Dunkin’ Donuts Business Review

Date: Apr 18, 2019
Category: Review Category

Dunkin’ Donuts as a Customer-Oriented Business

On the website of Dunkin’ Donuts Company, one can see that this business is customer-oriented. The menu of the site has such tabs as DD Card and DD Perks, which shows that the company tries to create some comfortable conditions for its clients (Kotler & Armstrong, 2009). DD Card gives customers an opportunity to pay for the products with it. The clients can also pay for Dunkin’ Donuts products using only their mobile phones if they have a DD Card (Kotler & Armstrong, 2009). The firm cares about its customers and provides them with the registration service that allows them to protect their cards from being used in case they are stolen or lost.

Regarding DD Perks Rewards Program, it allows customers to get pleasant bonuses for using the company’s service and products (Kotler & Armstrong, 2009). For instance, for every 200 points that a client earns, he or she can have a free beverage. The firm cannot miss such important events as its customers’ birthdays and congratulates all of them. DD Perks also give clients an opportunity to have one free beverage if they sign up for the company's website (Kotler & Armstrong, 2009). Finally, the members of Dunkin’ Donuts rewarding program receive various special offers and bonuses that are available only for them.

One can state that everything that the firm does for its clients, it does to develop its business and get more money from it. It is the main target of any business and it is obviously not a reason to state that Dunkin’ Donuts Company is oriented on its products more than on customers. The firm does its best to improve its service and develop its opportunities in order to satisfy its clients.

The Environmental Factors that Have Affected Dunkin’ Donuts

One of the environmental factors that affect Dunkin’ Donuts is a socio-cultural one due to the fact that DD’s target market comprises numerous cultures (Kotler & Armstrong, 2009). Consequently, the company has to constantly improve and research the market in order to develop and be aware of customers’ needs and demands. As a result, DD implements some particular changes that are focused on keeping the existing clients and attracting new ones. The lifestyles of many DD’s customers also influence the changes and lead to some renovations in the restaurant chain, such as centralized kitchen, couches, chairs and television that are available for clients at any time of a day (Kotler & Armstrong, 2009).

The next factor is competition. In order to be a competitive business, DD has to revise its strategies. The reason is that Dunkin’ Donuts is a company that offers three different types of products, such as beverages, donuts and burgers. There are also three big and famous companies, such as Starbucks, McDonald’s and Krispy Kreme. Each of the above mentioned companies is famous for offering either beverages or burgers or donuts.

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Finally, two of the most important issues that impact Dunkin’ Donuts are demographic and economic ones. These two environmental factors make DD Company revise its marketing strategy in order to adapt to the above mentioned environments (Kotler & Armstrong, 2009). For instance, considering age, gender and lifestyles of its customers, the firm has to make some renovations, including centralized kitchen and giving its clients an opportunity to watch their favorite TV programs in the restaurants of the chain (Kotler & Armstrong, 2009). Considering economic state of customers, the company implements certain programs that help its clientele to save their money.

Dunkin’ Donuts versus Starbucks in Economic Recession

The economic recession helps Dunkin’ Donuts to benefit in the coffee market, but it does not gain in the competition with Starbucks (Schermerhorn, 2011). Due to the economic state of many people who cannot afford expensive products and services, Dunkin’ Donuts becomes popular in the market with its affordable prices and customer-oriented strategy. Nevertheless, one cannot state that DD becomes more popular among clients of such restaurants chains or has bigger market share than Starbucks. According to the statistics, Dunkin’ Donuts is at the bottom of the coffee war between DD, Starbucks and McDonald’s. While DD has 2.3% of the market share in coffee industry, Starbucks’ percentage of the market share equals 7% (Schermerhorn, 2011). One can see that DD cannot be a serious competitor for Starbucks Company.

Dunkin’ Donuts Main Competitors

Since DD Company is focused on offering clients such products as coffee, donuts and some kinds of fast food, it has too many competitors because such products are very popular worldwide. The main competitors of Dunkin’ Donuts are Starbucks and Krispy Kreme. While Starbucks specializes on coffee, Krispy Kreme takes one of the leading positions among restaurants that offer donuts to the customers (Smith, 2006).

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In fact, it is well known that potential clients almost always choose between companies that have a loud name and famous brand (Smith, 2006). As three above mentioned companies are very famous worldwide and offer the same products, they are main competitors. From the statistics, one can see that the fast food market share of Starbucks is 43%, while Krispy Kreme takes only 5% (Smith, 2006). Regarding Dunkin’ Donuts, its market share is 23% (Smith, 2006). Considering market share for donut chains, DD takes 28.5%, while Krispy Kreme has only 6.8% (Smith, 2006). Among the benefits of DD Company are affordable price and the firm’s customer-oriented strategy. These two factors attract more new clients and keep loyal ones.

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