Questions 1

In France, European coffee culture has treated as an experience, their country maintain a

unique and sit-down café culture. While Dunkin’ Donuts is representing a quick service with

good price image, they should not put the target market on the local people, but on the French

tourists from especially North American and Asia.

As there is cultural difference between North American and European, American seems like

to have “instant coffee” which is fast and convenience, this immediate gratification has been

characterized in their coffee culture. Relatively, European prefer spending a little more extra

time in preparation to result a higher quality experience, also expected to stay and enjoy the

coffee with using ceramic cup gently. That’s why, American style comparably to be less

attractive for the French people. Focusing on the target market of tourist, Dunkin’ Donuts

may get a higher chance to be success. According to the result of the most visited country in

the world, French has reached average 80 million visitors in 2007 and 2008, and it is a high-

context culture country which open to adapt American products and companies as well. As

Dunkin’ Donuts is being successful in North American and Asia, when people are travelling

to French, they would have a stronger recognition of the brand. Rather than choosing other

coffee products, there is more confidence in-between the consumer and Dunkin’ Donuts. So,

this proved French tourists offer a bigger potential market to Dunkin’ Donuts.

Moreover, it is not enough to only target on the tourists as there is few more market could be

reached. When we skim off the cultural factors, there is lifestyle segmentation. Dunkin’

Donuts could target non-addicted coffee drinkers and those who are in young age. For the

non-addicted coffee drinkers, they may do not care how much time spending on the coffee,

but only wish to grab a drinks quickly and refill the energy that could keeping awake.

Younger more tend to interested to try something new and they are more easily affected by

the friends around, they live as a group, when they make decision, they would always ask for

suggestion. So, it is easier to be announced in a young age group and get introduced by word

of mouth. It is all about convenience, fast and multiple choices for these two target group of

people which exactly match with Dunkin’ Donuts’ objective.

Question 2

French has a higher coffee consumption rate than U.S to make it as an attractive market for

many U.S based and multinational companies. Despite Dunkin’ Donuts has been failed in

Italy, they have successfully keeping the sales growth in Spain and Russia. Based on the

international experience, I do think it is a right time for Dunkin’ Donuts to enter the French

market.

In order to prevent the failure happen again when getting into the French market, Dunkin’

Donuts has to make sure they are having the right strategic partnerships, products adaptation

and market segmentation, getting the updated local market response is important too.

From the point of view of the success in Spain and Russia, Europe is a challenging market for

the quick service coffee company with no doubt. Dunkin’ Donuts use different decoration and

menu selection for these two countries to make it match with the local customers’ lifestyle

and flavor. For Spain, the restaurant more looks like a place for relaxing, studying and

chilling with friends with the design in warm colors, comfortable seating and modern wooden

made furniture. Talking about the menu selection, Dunkin’ Donuts try their best to add in the

local tastes, like salty items and “scalded creams” or “raspberry jams” to fulfill the customers

in Spain and Russia. When these two Europe countries did it successfully, French as a

neighboring country could gain a significant sales growth too.

Compared with Spain, Dunkin’ Donuts in French is looking for a same atmosphere

environment of a café, a place to enjoy coffee experience while having a coffee “carry-out”

service with high speed and low price. McDonald’s in French shows a successful sample to

Dunkin’ Donuts, they served espresso in paper cups instead of a ceramic cups and only

provide one style of coffee. Although their coffee has been treated as a “lesser good”, using a

low-price option to beat with the high-end brands coffee, however, this strategy has made

McDonald’s still rose 5.3percent sales profit during the economic recession. This has been

proved a “low-price” strategy is work in French and people are welcome.

In order to fulfill different people lifestyle and habit of drinking coffee, based on the target

market to get deeply understanding of the local people flavor and mix the strategy together

with all decoration, promotion and partnership, I believe Dunkin’ Donuts can be success in

French now.