Management Decision in Dunkin’ Donuts PDF

Running head: MANAGEMENT DECISION CASE 1
Case Study
Marketing Planning Helps Dunkin’ Donuts Score Big in Coffee Customer Loyalty
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MANAGEMENT DECISION CASE 2
Question 1
Dunkin’ Donuts made a strategic decision to make its business about the coffee, not
just the donuts. What are the risks when a company that is so closely identified with one
product (it’s in their name!) decides to change its focus to a different product? What
marketing strategies can help reduce the risks and increase the probability of success?
If we were to be talking about a company like Starbucks, then it would be okay to change
focus from one item to another because the name is not specific for marketing purposes.
However for companies like Dunkin’ Donuts, it is much more difficult to divert focus towards
other items because of branding issues as their primary focus has always been on donuts and they
need to ensure their quality and taste doesn’t fall while increasing focus on other items because
the risk factor is very high, as the new focus may alienate existing consumers while not being
able to draw in additional clientele. I understand why they want to increase their focus on coffee;
because the consumers are interested in coffee more than donuts due to health awareness these
days. There are certain risks a company can face when changing its; The new product may or
may not be what the consumer desires and this can cause a loss in projected revenue and even
lead to a loss in existing revenue streams and customer growth which in this case are donuts if
the new focus diverts attention from quality control of existing high revenue products. Basically
what we need to do in order to reduce these risks and increase our probability of success is by
simply getting to know our customers, trying keeping our business updated for any social needs
and preferences for our customers, understanding our customers reactions on products; especially
on taste and quality measures while providing a decent variety of products to ensure all customer
categories are catered to. Companies should also try establishing reasonable development

MANAGEMENT DECISION CASE 3
business plans by employing personnel that have experience in product development and
marketing of the new product which in this case would be coffee. At the same time efforts needs
to be made to gather information by conducting market research and focus on customer
demands. For instance, Starbucks has perfected themselves in coffee since day one and added
other breakfast items to complement their coffee but didn’t lose focus on their main product.
Another example is of Krispy Kreme doughnuts who never compromised on their core product,
the donuts, whose taste and quality remains exceptional with the addition of good quality coffee
to complement their donuts. I am sharing this from personal experiences that I have obtained by
visiting these franchises and trying out all the stated items. I believe that the purpose of
marketing is all about planning and executing the concept of the business, pricing of the
products, and being creative when distributing ideas, goods and services so we can satisfy
customers and simultaneously increase profits for business.
Question 2
What are the key differences between the marketing strategy of Dunkin’ Donuts and its
chief competitor, Starbucks? What else could the company do from a marketing manager’s
standpoint to successfully compete with and clearly differentiate Dunkin’ from Starbucks?
Starbucks marketing strategies is all about creating a contemporary coffee culture where any
individual can come to please their taste buds because they offer the highest quality of coffee,
premium teas, fine pastries, and savory items for all ages. This works perfectly in conjunction
with the premium ambience generated through playing trendy music, high-class interior décor,
appealing art works and a casual relaxing atmosphere. This is combined with having specialty
coffee for each month. Furthermore the company maintains its modern image by engaging with
customers and making them feel connected by always trending on social media, focusing on