Dunkin Donuts

Topics: Marketing, Dunkin' Donuts, Franchising Pages: 5 (1893 words) Published: May 15, 2011
Dunkin’ Donuts: An Inside Look
Strayer University

The purpose of this paper is to discuss the aspects of Ramone becoming a franchisee of Dunkin’ Donuts. The writer will talk about any critical issues that Ramone will face during this process. In addition, the writer will discuss any information that Ramone should be privy to prior to becoming a franchisee. The author will also deliberate about what marketing mix the future franchisee should look for with his business and what marketing information he should seek. Lastly, the writer will give his/her recommendations on what actions should be taken to rectify any critical issues that were identified.

Dunkin’ Donuts was the creation of Bill Rosenberg, who opened the first store in Quincy, Massachusetts in 1950. The slogan, “America Runs on Dunkin” has become a household phrase. Dunkin’ Donuts is considered the world’s largest coffee and baked goods chains, surpassing the Starbucks and Krispy Kreme chains. They serve more than 52 different varieties of donuts, over a dozen types of coffees, and an assortment of other baked goods (www.dunkindonuts.com). It is a wonder that more people are not jumping at the opportunity to become a part of this great brand. Ramone has come to realize what a great opportunity this would be and is ready to start the franchising process. Ramone has been interested in franchising for some time now. He was never quite sure what type of business he would end up choosing. He only knew one thing for sure; it would be in the food service industry. The aspiring Dunkin’ Donuts franchisee, has realized the potential that this chain holds. He meets all of their qualifications, which are a net worth of $1, 500,000, cash liquidity of $750,000, and prior business experience (http://www.entrepreneur.com/franchises/dunkindonuts/282304-0.html). He has decided that he wants to become a Dunkin’ Donuts franchisee, but has some uncertainties. Critical Issues

One critical issue that caused Ramone to be apprehensive was the marketing aspect of franchising. “Marketing involves everything that it takes to get a product or service into the buyer’s hands” (Judd & Justice, 2008). The Dunkin Donuts franchisee is eligible for marketing support in the form of regional advertising (http://www.entrepreneur.com/franchises/dunkindonuts/282304-0.html>). Ramone is unsure what is marketing strategy will consist of; that is, what customers he should market to and what will fulfill their needs. Another issue that Ramone is struggling with was where he should place his new Dunkin Donuts franchise. This is an important factor in determining his success or failure as a new franchisee. It falls under the marketing mix, which include product, price, promotion, and place (Judd & Justice, 2008). Product aspect would include the brand, quality, and packaging. The price aspect would include financing, product pricing, and possible discounts for the product. Promotion includes the budget, any advertising of the franchise and/or product, and possible media coverage. The last piece of the marketing mix, place, would include the location, target market, and the channels used to get the product to the customer. This formula is something that must be understood completely in order for Ramone to use it to his advantage when beginning the franchise process. Dunkin’ Donuts must approve the location that the franchisee has selected. There are also some ideal guidelines that the corporate offices have set in order to ensure the optimal success. The land should be anywhere from ¼ to 2 acres in size. The building itself should be 1,200 to 2,600 square feet. The location should be easily visible to potential customers and have ample parking available. These are just a few of the many suggestions that are given to franchisees on the Dunkin’ Donuts franchising website. Ramone is also concerned about product development and how often something new is...

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