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Case study dunkin' donuts
1. “As for Dunkin’ Donuts, its customers are
concerned with speed.”
Dunkin’ Donuts was begun in 1050 by Bill Rosenberg with a
single shop in Quincy, Massachusetts. He began franchising
additional outlets in 1955, and by 1979 there were a thousand
Dunkin; Donuts outlets in the Northeast. Through a series of
transactions in the 1980s and 1990s, Dunkin’ Donuts, along with
Baskin-Robbins (ice cream) and Togo’s (sandwiches) became
the quick service restaurant operation of the British firm, Allied
Domecq PLC. In 2002, as Allied Domecq looked for growth
opportunities, it’s Dunkin; Donuts (DD) business was
described as a “sleeping giant” as much for its fiercely loyal
clientele as its $2.8 billion in sales and more than 3,800 U.S
outlets.
2. More about Dunkin’ Donuts Page (165)
Q1. Should Dunkin’ Donuts’ pursue a single-segment or multiple-segment
strategy?
Answer: From my point of observation and understanding, Dunkin’ Donuts’ should pursue a
multiple segment strategy i.e coffee and dunets business because both coffee and donuts runs
each half of the dunkin donuts business. One of the main competetors is Starbucks and Tim
Hortons because they also focus on coffee consumers i.e starbucks coffee house chain based in
seatel one of world largest and about 19435 stores in 58 countries. Where as timehorton as
Canadian fast food casual restaurant also known for the coffee and daunuts. Jhon luther
implemented certain qualities to out run their competetors by typing to make Dunkin Donuts
change to super fast service mistake proof while also focusing on wellness mobility and
profitability.
Q2. Given Dunkin’ Donuts’ positioning, what types of firms should be considered
competitors?
Answer: Mostly the fast food chains and coffee selling firms are seen as a threat to their
business because also half of the dunkin donuts business is run by selling coffee.its importance
can be weighed by the statement of Jon luther when he set aside Krispy Kreme business by
explaining “ its not really in the coffee business” Tim Horton and Starbucks viewed as their
fierce competitors. To out run them jon luther made some changes to dunkin donuts. Main
focus changes from giving meal to snacks. Changed to super fast , mistake proof, installed
espressive machines at various locations so people don’t have to wait in lines or pay more as
they do at Starbucks especially focusing on custumers that are developing newly taste for
coffee. They also centralized their kitchens that serves number of shops which benefited in
constant quality, standardize freshness and less waste. And also combined few of their outlets
with Baskin-Robbins and Togo Sandwiches.