Marketing Orientation

Topics: Coffee, Starbucks, Dunkin' Donuts Pages: 8 (2813 words) Published: September 9, 2011
Part A:

By selling about 2.5 million donuts a day and more than a billion cups of coffee a year, Dunkin’ Donuts became one of world’s largest coffee and baked goods chain. Bill Rosenberg opened the first restaurant “Open Kettle”, in 1946, in Quincy, Massachusetts, before he changed its name to Dunkin’ Donuts in 1950. His philosophy was “make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores”. Originally, Dunkin’ Donuts’ experience was a cup of coffee with a donut. Now, more 9700 restaurants in 31 countries around the world offer a variety of one thousand products that consist of beverages, baked goods and other sandwiches like: hot and iced coffee, espresso, hot and iced Lattes and cappuccinos, hot chocolate, hot and iced teas, donuts, bagels, fritters, muffins, pastries, cookies, breakfast sandwiches, wraps, …The tasting creative menu items that are served fast, fresh and at affordable price made it for millions a daily ritual, especially for busy people. Despite the focus on the donut, around sixty percent of the business today come from coffee, making Dunkin’ Donuts more of a competitor of Starbucks as faced to some other traditional competitors like Krispy Kreme and Tim Hortons (mainly in the US). Executives at Dunkin’ Donuts know well what they want and have their clear vision of which customer they want to target and how to satisfy them. They disagree with a lot of opinions looking at Dunkin’s main target to become like, or better than Starbucks (which is the largest coffee house company in the world). They won’t be like Starbucks and don’t want to. They target a different clientele who wants different things from their preferred coffee shop. They aim to preserve their philosophy and always refer to their mission statement, which is: “Increase Customer Satisfaction and Loyalty by providing the Fastest and most Accurate Service, the Freshest Products, in the Friendliest and Cleanest Environment “. They will remain serving the young working class with their simple fare products using their best ways by keeping the customer’s interest in mind and always reciting their company slogan the FFACT: Friendly, Fresh, Accurate, Clean, Timely. The management team believes, if they work hard to achieve their mission and company slogan, they can lead Dunkin to grow further and remain a leader in the world of Quick Serve Restaurant Industry.

Dunkin has been ranked Number One, since 2007, for customer loyalty in the “Coffee and Doughnuts” category in the Brand Keys Customer Loyalty Engagement Index® (an annual syndicated study that examines customers’ relationships with 444 brands in 63 categories). It was also named one of the “Top 10 Franchises for 2008” by Entrepreneur magazine. All that didn’t come easily, a solid hard working management team strived to accomplish such results and they are aware they cannot rest, especially in such an industry where they are surrounded by different sorts of competition. In the U.S, coffee is the second largest beverage segment, following soft drinks, where Americans consume over $45 billion worth of coffee every year. Despite the global crisis and the price sensitive consumer, this consumption continues to grow, and competition is still intense with all the growing retail brands like Starbucks, Dunkin’ Donuts, Caribou, Peets, Green Mountain and many others. If we relate it to other goods, like donuts, pastry, and sandwiches… the list will grow: Krispy Kreme, Costa, Tim Horton… not to forget McDonalds who entered the coffee market from its large door and became the fifth largest in the global specialty coffee market in just a few years after launching its coffee brand McCafé.

Ambitious executives at Dunkin’ Donuts, like John Costello, Chief Global Marketing and Innovation Officer (who has a significant career, after he occupied important positions in The Home Depot, Sears, Yahoo, P&G and Pepsi-Cola), are well aware of the...

References: • "Starbucks – Company Overview". Hoovers. Retrieved December 25, 2010.
• By Chris Burrit – Bloomberg News - September 11, 2007
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