dunkin. They are recently ventured into various mobile and location-based promotions, and they will continue to be an important part of our social media efforts in the future. It is important that their team continuously develop mobile programs to allow our guests to connect with the brand even more. These programs like our foursquare application are very exciting as they not only drive traffic to their restaurants, but they also encourage the guests to engage with the brand while actually inside a Dunkin Donuts restaurant. In the past they are conducted multiple highly engaging mobile and location-based social media programs via outlets such as Facebook and Foursquare.  Conclusions: Our research from this study while Dunkin Donuts has a moderate consumer base it has far behind large competitions like Starbucks. Therefore if Dunkin Donuts become more convenient for customers, we believe Dunkin Donuts can attract more customers that usually purchase coffee at Starbucks. Also we can attract city convenience customers who purchased coffee based on specialty beverage option by offering unique specialty beverage option at Dunkin Donuts. By continuing to provide coupon promotions...

Words: 543 - Pages: 3

Dunkin Donuts

...1. What does a Porter's Five Forces analysis reveal about the industry in which Dunkin' Donuts and Starbuck's compete and what are its strategic implications for Dunkin' Donuts? Answer: I think in this case, it reflects the level of rivalry among organizations in an industry, the potential for entry into an industry and the threat of substitute products. First, the Starbuck and Donuts they are all belongs to coffee market and they competing each other. And about the second factor, the Dunkin Donuts enter the coffee market is later than Starbuck, but more and more competitors enter this industry make the industry profits lower. Although there have a huge coffee market in the world each year, but there absolutely have some other new substitute products enter it. Such as Nescafe and McDonald's coffee. But in many consumers' heart, they just wish to buy only two types of coffee, regular and decaf. But only Dunkin' Donuts does. This represent its quality is high. This means the Dunkin' Donuts use niche strategy to earn a big potential market share. The strategic implication for Dunkin' Donuts is they need use some SWOT analysis to find some more profit space. 2. In what ways is Dunkin' Donuts presently using strategic alliances, and how could cooperative strategies further assist with its master plan for growth? Answer: Dunkin' Donuts often partners with a select group of retailers-such as Stop & Shop and Walmart. This activity has found another new market in those......

Words: 323 - Pages: 2

Dunkin Donuts

...Company Description Dunkin Donuts was founded in 1950 by William Rosenberg, an entrepreneur who is known as a “visionary” by success magazine, “the father of franchising as we know it today” by restaurant News, and is well known as one of the most influential and innovative individuals that the food service industry has even known” stated Alan Gould. [pic] Products and Services The Dunkin Donuts menu consists of a variety of different types of beverages ranging from hot, iced, frozen and your own brew at home drinks. Dunkin donuts also offers food fresh from the bakery which includes donuts, bagels, cookies, munchkins, danishes, muffins, and many other great choices. One great thing about Dunkin Donuts is their variety of foods and items, they Dunkin donuts franchise offers breakfast sandwiches on English muffins, croissants, bagels and wraps. The franchise offers breakfast sandwiches in the morning and also other types of sandwiches including chicken salad, ham and cheese and many other options during the later hours of the day. Markets Served (Geographical Area, Global Footprint) With 27 years of successful business the Dunkin Donuts franchise has become a globally known business which operates in over 30 different countries and has more than 6000 locations. Outside of the Unites States, there are 3,100 stores in 32 different countries. Some counties that the Dunkin Donuts franchise currently operates out of include but are not......

Words: 1820 - Pages: 8

Dunkin Donut

...Five Forces analysis reveal about the industry in which Dunkin' Donuts and Starbuck's compete and what are its strategic implications for Dunkin' Donuts? Dunkin Donuts Marketing Strategy: As a result of its social media strategy which is aimed at growing and maintaining a highly engaged global community of Dunkin Donuts. Dunkin Donuts is always evaluating new social media platforms where we can engage with our fans and celebrate how they are running on Dunkin. They are recently ventured into various mobile and location-based promotions, and they will continue to be an important part of our social media efforts in the future. It is important that their team continuously develop mobile programs to allow our guests to connect with the brand even more. These programs like our foursquare application are very exciting as they not only drive traffic to their restaurants, but they also encourage the guests to engage with the brand while actually inside a Dunkin Donuts restaurant. In the past they are conducted multiple highly engaging mobile and location-based social media programs via outlets such as Facebook and Foursquare. Conclusions: Our research from this study while Dunkin Donuts has a moderate consumer base it has far behind large competitions like Starbucks. Therefore if Dunkin Donuts become more convenient for customers, we believe Dunkin Donuts can attract more customers that usually purchase coffee at Starbucks. Also we can attract city convenience customers who......

Words: 352 - Pages: 2

Starbucks and Dunkin Donuts Ratio Analysis

...Starbucks versus Dunkin Donuts – Ratios Analysis | | Starbucks Corporation targets product differentiation strategy, which appeals to coffee lovers. Their customers like the store’s atmosphere, friendly staff and welcoming interior. In addition, Starbuck is having success in the international market. So far, the corporation has opened coffeehouses in over 60 different countries, and customers know they can find Starbucks coffee house in the country they are visiting and buy their favorite coffee. Dunkin Donuts on the other hand is focusing on cost strategy. The company’s mission is to serve a good quality coffee drink and snacks at low cost. They are successful in cutting the costs by standardizing its products, and producing more items instead of buying them from the suppliers. Dunkin Donuts presence is more noticeable in the Northeast of US, but it is constantly growing and trying to expand to the different regions. In regards to the global expansion, the corporation has over 3000 stores in 32 countries. To compare and analyze Starbucks and Dunkin Donuts’ performance, I used 2012 Annual Reports from both companies and computed the necessary ratios. Both corporations performed very well in 2012. However, based on the calculations, Starbucks’ current, quick and debt ratios are much better than Dunkin Donuts. In addition, Starbucks return on assets and times interest earned, asset turnover and inventory turnover ratios have better results than Dunkin Donuts.......

Words: 879 - Pages: 4

Dunkin Donuts

...analysis of Dunkin Donut as the study on internal and external environment of the company has carry out. Michael Porter’s Five Forces which include bargaining power of suppliers, bargaining power of customers, rivalry among competitors, threat of substitutes and threat of new entrants. The VRIO analysis is then done to assess the resources and capabilities of a company to determine their competitive potential; VRIO stands for Valuable, Rare, Inimitable, and Organized to Exploit. After that, SWOT analysis also done to make an understanding on the strengths and weakness of the company and to identify the opportunities and threats for the company. 2.1 Michael Porter’s Five Forces 2.1.1 Bargaining Power of Suppliers Main suppliers in Dunkin’ Donuts are going to be food ingredients and more important is coffee. Bargaining power of supplier is low for Dunkin’ Donuts because there are not only one suppliers who supply breakfast items and coffee beans; and the supplier does not have much bargaining power as they typically will be in a contract. In 2012, Dunkin’ Donuts has sign long term supply chain agreement with National DCP (NDCP) which has bring benefits on providing long term agreement with company for the procurement and distribution of products; develop more streamlined system, consolidated cooperative board structure and greater consistency in supply and distribution service levels to all U.S restaurants (Leach, 2012). 2.1.2 Bargaining Power of Buyer Dunkin’ Donut......

Words: 2383 - Pages: 10

Dunkin' Donuts

...Table of Content Executive Summary 3 Background 4 Dunkin’ Donuts (Dunkin’ Brands) 4 Starbucks Coffee (Starbucks Corporations) 4 Leader VS Follower 5 Financial Analysis 6 Liquidity Ratio Analysis 6 Debt Analysis 11 Profitability Analysis 13 Stock Investment Analysis 16 Non-Financial Analysis 20 SWOT Analysis 20 PEST Factor Analysis 23 Product Life Cycle Analysis 24 Boston Consulting Group (BCG) Analysis 25 Conclusions and Observations 27 References 29 Executive Summary People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business. Nowadays when people think of coffee and its related items, the word “Starbucks” immediately come to mind. Internationally, Starbucks has already become a very famous brand and many are trying to study the secret of its success. In the States, however, another company rivalry is competing with it quite well. Quite often, the Americans are taking preference to this over the Starbucks. The company that is being mentioned is Dunkin’ Donuts. It is without doubt that Dunkin’ Donuts will act as the follower in this industry. Starbucks, on the other hand, is acting the leader. This paper will try to study how the Dunkin’ Donuts are performing by making the benchmarking financial analysis against Starbucks. Financial ratios are prepared and analyzed to evaluate its performance. The......

Words: 7051 - Pages: 29

Dunkin Donuts

...which allowed us the opportunity of creating a proposal for a specific company. Due to the fact that Dunkin’ Donuts is already successful company with many loyal customers, our group decided to make your company the topic of our choosing. Because of the current success of the company, we realized that Dunkin’ Donuts already has an effective marketing strategy. Instead, we wanted to create another aspect to this current marketing strategy to take Dunkin’ Donuts to another level. We have spent a great deal of our semester researching your company and effective advertising methods. Because of this, we hope that you will find this proposal to be beneficial for the marketing department and could possibly incorporate it into your marketing strategy in the future. Since your company is very successful currently, we did not feel it was necessary to change any of the current marketing strategies and techniques. However, we do feel it is time to incorporate some new and young ideas. Through our research we noticed that Dunkin’ Donuts is lacking in the many college communities. As a result, we are concerned that college students will support companies that have a strong presence on campus. Because many people quickly become loyal customers after one positive experience, these students are likely to remain loyal to the companies on campus. This can potentially be a problem for Dunkin’ Donuts, but with the simple marketing campaign we have designed this problem could be resolved. As......

Words: 6654 - Pages: 27

Dunkin Donuts

...Introduction Over the last two years I have managing a successful Dunkin’ donuts store in the Midwest for an owner that owns 20 Dunkin’ donuts stores. . The owner has taken note of my managing skills and because of this I have recently been promoted to district manager. As a new district manager of five new locations. It will be my job to operate, structure, and staff these new locations. I will also look for potential ways to grow the Dunkin’ donuts brand, be a valuable member in the surrounding communities, provide excellent service to our customers, and provide a great place for our employees to work. It will also be my responsibility to live up to the mission statement that the founder William Rosenberg put into place when he opened his first Dunkin’ donuts store. That mission statement is, “We strive to be recognized as a company that responsibly serves our guests, franchisees, employees, communities, business partners and the interests of our planet”. (http://www.dunkinbrands.com/responsibility). The purpose of this paper in to show how I will setup the new five locations. It will show how important the job design, Organizational Design, Recruiting, Selection, Training and Performance Appraisals are to creating and running a successful business. Job Design To be able to run an efficient Dunkin’s donuts store, I will first will need to design the Organizational structure. This will allow me to put the right people and their skills into positions that......

Words: 1191 - Pages: 5

Dunkin Donuts

...COMPANY PROFILE (History of Dunkin Donuts) Dunkin' Donuts is an American global doughnut company and coffeehouse chain based in Canton, Massachusetts, in Greater Boston. It was founded in 1950 by William Rosenberg in Quincy, Massachusetts. Since its founding, the company has grown to become one of the largest coffee and baked goods chains in the world, with more than 11,300 restaurants in 36 countries. The chain's products include doughnuts, bagels, other baked goods, and a wide variety of hot and iced beverages. The company primarily competes with Starbucks, as over half the company's business is in coffee sales, as well as with Krispy Kreme Doughnuts and Honey Dew Donuts. Before 1990, Dunkin' Donuts' primary competitor was Mister Donut, but in February of that year Mister Donut was acquired by Dunkin' Donuts' owner Allied-Lyons. After the acquisition of Mister Donut by Allied-Lyons, all Mister Donut stores in North America were offered the chance to change their name to Dunkin' Donuts. As of 2014, Dunkin' Donuts is owned by Dunkin' Brands Inc., which also owns Baskin-Robbins and previously owned the Togo's chain. Dunkin' Donuts is the world's leading donuts, baked goods and coffee chain. Selling more than 1 billion cups of coffee per year! Since 1950, with over 2,600 stores in more than 30 countries, Dunkin' Donuts has been serving loyal customers around the globe. In 1981, Golden Donuts Inc. served its first for Dunkin' Donuts and built its......

Words: 3496 - Pages: 14

Dunkin Donuts

...differentiation which involves offering something of different and greater value to the market in order to acquire a portion of it. An effective positioning of a product may be Burger King’s promise that you can ‘have it your way’. Such a distinct positioning of a product resonates in the minds of the customers. In the case study, Dunkin Donuts shifted its focus from donut to coffee as the latter was a more frequently consumed item. With an aspiration to be a national coffee powerhouse, Dunkin Donuts faces a competition with Starbucks in capturing the market share. On the surface the market segmentation between the two competitors could have been dividing on the basis of income Starbucks serves a higher-income and a more professional group while, Dunkin’s customers include blue- and white-collar workers across all age, race, and income demographics. At the same time it to be noted that Dunkin’ built itself on serving simple fare to working-class customers. However, Dunkin’ researchers concluded that it wasn’t income that set the customers of Starbucks and itself apart but it was a matter of ideal: Dunkin customers want to part of a crowd, whereas Starbucks customers want to stand out as individuals. Taking the conversation further, there may be a positive correlation between entrepreneurial pursuit, higher income and a strong sense of individuality. This means that sociological behaviors can stem out of or be correlated to economic conditions. The upshot is that the......

Words: 928 - Pages: 4

Dunkin' Donuts: Betting Dollars on Donuts

...Case Analysis 1 Case 7: Dunkin’ Donuts: Betting Dollars on Donuts February 16, 2010 Case 7: Dunkin’ Donuts: Betting Dollars on Donuts Porter’s Five Forces Analysis for Coffee Industry Porter’s five forces provide a great deal of information about the attractiveness of the coffee industry. There are many customers in the market for coffee. According to Schermerhorn, (2007) “400 billion cups of coffee are consumed every year making it the most popular beverage globally.” This is a opportunity that is shown in the coffee industry. Many customers for coffee provide a large base of revenue for the coffee selling firms. There are a few big competitors that Dunkin’ Donuts needs to worry about for the future. Schermerhom (2007) states that” Starbucks [is] rethinking its positioning strategy and McDonald’s [is] offering a great tasting coffee at a reasonable price.” Starbucks is trying to position its coffee as a cheaper product. This will make Starbucks more of a competitor than in the past. Since McDonald’s is trying to sell a better tasting coffee, the company will also be more directly competing with Dunkin’ Donuts. Suppliers are another interesting part of the puzzle. According to the Dunkin’ Donuts website, Dunkin’ Donuts has reformulated its food and beverages according to its DDSMART criteria to meet healthier criteria. This healthier food probably costs more to make causing a threat to the company. Dunkin’ Donuts should advertise how their food meets these new......

Words: 1214 - Pages: 5