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BA 663 – Assignment 2.2: Dunkin Donuts Video Case Jamie AngoveBellevue UniversityDr. Okash Dunkin Donuts has been a popular doughnut and coffee restaurant for over 65 years. Since that time, little has changed in regards to the brand. The company has stayed true to the founder’s mission to provide great products and great customer service. Dunkin’ Donuts maintains a strong brand yet today, proving to be a great company to base a brand case study upon.Dunkin’ Donuts’ Store and Web PresenceDunkin’ Donuts has maintained the iconic orange color scheme since its inception. Vinyl posters are affixed to the windows advertising best-selling and new featured products, and the door handles are made of a giant molded “D” to further emblazon the brand on incoming customers. The restaurant is pleasant and clean, but also simple and unpretentious. Many stores still feature a fifties diner-type feel, with a high top table near the point of sale register fitted with orange and pink vinyl seats.Dunkin’ has expanded beyond restaurant sales and offers retail items for customers to take home with them. A merchandise display contains coffee beans, K-cups and reusable coffee tumblers for customers to purchase. Many restaurants have wall murals portraying cartoon versions of customers enjoying life while also eating or drinking Dunkin’ Donuts products. When proceeding to the counter to order, customers see large digital displays of all of the restaurant offerings: doughnuts, coffee, bagels, muffins, and breakfast sandwiches are the primary items sold. Beneath are rows and rows of doughnuts in many flavors, colors and varieties. Further, customers are greeted by Dunkin’ employees: typically warm and talkative, and very down-to-earth.Dunkin’ Donuts’ webpage feels very similar to the store layout: clean, pleasant design with the classic orange-and-pink color scheme. The main page displays a rotating advertisement for featured products, flipping between new GranDDe burritos, ice cream flavors offered at Dunkin’s partner company Baskin Robbins, and espresso crafted drinks. The bottom has several panes connecting consumers to social media to talk about their love for the brand and a Dunkin’ Donuts blog. The menu bar at the top allows consumers to discover coffee products and other menu items, find restaurants, shop for merchandise online, and register for the new rewards loyalty program, DD Perks (Dunkin’ Donuts, n.d.).Points of Differentiation and Points of ParityDunkin’ Donuts positioned itself very early on as a company offering consistent, fresh products paired with great customer service (Pearson Video Library & Business Now, 2003). The company strives to make the brand affordable and accessible, presenting itself as a common company made for everyday people (Pearson Video Library & Business Now, 2003). Even in the first commercial in 1978, Dunkin’ presented itself to customers as a company that offered fresh products but did not take itself too seriously (Pearson Video Library & Business Now, 2003).Dunkin’ is in a unique position in the market: few doughnut companies have tried to compete with their expansive product line, and few coffee companies offer a wide assortment of doughnut options. Regardless, Dunkin’s points of differentiation in both the coffee and doughnut market primarily include the level of quality they provide, the service, and the ability the company has to appeal to people from all walks of life. Dunkin’s quality is represented by its policy for always offering fresh coffee: the pot is thrown away every eighteen minutes, regardless of how full the carafe may be (Pearson Video Library & Business Now, 2003). The great service and accessibility of the company make Dunkin’ appeal to a diverse population of consumers.Dunkin’ Donuts shares points of parity with most major coffee shops in the United States market. While Dunkin’ has limited coffee product offerings to things that are average and comfortable for novice coffee consumers, it has expanded those offerings to keep up with consumer demand. This includes offering lattés, cappuccinos, blended coffee drinks, and now even macchiatos (a drink now very commercialized, but probably thought to be too high class at the turn of the century). Additionally, Dunkin’ Donuts has a loyalty program, keeping up with the rewards offered by competitors like Starbucks and Caribou Coffee. In the doughnut market, Dunkin’ offers both cake and raised doughnuts and presents seasonal products just like primary doughnut competitor, Krispy Kreme.Maintaining ConsistencyBy keeping focus on the company mission, Dunkin’ has had success in maintaining consistency as one of its primary value propositions. On the coffee menu featured on Dunkin’s webpage, it states, “let’s hear it for consistency” (Dunkin’ Donuts, n.d.). Consistency has clearly been in the company’s vision all along, which makes it easy to stick to decisions and strategies that continue to enforce this mission. Dunkin’ also touts, “it’s nice to know that even as the world changes, Dunkin’ coffee remains the same” (Dunkin’Donuts, n.d.). Coffee is rigorously tested and sampled by a quality assurance technician to ensure every cup provides the same reliable flavor (Pearson Video Library & Business Now, 2003). Regardless of what modifications occur to make each consumer’s beverage unique, they are assured that the flavor will be unswerving. Dunkin’ has maintained the same head baker for nearly its entire lifespan. The company has kept staple products since the beginning. It only offers new options after listening to customers’ recommendations for different products and flavors (Pearson Video Library & Business Now, 2003). Innovative products do not hit the market until they have completed thorough taste-testing and consumer research (Pearson Video Library & Business Now, 2003). Dunkin’ Donuts owns all of its own formulas, allowing for continued control and uniformity (Pearson Video Library & Business Now, 2003). In addition, employees go through extensive training programs that coach them on the Dunkin’ way: maintaining quality and consistency (Pearson Video Library & Business Now, 2003). Most of all, Dunkin’ focuses on its products and service, keeping the menu and restaurant simple as a way of making customers feel at ease and maintaining concentration on the quality of the products it offers (Pearson Video Library & Business Now, 2003). Value PropositionDunkin’ Donuts value proposition is wrapped up into the main components of its mission and points of difference: providing quality products consistently, and providing great customer service. Dunkin’ customers feel comforted knowing that they will always receive the same quality of product with the same taste, whether they purchase a doughnut and cup of coffee in Des Moines, Iowa or at an airport in Newark, New Jersey. Having this to rely on feels to many consumers like going to Dunkin’ is always like returning home.Dunkin’ has a unique advantage over other types of restaurants in that coffee needs to be accessible, which means many restaurants can penetrate a small radius in larger cities and suburbs (Pearson Video Library & Business Now, 2003). As an example, Des Moines, Iowa has a population of just over 200,000, closer to 500,000 when including suburbs (United States Census Bureau, 2013). There are nine Dunkin’ restaurants in this 20 mile radius. Coffee is purchased as a convenience product: on the way to the office, to an appointment, to a kid’s ball practice. If Dunkin’ were not available in a close proximity, it is likely that even loyal customers may go to a competitor to avoid going out of their way.Dunkin’ also has a large loyal fan following. Even before offering a new, expanded rewards program, many Dunkin’ customers were regulars. When the first store opened in Des Moines after the chain had been out of the state for more than 40 years, there were lines out the door for the first couple of weeks. After stores have been now open for over three years, the line through the drive-thru is still extensive each morning, proving that Dunkin’s commitment to quality products maintains a solid fan base.Dunkin’ Donuts GrowthThe company continues to grow, attract new customers, and increase loyalty of current customers through innovation. In listening to consumer desires and performing extensive research, Dunkin’ is able to keep a pulse on not just trends in the industry, but preferences of their own customers. Surveys are frequently administered to customers to gauge satisfaction and collect feedback on room for improvement, offering in return an incentive for a free doughnut. Upon completing the survey, customers may choose to also join Dunkin’s mailing list to receive updates on new products and promotions. Dunkin’ is able to grow their reach each time they obtain new email addresses.Following in the footsteps of other restaurants, Dunkin’ will begin offering curbside and in-store pickup in conjunction with mobile app ordering (“Dunkin’ Donuts to offer delivery and curbside pickup with mobile app,” 2015). During this release, current DD Perks customers will also be upgraded to a new rewards program promising better benefits (“Dunkin’ Donuts to offer delivery and curbside pickup with mobile app,” 2015). Continuing to keep up with the market through these innovations, partnered with ongoing expansion of the food and coffee products, keeps Dunkin’ competitive in the market.Last, Dunkin’ continues to expand to additional markets to field additional growth. The company has focused on finding new ways to enhance relationships with the expanding Hispanic population (“Millennials and Hispanics drive Dunkin’ Donuts’ growth,” 2014). A mobile app was released with bilingual options to appeal to this market. Improvement and growth in the mobile app and technology arenas also make the brand more appealing to Millennials. Offering convenience on top of service and consistency improves the value proposition for the brand (“Millennials and Hispanics drive Dunkin’ Donuts’ growth,” 2014).ConclusionDunkin’ Donuts has remained a reliable and constant brand since its inception. While it expands and grows to stay relevant, it also knows its limitations and does not try to present itself as something it is not: a high end coffee shop. As a result, consistency and service have maintained staples in the business, and customers continue coming back for more.ReferencesAnonymous. (2015). Dunkin’ Donuts to offer delivery and curbside pickup with mobile app. Food Logistics, 171, 14.Anonymous. (2014). Millennials and Hispanics drive Dunkin’ Donuts’ growth. Convenience Store News, 7.Dunkin’ Donuts. (n.d.). Dunkin’ Donuts homepage. Retrieved on March 23, 2016 from Video Library & Business Now. (2003). Dunkin’ Donuts. [Video file]. United States: Prentice Hall. Retrieved from States Census Bureau. (2013). Des Moines, Iowa population. Retrieved on March 23, 2016 from ................
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