Keywords: dunkin donuts market segmentation, dunkin donuts pest, dunkin donuts pestl
Dunkin's Donut is America's favorite food and all-day stop for coffee and cooked goods. It is a leading retailer of hot and iced regular caffeine by the glass in America and it also the largest espresso and baked goods chain on earth. The original Dunkin's Donuts was a single sit down elsewhere with a donut. Now Dunkin's Donut offers a variety of coffee or caffeine related beverages, cooked goods and an expanding all day Oven Toasted menu. However they still use their original proprietary coffee blend recipe founded by its creator (Franchise Update Advertising Group 2010).
Throughout Dunkin Donuts Company's planning, they always keep the customer's passions at heart. They frequently refer to their mission statement which is increase customer satisfaction and loyalty by providing the fastest and most appropriate service, the freshest products in the friendliest and cleanest environment. They accomplish this through teamwork, communication, credibility, fun and writing experiences as each of them grow alongside one another (Riverside Management 2006).
Today, this beliefs still holds true and it is the building blocks that has allowed Dunkin' Donuts to develop into America's favorite everyday, all-day stop for coffee and baked goods (Dunkin' Donuts 2009).
Consumer Decision Process
Consumer behavior talks about the many explanations why people buy things and later get rid of them. Diagram 1 is showing about consumer will go through distinct buying stages when they purchase products (Tanner, J. et al [No Date])
Dunkin Donuts has promoted itself as providing coffee for people on the go and their slogan is "America operates on Dunkin". Dunkin Donuts coffee is what people drink on the way to work while on the car or on the subway (MightyStudents. com 2010). When people hurry the time go to work but famished, they'll go to Dunkin Donuts because Dunkin Donuts easy take away and replenishing the energy of these.
When consumer needs to buy something, they will do something information search and make automated purchase decisions. It is because Dunkin Donuts coffee is a low-involvement product and it posesses low threat of failure and has a low price tag for a specific individual or group making the decision (Tanner, J. et al [No Day]). Consumer will have the information of Dunkin Donuts from neighbours, colleagues, good friend or advertisements.
The outputs of information processing are the opinion, attitude that form decisions and the motives that predispose certain activities. In beverage, consumers have many choices to choose which one coffee brand they need.
The company logo of Dunkin Donuts is red and orange colour and these coloring is memorable just about everywhere and also has a small glass of hot coffee (CBS Interactive 2010). The price tag on Dunkin Donuts coffee is less expensive pastry and drink offerings are made to attract a fast on the move crowd (MightyStudents. com 2010).
In beverage industry, Dunkin Donuts espresso will face many competition and their major rival is Starbucks caffeine. Consumer still will choose Dunkin Donuts espresso because they have got good service for his or her customer.
Besides that, Dunkin Donuts espresso has a reputation for brewing high quality caffeine. It is because they use 100% Arabica coffees and has its coffee specifications, which are recognized by the industry as an excellent grade of coffee however Dunkin Donuts caffeine still is less expenses for consumer (Alex Compton 2007).
Finally, consumer will determine whether Dunkin Donuts coffee their purchased is everything it was damaged up to be. If not, they will like to suffer what's called post-purchase dissonance, so they'll rethink their decision after purchasing products and think about (Tanner, J. et al [No Time]). Dunkin Donuts need to try the prevent buyer's remorse, so they have got a person service to help their customer to resolve their problem. The customer service will receive any suggestion from other customer and have the new idea to fortify their business.
In summary, consumer decision process does not end when a purchase has been made. The main of all from a marketing point of view is whether the consumer will buy the decided on brand again on the later purchase occasion (Baker, M. J. 1999, -).
Consumer Buying Influences of Dunkin Donuts
Consumer's buying is influenced by four major emotional factors that are notion, learning, inspiration and attitudes.
Perception
Perception is an activity that commences with consumer vulnerability and focus on marketing stimuli and ends with consumer interpretation. Diagram 2 is displaying about the nature of notion.
- Stimuli
- Exposure
- Attention
- Interpretation
- Memory
- Purchase & Intake Decision
In Asia countries when people heard about Dunkin Donuts, they just know Dunkin Donuts is offering donuts. It's the donuts phrase will let them link to this drink food main product is donuts not the caffeine. But expect Asia country, they will know the Dunkin Donuts main product is espresso.
This is why they need communication to reach consumers first and resulting in activating one or more senses, therefore consumer visibility is the start of preliminary processing. Dunkin' Donuts espresso is well-known for their advertising and become popular culture referrals (WorldLingo Translations LLC 2010).
Dunkin Donuts will through various ways to market their caffeine such as billboards, tv adverts, magazines, sides of bus and the others. For the reason that they need to generate increased ingestion their coffee. For instance, Dunkin Donuts use the bus advertising to promote their coffee.
They choose this advertising since it is large advert areas, novelty interest, high flexibility and it can available for corporate seek the services of (Bus Advertising 2006).
Nowadays, most people stay in a host that is filled up with sensory stimuli but their capacity to take care of this information is limited (OpenLearningWorld 2010). So, Dunkin Donuts try to exploit that situation to their benefits before to leave a direct effect in their consumer (Himansu, S. M. 2009). It is why Dunkin Donuts have their own graphic logo design and their shows a high coffee glass and hot green and orange shade company name. These two colour are dynamic, vibrant and fast, consumer will easy pay attention in their coffee when consumer see both of these colour (COMPANY LOGO Works 2010).
On the other palm, the often situation, condition, environment or the surrounding of the consumer impact its attention of certain stimuli. In America, Dunkin Donuts use thing type is office worker and normal staff member.
So, Dunkin Donuts stores with limited seats as well as its less expensive pastry and beverage offerings are created to attract a fast, on the move crowd (MightyStudents. com 2010). When consumer hurry enough time go to work, they remind Dunkin Donuts coffee and go to buy it.
Interpretation is Dunkin Donuts coffee's message which to attention the enticed and further analyses in conditions of categories of interpretation stored in recollection (Lombard, A. 2007). Dunkin Donuts and their caffeine are symbolic value for consumer and they will attempt to protect or enhance Dunkin Donuts caffeine. Hence, product and service image is very important for Dunkin Donuts in their business.
Motivation
In the drive theory, we may use Abraham Maslow's Hierarchy for Dunkin Donuts caffeine because this theory is influenced by the living of unsatisfied needs.
Through about Maslow's theory, Dunkin Donuts coffee is belong to physiological needs. Water and food are very very important to all of folks and Dunkin Donuts is providing espresso and donut to consumer. Therefore, they can get the energy from Dunkin Donuts caffeine and carry on their activity.
Figure 3 is an advertising campaign which is cognitive preservation purpose in McGuire's mental motives and it is the necessity for objectification of consumer. On this advertisement have a person who wear Dunkin Donuts coffee cup and run on the ways. This step is mating about Dunkin Donuts slogan and stimulates their caffeine, then can strengthen consumer impression
Learning, Memory and Retrieval
Learning is a behavioral adjustment occurring through experience or fitness and it included with thinking, conditioning and modeling (IBS Center for Management Research 2010).
Advertising is a method which is use by most of business because advertising will easy let consumer to keep in mind their product.
Consumer will easy give consideration for this advert because this advertisement is colourful and quite especial, they will want know very well what is the mean about the "America Works on Dunkin". After that, consumer will begin to analysis the merchandise is good or not. They will use different method to measure the value of the merchandise with other same type product.
After that, consumer will remember Dunkin Donuts coffee in their mind. When consumer see people operating, they will quickly association Dunkin Donuts slogan they will received desire need to drink the espresso and go to buy.
Attitudes
Consumer attitudes are composite of any consumer's beliefs, sense and behavioral intentions toward some subject. All of them are viewed together being that they are highly interdependent and alongside one another represent forces that influence the way the consumer will respond to the thing (Lars Perner 2010).
Consumer perception Dunkin Donuts espresso will come from newspapers, television set, being attentive radio, internet and cognitive process. America is a active country and Dunkin Donuts coffee is what you drink if you are on the go, so consumer will go to buy Dunkin Donuts caffeine when they hurry their time for you to work or else.
After consumers take in Dunkin Donuts espresso, they will get some sense with this coffee. They'll think why Dunkin Donuts espresso is so nice and the purchase price also cheap. In addition, the advertising and another consumer comment, it can reinforce the Dunkin Donuts coffee image. Finally, they will choose Dunkin Donuts espresso because they acquired the affirmation from Dunkin Donuts coffee.
Consumer Environment of Dunkin Donuts
Culture and Subculture
America is a coffee culture and American need drink coffee each morning before they start their work. Besides that, America is liberty country because most of countrywide of America is very recognition of personal freedom. In ingestion, they got entitlement to choose anything they need or need.
In order to suited this culture, Dunkin Donuts espresso given their customer many choice in their menu. Dunkin Donuts not have only different kind of coffee, there is also different kind of donuts, fancies, munchkins and sticks. Therefore, consumer received many different alternatives to choose when they have to consumption in Dunkin Donuts.
Group
"Age group can be examined as subculture because they often have distinctive values and behaviors. North american teenage human population has been increasing affluence and fluctuating in size" (Peter, J. P. , et al 1999, pg304). Dunkin Donuts coffee will be flourishing in young market because price of these really cheap but high quality. It is because it's easy, filling and convenient.
Nowadays in America, teenager's parent is active in their work plus they not more more time to get ready home-cooking meal to them. Teen also the limited budget and Dunkin Donuts is less costly then they got the consume electric power.
Lifestyle
America is a active country, so generally they need their food to stop wasting time, convenient and cheap. People in america like thing that are without headaches, requiring nominal personal or economical sacrifice, regardless of whether they buy it at supermarket or fast food franchise (The Kerr Middle, 2010).
Dunkin Donuts espresso is let people drink on the way to work, while on the car or on the subway, so Dunkin Donuts caffeine is exactly what you drink if you are on the go. Hence, Dunkin Donuts stores with limited seating as well as its less costly pastry and beverage offerings are created to attract a fast, on the move group (MightyStudents. com 2010).
PEST Analysis of Dunkin Donuts
(P)olitical
America's administration will set up Environment Protection Company to ask for with protecting individuals health and the environment (KOSMIXTM Organization 2010).
Dunkin Donuts launched its first LEED accredited restaurant in Florida and LEED is regarded as the standard for "green" engineering in the us. LEED features are energy-efficient insulated cement foam walls to reduce air conditioning, energy-efficient lamps, including motion receptors for restrooms and office buildings. They also figuring out designated areas within the restaurant for storage area/collection of recyclable materials. For the reason that they want going to do it in a way that is environmentally friendly for the people who live and work in America (DD IP Holder LLC 2010).
(E)conomic
America has an advanced industrial current economic climate that is highly mechanized and the gross nationwide product is the major on the planet. They more than meet its economic needs and it is the world's leading exporter of food. The vast majority of businesses in the us are clustered within the service industry, especially junk food business (Advameg Inc 2010).
Therefore, Dunkin Donuts coffee in the us will face many rivals such as McDonald, Starbucks and the other. For the reason that they marketing strategy are similar and all are attach importance to their service attitude and acceleration.
(S)ocial
The interpersonal classes for consumer analysis are upper People in the usa (14%), middle class (32%), working category (38%) and lower Americans (16%). Working Us citizens are "family folk" depending intensely on relatives for economic and psychological support (Peter, J. P. , et al 1999, pg318).
Dunkin Donuts coffee is exactly what you drink when you are on the go, to allow them to save many times to do another things. It also is high quality but low cost of pastry and beverage offering are created to attract an easy on the group (MightyStudents. com 2010). Hence, most of American social school can take in.
(T)echnological
America is a technologically advanced country and it becomes an opportunity for Dunkin Donuts caffeine in their business. Therefore, Dunkin Donuts coffee should always look forward to develop and improve its scientific facilities in order to distinguish themselves in their use of technology.
Dunkin Donuts unveiled "Dunkin Run", an interactive Website and iPhone software the chain and it'll allow customers to solicit and place Dunkin' Donuts group requests in simply a few clicks with unprecedented decrease, speed, correctness and fun. Consumers can a group to order with www. DunkinRun. com through their computer or mobile device to view the Dunkin Donuts espresso menu. All Dunkin Donuts center caffeine, foods and drinks are provided using interactive product images to make personalizing an order all of them is simple and fun (Stagnito Press 2010).
Global
In global, many country people such as Asian will not take in on Dunkin Donuts. For the reason that in their first image Dunkin Donuts is providing donuts, so they'll not want to consume. They prefer like to drink tea, Nescafe, Milo yet others.
Dunkin Donuts used marketing strategies in four main areas, specifically product, price, advertising, and place in the us market. Table 1 is displaying about Marketing Mix of Dunkin Donuts caffeine in America.
Product
Dunkin Donuts is the largest coffee and baked goods chain on earth. They use high quality with their coffee plus they have many choice can let their customer to choose. Starbucks is the major competitor for Dunkin Donuts in the drink business.
Price
In price, Dunkin Donuts is less bills and their customer foundation is middle class people. Therefore, almost all of people can consume it.
Promotion
In promotion, they give a holiday coupon code in the month of December and they have their own brand and slogan. Besides that, they will prepare set lunch time because of their customer. Their other campaign method: television, magazine, website, and the others.
Place
Dunkin Donuts is LEED certified restaurant and their stores is limited seating.
STP Statement
Market Segmentation
As of 2009, America claimed 307, 006, 550 inhabitants within the region of 79. 6 sq. km (US Census Bureau 2010). Besides that, America is an extremely urbanized people with 81% surviving in cities. Dunkin Donuts key market segments are student, employee, kids and families. Location of Dunkin Donuts is restaurant outlet in the retail center at orchard street.
Targeting
Characteristics of concentrate on consumer for Dunkin Donuts caffeine have three characteristics which is age 18-25 years of age, age 25 years old above and family. Stand 3 is exhibiting about characteristics of target consumer.
Characteristics of focus on consumer
Reasons for focusing on:
Age 18-25 years old
This complete group is teenager pupil and young staff member and they are limited budget
Age 25 years old above
They are heavy restaurant individual group credited to occupied working lifestyles and they have relatively high incomes and will be more versatile in their budgets.
Businessman
This group do not understand Dunkin Donuts espresso is an extravagance food and it is not hard take away food when they hurry enough time go to work.
Positioning
Dunkin Donuts is placing itself as a brand of choice nationally and internationally. The business's school of thought is "make and serve the freshest, most delightful coffee and donuts quickly and courteously in modern, well-merchandised stores" (DD IP Holder LLC, 2010).
This philosophy enabled Dunkin Donuts coffee to grow into America's favorite everyday and all day stop for espresso and baked good. It really is leading merchant of hot and iced regular espresso by the glass in the us and the largest coffee and cooked goods chain on the planet (Dunkin' Donuts 2009).
Today, more than 50% of Americans consume coffee on a regular basis and drink typically 3 cups per day. Dunkin Donuts coffee is typically the most popular coffee franchise in the us and really helps to support this habit by serving nearly 1 billion mugs coffee every year (Natural Bias 2009).
Branding
In Asia countries, when people found out about Dunkin Donuts, they just know Dunkin Donuts is providing donuts. For the reason that this brand calls Dunkin Donuts and the donuts expression will let them link to this beverage food main product is donuts not the coffee.
Dunkin Donuts brand has usually stood for hot caffeine. Today, Dunkin Donuts is a worldwide conglomerate that stores its own brand as well as quick service restaurant brands Baskin Robbins and Togo's (Brand Route 2010).
It operates as an instant service restaurant franchiser in the espresso, bakery and ice-cream segments in the America and internationally (Bloomberg L. P 2010). Furthermore, their internal compass factors toward their central values of credibility, transparency, humility, integrity, respect, fairness and responsibility (DD IP Holder LLC 2010). Hence, Dunkin Donuts franchiser boats high brand consciousness and it placed the first in customer commitment in the caffeine category in the "Brand Keys Customer Loyalty Engagement Index" (AllBusiness 2009).
As a finish, with the launching of Starbucks, they are opening a fresh window towards a better future for their customer and also the company. That is why Starbucks can be leading the entire world in the America fast caffeine market. Alternatively, Dunkin Donuts coffee has used their consumer information to look for the market tendency and new ways to increase their company. That is why Dunkin Donuts will be in a better position to target their products and services at them.
