Detailed Business Plan: Dunkin' Donuts Franchise in London, UK

This report details a comprehensive business plan for establishing a Dunkin' Donuts franchise near a university campus in London. It begins with a rationale for the business idea, emphasizing the growing coffee consumption trend among students. The plan outlines key business objectives, including competitive pricing, product innovation, and brand awareness. It analyzes the external environment, considering political, economic, social, technological, legal, and environmental factors. The report proposes a launch event strategy involving celebrity endorsement and provides a detailed budget. Marketing objectives, target market analysis, and the marketing mix are also discussed. The report concludes with operational, tactical, and strategic business decisions. The financial aspects of the business, including cash flow statements, are also analyzed. Overall, the report provides a complete overview of the requirements for launching and operating a Dunkin' Donuts franchise.

Business Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PART A Rationale for business idea......................................................................................1
PART B Key business objectives...........................................................................................2
Ownership........................................................................................................................................2
TASK 2............................................................................................................................................3
External environment analysis...............................................................................................3
TASK 3............................................................................................................................................5
PART A Describing a launch event.......................................................................................5
PART B Budget for event .....................................................................................................5
TASK 4............................................................................................................................................7
Marketing objectives .............................................................................................................7
Target Market ........................................................................................................................7
Marketing Mix........................................................................................................................7
TASK 5............................................................................................................................................8
Operational business decision...............................................................................................8
Tactical business decision......................................................................................................8
Strategic business decision.....................................................................................................8
TASK 6............................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business planning is analysed as most appropriate and formal statement which involves a
unique concept, objectives and ideas for establishment of new business operations. Present report
is also based on analysis of new business idea for setting up Dunkin' Donuts franchise in London
near University campus. Different essential aspects related to development and implementation
of new business plan is also discussed in this report. An appropriate launch event of celebrity
endorsement for new business is also planned and stated in this report.
TASK 1
PART A Rationale for business idea
Appropriate research and analysis is required for development and generating new
business idea. In this, new business idea is to open a franchise of Dunkin' Donuts nearby the
university campus for attracting students (Scarborough, 2016). The location of the franchise will
be in London nearby the university campus and will have proper sitting arrangement for
customers. Dunkin' Donuts is an American global doughnut company and coffee house which
operates in food and beverage industry. It has now become one of the largest coffee and baked
products chain across the world. Business will be operated both in high street and online, as it
helps in increasing number of customers. This business idea is unique due to increasing trend of
coffee consumption between students and adults. Appropriate online delivery system will be
provided for customers inside the campus and nearby places. The chain's products include
doughnuts, bagels, other baked products and a variety of hot and iced beverages. Increase trend
of fast food products among young customers is the key factor which provide success to this
business idea. Online purchase facility, free delivery and low or discounted prices will help in
influencing students to buy products.
Below given are the competitors of new business franchise of Dunkin Donuts.
Krispy Kreme Starbucks
It is also an American doughnut company which
has its franchise in London and provide similar
products. It is major rival brand as company aims
Starbucks is also considered as major
competitors brand for Dunkin' Donuts
because company also provides similar
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to influence customer by offering products at low
prices.
products for customers. It has wide
recognition among customers in London
which create challenges for business to
attract clients.
Online buying facilities are also provided by
Krispy Kreme Coffee House.
Starbucks mainly has a large customers
base in London due to its quality and strong
brand presence in market.
PART B Key business objectives
 To provide easy accessibility of quality food and beverage products to young customers
at competitive prices and increase sales revenue as compared to competitors. Providing
products at competitive prices will help in sustaining competitive position in market.
 To be always the desired place for great coffee beverages and delicious complimentary
doughnuts & bakery products to enjoy with the family and friends. This objective is
important for company to emphasize on innovating products to meet the demand of
customers (Guffey and Loewy, 2012).
 To develop wide network and distribution channel at different geographical areas in
London and to increase awareness of brand among customers. Developing a wide
distribution network will provide support in increasing brand recognition, customer base
and profitability.
 To develop the best ambience and sitting arrangement for customer in outlet in order to
make their experience better towards brand. Appropriate sitting arrangements is
important to attract groups of students and other family customers.
Ownership
A partnership is considered to be as formal arrangement in which two or more parties
cooperate in order to manage and operate a business. Sole trader is type of business structure
whereby one individual runs and owns the business. Employers is legally responsible for all the
aspects of their business and are personally liable for their business finances (Gamble,
Thompson and Peteraf, 2013). The new business idea will be introduced in the form of
partnership because it helps in getting financial resources required for franchising. Franchise of
Duckin's Donuts cafe will be introduced in partnership. In contrast, sole proprietorship contains
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high risk of losses and employers are only liable for their decision. In partnership, decision will
be taken by partners by mutual discussion.
TASK 2
External environment analysis
Political
 Another issue that is faced by eating
up chains like Dunkin'Donuts is
environmentalists are forcing the
government to impose restrictions on
consumption of meat.
 Increase in tax rates also
haveinfluence on prices of products
and services (Robbins, and Judge,
2012).
 Restriction are imposed by
government on manufacturing fast
food products which also tends to
create difficulties in getting
permission from authorities to
establish chain. Consumer expectation
has increased
Technological
 Improvement in communication and
digital technologies havepositive
influence on business operations.
 Technological advancement has also
provided support to business in
completion of research (Young and
Dhanda, 2012).
 Besides this various technological
improvement innovations have been
made in order to protect the
ingredients and ensure uniformity of
taste and procedure. In coffee business
the blend is very important, ingredients
procured should be quality and they
should be mixed in fixed proportion
every time.
Economic
 However, rise in labour cost in
country is an external factor which
threatens Dunkin' Donuts because it
tends raises the expenditure of
organisation. The firm usually sources
its coffee beans from developing
countries (Jacobs and Chase, 2013).
 Increase in tax rates in the economy
Legal
 The legal factors in the business
environment includes the laws and
regulations on business operations.
There are various legal regulation such
as Health and Safety act, employment
act and welfare Act also have
influence on establishment of new
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also increases the burden of tax on
organisation and increase the
requirement of financial resources for
regulation of business.
franchise of Dunkin'Donuts in London.
 In this, company has opportunity to
improve performance by satisfying the
products safety regulations (Parida,
Westerberg and Frishammar, 2012).
 However, increase employment
legislation, especially in developed
countries have influence on business
access to labour market.
Social
 It implies to factors like perception,
values, ethics and preferences of
customers towards products and
services in market.
 Dunkin'Donuts has the opportunity to
increase its revenues based on
increasing demand for the speciality
of coffee, culture and a growing
middle class around the world (França
and et.al, 2017).
 Although, there is an opportunity to
expand the array of healthier products
to attract health continuous consumers
to Starbucks Cafes.
 Continuous changes in preferences of
young customers towards coffee
products and other beverage products
create challenges in selling products
and services in marketplace.
Environmental
 Increase in environment protection
regulation also influence on business
to ensure the minimal environmental
influence and responsible sourcing
emphasizes CSR in the supply chain
(Laguna and Marklund, 2013).
 Dunkin' Donuts has the opportunity to
regulate business by reducing
influence of products manufacturing
and selling process on environment.
 Waste management practice will be
adopted to reduce environmental
influence.
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TASK 3
PART A Describing a launch event
After development and designing of new business idea, it is also essential to plan for an
event to launch new Dunkin' Donuts franchise near University Campus. There are various
important methods are available through which effective promotion and launch event can be
conducted like celebrity endorsement, organising a social function, corporate event and business
presentation. In this context, celebrity endorsement will be an appropriate method for launching
new chain of Dunkin' Donuts in market (Paiola, Gebauer and Edvardsson, 2012). It is form of
advertisement campaign for marketing strategy used by brands, companies or non-profit
organisation. It involves celebrities or well-known person using their social status or their fame
to help promote a product and service.
In this event, top celebrity chef of London is invited along with regional government
authorities as they are well recognised by people. Manager of different chains of Dunkin' Donuts
is also invited by providing formal invitation.
Celebrities chef are popular between people and this will provide support in getting
response of large number of customers. They have large number of followers and this will help
in influencing people to buy products. The total number of guest will be 100 people. Moreover,
News channels and other media professionals are also informed for live coverage of event and
organising an appropriate entertainment function for enjoyment of people.
PART B Budget for event
For the planning of event, it is significant for company to have an appropriate budget so
that business will be able to meet its objectives. Different resources are required for launching a
business event that needs to be considered for appropriate management. In present context,
Budget and cash flow statement is formulated for determination of activities that needs to be
completed within appropriate budget.
Items Expense (in GBP)
Purchase of equipment and materials 5000
Two course meals 8000
Entertainment 800
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Staff salary 3000
Advertisement 1000
Decoration 500
Technical arrangement 1000
Other expenses 700
Total budget 20000 GBP
Table 1: Budget
Particular Amount
Opening cash balance 90000
Sales revenue 140000
Total cash inflows 140000
Cash outflows
Staff salary 30000
Administration expenditure 8000
Cost of marketing 2500
Maintenance expenses 2500
Selling and distribution expenses 3400
Property rent 6500
Insurance premium 3700
Expenses on Utility 5600
Interest expenses 20000
Tax expenses 18000
Total cash outflows 100200
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Surplus (140000-100200) 39800
Closing Cash Balance 120000
Table 2: Cash flow statement
This budget clearly provides understanding and indication about the various important
expenses that needs to be made for establishment of business and organising event. For
appropriate management, each and every activity is required to be completed as per theestimated
or allocated financial resources.
TASK 4
Marketing objectives
 To promote the products and service in mass market by offering wide range at lowest
prices.
 To develop an high brand loyalty among target customers such as students and family by
maintaining product quality (Trimi and Berbegal-Mirabent, 2012).
 To be always the desired place for great coffee beverages and delicious complimentary
doughnuts & bakery products to enjoy with the family and friends.
Target Market
Consumers of high and middle income group, adults are targeted because they usually
prefer coffee products. People with high income usually have concern related to product quality
rather than price. This helps firm in increasing sales revenue and profitability.
Marketing Mix
Element Description Justification
Price Skimming pricing policy will
be adopted for selling of
products. This will enable the
organisation to attain great
response of adults and
consumer belonging tohigh
income group (Gudiksen,
2015 Chatzipetrou and
Customer's with high income
group usually have concern
related to quality and they are
ready to buy products at high
prices.
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Moschidis, 2017).
Product Quality products such as
Coffee and other doughnuts
are offered as per taste and
preference of customers.
Quality product at
competitive prices will enable
organisation to create brand
loyalty.
Place Products is going to be sold
completely via outlet and
company's website.
Research determine that
Adults customers usually like
to buy products online.
Promotion Different communication
channels such as Social
media, company's website
and direct emails will be used
for promotion of products.
Increasing trend of social
media marketing helps in
attracting large population.
TASK 5
Operational business decision
Quality of products and service will be monitored at regular interval for analysing that
business will meet the requirement of customers. Performance of staff in outlet will be monitored
to analyse their effectiveness in providing service to consumer. Feedback will be taken from
customer about the quality of products or services offered by an organisation.
Tactical business decision
Manager will create an appropriate summary of sales and stock to analyse the need of
masking purchase. This will help the organisation to identify their highly preferred product
among customers. Summary of raw materials will improve stock management and reduce risk of
wastage.
Strategic business decision
The environment in which business function is changing constantly (Strategic business
decisions, 2017). For surviving in competition, organisation will continuously have focus on
customer's requirement and add value to its products. It also focuses on competitor strategies to
attract customers and find ways to gain competitive advantage. Competitive pricing strategy will
help in increasing growth and survival in market.
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TASK 6
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Element of the supply chain How is this going to be
addressed in the business
Why is this the correct way
to operate?
Suppliers of raw materials
Appropriate supply of raw
material is important to keep
the restaurant running
smoothly. Business will also
establish relation with some
local farmer of coffee who
might be able to provide raw
materials at low cost.
Maintaining an appropriate
stock of raw material helps in
maintaining balancve between
demand as well as supply of
products.
Changing customer's
requirement
Appropriate relationship with
suppliers will be maintained
to get information about
changes in customer's
requirements and competitors
strategies.
Supplier also helps in getting
information.
Customer's Support
Appropriate communication
with regular consumer will be
kept to analyse their issue
with product.
Customer relationship
management is essential for
business to remain
competitive.
CONCLUSION
From the above report, it is summarised that planning and establishment of new franchise
of Dunkin Donuts is complex as it requires a lot of efforts for research and completion of
activities. An appropriate budget needs to be develop and monitored to identify need of financial
resources. Celebrity endorsement is form of advertisement campaign for marketing strategy used
by brands, companies or non-profit organisation. It involves celebrities or well-known person
using their social status or their fame to help promote a product and service.
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