- 1. Dunkin Donuts
Executive Summary
For more than fifty years, Dunkin’ Donuts has offered customers around the world,
a consistent experience—the same donuts, the same coffee, the same store décor—
each time a customer drops in. Now the largest coffee and doughnut chain in the
world, Dunkin’ Donuts serves more than 2 million customers each day at more than
5,500 restaurants in the United States and abroad. The company plans to more than
triple its current number of stores, amassing 15,000 franchises by the year 2015.
Dunkin’ Donuts offers a greater variety of products. The chain has added iced
coffee, breakfast sandwiches, smoothies, gourmet cookies, and Dunkin’ Dawgs to its
standard line up of breakfast foods and coffee.
Dunkin’ Donuts offers coffee and food for “everyman.” The chain works because it
is accessible, rather than upscale. Dunkin’s customers include blue- and white-collar
workers across all age, race, and income demographics. The company uses heavy
advertising, sales promotion, and direct marketing to reach consumers. Dunkin’s
positioning are pretty well summed up in its new ad campaign, which features the
slogan “America Runs on Dunkin’.” Says one ad, “It’s where everyday people get
things done every day.”
Questions
a. How does Dunkin’ Donuts build long-term customer relationships?
b. What is Dunkin’ Donuts value proposition?
c. How is Dunkin’ Donuts growing its share of customer?
2. When companies have close competitors, they try to choose value propositions
that will differentiate them from others in the market. Choose one fast-food
restaurant and describe its value proposition. Is it strongly differentiating itself? If
yes, how?
3. With a portfolio as wide as Google’s, what is the company’s core brand value?
4. How many companies or brands do you feel you have a relationship with?
Describe them and justify your relationship with them.
5. Study Maslow’s hierarchy of needs. Discuss ads that appear to be focused on
appealing to the different needs of this hierarchy. Find at least one ad for each level
of needs.
6. Create an idea for a new reality television show. What competitive advantage
does this show have over existing shows? How many and which differences would
you promote? Develop a positioning statement for this television show.
