How would you describe dunkin donuts approach to market

Assignment Help Operation Management

Reference no: EM133312747

Case Study: Dunkin' Donuts has expanded into a national coffee powerhouse, competitive with Starbucks, the nation's largest coffee chain. However, Dunkin' does not intend to attract customers from Starbucks. It recognizes that the characteristics of Dunkin' customers are very different from those of Starbucks' customers. In a bit of a nod to the competitive factors, though, Dunkin' has added a few non-breakfast items to its menu and refreshed the look and feel of its stores. At the same time, Dunkin' is being careful to not alienate its core customer base. Apparently, the changes have led to success because Dunkin' has topped the coffee category in a leading customer loyalty and engagement survey for the past nine years. It consistently meets or exceeds customer expectations with respect to taste, quality, and customer service. So, while Dunkin' Donuts has a relatively limited menu, and is not fancy, it meets the needs of its customers.

Discussion Objective

A focused discussion of the opening Dunkin' Donuts story will illustrate the basics of segmentation, targeting, differentiation, and positioning. Dunkin' Donuts knows that it can't make all of its customers happy all of the time. Instead, it has segmented its market carefully and concentrated on serving as many of its customers as possible. The discussion should emphasize that Dunkin' not only knows which customers it wants- it also knows what those customers want. Starting the Discussion To get a feel for the breadth of Dunkin' Donuts product offerings, go to the Dunkin' Web site (https://www.dunkindonuts.com/dunkindonuts/en.html) and the corporate Dunkin' Brands website, as Dunkin' Donuts is a subsidiary (https://www.dunkinbrands.com/). Begin by looking at the Responsibility tab. After noticing the focus on consumers, explore the About Us pages. Look at the categories in which Dunkin' leads. Notice how focused its products are.

Question 1. How would you describe Dunkin' Donuts' approach to market segmentation? (As with most marketers, Dunkin' uses a combination of different segmentation variables. Discuss how the company might draw upon geographic, demographic, psychographic, and behavioral variables in determining its market structure. Ask students to provide examples of each type. As a class, try to determine which variables appear to be most important to Dunkin' in targeting its customers. Look at its expansion plan. What variables will play into its expansion as it has a long-term goal of 17,000 U.S. locations, double the current number?

Question 2. Look at the typical Dunkin' menu. Many quick-service restaurants have a more extensive menu. Are there positive aspects to a relatively limited menu? What are they? Are there any negatives to consumers? Why does Dunkin' believe it makes sense to structure its menu this way?

Question 3. How does the chapter-opening Dunkin' Donuts story relate to the segmentation and positioning concepts that follow in Chapter 7? (Dunkin' Donuts knows that it can't serve every kind of customer, or every customer in the same way. It doesn't even want to try to appeal to all possible customers. It succeeds by segmenting its market, targeting the best segments for it, and differentiating and positioning itself to best serve the needs of target consumers. That's pretty much what this chapter is all about.)

Reference no: EM133312747

Questions Cloud

How does it relate to a perpetual anchor : Positive or Negative Frame What determines whether a negotiator will have a positive or negative frame? How does it relate to a perpetual anchor?

Discuss and analysis importance of personal cleanliness : Discuss and analysis importance of Personal Cleanliness and Health for for Food & Beverage employees and organization. At least 6 points should be discussed

Thinking about the key fundraising principles : Thinking about the key fundraising principles, what challenges do you feel your organization will face when developing your fundraising activities?

Model for strategic leadership : Why is your role model for strategic leadership is Ratan TATA? What skills do you feel you need to have/develop as a strategic leader?

How would you describe dunkin donuts approach to market : How would you describe Dunkin' Donuts' approach to market segmentation? (As with most marketers, Dunkin' uses a combination of different segmentation variables.

Strategic framework and strategic environment : How would you define the strategic framework and strategic environment? Explain with example of TATA company.

How much in damages could rory sue jo : Jo contracted with Rory to purchase Rory's 2014 Honda Civic for $17,000. Jo refuses to go through with the sale and has breached the contract.

Improve employee job satisfaction and morale : Improve employee job satisfaction and morale. Identify employees who are at risk of creating conflict

How does e-commerce affect the telecommunications manager : Discuss how the policies and procedures implemented in a large organization would also apply to smaller organizations.

User Account

All Pages