DUNKIN’ DONUTS®

•Eddie Suchevits•

dunkindonuts.com

dunkindonuts.com

COMPANY HISTORY:

In 1950 William Rosenburg opened the first Dunkin’ Donuts in Quincy, MA

1990 – Allied Domecq (UK) purchases Dunkin’ DounutsCreate Dunkin’ Brands

Includes Baskin-Robbins and Togo’s

2005 – Pernod Ricard, a French wine & spirits company, purchases Allied Domecq and sells off Dunkin’ DonutsBain Capital Partners, the Carlye Group

and Thomas H. Lee Partners bring Dunkin’ Brands back the United States at a cost of $2.4 billion

dunkindonuts.com

dunkindonuts.com

BACKGROUND: Dunkin’ Brand HQ:

Canton, Massachusetts Claims to be the “world’s largest

coffee and baked goods chain.”Serving 2.7 million customers per day5,769 U.S. locations20 countries

Wholly owned private subsidiary

dunkindonuts.com

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ENVIRONMENTAL FACTORS: Economic

Consumer are more likely to pay 99¢ over Starbucks Prices (abc2news.com)

Legal Must comply with FDA regulations

Competition Coffee: Starbucks Donuts: Krispy Kreme Limited-Service Restaurants: McDonald’s

Technology Face-scanning advertising (guardian.co.uk)

Cultural “Dunkin’ Democrats” vs. “Starbucks Democrats”

dunkindonuts.com

dixiedining.wordpress.com

SIC: 5812 (EATING PLACES)NAICS: 722211(LIMITED-SERVICE RESTAURANTS)

(in thousands) 2003 2004 2005 2006 2007

Industry Revenue

$120,873,894 $127,892,600 $134,200,000

$142,745,100

$150,100,000

Industry Profits $3,626,217 $3,197,315 $3,623,400 $4,710,588 $5,403,600

Industry Profit Margin

3.0% 2.5% 2.7% 3.3% 3.6%

Dunkin’ Donuts Revenue

$3,200,000 $3,616,000 $3,800,000 $5,000,000 $5,220,000

Dunkin’ Donuts Profits

$277,360 $289,600 $311,600 $440,000 $475,020

Dunkin’ Donuts Profit Margin

8.7% 8.0% 8.2% 8.8% 9.1%

Sources: allbusiness.com, restaurant.org, nytimes.com, rimag.com, dunkindonuts.com, RMA

dunkindonuts.com

REVENUE:

2003 2004 2005 2006 2007$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

Industry Revenue

Industry Reve...

2003 2004 2005 2006 2007$0

$2,000,000

$4,000,000

$6,000,000

Dunkin' Donuts Revenue

Dunkin' Revenue

dunkindonuts.com

(in thousands)

PROFITS:

2003 2004 2005 2006 2007$0

$2,000,000

$4,000,000

$6,000,000

Industry Profits

Industry Profits

2003 2004 2005 2006 2007$0

$100,000$200,000$300,000$400,000$500,000

Dunkin‘ Donuts Profits

Dunkin' Profits

dunkindonuts.com

(in thousands)

PRODUCT: Dunkin’ Donuts’ products are consumer

shopping goodsConsumers must spend some purchasing

effort Majority of products are only available in Dunkin’

Donuts shops

Stage of the product life cycleMaturity due to industry profit fluctuations

dunkindonuts.com dunkindonutsobx.com

dunkindonuts.com

MARKET SHARE:

McDonald's; 7.7%

Burger King; 2.4%

Subway; 2.2%

Wendy's; 2.2%

Star-bucks; 2.0%

Taco Bell; 1.7%

KFC; 1.5%

Pizza Hut; 1.5%Ap-

ple-bee's; 1.3%Dunkin' Donuts;

1.3%

Other; 76.1%

Top Restaurant Chains,2006:

dunkindonuts.com

Source: Market Share Reporter 2008

MARKET SHARE:

dunkindonuts.com

Starbucks43%

Dunkin' Donuts27%Krispy

Kreme5%

Tim Hor-ton's2%

Other23%

Gourmet Coffee Sales, 2005:

dunkindonuts.com Source: Market Share Reporter 2008

MARKET SHARE:

Dunkin' Donuts; 28.5%

Tim Hor-ton's; 27.9%

Dairy Queen; 20.2%

Baskin-Rob-bins; 8.6%

Krispy Kreme; 6.8%

Cold Stone Cream

ery; 3.1% Jamba Juice; 2.6% TCBY; 2.3%

Leading Donut/Ice Cream Chains2005:

dunkindonuts.com Source: Market Share Reporter 2008

PRODUCT STRATEGIES: Product Development

Breakfast sandwiches to existing breakfast crowd

Market DevelopmentTargeting coffee enthusiast with

cappuccinos, espressos, and lattes Diversification

Offering flatbread sandwiches and personal pizzas

Market PenetrationCoupons / Coupon Books

dunkindonuts.com

dunkindonuts.com

dunkindonuts.com

DISTRIBUTION CHANNELS:

Donuts, Food, and Online Sales

Packaged Coffee

Producer

Distributor

Retailer

Producer

Consumer

Consumer

(Proctor & Gamble)

(Wal-Mart, Kroger)

dunkindonuts.com

DISTRIBUTION: Dunkin Donuts would be Channel

CaptainExpertReferentLegitimate

Contracts with franchisees and Proctor & Gamble

Selective Distribution StrategyProducts except coffee require some

purchase effort Packaged coffee is moving toward

intensive distribution strategyNow available in grocery stores and

online.

interstatelogos.com

PRICE: One Dozen Glazed Donuts:

Dunkin’ Donuts: $7.49 Krispy Kreme: $6.99

Altoona YUM YUM Donuts: $7.75

Waynesburg Tim Horton’s: $5.49

Erie

Market Place Environment: Limited-Service Restaurants: Differentiated

Competition Donut/Ice Cream Chain Industry: Oligopoly

Skimming Strategy Profit-Oriented Objective

dunkindonuts.com

dunkindonutsobx.com

Themarketingguy.wordpress.com

(Prices found through telephone interview)

MARKETING COMMUNICATION: Target Market (independentsources.com)

MenOver 50 years of ageRural Eastern US> $20,000

Strivers Makers

Frame of ReferenceDonuts

Krispy Kreme / Tim Horton’sCoffee

Starbucks / McDonald’s

Point of DifferenceDiverse menu with a wide range of coffee and tea beverages

dunkindonuts.com

dunkindonuts.com

POSITIONING MAP:

High QualityLow Quality

High Price

Low Price

(3.33, $5.49)

(4.33, $7.49)(3.09,

$6.99)

(4.00, $7.75)Price based

on a dozen glazed donuts

Quality based on consumer ratings at rateitall.com

dunkindonuts.com

krispykreme.com

timhortons.com

spyur.am

dunkindonuts.com

(Prices found through telephone interview)

MARKETING COMMUNICATION: Promotion Objective

Create Preference Offering a wide menu

Reinforce conviction Through Dunkin’ Beat Starbucks campaign

Promotion StrategyPull

Advertising directly to consumers

dunkindonuts.com

dunkindonuts.com

dunkindonutsobx.com

PROMOTION MIX TOOLS:

Web Marketing www.dunkindonuts.com www.dunkinbeatstarbucks.com

AdvertisingDunkin’ Beat StarbucksPrint Ads

Promotion Red Sox Win, You Win

http://www.youtube.com/watch?v=SzWIvxXsuYw

Sponsorships Boston Red Sox

“Dunkin’ Dugout”

bostonherald.com

flickr.com

jennylafer.com

flickr.com

video.aol.com

PROMOTION MIX TOOLS:

Direct MarketingCoupon Books / Coupons“FREEquent” visit cards

Personal SellingAll 5,769 franchised restaurants in the

United States Public Relations

Press Release (website)Tribune Democrat

dunkindonuts.com

THANK YOU!

QUESTIONS?