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    References: (CITATION Bro19 /L 1033) (CITATION Mac20 /L 1033) (CITATION Mac201 /L 1033) (CITATION Sta20 /L 1033)

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    Javier Romero
    Dunkin' Donuts has maintained its position as the second largest coffee chain in the US through consistent quality and variety while also expanding into specialty coffee drinks. Over the past decade, the coffee market has shifted towards gourmet coffee and cold brews, driven by younger consumers who also prefer more digital interaction. While Starbucks and Krispy Kreme have grown more aggressively at times, Dunkin' Donuts has achieved steady revenue increases of around 3% annually, indicating its major competitors have had little meaningful impact on its sales performance.

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    References: (CITATION Bro19 /L 1033) (CITATION Mac20 /L 1033) (CITATION Mac201 /L 1033) (CITATION Sta20 /L 1033)

    Uploaded by

    Javier Romero
    205 views2 pages
    Dunkin' Donuts has maintained its position as the second largest coffee chain in the US through consistent quality and variety while also expanding into specialty coffee drinks. Over the past decade, the coffee market has shifted towards gourmet coffee and cold brews, driven by younger consumers who also prefer more digital interaction. While Starbucks and Krispy Kreme have grown more aggressively at times, Dunkin' Donuts has achieved steady revenue increases of around 3% annually, indicating its major competitors have had little meaningful impact on its sales performance.

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    CaseStudy_Dunkin_Donuts

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    Dunkin' Donuts has maintained its position as the second largest coffee chain in the US through consistent quality and variety while also expanding into specialty coffee drinks. Over the past decade, the coffee market has shifted towards gourmet coffee and cold brews, driven by younger consumers who also prefer more digital interaction. While Starbucks and Krispy Kreme have grown more aggressively at times, Dunkin' Donuts has achieved steady revenue increases of around 3% annually, indicating its major competitors have had little meaningful impact on its sales performance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    205 views2 pages

    References: (CITATION Bro19 /L 1033) (CITATION Mac20 /L 1033) (CITATION Mac201 /L 1033) (CITATION Sta20 /L 1033)

    Uploaded by

    Javier Romero
    Dunkin' Donuts has maintained its position as the second largest coffee chain in the US through consistent quality and variety while also expanding into specialty coffee drinks. Over the past decade, the coffee market has shifted towards gourmet coffee and cold brews, driven by younger consumers who also prefer more digital interaction. While Starbucks and Krispy Kreme have grown more aggressively at times, Dunkin' Donuts has achieved steady revenue increases of around 3% annually, indicating its major competitors have had little meaningful impact on its sales performance.

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    Dunkin’ Donuts has many strengths (quality and freshness, flavor and variety, good value, convenient and

    accessible locations, strong brand presence). It strives to provide great products with great customer
    service. They like to “have fun” and be the “everyday” and “real person” brand. However, the company
    has to deal with powerful, new competitors, including Starbucks and Krispy Kreme. Dunkin’ Donuts feels
    that these competitors serve to drive up to awareness of coffee across the world—this benefits Dunkin’
    Donuts as it has maintained high quality in its products. Dunkin Donuts’ differentiates itself as keeping its
    products simple (e.g., no fancy names or sizes for its coffee).
    Success is attributed to extensive market research conducted before a product is launched. Additionally,
    corporate training enforces the strict company standards to deliver a consistent product year after year
    and across all restaurants and franchises. Dunkin’ Donuts does not target one customer segment; rather,
    it reaches across all demographic strata. Its promotional campaigns and diversity of locations support this
    strategy. To meet market demand, the company is expanding into the coffee market by offering specialty
    coffee drinks in addition to its standard drip coffee. But Dunkin’ Donuts will not deviate from its original
    product offering and continues to offer the consumer quality, convenience, and variety.
      CASE STUDY QUESTIONS: (ANSWER ANY TWO)
     
     2.  Have Starbucks and Krispy Kreme had a meaningful impact on Dunkin’ Donuts’ sales, Explain?
    As stated by Brown, Dunkin’ Donuts is the second largest coffee chain in the U.S. with a market share of
    23 percent. Moreover, for 2019, Dunkin’ Donuts and Starbucks Coffee were responsible for 80 percent of
    the total new store openings [ CITATION Bro19 \l 1033 ]. For the past three years, Dunkin’ Donuts
    has registered revenue increases of 2.18 percent for 2017 , 3.61 percent for 2018, and 3.68 percent for
    2019 [ CITATION Mac20 \l 1033 ]. Starbucks, being the largest coffee chain in the U.S. with a market
    share of approximately 40 percent, also registered revenue increases. These increases were much larger
    than that of Dunkin’ Donuts as its approach to market trends has been more aggressive. Starbucks grew
    by 5.02 percent in 2017, 10.42 percent in 2018 and 7.24 percent in 2019 [ CITATION Mac201 \l
    1033 ]. In contrast, Krispy Kreme’s revenues have fluctuated for the past three years. In 2017, Krispy
    Kreme experiences a revenue increase of 17.6 percent, with a subsequent 9.7 percent decline in 2018.
    Its revenues rebounded with an increase of 10.2 percent in 2019 [ CITATION Sta20 \l 1033 ]. Based
    on these figures, we can state that Dunkin’ Donuts has maintained its strong market position as the
    second largest coffee chain, and has maintained a steady revenue increase performance for the past
    three years. Therefore, we can state that its rivals have had little to no effect on its overall revenue
    performance and market positioning.
     3.  How has the coffee market changed in the last decade? 
    According to Allegra World Coffee Portal, the coffee market has shifted towards gourmet coffee and cold
    brews. Younger consumers below age thirty mostly drive this consumer trend. Furthermore, given the
    younger demographic, there has also been a shift towards more significant digital interaction using
    applications to place orders. [ CITATION All19 \l 1033 ].

    References
    Allegra World Coffee Portal. (2019, 10 22). Major chains driving US coffee shop growth – but overall
    market slows. Retrieved from worldcoffeeportal.com:
    https://www.worldcoffeeportal.com/Latest/News/2019/Major-chains-driving-US-coffee-shop-
    growth-%E2%80%93-But-o
    Brown, N. (2019, 10 25). Nearly Four of Every Five US Coffee Shops are Now Starbucks, Dunkin’ or JAB
    Brands. Retrieved from Daily Coffee News: https://dailycoffeenews.com/2019/10/25/nearly-
    four-of-every-five-us-coffee-shops-are-now-starbucks-dunkin-or-jab-brands/

    Macrotrends. (2020, 09 23). MacroDunkin' Brands Revenue 2010-2020 | DNKN. Retrieved from
    Macrotrends.net: https://www.macrotrends.net/stocks/charts/DNKN/dunkin-brands/revenue

    Macrotrends. (2020, 09 23). Starbucks Revenue 2006-2020 | SBUX. Retrieved from Macrotrends.net:
    https://www.macrotrends.net/stocks/charts/SBUX/starbucks/revenue?q=

    Statista. (2020, 04). Sales of Krispy Kreme in the U.S. from 2001 to 2019. Retrieved from statista.com:
    https://www.statista.com/statistics/297195/sales-of-krispy-kreme-doughnuts-us/

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