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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
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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
d. Slightly Disagree
e. Strongly Disagree
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5. I am satisfied with the quality of the coffee at Dunkin’ Donuts
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
e. Strongly Disagree
6. I am satisfied with the quality of the donuts offered at Dunkin’ Donuts
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
e. Strongly Disagree
7. I am satisfied with the quality of the sandwiches offered at Dunkin’ Donuts
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
e. Strongly Disagree
8. I am satisfied with the cleanliness inside of Dunkin’ Donuts
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
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e. Strongly Disagree
9. I am satisfied with the time for my transactions at Dunkin’ Donuts
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
e. Strongly Disagree
10. I prefer Dunkin Donuts to any other place for coffee (Starbucks, Mcdonalds, locally owned,
etc).
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
e. Strongly Disagree
11. I prefer Dunkin Donuts to any other place for doughnuts
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
e. Strongly Disagree
11. I prefer Dunkin Donuts to any other place for sandwiches
a. Strongly Agree
b. Slightly Agree
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c. Neutral
d. Slightly Disagree
e. Strongly Disagree
12. Overall, I am satisfied with my shopping experience at Dunkin’ Donuts
a. Strongly Agree
b. Slightly Agree
c. Neutral
d. Slightly Disagree
e. Strongly Disagree
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.
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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.
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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’
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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.
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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
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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.