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Dunkin' Donuts

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Stephen Swartz

on 30 April 2013

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Transcript of Dunkin' Donuts

Company Overview Founded in 1950 by Bill Rosenberg who opened the first shop in Quincy, MA of many franchises
Company originally was called Open Kettle and sold doughnuts and coffee to factory workers from "roach coaches"
Headquartered in Canton, MA
Dunkin' Donuts is now a leading food and restaurant franchise in the
Coffee market Organizational
Structure Stock Price Dunkin Donuts:
Current Stock Price $38.54

Current Stock Price $60.58 Joint Ventures Coffee Products SWOT Analysis Opportunities Threats Weaknesses Strengths Nigel Travis Paul Twohig John Costello Giorgio Minardi CEO of Dunkin' Brands
President of Dunkin' Donuts Chief Operating Officer, U.S. Chief Global Marketing and Innovation Officer President of Dunkin' Brands International Global Presence Over 3,100 stores in 32 countries outside the U.S.
Serving customers internationally for over 40 years

Great Customer Reputation Franchising *Starbucks sued Twohig, a former Starbucks executive, for allegedly breaching his non-compete clause after jumping ship to Dunkin' in 2009 *Starbucks isn't considered a franchise, it is a licensed shop which means your store is owned by Starbucks Key
Capabilities Distribution Effective Customer Service Innovative
Technology Market Research &
Understanding Effective Promotion
of Products Competition means limited market share growth

Effective marketing through technology Food Menu Items The End Resources Tangible Intangible Reputation Attractiveness of Location Issues on the Horizon DD Reward Card Problem
#2 Healthy Menu Items Purchase Farm Problem
#3 Problem
#4 Problem
#1 Cooperative Strategy
Galardi Brothers

Togo Eateries Different Strategies Consumer Spending

Healthy Eating Index

Per Capita Coffee Consumption Key external Trends Product Inventory Competitive Rivalry
in Industry Bargaining Power
of Suppliers Bargaining Power
of Customers Threat of New
Entrants Threat of Substitutes Porter's Five
Forces Healthy Eating trends growing Strategic Group Map SALES MARKET SHARE Most Bargaining Power
Commercial Kitchen Equipment
Moderate Bargaining Power
Sodas, Dairy products, Food items
Relatively Low Bargaining Power
Exclusive contract with Green Mountain Coffee Roasters, Inc.
Almost No Bargaining Power
Cups, Napkins, Lids, Boxes, Etc. At an all time High Mergers &Acquisition
Formerly Known as “Open Kettle”
Bought out by 3 private equity Firms
Bain Capital-investments with Dominoes
Thomas H.Lee Partners investments with Snapple Beverage
Caryle Group Firm Expansion People


In Community
Corporate Social Responsibility 10000 stores globally
3000 stores outside U.S
Europe, Latin America and Asia.
Joint Venture
Between the Dunkin Inc. Brands and India’s Jubilant food network in New Delhi. Going International Low threat of entrants
Barriers of Entry
Economies of Scale
Outfitting and equipment
Training and computers Customer Loyalty
Free dink with activation of card
Free drink on your birthday

Customers want to earn more Dunkin Dollars per purchase.
Good for free treats Galardi Brothers
Opens 200 baskin Robins Locations in Australia
This triples the locations in this country. Sodas and Energy Drinks
Homemade Coffee Doughnuts
Healthy Breakfast Items
Fruit Cups and Parfaits Current items offered:
Eggwhite flatbread sandwich
Bowl of oatmeal
Egg and cheese sandwich
Ham, egg, and cheese sandwich
Turkey sausage sandwich
Latte lite Utilize member owned supply chain
food and equipment Uniform product costs phased in over 3 year period beginning 2012 Research Capabilities
Develop new varieties of coffee
Testing Atmosphere Out with the old In with the new Competitors in the industry offering similar products. Low barriers to entry in the coffee industry The price of ingredients and raw materials such as high priced coffee. Minimal amount of money spent on marketing. Strong Recognizable Brand Name Constant issues with Franchise owners, numerous cases leading to lawsuits Customer Brand Loyalty Increase presence internationally Introduce more healthy food options
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