University of Phoenix



Chapter 15: Deliver Value through Supply Chain Management, Channels of Distribution, and Logistics

Dunkin Donuts

Synopsis: The history of Dunkin Donuts is discussed. An American staple and half a century after its birth, Dunkin Donuts leads the industry in donut and coffee pairing. CEO Will Kussel discusses the importance of providing a great product with a great customer service experience, and always having an affordable and accessible brand with a unique value proposition. But, you must always focus on quality. Spencer Tarer discusses the philosophy of the Dunkin Donuts “fun” brand and their focus on always having fun, which helps them put forth the right product to the customer. Spencer discusses Dunkin Donuts as a customer service oriented company, in which they listen to what the consumer says they what to want. Their extensive training programs are discussed as well as coffee labs in which extensive tasting is done. Finally, Dunkin Donuts discusses the importance of a great and consistent brand and its contribution to sales and growth.

Learning Objectives: Product Consistency, Franchise, Growth, Competition, Global growth, Retail Market, Brand Philosophy

Short Answer

1. Discuss the Philosophy of Dunkin Donuts.

Providing great products to consumers with a great customer service experience. Always having the brand be affordable and accessible and to have a unique value proposition. Always focus on quality.

2. Discuss how high standards helped Dunkin Donuts achieve success.

Their standards are the tightest standards. They are committed to consistency and quality, which becomes a major selling point to the consumer. Dunkin Donuts runs a coffee lab in which coffee is continually tasted and evaluated to determine the consistency of the coffee.

3. Discuss the importance of the “Fred the Baker” advertising campaign on the Dunkin Donut Brand.

The ad helped build a personality around the brand. Fred was the, symbol of all those who get up early. This created a bond with the consumer of a real person with good work ethic.

Multiple Choice / True-False

1. What factors do Dunkin Donuts consider when offering a new product?

a. Research

b. Taste Testing

c. Listen to the consumer and let them tell what flavors they want

d. All of the above

Answer: D. All of these are factors Dunkin considers when developing a new product.

2. What has been the effect of Starbucks on Dunkin Donuts?

a. It has benefited Dunkin Donuts from the increased awareness of coffee

b. Lowered profits as a result of competition

c. Created a precedent to follow

d. All of the above

Answer: A. Starbucks actually did Dunkin a favor by bringing greater recognition to coffee.

3. True/False: Dunkin Donuts allows the customer to determine what their new products will be.

Answer: True. Customer research is extensive in the determination of new Dunkin products.

4. How does Dunkin Donuts appeal to all types of customers?

a. Successful and powerful ad campaigns

b. A good product

c. A bond with the consumer

d. All of the above

Answer: D.

5. True/False: Dunkin Donuts success can be attributed largely to consistent products.

Answer: True. While many things have contributed to the success of Dunkin Donuts, without consistent quality products, nothing else matters.

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