...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...
Words: 330 - Pages: 2
...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. Therefore...
Words: 879 - Pages: 4
...Dunkin Donuts Strategy Recommendation Monique Harris Capella University Abstract In starting to plan for my paper the number one question in my head was what is Starbucks doing that Dunkin Donuts is not doing. In my home town there is only one Dunkin Donuts store in town. But, no matter what part of town you are on you can find a Starbucks even on the university campus which has a Starbucks right across the street. In my research I found that Starbucks crushes it on social media. Although they don’t post on each and every social network often, but when they do it is very clever and eye-catching. In this day in age people are starting to use the Starbucks app which allows them to do just about the same thing as if they were in the store. Them two reason alone is what has them on top of Dunkin Donuts. Dunkin Donuts Strategy Recommendation Introduction Dunkin Donuts was founded in 1950 by Bill Rosenberg, who opened the first restaurant in Quincy, Massachusetts. With the goal to “make and serve the freshest most delicious coffee and donuts quickly and courteously in modern well merchandised stores” (Travis, N. 2013). The company has over 11,000 restaurants in 33 countries worldwide. The first restaurant was franchises in 1955. Starbucks Social Media Now to take a look into the social media of the competitor Starbucks. In my research I found that their social media management team doesn’t post updates on Facebook often but when they do, however, they’re usually eye-catching...
Words: 1236 - Pages: 5
...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 study...
Words: 7051 - Pages: 29
...actions. The coffee industry has boomed in recent years. While fast food chains are growing at a rate of 2% each year, coffee shop chains grow more than 10% annually. According to the National Coffee Association Annual Drinking Trends Survey, “Even though 75% of the cups of coffee brewed daily are consumed at home, 66% of Americans buy their coffee outside of their homes.” This creates a strong demand in the coffeehouse market. Statista defines coffeehouses as “small establishments selling prepared coffee, tea, and other hot beverages.” In recent time, many coffeehouses started competing with other restaurants in the limited-service category by offering baked goods, sandwiches, salads, and other snack items. For instance, Starbucks has been battling Dunkin Donuts and McDonald’s for the top position as coffee king. In order to compete, each company has expanded their menu options and...
Words: 2317 - Pages: 10
...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 limited...
Words: 1820 - Pages: 8
...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 customers...
Words: 2383 - Pages: 10
...External Factors B. Internal Factors III. Competitive Analysis: Porteu’s Five Model IV. Strategy Formulation A. Present B. Proposed C. Strategy Formulation Matrix V. Strategy Implementation A. Objectives B. Recommendation I. Introduction 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...
Words: 3496 - Pages: 14
...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 stated...
Words: 6654 - Pages: 27
...Contents 1 Introduction 2 2 Starbucks Vision, Mission and Objectives 3 2.1 Vision statement 3 2.2 Mission Statement 3 2.3 Environmental Mission Statement 3 2.4 Objectives of Starbucks 3 3 Financial Analysis 3 3.1 Profitability and Revenue 3 3.2 Efficiency and Debt ratio 4 3.3 Product Mix Revenue 4 3.4 Global stores growth 4 3.5 Starbucks SWOT Analysis 5 3.5.1 Strengths 5 3.5.2 Weaknesses 5 3.5.3 Opportunities 5 3.5.4 Threats 6 3.6 Ansoff’s matrix analysis for Starbucks 6 4 Specialty Coffee Market Competition 7 4.1 Overview of Starbucks competitors 7 4.2 Financial analysis between Starbucks and Dunkin Donuts 7 4.3 Starbucks versus Dunkin Donuts strategies 8 5 Analysis of specialty coffee market 9 5.1 Industry overview 9 6 Future Market Challenges 10 6.1 Factors in favor of the industry 10 6.2 Challenges derived using Porter’s Five Forces 10 6.2.1. The Threat of Substitution 10 6.2.2. The Threat of New Entry 10 6.2.3. Competitive Rivalry 10 6.2.4. The Bargaining Power of Suppliers 10 6.2.5. The Bargaining Power of Buyers 11 6.3 Recommendation 11 6.4 Conclusion 11 Bibliographic 11 Appendix 11 Company Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Number of Employees : More than 200,000 employees Revenue (FY2013) : USD14.9 billion Total number of store : 19,767 stores in 62 countries worldwide Market Capital (FY2013) : USD41.44 billion Chief Executive Officer : Howard Schultz ...
Words: 2900 - Pages: 12
...Jeanette McCullough STR 581 March 24, 2014 Christopher Romano External and Internal Environmental Analysis Dunkin’ Donuts began serving its loyal customers in 1950. Five years later in 1955, they began to spread their wings and open franchises. Dunkin’ Donuts has over 10,000 stores in 33 different countries. The company is now one of the largest baked goods and coffee chains in the world. According to a survey in 2013, the company sells more than 4 million doughnuts and about 2.7 million coffee cups every day ("Prezi," 2013). Performing an internal and external analysis on Dunkin’ Donuts showed where the company can improve in areas and where the threats are at with other competitors. SWOT Analysis Strengths – Dunkin’ Donuts has a strong brand name. DD has brand loyalty among customers. The company has over 100 varieties of doughnuts, and its stores are an ideal place for having breakfast and coffee. Popular for a number of bakery products like pastries, bagels, muffins, biscuits, etc. and hot beverages like coffee, tea, and hot chocolate. Innovative ways to retain customers by issuing coupons and discounts. One of the most experienced in the coffee industry. They have affiliations with sports teams like the Red Sox. They have worldwide franchisees, totaling to more than 10,000 locations across 33 countries ("Swot Analysis On Dunkin' Donuts," 2010). Weakness- Competition from other international snacking places means DD have a limited market share growth...
Words: 1175 - Pages: 5
...Business Description (Size, Geography, Product, service, market) Dunkin' Brands Group is a leading franchiser of quick service restaurants (QSRs), possessing two well-established brands: Dunkin' Donuts and Baskin-Robbins. Dunkin' Donuts is the U.S. leader in serving hot and cold coffee and baked goods. As of December 28, 2013, there were 10,858 Dunkin' Donuts points of distribution[1], of which 7,677 were in the U.S. and 3,181 were international. Baskin-Robbins is the market leader in the U.S. for ice cream. It develops and sells a full range of frozen ice cream treats[2]. As of December 28, 2013, there were 7,300 Baskin-Robbins points of distribution, with 2,467 in the United States and 4,833 in international markets. Corporate History and evolution of competitive and corporate strategy The first Dunkin’ Donuts store was opened by William Rosenberg in 1950 in Quincy Massachusetts. The first Dunkin’ Donuts franchise was opened in 1955, The corporate headquarters of the Dunkin’ Donuts Franchise is located in Canton, Massachusetts. Nearly 100% of DNKN locations are franchised. The company believes its franchised business model provides several advantages. One of the main advantage is the lower capital requirement, because franchisees fund the vast majority of the cost of new restaurant development. As a consequence the company should be less affected by store-level operating margins and fluctuations in commodity costs than other QSR operators since it derives a large percentage...
Words: 2407 - Pages: 10
...DeSales University MK 502: Marketing Strategy Midterm Case October 14, 2013 Assess Dunkin’ Donuts’ strengths, weaknesses, opportunities, and threats Strengths: * Dunkin’ Donuts is a very popular franchise that has established a great image and brand through its powerful marketing and operational strategies of its variety of products, low prices and customer service. The company has worldwide operations and have significant power over their supplies due to their experience and support from Allied Domecq. Dunkin’ Donuts also has many different convenient locations and uses CRM in a lot of their marketing strategies to reward their customer base. Weaknesses * Because Dunkin’ Donuts is a retailer, they are not well equipped to produce bagels themselves. They rely solely on outsourcing. One drawback of this is constantly running out of products or specific flavors. This allows them to become too dependent on suppliers and disappoint their customer base. Opportunities * The growing demand of coffee and breakfast items for traveling families and working adults has spread across the US as well as Europe. Bagels appear to many different audiences such as children, working adults and retired adults. There is a lot of opportunity to expand with their products. For example, they recently launched K-Cups for the popular Keurig Coffee machines so customers can bring Dunkin’ Donuts in their own home. Their products are versatile and can appeal to a larger audience by simply...
Words: 1099 - Pages: 5
...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 standards...
Words: 1214 - Pages: 5
...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
