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Dunkin donuts corporation - Assignment Example

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It was established by Bill Rosenberg in 1950 and has since then grown systematically to the famous Dunkin’ Donuts of today. William Rosenberg opened the first shop…
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Dunkin donuts corporation
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Term Dunkin’ Donuts Corporation Dunkin Donuts is among the world’s leading doughnut company and coffee house located at Canton Massachusetts. It was established by Bill Rosenberg in 1950 and has since then grown systematically to the famous Dunkin’ Donuts of today. William Rosenberg opened the first shop in Quincy Massachusetts and has now grown to become a leading coffee and baked goods chain with fifteen thousand restaurants serving three million customers in a day (Dunkin’ Donuts, 2-3). Its products include 52 varieties of donuts, bagels, other baked goods, plus a dozen coffee beverages. Dunkin’ Donuts competes with Starbucks in coffee sales and Krispy Kreme in donut sales. This paper takes a closer look at Dunkin’ Donuts with regards to its competitors, strategic group map and its position in the market.
The list of restaurants in the coffee and donut industry is incredibly long. According to hoovers, a D&B Company reports, the top competitors of Dunkin’ Donuts are Starbucks Corporation in coffee, Krispy Kremeand Dairy Queen in donuts and ice cream and McDonald in limited-service restaurant. In 2005 Starbuck had a 43% market share in gourmet coffee while Dunkin’ Donut had 27% followed by Krispy Kreme with 5% share (Dunkin’ Donuts, 7). In the same report, Dunkin’ Donuts was ranked the leading Donut and ice cream chain with a market share of 28.5% followed by Tim Horton’s with 27% and Dairy Queen with a 20.2% market share.
Although Dunkin’ Donuts deals in donuts and other baked products, the product that brings the company a relatively bigger profit is the varieties of coffee drinks they serve. It sells approximately 1 billion cups of coffee in a year (Dunkin’ Brands Corporation, credits Dunkin’ donutsas one of the three java giants the other two being Starbucks and McDonald. Dunkin’ Donuts has the number one share of coffee beverages, donut, bagel, and muffin servings. In addition, it managed to have the second share in breakfast and quick service restaurants and is recognized as first in customer loyalty in the coffee category for the last eight years in business. Furthermore, it was ranked tenth in 2012 franchise 500 in fast food survey of quick refreshment chains.
Strategic group map mechanism has enabled Dunkin’ Donuts to understand its competitors and look for its position in the market. There are a number of strategies that have been introduced by Strategic group map mechanism. The first strategy was coming up with friendly prices of its products. Its products are affordable and cheaper compare to its competitors enabling it to capture a larger market. The second was coming up with unique blends by mixing its product. Dunkin’ Donuts provide a wide range of products to its consumers (Dunkin’ Donuts, 13). For example, it has over 52 varieties of Donuts and dozens of coffee beverages. This has enables it to stay on top and to fully meet its customers’ needs.
In conclusion, Dunkin’ Donuts acknowledges that the quick service restaurant is growing fast and in order to remain as competitive as other restaurants offering the same services, it has to come up with new strategies. This includes keeping up with the market demands through quick service delivery, creativity and innovation of products and by offering a variety in the menu to their customers. Customer loyalty is a good strategy in maintaining market share and although Dunkin’ Donuts does not brew coffee like its major rival Starbucks, it has managed to stay at top position due to its customers who keep coming for more. Its franchise strategy and its reputation in the market have made it to become one of the fastest growing brands.
Works cited
Dunkin’ Donuts. Dunkin’ Donuts, at a glance. 2014. America run’s on Dunkin, 2014: 2-18. Web. 22nd April 2014. [pdf] <> Dunkin’ Brands Corporation. Dunkin’ Brands / Corporate History. 2007. Web. 22nd April 2014. <> Dunkin’ Brands Corporation. Dunkin’ Brands / Strategic Heartbeat, Values and Principles. 2007. Web. 22nd April 2014. Read More
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