You are on page 1of 24

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 atart the open kettle,a doughnut shop in quincy, Massachusetts.Two years later,
the open kettle changed its name to dunkin donuts.
Today Dunkin Donuts store can be found in over 32 countries, and they serve 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; PepsiCos Gatorade remained on
the menu.

1|Page

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 childrens 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 worlds leading franchisor of quick service 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.

2|Page

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 all of our stakeholders.
Corporate Social Responsibility is also a way to formalize our 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 food for the hungry and support for childrens 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.

3|Page

Corporate Governance
Generally, The business of the Company is conducted by management under the direction of the
Chief Executive Officer. The Boards responsibility is to oversee, on behalf of stockholders, the
conduct of the Companys business, to provide advice and counsel to the Chief Executive
Officer and senior management, to protect the Companys best interests and to foster the creation
of long-term value for stockholders.

Decision-Making Responsibilities
Among other things, the Boards decision-making responsibilities include:
a) Review and approval of the Companys 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 Companys business.

Oversight Responsibilities:
Among other things, the Boards oversight responsibilities include monitoring:
a) The Companys performance in relation to its mission, strategies, financial and nonFinancial objectives.
b) The performance and effectiveness of the Companys management team; Succession and
development plans for key Company executives, including the Chief Executive Officer.
d) The Companys financial reporting processes, internal controls and risk management
processes.

4|Page

e) The Companys 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 Companys 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 Companys
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
Companys 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

6|Page

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 hot
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

7|Page

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.

8|Page

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 responsibly, 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 consumers 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 companys
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.

9|Page

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.

Transparency - Demonstrate openness and vulnerability.

Humility - Acknowledge own mistakes and commit to learning.

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

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

Fairness - Do what is right based on common principles.

10 | P a g e

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

11 | P a g e

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

12 | P a g e

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:

13 | P a g e

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

14 | P a g e

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

15 | P a g e

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

16 | P a g e

Marketing Strategy
Dunkins Donut is Americas 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 Dunkins Donuts was a single cup of coffee
with a donut. Now Dunkins 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 everyones 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 firms marketing efforts. The process of
dividing the market into groups of customers with different needs, wants, or characteristics-who
therefore might appreciate products or services geared especially for them-is called market
segmentation

17 | P a g e

Target Market:
A firms marketers find a need through careful and continuing study of the individual and
business decision makers in the potential market. Dunkin Donuts 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.

18 | P a g e

Product:
Products, which include services, constitute the first of the four Ps. Because 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 buy 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. They aware of
competitors pricing and determine their price according to their strategy. Dunkin Donuts
sometimes use odd pricing to grab the customers attention.

19 | P a g e

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 ps are
used in a proper manner. And Dunkin Donuts use their outlets very effectively, for instances they
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.

20 | P a g e

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.

21 | P a g e

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 Conveniences 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 Donuts. 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.

22 | P a g e

Appendices
B

Product 19

Board Composition 5, 6

Price 19

Place 20

CSR 3

Promotion 20

Corporate Governance 4

Strength 7

Decision Making Responsibilities 4

Threat 8

Goal of DD 10

Target Market 18

Information 1

Vision 9

Values 10

Mission Statement 9

Marketing Segmentation 17

Weakness 8

O
Oversight 4
Opportunities 8
P
Product Menu 11, 12, 13, 14, 15, 16

23 | P a g e

References
1. Scott R. (Apr 24,2008) , Dunkin' Donuts: Reinventing Itself One Cup at a Time, Retrieved 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 Media , Retrieved From
http://socialtimes.com/how-dunkin-donuts-uses-social-media_b100752
6. Louis E. Boone, David L Kurtz, Contemporary Business, 14th Edition.

24 | P a g e

You might also like