Mgt Group Case Study Report

cuticle Study Report Dunkin Donuts Betting Dollars on Donuts - Submitted By - Group Members - acknow leadgment Firstly, we thank almighty Allah for successful completion of the project. We argon re whollyy acceptable to course instructor Professor Abdur Rab, Faculty of BBA Program, North s forthh University for all kinds of informative information and valuable advice. We argon a uniform very welcome to the group members who divine serviceed in preparing this project.Executive Summary Dunkin Donuts is a business in pabulum retail. They ar the worlds largest deep brown and baked goods chain. Dunkin Donuts clear been in business since 1950 and take aim been franchising since 1955. This franchise serves to a greater extent than than than than than 2 million customers a sidereal day. Dunkin Donuts sells52 varieties of donuts and to a greater extent than a dozen coffee berry beverages as well as bagels, breakfast sandwiches and another(prenominal) baked goods. It is imp ortant to look at consumer usage and in store(predicate) trends in the lead entering into the market. Dunkin Donuts is vary of the snack denounce market.The snack pasture market had al near 10 billion is sales worldwide in 2003 alone. Snack shops scram an advantage because they are popular among all consumer groups. Dunkin Donuts has retain a pursuant(predicate) database of customers, while in any case gaining additional consumers by the patterned advance of m and emergence of virginer markets. The report discusses task environs that Dunkin Donut operates in. It describes the warring environment and its customer base. The union follows heterogeneous competition strategies and has goals to achieve through them.We to a fault discuss the external environment of the bon ton which includes the socio-cultural environment and the world-wide environment. The environmental effects of Dunkin Donuts is also discussed. We describe the degree of stir and complexity and th e effects of competitive rivalry. Lastly, we analyze the Porters Five Forces in terms of the industry Dunkin Donuts operates in. Table of Contents - Contents Page scrap ) History 6 2) Dunkin Donuts, At-A-Glance 6 3) electric charge Statement 7 4) return 7 5) Coffee Leadership 8 6) Strategic Growth 9 7) Culinary Excellence 10 8) Dunkin Donut (DD) SMART 11 9) delegate Environment 13 10) Consumers 14 11) public Environment 14 12) environmental Effects 15 13) combative Rivalry 16 HistoryDunkin Donuts was begun in 1050 by William Rosenberg with a single shop in Quincy, Massachusetts. In 1946, he founded industrial Luncheon Services, a company that delivered meals and snacks to workers in the Boston area. The success of industrial Lucheon Services convinced Rosenberg to start the Open Kettle, a doughnut shop in Quincy, Massachusetts. Two years later Open Kettle diversifyd its let out to Dunkin Donuts. He began franchising additional outlets in 1955, and by 1979 there were a grand Dunkin Donuts outlets in the Northeast. Through a series of transactions in the eighties and 1990s, Dunkin Donuts became the quick service eatery mathematical process of the British firm, Allied Domecq PLC.In 2002, as Allied Domecq looked for growth opportunities, its Dunkin Donuts (DD) business was described as a sleeping giant as much for its fiercely loyal stage business as its $2. 8 billion in sales and to a greater extent than 3,800 U. S outlets. Dunkin Donuts, At-A-Glance ? Dunkin Donuts is owned by Dunkin Brands Group, Inc. (NASDAQ DNKN), one of the worlds leading franchisors of quick service restaurants. Dunkin Brands is the evoke company of both Dunkin Donuts and Baskin-Robbins. ? Dunkin Brands Group, Inc. is headquartered in Canton, Massachusetts. ? At the end of 2011, Dunkin Brands Group, Inc. had franchisee-reported sales of about $8. billion. ? Dunkin Brands, the parent company of Dunkin Donuts and Baskin-Robbins is one of the largest QSR (Quick Service Rest aurant) companies in the world with some 7,000 retail shops in nearly 60 countries worldwide. ? Dunkin Brands Group, Inc. has a nearly century percent franchised model. ? There are more than 10,000 Dunkin Donuts restaurants in 32 countries. Mission Statement Dunkin Donuts go away strive to be the dominant retailer of tall quality donuts, bakery crops and beverages in each metropolitan market in which we choose to compete. Products Dunkin Donut serves the following items 1) Donuts 2) Fritters 3) Crullers 4) Biscuits ) Munchkins 6) Bagels 7) Muffins 8) Danish pastry 9) Cookies 10) Brownies 11) Bagel Twists 12) breakfast sandwiches 13) Hash browns 14) Oven toasted items 15) Coffee beverages 16) Bulk Coffee 17) Espresso, Cappuccino, and caffe lattes 18) Iced Coffee 19) Iced Lattes 20) Latte Lite Espresso 21) Turbo Coffee Leadership Dunkin Donuts coffee heritage goes back more than 60 years something no other leading restaurant soil can match. ? Dunkin Donuts sells more than 1. 5 billion cups of hot and iced coffee globally every year. ? According to the NPD Group / CREST, Dunkin Donuts serves the hottest traditional and iced coffee in America. In the highly competitive U. S. coffee market, Dunkin Donuts is distinguished for create from raw material a maestro guest capture. For six years running, Dunkin Donuts has been recognized by the Brand Keys node Loyalty Engagement Index as second one in customer loyalty in the coffee category. ? Dunkin Donuts coffee is impudently ground, freshly brewed and freshly served. If not used within 18 minutes, Dunkin Donuts coffee is throw a itinerary and a bracing carafe is freshly brewed. ? Like cr eating a picturesque wine, there are countless step involved in producing coffee, and Dunkin Donuts coffee experts travel around the globe to ensure consistent quality at each turn.Dunkin Donuts uses 100 percent Arabica coffee beans and has its own coffee specifications, which are recognized by the industry as a superi or alumnus of coffee. Based on Dunkin Donuts tonus (DDQ) specifications, coffee is milled and processed specifically for the company. ? Dunkin Donuts Dunkin Donuts is the 1 retailer of freshly-brewed iced coffee. Each Dunkin Donuts restaurant double brews the coffee before pouring it into cooling units to stick sure its iced coffee is always well(p) of flavor and never watered down. ? Dunkin Donuts lattes and cappuccinos are authentic made with only Fair affair Certified coffee beans blended for espresso and fresh draw and ready(prenominal) in regular or decaffeinated, hot or iced. The beans are ground and the milk is steamed for each individual serving.Dunkin Donuts was the foremost subject field blur to sell espresso beverages that are made exclusively with Fair Trade Certified coffee. ? Dunkin Donuts now offers Dunkin Donuts K-Cup portion packs, fashioning ? Americas positron emission tomography Coffee? available for use with the Keurig Single-Cup Brewing system. S old exclusively at participating Dunkin Donuts restaurants in the United States, Dunkin K-Cup portion packs are offered in five-spot popular flavors, including Original Blend, Dunkin Decaf, French Vanilla, Hazelnut and Dunkin Dark Roast. ? Dunkin Donuts coffee excellency team features two of the worlds foremost experts on coffee, Jim Cleaves and Ellen Rogers.Both are dedicated to finding the worlds best coffee and brewing the perfect cup. Jim is a licensed Q Grader, having passed the worlds most uncompromising coffee evaluations skills testing program, while Ellen is an International Coffee good in coffee tasting and analysis and a Coffee Quality add Board Trustee. They each travel regularly passim the world, tasting as umteen as 600 cups of coffee each day in raise to choose the highest quality coffee beans for Dunkin Donuts. Strategic Growth From the beginnings as a single restaurant in Quincy, Massachusetts, Dunkin Donuts is now a global brand with more than 10,000 locatio ns in 32 countries.The growth is testimony to the fact that nation everywhere appreciate what Dunkin Donuts offers high quality regimen and beverages served all day in a friendly, fast environment at a neat value. In the United States, Dunkin Donuts has importanttained calm, strategic and disciplined growth, opening new restaurants in our core markets in the Northeast and in cities all throughout MidAtlantic, southern and Midwestern states. We now affirm more than 7,000 restaurants in 36 states and the District of Columbia. From Boston to Buffalo, New York to New Orleans, Philadelphia to Florida, Chicago to Charlotte, Dunkin Donuts is an important part of daily life for millions of Americans.And while Dunkin Donuts has nationwide brand recognition, we believe we have significant hazard to expand our enumerate of restaurants in the United States as well as around the world. We believe we can double our tone in the U. S. to 15,000 Dunkin Donuts restaurants over the contiguo us 20 years. And its not skilful America running on Dunkin Dunkin Donuts has a strong presence internationally, with more than 3,000 Dunkin Donuts locations in 31 international countries across four continents. The company maintains steady global expansion, opening new restaurants in Europe, Asia, the Middle East, and Latin and South America. Asia-Pacific is a circumstancely exciting area for growth.Dunkin Donuts has already opened more than 88 locations in Greater China since launching there in 2007, and has nearly 900 shops in South Korea. In 2010, the brand re-entered Russia with new restaurants in Moscow, and in 2011 we announced plans to open 500 Dunkin Donuts restaurants in India. In 2012, the first Dunkin Donuts restaurants were opened in India and Guatemala. Culinary Excellence Dunkin Donuts is committed to providing guests with the best-tasting, high-quality food and beverages. To fall in that commitment, we assembled a culinary dream team of acclaimed chefs to create n ew and innovational posting choices to meet the evolving needs of Dunkin Donuts busy, on-the-go customers, raising expectations about what is possible in a quick service meal.As people find themselves busier than ever, and are snacking more frequently throughout the day, Dunkin Donuts culinary team is meeting guests changing eating habits and expectations for fast, satisfying menu items that can be enjoyed any time of day. In addition to the brands famous coffees, lattes, donuts, bagels and muffins, Dunkin Donuts has delicious breakfast sandwiches available all day with several choices featuring breakfast favorites such(prenominal) as smoke-cured cherry wood bacon, egg whites, freshly baked croissants and toasted side of meat muffins. Dunkin Donuts has also introduced new oven-toasted bakery sandwiches, in several varieties including Texas Toast cook Cheese, Chicken Salad and Tuna Salad. Dunkin Donuts also continues to offer a full moon wag of innovative snacks and beverage s, including Bagel Twists, Coolatta slush drinks, hash browns, cookies and more.Dunkin Donuts culinary team also directed the introduction of the brands DDSMART line of better-for-you menu items. DDSMART includes many delicious food and beverages with fewer than 300 calories, such as ballock White Flatbread Sandwiches and Wake-up Wraps, coffee and espresso beverages, teas and a Coolatta with skim milk. Dunkin Donuts team of skilled culinarians is led by Executive Chef and Vice President of Product Innovation Stan Frankenthaler. Frankenthaler is a three-time James Beard Award nominee and author of The New York propagation best-seller, The Occidental Tourist. Before joining Dunkin Brands, he was owner and chef of Salamander restaurant in Boston, named by Zagats as one of the citys Top Ten Restaurants. Dunkin Donuts culinary team also includes Executive pastry Chef Christopher Boos, who represented the United States in the Coupe du Monde de la Patisserie (the World Pastry Cup), and S ous Chef Phillip Kafka, origin commis chef at Harrods in London. Dunkin Donuts team also features two of the worlds foremost experts on coffee, Jim Cleaves and Ellen Rogers. Jim is a licensed Q Grader, having passed the worlds most rigorous coffee evaluations skills testing program, while Ellen is an International Coffee Expert in coffee tasting and analysis and a Coffee Quality Institute Board Trustee. Together, they are responsible for developing and introducing new coffee beverages and blends. Dunkin Donut (DD) SMARTEating smart when on the go can be hard. but the DDSMART menu from Dunkin Donuts makes it easy. The selection of better-for-you foods and beverages ensures our restaurants offer great-tasting choices that fit your lifestyle and meet your dietary wants and needs. Food and beverages with the DDSMART Logo are reduced in calories, fat, saturated fat, profit or sodium by at least 25% compared to a base product or other appropriate reference product, and/or contain ingre dients that are nutritionally beneficial. Corporate Promise Were committed to whirl a wide selection of foods and beverages so you can enjoy whats expert for you. Nutritional Advisory BoardThe Dunkin Brands Nutrition Advisory Board, comprised of leading experts on nutrition, wellness and wellness, will assist Dunkin Brands management with research and perspective to aid in the development and reformulation of products that meet the evolving needs of customers while incorporating current nutritional science. DDSMART (0-5K) reservation smart choices about what you eat is one way to stay on track. Another is keeping active. Run your first 5K or train for your next Task Environment Competitors Dunkin Donuts mainly competes with high end coffee providers like Starbucks. Starbucks is a major competitor of Dunkin Donuts which creates competition in the area of upscale coffee. withal DD can still compete in the coffee industry with its unanalyzable drip coffees regular and decaf. also , having its focus on donuts and other baked goods it also competes with the likes of Krispy Kreme. Competition Strategy In order to remain competitive in the industry Dunkin Donuts follows a competition strategy. This is what we depicted * Expanding Outlets- It is a goal of DD to be as outreaching as possible to its customers. Therefore it does so by expanding its number of outlets throughout America and beyond its borders as well. Dunkin Donuts has its densest cluster in the northeasterly region of the country and is now having a growing presence in the rest of the country. yet it is also creating a brand paradigm in other countries though opening outlets there. Example countries are Canada, brazil-nut tree, Qatar, South Korea, Pakistan and the Philippines. As a part of its strategy the company plans to expand aggressively. It has a goal of expanding to 15000 outlets by the year 2020. This goal is further achievable as the company has a franchise system this makes the acquisitio n of capital and operator smoother. It is noteworthy up to now that the company wants to limit its expansion to not being too omnipresent. It is also partnering with large supermarkets to achieve widespread market prominence. This is done to create a store-witihin a store concept.The supermarket has to be large enough to allow DD full expression of its brand. This is important for enhancing overall performance of the strategic allies. * Expanding Products- Dunkin Donuts also sees an opportunity of grabbing a new base of customers. The company recognizes the new genesis and is nerve-racking to come up with products that appeal to their taste. As a result of such, the company has expanded its range of products to several types of hot and cold beverages, baked goods and confectionery items other than donuts and the new breakfast to go menu. Along with that, Dunkin Donut maintains its undecomposable and straight-forward morning snacks. This gives it a competitive edge of distinctio n against its competitiors.This may change Dunkin Donuts to persist in the competitive industry with newer dimensions. Consumers The type of customers Dunkin Donuts has also impinge ons its operation nature. Based on its competition strategy it has the following goals to achieve * The main goal of expanding outlets Dunkin Donuts wants to have greater outreach to its customer through the expansion of more outlets in various parts of the country. The company aims that in future its customers do not have to go far to pick up a box of doughnuts. Moreover, it wants to boost up its brand word picture to its customers and the best way to do it is to make the brand name more apparent in more regions. Goal of expanding products Dunkin Donuts also tries to cater to the needs of the new generation and its taste appeals. It does so by creating the new range of products, namely the breakfast-to-go menu. General Environment International/Global environment The brand Dunkin Donuts does not h ave the chain in America only, but also managed to curve out international niches. It is not only expected markets such as Canada and Brazil but also in some unexpected areas like Qatar, South Korea, Pakistan, Philippines. This has various implications for Dunkin Donuts. For instance diversifying risk, entry into newer markets, larger customer base and so on.Socio-Culture Due to the change in people living style, Dunkin tried to help people find their product in the reach of the customer. Dunkin Donuts also caters to the change in demographic characters through their new range of products. Therefore socio-cultural norms and consumer tastes affect its the products made by Dunkin donuts. Environmental Effects Degree of alternate and Complexity * Degree of Change-This is the extent to which the environment is relatively stable or dynamic. Dunkin Donuts has a relatively stable environment. It has a consistent base of consumers. It serves the battalion with coffee-the most popular bev erage globally. Moreover it has a limited product line. That is, it produces a relatively small number of products.However, the company is likely to be in a dynamic environment as well. As a result of carrying out its plan of expansion, Dunkin Donut has undertaken the production of more food items and diversifying its area of production. This introduces dynamic changes to its operation style. Moreover, the company is also aggressively expanding its outlets-which humble that it is extending its capacity of production significantly. * Degree of Homogeneity-It the extent to which the environment is relatively simple(a) or relatively complex. It considers the number of elements in the environment and segmentation. Dunkin Donuts operates in a relatively simple environment.It has a consistent base of competitors, and a consistent base of customers. It also has a stable network of suppliers. Hence the number of elements in its task environment is fairly constant and few. It could be argu ed differently that the company operates in a fairly complex environment. With its expansion into different states in America, Dunkin Donuts has to operate with a larger base of operators. Other than that, entering international markets also mean that the company has to compete with foreign forces and search foreign governments. Overall, given the industry that Dunkin Donuts operates in it is likely to face a low level of uncertainty.This is because it operates in a stable and simple environment. On the contrary, given the probable impact of its expansion plan it faces a hold back level of uncertainty if consumers do not indulge in the companys newer items Dunkin Donuts is likely to have a diluted brand image. Risk in Expansion Strategy Franchising Dunkin Donut has devised many strategies to make more turnover out of the business running on a daily basis. One method to expand into diverse business environment is to franchise, something that is easy since Dunkin Donut is already a franchise system making access to operators and capital easier. Franchising more means expanding to a more diverse business environment.This brings in the factor of complexity which increases its degree of homogeneity such as in terms of globalization. Globalization is one factor that has to be considered since it is a necessity to diversify the organization into the attainable business environment. Also executives tend to focus too much on franchising new stores. However money invested on establishing these new franchises could have been otherwise invested into their current stores. Moreover the older store, being set up on a particular geographical area will tend to have a broader experience handling the economic and socio-cultural environment of the area it has been set up on.So resources, time and energy input on the older stores renovating, expanding and restocking would make it a more formidable asset to Dunkin Donuts as opposed to establishing a whole new franchise itself which is essentially playing a key role in expansion. Wider range of food variety Expansion would also require that Dunkin Donuts change its food menu, a factor of Dynamic, implicating a degree of change. Dunkin Donuts has maintained its image of simmpleness in the products it offers-drip coffee and donuts Unlike many other companies, Dunkin Donuts have stayed on its ground in maintaining their simplicity in the food it offers and on the process has earned customer loyalty of diverse groups.Thus a degree of change imposes a risk of diluted brand appeal since Dunkin Donuts will face a risk of losing its customer who values the authenticity and simplicity of Dunkin Donuts. There is also a probable occurrence of loss of observe among its original consumer groups, resulting in lower sales and turnover. In short, expansion leads to uncertainty, which in turn might lead to a diluted image of Dunkin Donuts Competitive Rivalry Due to the increase of competition, Dunkin Donuts is increasin g their number of outlets in various locations. Moreover, they are also increasing their item in the food menu in order attract all sorts of customer and to compete in effect with its competitors . THANK YOU