DUNKIN’S DONUT

Table of Contents
Introduction.................................................................................................................................................4
Mission Statement and analysis..................................................................................................................4
Vision Statement and analysis.....................................................................................................................4
SWOT Analysis.............................................................................................................................................5
Strengths.................................................................................................................................................5
 Environmentally conscious..........................................................................................................5
 Supply chain.................................................................................................................................5
 Branding......................................................................................................................................5
 Community assistance.................................................................................................................6
 Franchising model for business....................................................................................................6
 Market position...........................................................................................................................6
 An international brand.................................................................................................................6
Weaknesses.............................................................................................................................................6
 Financial concern.........................................................................................................................6
 Limited options............................................................................................................................6
 Outside the US, The market is low...............................................................................................6
  Expansion of market at a slow rate..............................................................................................6
 The market’s dependence on the UNITED STATES......................................................................6
Opportunities..........................................................................................................................................7
 Expanding the portfolio...............................................................................................................7
 Markets in the process of development......................................................................................7
 Business diversification................................................................................................................7
 Products with better health benefits...........................................................................................7
Threats.....................................................................................................................................................7
 Increasing cost.............................................................................................................................7
 Regulations..................................................................................................................................7
 Health trends...............................................................................................................................7
 Pandemic.....................................................................................................................................7
 Competitors.................................................................................................................................7
PESTEL Analysis...........................................................................................................................................8
Political factors........................................................................................................................................8
Economic factors.....................................................................................................................................8
Social factors...........................................................................................................................................8
Technological factors...............................................................................................................................9
Environmental factors.............................................................................................................................9
Legal factors............................................................................................................................................9
PORTER'S FIVE FORCES..............................................................................................................................10
Threats of New Entrants........................................................................................................................10
Bargaining Power of Suppliers...............................................................................................................10
Bargaining Power of Buyers...................................................................................................................10
Threats of Substitute Products or Services............................................................................................11
Industry rivalry.......................................................................................................................................11
IFE (Internal Factor Evaluation Matrix)......................................................................................................11
EFE (EXTERNAL FACTOR EVALUATION MATRIX)........................................................................................13
SPACE Matrix.............................................................................................................................................15
Grand Strategy Matrix...............................................................................................................................16
QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)...........................................................................17
Competitive Profile Matrix (CPM)..............................................................................................................19
BCG Matrix of Dunkin Donuts....................................................................................................................20
 Stars.......................................................................................................................................................20
Cash Cows..............................................................................................................................................20
Question Marks.....................................................................................................................................20
Dogs.......................................................................................................................................................21
Ansoff matrix (Recommended Strategies).................................................................................................21
Market development.............................................................................................................................22
Product development............................................................................................................................23
Diversification........................................................................................................................................23

Dunkin Donuts
Introduction
Dunkin' Donuts LLC is a worldwide doughnut and coffee service restaurant corporation based in the
United States. Dunkin Donuts was founded in 1950 by William Rosenberg, who built the groundwork for
the firm. The company's headquarters are in Canton, Massachusetts, in the United States. Soft drinks,
sandwiches, frozen beverages, ice beverages, hot beverages, baked goods, and other items are among
Dunkin Donuts' major products and services. Dunkin Donuts' parent company, Inspire Brands, has 14.6
billion dollars in yearly revenue in 2020. Dunkin Donuts, on the other hand, made $1.370 billion in
revenue in 2019. In order to run its global activities, the firm has engaged about 1,109 people. Starbucks,
McDonald's, Mad over Donuts, Panera Bread, Papa John's Pizza, Pizza Hut, Wendy's, Chipotle, Taco
Bell, Subway, KFC, Domino Pizza, and Burger King are among Dunkin Donuts' main competitors.

Mission Statement and analysis

Dunkin's mission statement is to "be the premier provider of a broad selection of tasty beverages and
baked goods in a convenient, relaxed, pleasant environment that ensures the highest level of
product quality and greatest value for money across the kingdom." This mission statement focuses
on the quality that Dunkin' wants its consumers to experience. It is understood by the firm that it is
necessary for the development of loyal consumers. The following are the components of the statement:
  Leading provider
 Exceptional quality

Dunkin' understands the fierce competition in the foodservice industry. Just the most durable firms have
managed to survive and retain continuously excellent reputations not only in the United States, but also
across the world. This capacity is based on branding techniques like those used by Dunkin' Donuts
through its many marketing approaches, which develop and adapt in response to changing business
conditions. Dunkin' also says that it leaves nothing to chance when it comes to the quality of the drinks or
other accompaniments it supplies, in order to fulfill the second aspect of its mission statement. From the
raw materials to the preparation and servicing procedures, the firm keeps a close eye on everything. It
also adds to the quality by hiring only the most dedicated and competent staff.

Vision Statement and analysis

“To be always the chosen spot for outstanding coffee drinks and delectable complimentary
doughnuts & bakery goods to share with family and friends,” says Dunkin's vision statement. The
focus here is on Dunkin's leadership, which is demonstrated by its ability to maintain first place in terms
of product demand. The statement is about:

 Favorable spot
 Let your friends and family to have fun.

Dunkin' meets these requirements in two ways: first, by continually reinventing itself to keep up with
changing times, and second, by broadening its offerings. There is much more to gain at Dunkin' than just
the food and beverages.

Dunkin's purpose and vision statements depict a firm that has risen to the top of the food and beverage
service industry by merely focusing on market segmentation and targeting techniques. Due to its tempting
goods and exceptional customer service, Dunkin' has etched its name in the hearts of Americans and other
devoted customers across the world for almost 70 years. Looking at the business's long - term growth
trajectory, it's apparent that its mission and vision statements have paid off over time. A vision statement
essentially serves as a road map for a company's future, while a mission statement explains the tactics that
will make that future a reality.

Dunkin's vision statement focuses on transforming the firm into an iconic and attractive brand, while its
mission statement emphasizes outperforming all rivals with high-quality goods. This has been made
feasible in part due to the significant impact of the organization's fundamental principles. Indeed, at
Dunkin', these principles are attributed with a continuous focus on the mission and vision statement.
SWOT Analysis
Strengths
 Environmentally conscious: Some of the world's most pressing environmental concerns
include eco-friendly initiatives, climate change, and environmental issues. Customers are aware
of this, and they choose businesses that are ecologically conscious. Dunkin Donuts, on the other
hand, has taken efforts such as replacing plastic cups with paper cups at all of its locations. It
demonstrates the company's commitment to lowering carbon emissions.
 Supply chain: Dunkin Donuts' supply chain is extremely efficient. It guarantees that consumers
will receive their coffee and freshly baked goods on time. The business recently partnered with
the Sustainable Coffee Challenge. The goal is to increase the supply of high-quality coffee.
 Branding: Regardless of generational changes, Dunkin Donuts has been the preferred choice of
customers for the past 70 years. In truth, the firm changed its name and menu, but via smart
branding, it stayed relevant to its consumers.
 Community assistance: Dunkin Donuts is a socially conscious company. In the midst of a
covid-19 pandemic that has left millions of people jobless throughout the world. To keep
America going and running, the restaurant business has chosen to hire 25000 people.
 Franchising model for business: Dunkin Donuts operates under the franchising business
model, and it aided the firm greatly throughout the pandemic year. It's because the firm doesn't
have to bear the cost and loss on its own; instead, it's shared among franchisees.
 Market position: Dunkin Donuts has a reputation for serving delicious breakfasts. In reality,
the words "breakfast" and "Dunkin" are interchangeable. The company's exclusive concentration
on a single area has helped it to stand out from the competition.
 An international brand: Dunkin Donuts is one of the world's most well-known doughnut and
coffee franchises. In reality, the corporation has operations in more than 46 countries throughout
the world. There are over 13,000 locations and chain restaurants under the name.
 THE VALUE OF A BRAND: Dunkin Donuts' net worth and brand value were estimated to be
6.4 billion dollars in 2020.

Weaknesses
 Financial concern: Dunkin Donuts has restricted financial capacities, which explains why its
growing pace is slower. They're stifling the company's expansion. As a result, the restaurant
chain's market share is dwindling.
  Limited options: Dunkin Donuts' core service offerings are bakery products and coffee. This
menu limits the company's consumer base to a specific demographic. The company's profitability
is hampered by its restricted menu and consumer base.
 Outside the US, The market is low : Dunkin Donuts' revenues in the United States have
remained stable thanks to targeted marketing. However, the restaurant chain had a difficult time
outside of the United States and India. It demonstrates a lack of awareness of the client market
outside of the United States.
 Expansion of market at a slow rate : Starbucks, Burger King, and McDonald's are
international brands that are rapidly expanding. Dunkin Donuts, on the other hand, has
traditionally pursued a snail-like growth plan. In emerging regions, where competitor brands have
established a strong presence, it has shown to be a significant vulnerability of the chain restaurant
brand.
 The market’s dependence on the UNITED STATES : The United States accounts for
around 46% of Dunkin Donuts' yearly revenue. It implies that the company's primary source of
income is the United States. The covid-19 epidemic, on the other hand, has had a significant
negative influence on the company's yearly sales worldwide.

Opportunities
 Expanding the portfolio: On the menu at Dunkin Donuts, there are only a few options.
Because the firm caters to a diverse group of people in the food sector. As a result, the business
increases its menu to include a variety of meals such as supper, lunch, and breakfast. The
diversity would help the restaurant business to reach a wider audience.
 Markets in the process of development: Unsaturated markets in emerging countries offer a
lot of room for development. As a result, Dunkin Donuts has a huge chance to open new stores
and brand franchisees in new geographic regions. It would aid in the company's profitability and
client base expansion.
 Business diversification: Dunkin Donuts' core products and services, as well as sources of
revenue, are bakery items and coffee. The company's operation appears to be based on the sale of
a few goods, which is quite hazardous. In order to stabilize its company, the brand needs expand
its range to include fresh farm goods and supermarket items.
 Products with better health benefits: Competitors have been forced to offer healthier goods
to their menus as a result of the healthy eating trends. They're appealing to people who are
concerned about their nutrition. Dunkin Donuts should enter the healthy diet food area and take
advantage of the expanding market.
Threats
 Increasing cost: The supply chain, distribution, and logistic costs have all grown as a result of
the covid-19 epidemic and unpredictable market circumstances. The company's profitability has
been harmed by rising costs.
 Regulations: Obesity, hypertension, cardiovascular disease, and other illnesses are all linked to
processed junk food, according to several studies. It has compelled governments to impose
various sorts of controls on food corporations such as Dunkin Donuts.
 Health trends: People have become choosier about their food as a result of the healthy diet
trends. However, consumers are moving away from Dunkin Donuts because of its unhealthy
cuisine and selection.
 Pandemic: The covid-19 pandemic has wreaked havoc on the world economy, plunging it into
recession. Because of the global unemployment rate and customers' declining purchasing power,
Dunkin Donuts couldn't stay out of it. Such challenges have an equal impact on all firms.
 Competitors: Dunkin Donuts' main competitors include Domino's, Pizza Hut, Starbucks, KFC,
Burger King, and McDonald's. The company's expansion is being stifled by its rising profitability
and market share.

Conclusion

Following a thorough examination of Dunkin Donuts' swot analysis, we have come to the conclusion that
Dunkin Donuts is the world's leading chain restaurant firm. Some of the major obstacles are the economic
downturn, competition, healthy eating trends, regulations, and a restricted portfolio. To solve these
challenges, Dunkin Donuts should broaden its business market and product portfolio.

PESTEL Analysis
Political factors
Dunkin Donuts is a well-known brand with numerous retail locations across the world. It is believed
that if you please the government, the government will please you. As a result, Dunkin Donuts
spends millions of dollars lobbying the government to promote the company's favorable image.
Dunkin Donuts is accused of giving a large sum of money to Democrats in recent elections. It's a
dangerous approach since customers who support republicans and share their views and values may
disapprove of the company's support for the Democratic Party and boycott Dunkin Donuts entirely.
Environmentalists are also putting pressure on the government to impose restrictions on meat eating,
claiming that it is wreaking havoc on the ecosystem. The demand for vegetarian cuisine is
increasing, particularly in India.
Economic factors
A country's GDP, per capita income, inflation, and purchasing power parity are all key elements that
might impact a company's operations. The sales estimate for the American market is not positive,
since consumers are becoming more health-conscious. At a time when domestic sales are stagnant,
the growing prosperity of individuals in Asian countries has provided a lot of potential for Dunkin
Donuts. Particularly, China and India are offering a tremendous chance for the firm to develop its
business, as these two nations have the world's quickest economies, and as people's eating
preferences change as their income rises, this will have a good impact on the country.

Social factors
Dunkin Donuts relies on connecting with cultures and individuals who want to celebrate a special
event. Customers' eating habits are fast changing as businesses encourage them to consume more
snacks and ready-to-eat meals. People in emerging nations such as China and India, where only
traditional meals were regarded excellent 20 years ago, are rapidly altering their preferences and are
increasingly consuming snacks and fast foods. India presents a huge potential for the firm because 60
percent of India's population, or about 70 crore people, are under the age of 35. Dunkin Donuts can
easily amaze this age group by presenting items that are especially tailored to their tastes. One issue
that is emerging is that many individuals are becoming increasingly concerned about their health,
and they believe that quick foods and snacks are harmful to their health.

Technological factors
Dunkin Donuts is a forerunner in terms of technical innovation. In a move that will benefit the firm
significantly, it has signed a multi-year contract with Cardfree inc under which it will receive a
permanent license to CardsFree's software, which was used to construct and manage the mobile
ordering and payment platform for the quick-service restaurant chain. The business is also exploring
innovations including as self-serve cold brew taps, order pickup lockers, brand new espresso
equipment, and an emphasis on mobile ordering and pick up at the Dunkin Donuts Innovation Lab.

Environmental factors
How can Dunkin Donuts lag behind when almost every major company is making significant strides
toward sustainability? Dunkin' Donuts is actively working to make the environment more
sustainable. It intends to phase out polystyrene foam cups beginning in 2018 and entirely phase them
out of its supply chain in 2020. The company now uses double-walled paper cups, which are both
environmentally friendly and economically effective. The firm has totally switched to bagel bags
made entirely of recycled paper, saving up to 20 million pounds of paper each year. It is also
 assisting its franchisees in the United States in the construction of ecological and energy-efficient
eateries.

Legal factors
Dunkin Donuts is a franchise-based company that operates all over the world. The franchising
concept is quite complicated, as it necessitates dealing with and complying to local rules that vary by
country. The franchisee model is renowned for causing a lot of friction between the two parties when
it comes to how the business is run, pricing, and profit sharing. Furthermore, Dunkin Donuts must
consider whether the nations in which it wishes to operate provide enough protection for intellectual
property rights. If a government fails to safeguard intellectual property rights, a firm may lose a
significant amount of money to competitors who simply replicate its model, trademarks, and patents.

PORTER'S FIVE FORCES

Threats of New Entrants

New entrants in Restaurants brings innovation, new ways of doing things and put pressure on
Dunkin' Brands Group, Inc. through lower pricing strategy, reducing costs, and providing new value
propositions to the customers. Dunkin' Brands Group, Inc. has to manage all these challenges and
build effective barriers to safeguard its competitive edge.
Bargaining Power of Suppliers
All most all the companies in the Restaurants industry buy their raw material from numerous
suppliers. Suppliers in dominant position can decrease the margins Dunkin' Brands Group, Inc. can
earn in the market. Powerful suppliers in Services sector use their negotiating power to extract
higher prices from the firms in Restaurants field. The overall impact of higher supplier bargaining
power is that it lowers the overall profitability of Restaurants.

Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on Dunkin' Brands Group, Inc. profitability in the long
run. The smaller and more powerful the customer base is of Dunkin' Brands Group, Inc. the higher
the bargaining power of the customers and higher their ability to seek increasing discounts and
offers.

Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example, services like Dropbox and Google Drive are substitute to storage
hardware drives. The threat of a substitute product or service is high if it offers a value proposition
that is uniquely different from present offerings of the industry.

Industry rivalry
Dunkin Donuts' main competitors include Domino's, Pizza Hut, Starbucks, KFC, Burger King, and
McDonald's. All of them are very strong competitors that are present globally not only in the US. So
industry rivalry in this case is high.

IFE (Internal Factor Evaluation Matrix)

Dunkin’ Brands greatest strength is that they are the market speed leader in QSR. Dunkin’ has
established. They have continuously received rewards for Customer Loyalty which is a good
indicator that they have strong position in the market. They have established Central Manufacturing
Locations making their operation more efficient which reflects their overall corporate performance
Dunkin’ is performing about average on addressing its internal issues presented in this note. The firm
needs to focus on improving its debt to equity ratio and consider offering lactose-free ice cream
varieties. Primary weakness is their lack of healthy options for health-conscious customers. This is the
current consumer trend and if left unsolved can lead to reduction of revenues. They also have limited
product offerings because they are primarily known as a breakfast restaurant. The company also have
high financial risk at the moment because of poor long-term debt management.
EFE (EXTERNAL FACTOR EVALUATION MATRIX)

Consumer behavior has changed and is now leaning towards consuming healthy options. Technology is
more accessible now to companies who wanted to develop their products, packaging, and services.
Dunkin’ Brands is performing below average in addressing external issues with an EFE score of 1.73.
Key areas to address are the threats posed by Tim Hortons moving further into the US market,
competitors offering more lactose free options on their menus, and the growing trend of healthier
eating. /’
SPACE Matrix
Dunkin’ is located in the competitive quadrant of the SPACE Matrix. A key area to focus on for moving
the firm into the aggressive quadrant would be to reduce its debt load. Dunkin’ should consider strategies
such as expanding both domestically and internationally through franchisees to help reduce the debt
burden and increase revenues.

Grand Strategy Matrix

Dunkin’, Starbucks, and Krispy Kreme all achieved revenue growth of over 5% in 2014 creating an
environment of rapid market growth. Dunkin’ may lag Starbucks in coffee sales, but the company still is
competitive on coffee and is the leader on donuts and ice cream.
QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

Based on the results of the models used, tactical strategies should focus on product development and
market penetration.
Competitive Profile Matrix (CPM)
Dunkin’ Brands enjoys a distinct advantage over Starbucks on pricing but the firm is struggling mightily
on its debt load with over $1.8 billion in long-term debt as of fiscal year end 2014. Dunkin’ is difficult to
compare to rivals Starbucks and Krispy Kreme since Dunkin’ also offers Baskin-Robbins ice cream and
Starbucks does not offer donuts at all. Nevertheless, Dunkin’ Brands clearly competes with Starbucks on
the morning coffee business.

BCG Matrix of Dunkin Donuts

Stars
The financial services strategic business unit is a star in the BCG matrix of Dunkin Donuts C Growth
Strategy. It operates in a market that shows potential in the future.

The Number 1 brand Strategic business unit is a star in the BCG matrix of Dunkin Donuts C Growth
Strategy, and this is also the product that generates the greatest sales amongst its product portfolio. The
potential within this market is also high as consumers are demanding this and similar types of products.

The Number 2 brand Strategic business unit is a star in the BCG matrix of Dunkin Donuts C Growth
Strategy as Dunkin Donuts C Growth Strategy has a 20% market share in this category. It also the market
leader in this category. The overall category is expected to grow at 5% in the next 5 years, which shows
that the market growth rate is expected to remain high.

Cash Cows
The supplier management service strategic business unit is a cash cow in the BCG matrix of Dunkin
Donuts C Growth Strategy. This has been in operation for over decades and has earned Dunkin Donuts C
Growth Strategy a significant amount in revenue.

The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Dunkin Donuts C Growth
Strategy. This is an innovative product that has a market share of 25% in its category. Dunkin Donuts C
Growth Strategy is also the market leader in this category. The overall category has been declining slowly
in the past few years. Dunkin Donuts C Growth Strategy has the power to influence the market as well in
this category. It should, therefore, invest in research and development so that the brand could be
innovated. This will help the category grow and will turn this cash cow into a star. The overall benefit
would be an increase in sales of Dunkin Donuts C Growth Strategy.

The international food strategic business unit is a cash cow in the BCG matrix for Dunkin Donuts C
Growth Strategy. This business unit has a high market share of 30% within its category, but people are
now inclined less towards international food.
Question Marks
The local foods strategic business unit is a question mark in the BCG matrix for Dunkin Donuts C
Growth Strategy. The recent trends within the market show that consumers are focusing more towards
local foods. Therefore, this market is showing a high market growth rate. However, Dunkin Donuts C
Growth Strategy has a low market share in this segment. The recommended strategy for Dunkin Donuts C
Growth Strategy is to invest in research and development to come up with innovative features. This
product development strategy will ensure that this strategic business unit turns into a cash cow and brings
profits for the company in the future.

The Number 4 brand strategic business unit is a question mark in the BCG matrix for Dunkin Donuts C
Growth Strategy. This strategic business unit is a part of a market that is rapidly growing. However, this
strategic business unit has been incurring losses in the past few years. It has also failed in the attempts
made at innovation by research and development teams. The recommended strategy for Dunkin Donuts C
Growth Strategy is to divest and prevent any future losses from occurring.

The confectionery strategic business unit is a question mark in the BCG matrix for Dunkin Donuts C
Growth Strategy. The confectionery market is an attractive market that is growing over the years.

Dogs
The plastic bags strategic business unit is a dog in the BCG matrix of Dunkin Donuts C Growth Strategy.
This strategic business unit has been in the loss for the last 5 years. It also operates in a market that is
declining due to greater environmental concerns. The recommended strategy for Dunkin Donuts C
Growth Strategy is to divest this strategic business unit and minimize its losses.

The Number 5 brand strategic business unit is a dog in the BCG matrix for Dunkin Donuts C Growth
Strategy. This is operating in a market segment that is declining in the past 5 years. The company also has
negative profits for this strategic business unit. However, it is expected that the market will grow in the
future with environmental changes that are occurring. The recommended strategy for Dunkin Donuts C
Growth Strategy is to invest in the business enough to convert into a cash cow. This will ensure profits for
Dunkin Donuts C Growth Strategy if the market starts growing again in the future.

Some of the strategic business units identified in the BCG matrix for Dunkin Donuts C Growth Strategy
have the potential of changing from their current classification. For example, a dog changing to a cash
cow. These have been identified in the BCG matrix of Dunkin Donuts C Growth Strategy and
recommended strategies to ensure such change have also been made.
Ansoff matrix (Recommended Strategies)
The Ansoff matrix offers four strategic choices to businesses to choose from – market penetration,
market development, product development and diversification.

The Dunkin Donuts C Growth Strategy has been successful in its global operations and business
based on its strategic growth choices and decisions. These growth decisions and growth paths have
been varied for different regions, at different time points – based on the internal and external
organizational factors. However, the Dunkin Donuts C Growth Strategy has successfully made use
of the Ansoff matrix repeatedly to become one of the leading beverage giants internationally. Some
of the strategies that Dunkin Donuts C Growth Strategy has successfully used under the Ansoff
matrix.

Market development
With market development strategies, the Dunkin Donuts C Growth Strategy can enhance its business
growth through introducing existing products in new markets. This will be possible for the Dunkin
Donuts C Growth Strategy with different strategies.

 Research and development: they must invest in their R&D and thus get insights about different
markets that will be suitable for them
 New customer segments: they can enhance their menu and thus gain other market segments such
as healthy donuts for people who choose not to eat the regular version of it.
  Brand awareness: they must work on brand development as the brand also providing the healthier
options

Product development
Dunkin Brands should maintain current strategies and focus on product development and
market penetration–especially in creating healthy menu for health-conscious people. A healthy
hearty selection must be added on the menu like, but not limited to the

 Dunkin Low-calorie beverages

 Dunkin exclusive Mixed juices line
 Low-calorie bagels
 Vitamin enriched breads
 Low-calorie ice cream and cakes

The new products will be advertised extensively using media buys and other online platforms for
better market penetration.

Diversification
Diversification refers to business growth and development that occurs when a company engages in
new product development in new markets. Diversification is an important and allows businesses
like the Dunkin Donuts C Growth Strategy to remain competent, innovative, and competitive –
thereby remaining relevant for the consumer markets.

 Vertical diversification
 Horizontal diversification
 Mergers and acquisitions: