The Dunkin Donuts marketing mix is the framework via which the company decided and implemented its marketing strategies for a strong presence in old and new markets.
The marketing strategy of Dunkin Donuts analyses the brand and target customers through the marketing mix elements like product line, food items, hot drinks, cold beverages, distribution strategy, global pricing policy, sensory marketing and promotional strategy to gain a competitive advantage in different countries across the world.
The Dunkin Donuts strategy has been incorporated into the business so that the company could continue with its policy of global expansion in new markets, attract customers and become the largest coffee chain across the world.
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Introduction of Dunkin Donuts
# Dunkin Donuts
- Origin Country: United States of America
- Founder: William Rosenberg
- Founded: 1950
- Headquarters: Canton, Massachusetts, U.S.
- Parent Company: Inspire Brands
- Annual Revenue in 2023: 1.32 billion USD
- Net Income in 2023: 242.02 million USD
- Market Cap in 2023: 8.78 billion USD
Dunkin Donuts is an American multinational company associated with the food and beverage industry. It is the largest coffee and doughnut company along with a quick-service restaurant. It was opened by William Rosenberg and later acquired by the holding company of Baskin-Robins in 1990. Later both Baskin Robins and Dunkin started operating as subsidiaries of Dunkin’ Brands.
Dunkin Donuts rebranded as a “beverage-led company” and was renamed Dunkin’. The Dunkin Donuts rebranding process started in the United States and overtime rolled out for other international stores. The Dunkin Donuts product line includes baked goods like hash browns and cold, frozen and hot beverages like bagels, doughnuts, hot chocolate and coffee.
Target Audience: Dunkin Donuts Marketing Mix
The Dunkin Donuts marketing strategy has been created to ensure that the customer’s favorite products are on the menu and make the customers aware of the different food items and beverages that the company serves.
The target customers of the brand are between 18 years to 25 years. This group is made up of young professionals and students who love a delicious cup of coffee at affordable prices.
The brand serves the customer’s favourite coffee in nearly 25,000 different ways and has targeted middle-aged men and women who are very busy, frequent restaurants regularly, have higher earnings and are very particular about their beverages.
Dunkin Donuts appeals to families who are drawn to tasty food and beverage because of convenience and affordable price level.
Dunkin Donuts Marketing Strategy & Marketing Mix (4Ps)
The company decided on its different policies after considering the various elements in the marketing mix and marketing strategy of Dunkin Donuts. Every decision has a direct impact on the growth and success of the business.
The brand wants to gain a competitive advantage over rival brands like Starbucks and McDonald’s hence has started focusing on its various marketing strategies that will ensure brand loyalty.
The brand has ensured that the Dunkin Donuts strategy related to food, drinks, place strategy, distribution system, pricing strategy, sensory marketing, event marketing, social media marketing, marketing campaign and promotional strategy is up-to-the-mark from the beginning itself.
Dunkin Donuts Product Strategy: Marketing mix of Dunkin Donuts
The marketing strategy of Dunkin Donuts has helped the company to become one of the most popular coffee brands in the world that serve coffee lovers 2 billion coffee cups on an annual basis or 60 coffee cups every second and 2.9 billion doughnuts annually.
2.000 coffee beans on the go are used to make 1 pound of Dunkin Donuts coffee. The company is very particular about the quality of Dunkin Donuts products and has experts that taste nearly 200 cups of coffee per day.
The marketing strategy of Dunkin Donuts has been a guiding force behind making the customers aware of the product line and various food items and beverages. Since the year 2007, the brand has made a conscious effort to offer healthy items. It has reduced the usage of trans fat and replaced it with a combination of cottonseed, soybean and palm oils.
Dunkin Donuts Products: Marketing Strategy of Dunkin Donuts
Donut is the main product of the brand in the Dunkin Donuts marketing strategy and along with it the company serves hot, cold and iced beverages and baked goods. The fast-food joint started selling coffee back in 2014 and this marketing strategy of Dunkin Donuts proved highly successful as it has now become the largest brand of coffee in the world.
All-time favourites of the company are baked confectionaries, iced tea, iced coffee, hot chocolate, hash browns, fruit juices and Turkish Coffee. The Dunkin Donuts marketing strategy focuses on creating a special doughnut that is a true reflection of the local market.
The Dunkin Donuts product line includes
Sandwiches and Baked Confectionaries
- BLUEBERRY MUFFIN
- SMOKED CHICKEN PIE
- CHEESY TOASTY
- OATMEAL & RAISIN COOKIE
Dunkin Donuts serve iced tea, iced coffee, iced lattes and Macchiatos topped with vanilla, caramel or hazelnut.
- ICED CAFÉ LATTE
- CLASSIC LEMONADE
- VIRGIN MOJITO
The hot drinks menu includes hot tea, hot coffee and hot chocolate
- FILTER COFFEE
- TEA ELAICHI BULK
- CLASSIC HOT CHOCOLATE
Dunkin Donuts serve specific food and beverages during particular seasons
- PEPPERMINT HOT CHOCOLATE – Winter Season
- SALTED CARAMEL – Fall Season
The doughnuts reflect the cuisine, taste and flavour of the local market and the culture of the country.
- WASABI CHEESE AND SEAWEED CHEESE DONUTS – Singapore
- DRIED PORK AND SEAWEED DONUT – China
- ROYAL LOVE DONUTS – Celebrating royal nuptials
Fruit Juices & Smoothies
- MANGO FRUIT JUICE
- LITCHI FRUIT JUICE
Place: Marketing Mix of Dunkin Donuts
Dunkin Donuts rebranded and later renamed as Dunkin’ has spread its product presence to 13.500 locations across 42 countries. Currently, it is the largest coffee and donut chain in the world.
In the year 1948, Rosenberg opened a restaurant “Open Kettle” and started selling both donuts and coffee. The success encouraged him to sell franchises so that the brand could gain more visibility in international markets.
By 2018 the company started opening modern décor concept in-store kiosks with single-cup brewing machines, packaged options for take-out, mobile app ordering and cold beverages on the go. The company also started installing espresso machines at most of the locations and started selling espresso products by using a brand-new recipe.
Dunkin Donuts opened the first Dunkin Shops in India in 2012 and has become a favourite hangout for families and individuals within a short time. It offers on-the-go pick-up and delivery services to its customers.
Place and Distribution Strategy: Marketing Mix of Dunkin Donuts
The place and distribution strategy in the Dunkin’s marketing mix is very clear. As the company is one of the major fast-food joints the focus is on the distribution system in different countries.
The distribution strategy in the Dunkin Donuts marketing strategy includes the following channels-
These are run by local franchise owners with the flexibility to add local flavour to the cuisines. Fresh produce is sent to these stores daily so that the outlets can serve customers with ease.
The Dunkin Donuts marketing strategy focuses on its delivery service which has proved highly successful for the brand. It has entered into a partnership with delivery companies like Grubhub, UberEat and DoorDash for smooth, quick and effective door-to-door deliveries.
The marketing strategy of Dunkin Donuts has been focused on its slogan “America Runs on Dunkin”. This has now been modified to America Runs on Digital Dunkin. The company opened its first digital store in Boston. The digital-only stores do not have any seats, tables or cashiers and customers have to place their orders through the mobile app or in-store kiosks. This is the brand’s answer to the post-pandemic era which has seen a shift in customers’ preference for mobile apps ordering, delivery and drive-thru.
Pricing Strategy: Marketing Mix of Dunkin Donuts
Dunkin Donuts is a customer’s favorite brand all over the world. It is most popular in the United States, which is one of the highest-earning countries for the brand.
Even though Donuts is the main product of the company, it accounts for only 8% of the total sales. It is the beverage section that is the highest earner at 65% of the total sales and other food items at 27%.
Price Mix: Marketing Strategy of Dunkin Donuts
The marketing strategy of Dunkin Donuts is focused on a global pricing strategy where the rates are reasonable so that the company can maintain customer loyalty. Dunkin is a highly popular brand in the international arena. It has been able to maintain its customer base because of the pricing strategy that encourages customers to place orders without looking at their pockets.
The Dunkin Donuts marketing strategy for price includes
Competitive Pricing Strategy
The marketing strategy of Dunkin Donuts has adopted competitive pricing for its products because it faces stiff competition in the industry from other brands like Starbucks and McDonald’s. Dunkin’ has looked at the product prices of these brands and kept its prices reasonable. This move has resulted in gaining a competitive advantage in the industry over rival brands like Starbucks.
Adorable Price Policy
As the target audience of the brand is lower-middle and middle-income groups along with youngsters and young adults the marketing strategy of Dunkin Donuts has adopted an affordable pricing policy. The stores have started selling items on the menu at affordable prices to keep their customers happy.
Promotion Strategy in Dunkin Donuts Marketing Strategies
The marketing strategy of Dunkin Donuts is considered unique and apt as it easily aligns the marketing mix elements with promotional tools like sensory marketing, event marketing and social media marketing to attract customers, generate a strong presence in the target market and create a loyal customer base.
The promotion strategy in the Dunkin Donuts marketing strategy and marketing mix includes the following
The Dunkin Donuts marketing strategy uses traditional media like electronic and print media to its advantage. Ad campaigns are shown on prime channels of television for maximum brand visibility. The ads are also displayed via the print media in newspapers, magazines, hoardings and billboards.
The brand has launched several marketing campaigns to convert the potential and maintain the existing customers. It celebrates National Donut Day with several incentives. In recent times Dunkin Donuts has projected itself as one of the best coffee brands and it celebrates this achievement by offering free coffee to customers on special occasions.
Social Media Marketing
The brand understands that being active on social media platforms via social media marketing is the need of the hour. It maintains direct contact with the customers by being active on social media pages through different social media platforms like Facebook, Twitter, YouTube and Instagram. The Instagram social media pages are a visual treat as it displays recipes alongside appealing videos and graphics to maintain consumer interest.
Event Marketing and Sponsorships
The Dunkin Donuts marketing strategy makes sure that its event marketing promotion is at its best. The brand sponsors the National Women’s Hockey League, NBA Basketball Team, Dallas Cowboys, New York Mets and Tampa Bay Rays.
Dunkin Donuts had a sponsorship deal with Madison Square Garden Company. After signing a multi-year sponsorship deal with the National Women’s Hockey League, the brand is the official iced, hot and frozen coffee of the NWHL.
DD Perks Rewards
As part of the Dunkin Donuts marketing strategy, the brand has launched the DD Perks Rewards where members get 5 points for every dollar spent. When customers have gathered 200 points then they can use the reward coupon for a free beverage. Members are also eligible for a free coffee or any other drinks when they enrol in the program and also on their birthdays.
In 2019 Dunkin Donuts entered into a partnership with Grubhub for the new Dunkin’ Delivers Service and Beyond Meat for a meatless breakfast sandwich. It became the first restaurant coffee brand to serve coffee lovers Beyond Sausage.
Since April 2020, the company has decided to phase out foam cups made from polystyrene for environmental safety.
Dunkin Donuts contributes through “The Joy in Childhood Foundation” and has donated nearly 16+ million to local and national charities for children who are battling illness or hunger.
Digital Campaigns – Notable Digital Marketing Campaigns
Refreshing Videos of Cold Brew
Dunkin’ tempted coffee addicts with refreshing videos of the cold brew on their mobile devices and desktop. Spotify’s Video Takeover Everywhere Format gave the brand a platform to show their product in the most impactful manner.
Time To Make The Donuts
The commercial “Time To Make The Donuts” reminds viewers that the doughnuts are worth the trip to the store.
The ad campaign “Flavor Radio” was an instant hit with consumers as the sales increased by 29%.
The Dunkin Donuts marketing mix has been a complete success as it has positioned the brand on the top as one of the best coffees, doughnuts and QSR in the world. The brand appeal is awesome and so is the brand visibility in the market. The 4Ps have been the driving force behind the business strategies of the brand as it has helped it in achieving desired business goals.
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