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Intro to Marketing / CASE STUDY 1
Professor Coelho
Coffee Wars: Starbucks vs. Dunkin Donuts
Using the attached article, information from the textbook (especially from chapters 3 & 4), the article brief in your textbook (pg 163), and especially other outside resources, thoroughly explain the following questions. Be sure to answer ALL parts of the question. Your Case Study should be no longer than 3 typewritten, double spaced pages. Choose only ONE company (Dunkin Donuts OR Starbucks) to answer each question – use the SAME company throughout the case study. 1. How big is the U.S. coffee market? Be as specific as possible and cite your source. What type of data are you using (primary or secondary?). Provide two specific examples of internal data from the company you choose. How does it help the company? 2. How does the company you chose (SB or DD) differentiate themselves? i.e. what are their main (3) value propositions? 3. Using the same company you chose in the previous question, explain what is the biggest plus in their marketing mix (price, product, promotion, place). Provide two examples to back up your answer. Describe a time when they changed a component of their marketing mix to address a threat or opportunity. 4. Provide one example of how the company you chose participates in Societal Marketing. Also discuss one significant actor or force from either their Micro or Macro environment that has negatively affected their ability to serve their customers.

Coffee Wars: Starbucks vs. Dunkin Donuts
Dunkin Donuts and Starbucks both have their own unique flavors of coffee. "More than 100 million people in the U.S. alone drink coffee every day." (Information taken from The National Coffee Drinking Trends Study, 2004 ) Each of these people do have a preference to which chain of coffee makers they chose. It can almost be broken up into a red state blue state debate. These two are divided in coffee bean choice, style and even price. They both define our culture in a unique fashion. It all began with the simple invention of the donut. "Captain Hanson Crockett Gregory was the inventor of the donut with a hole in the middle. William Rosenberg, the food-franchising pioneer founded the Dunkin' Donuts chain. Rosenberg opened his first coffee and doughnut shop, called the Open Kettle, in Quincy, Massachusetts in 1948. The name was changed to Dunkin' Donuts in 1950. According to "Donuts and the Salvation Army" - While The Army may not have invented the first donut, it can certainly take credit for [helping] the popularity of donuts today. June 4-5 marks the 61st anniversary of Salvation Army 'Donut Day" In Chicago. The tag day was established in 1938 to honor the work of World War I Salvation Army •'lassies' who prepared donuts for thousands of soldiers in World War I." www.http://inventors.about.com/library/inventors/bldonut.htm The donut made way for a company based on the donut and of course their coffee. The first company to be started based on their coffee was Dunkin Donuts. "It all started in 1946 when Mr. William Rosenberg founded Industrial Luncheon Services, a company that delivered meals and coffee break snacks to customers in the outskirts of Boston, Massachusetts. The success of Industrial Luncheon Services led Rosenberg to open his first coffee and donut shop, the "Open Kettle". Then, in 1950, Rosenberg opened the first store known as Dunkin' Donuts in Quincy, Massachusetts." (www.dunkindonuts.com) Massachusetts started it all. The branch grew from their little by little. Starbucks later opened their doors with their own unique take of Dunkin Donuts. "The story began in 1971 when the first Starbucks opened at Pike Place Market, which is Seattle's and the Nation's oldest Farmer's Market (opened August 17, 1907). But at this time the company was a local coffee roasting facility. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing...
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