Dunkin Donuts

[Pages:13]Dunkin Donuts

John Beebe-Center Terrence Gagala Meghan O'Brien Drew Rosen

HOSP 3050 - Hospitality Strategic Marketing Professor Howarth 2/17/2014

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Contents

Introduction .................................................................................................................................................. 3 Core Product ............................................................................................................................................. 3 Facilitating Product ................................................................................................................................... 4 Supporting Product ................................................................................................................................... 4 Augmented Products ................................................................................................................................ 5

Service Characteristics .................................................................................................................................. 5 Intangibility ............................................................................................................................................... 6 Inseparability............................................................................................................................................. 7 Variability .................................................................................................................................................. 8 Perishability............................................................................................................................................... 9

Price .............................................................................................................................................................. 9 Distribution Channels.................................................................................................................................. 10 Promotion ................................................................................................................................................... 10 Conclusion................................................................................................................................................... 11 Works Cited................................................................................................................................................. 12 Work Breakdown Structure for Dunkin Donuts.......................................................................................... 13

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Introduction

From the survey we conducted on the areas surrounding Providence, RI, we decided to launch a new line of tea's. Using Providence as a test market, we want to explore the success we can have by offering more tea options. Tea is one of the world's most popular beverages, and it showed on our survey's; almost 50% of respondents stated that they drink tea. Our menu currently only has three tea options; the basics of green, oolong and black teas. Our new line will expand upon our existing flavors and ideally allow us to capture a currently growing market.

Teavana and Tealuxe are two chains that are two growing chains of "tea bars" that are capitalizing on this market. Starbuck's also offers over 25 tea based options to cater to this market. By adding tea to our product line we can better compete with these companies. Our new product line will contain a raspberry herbal tea, a cranberry herbal tea and a peppermint herbal tea.

Core Product The core product that people usually purchase at Dunkin Donuts is coffee. There are

many types of coffee but the two main coffees are hot and cold. They give you the options to choose from once ordering your coffee. People usually order hot coffee when it's cold outside and ice coffee when it's hot outside. Their slogan, "everyone runs on Dunkin" is true because many people can't get their day started without coffee.

This addition of these three herbal teas to your choice of beverages will not directly affect coffee. We are not trying to replace our loyal customer's favorite brew; we are looking to expand our menu to bring in a new base of customers. The addition of tea also offers a healthier, lower caffeine option to attract the growing health and fitness markets back to our shops.

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Facilitating Product Facilitating products is mostly about the employees who serve the coffee to the

customers. Furthermore, the employees who work the drive thru windows are a huge part because most of the people who go to Dunkin Donuts go thru the drive thru window. Obviously the workers at Dunkin Donuts will use their hospitality skills to make sure the customer gets

what he/she want. Usually if it's cold outside, customers will need to use napkins to hold their coffee or even if the coffee is hot or cold in general.

The addition of the new line of herbal teas will not change the set up of our facilities much. We will possibly need more room for storage and more tea brewing stations set up at the front counter. The drive thru, service counters and the service stations containing the paper goods our customers rely on will remain the same. The biggest change will to be training the employees on the new items and having them suggest them to the customers.

Supporting Product The main supporting products that Dunkin Donuts has to offer is the donuts, sandwiches,

and the merchandise that they offer. Most people like to get something to eat when they go to Dunkin Donuts. Customers have different types of products to choose from. These different types of products help the DD product differ from the types of products that Starbucks or other coffee shops offer.

With these new teas added to our menu, we will be able to compete with Starbuck's on a higher level. Starbucks already offers twenty-four different varieties of tea drinks to compare to our simplistic menu. Dunkin Donuts only currently carries green, oolong and black teas. By diversifying our menu, it is our hope to attract new customers and be better fit to compete with Starbucks and other competitors. These tea's will act as a substitute good for coffee, leading to

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broadening of our customer base. We will still continue serving the same complimentary goods as before.

Augmented Products The augmented product of Dunkin Donuts is the interaction you receive as a customer

from the employee. As an employee you want be able to give the customer the visit of a life time, meaning that nothing goes wrong. Customer interaction is huge because the employee needs to greet and say goodbye to every customer.

Looking at the variety of locations online, the atmosphere really grabs the customer's attention. The customer has the opportunity to submit their feedback because Dunkin Donuts likes to hear the complements/complaints that are made by the customers. Customers want to be in and out of the door, so they employees of the store locations need to make sure that everything is accessible to the customers. Customers expect the service and product to be good enough for them to return in the future.

This expansion of our beverage line gives us multiple opportunities to please more customers than before. By adding on this product, new customers will be entering and with a few good visits make Dunkin Donuts tea a ritual of their own. Once again, training the employees on this new product is essential for success in the future with building these relationships.

Service Characteristics

To promote our new tea lines we have to make sure our service characteristics are up to date. The four service characteristics that really help promote are product are intangibility, inseparability, variability, and perishability. Intangibility is the services that can't be seen,

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tasted, felt, heard, or smelled before purchase. Variability is the quality of services that depend on who provides them and where, when, and how. Inseparability is services that can't be separated from their providers. Finally perishability is services that can't be stored for latter sale or use. All these service characteristics are key factors for our new tea products to be successful.

Intangibility According to our textbook intangibility are services that can't be seen, taste, felt, heard or smelled before the purchase. It's pretty much marketing using tangible objects, that don't so you're probably wondering how this affects the coffee we drink almost every day. Our new tea product, will have to be advertised a different way because we want more customers to be able to come in to Dunkin Donuts and purchase it. Marketing a product can be tough but if you advertise it correctly, more people will purchase it.

Another way it's intangible with its coffee is the quality of Dunkin's service that provides you. Before you even purchase it Dunkin experts on average test out the new tea product every day to make sure it stays consistent. Also all Dunkin Donuts have customer surveys that lets the employees know what they can improve on. It may not help much with the first immediate trip, but it will help future trips before the first customer even walk in the door. This also have the additional benefit of increasing management's focus on the brand, which is set apart as a crucial asset. It also ensures that, rather than being given the brand to use for free, management is now responsible for ensuring a healthy return for its use. These intangible services help them compete with places like Starbucks and McDonalds that are high competitors in the coffee industry.

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Inseparability What will make our products inseparable from the other places that serve herbal tea is

how our service is. Service is what keeps people coming back to the place. This means that we need to make sure that all of our employees are up to date with the product and everything about the new herbal tea product, to re-ensure the consumer to buy the product. It's the manager's job to inform each employee every single fact about the tea, so employees can sell the tea to the consumers. Consumers are more impressed and are more likely to buy a product when an employee can list off each fact about the product. We should also offer nutrition facts about the product because today every one cares about how healthy the product is they're about to consume.

Another way to keep the product inseparable is have each new employee that goes on shift to try the product, to re ensure that the tea is to perfection for every customer. This is what Dunkin does for their coffee every morning and it re ensures the customer that they're drinking the highest quality tea every day. Finally, it's important to leave out certain items that go in tea like honey/sugar for the customers to put in themselves. Even though Dunkin does put everything in them to make life easier for the consumer, it'll quicken up time for the employee and also it allows the consumer to have the drink exactly how they like it. This will increase business because it reduces time so employees can serve more quickly and the consumer can have their drink exactly the way they want it.

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Variability To make our new herbal tea products successful really depends on the quality of service

that is provided by our employees serving the customers. To really promote it we need to place signs promoting the new tea flavors all over the store to really catch the consumer's eye. This will actually let the consumer know and maybe they will even want to try out the new product. Maybe also have an advertisement place in the facility with someone famous to really make the consumer try the product. For example almost every Dunkin Donuts one of our representatives went to have a cardboard cutout with Ron Gronkowski promoting a new steak and egg sandwich. This really catches the consumer's eye because in the eyes of consumer seeing a big celebrity holding a product really makes people want to try the product. This could also lead to maybe a celebrity going to different Dunkin Donuts in different areas offering a meet and greet, and offering free samples to really bring in a lot of consumers to try the new products. This could really expose our new herbal tea product.

It's also important for our employees to have top notch service. We believe that Dunkin should implement to their employees to say the following when introducing themselves to the customer: "Hello my name is (insert name here) and welcome to Dunkin Donuts. Would you like to try are new herbal tea today." Many fast food places do this when they have any new product because it informs the consumer that there is a new product and the likeliness of the consumer buying it increases. It's also necessary for the consumers to have a great background knowledge on the product like different flavors because if the consumer asks questions about the product they'll expect the employee to respond with an answer rather quickly and will again increase the chances of the consumer to buy it.

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