Dunkin Donuts

Product:

The product strategy and mix in Dunkin Donuts marketing strategy can be explained as follows:

Dunkin Donuts focused only on selling donuts of many varieties and its signature double brewed
coffee. With time, they diversified their product portfolio in their marketing mix and started
selling other baked confectionaries like, bagels, cookies, muffins etc. Out of the total sales only
8-9% of the sales revenue comes from Donuts. 64-65% comes from drinks and the rest comes
from sale of other baked food items. Some of the al time favourites of customers of Dunkin
Donuts are, egg and cheese, hash browns, maple sugar bacon sandwich. The drinks served at
Dunkin Donuts include coffee, tea, iced tea, hot chocolate, coffee with cream, latte, fruit juices
etc. They have more than 1000 food on their menu now. The healthy food menu is a hit among
customers. The menu keeps on changing depending on the season. During winters, customers
have the option to have peppermint hot chocolate. In India, Dunkin Donuts was launched with
the tagline ‘Dunkin Donuts and more’ because in India the donut eating culture is still not there.
A food chain is expected to serve drinks, sandwiches and burgers as well. The company has
revamped more than 60% of its menu according to the Indian palate.

Price:

Below is the pricing strategy in Dunkin Donuts marketing strategy:

Dunkin Donuts products are moderately priced and kept close to competition, as the company
wants to make things affordable and attract more crowd. Dunkin Donuts is targeting the urban
crowd of age 35 years and below. The pricing strategy in the marketing mix of the brand is also
dependent on the country in which they are present. Global pricing is used by Dunkin Donuts to
ensure high quality product offerings at affordable prices to customers.

Place:

Dunkin Donuts have successfully established themselves in northern India. Shops are set up in
important places with high footfall to attract young urban crowd. Dunkin Donuts is an
established player now in around 52 countries and has little more than 100 shops in India. Its
newest market expansion zones are India and China. Recently, The Company has expanded itself
to western India, starting with Mumbai. Dunkin Donuts works in a franchise model with Jubilant
Foodworks. Freshly produced eatables are sent to food chains directly within 24 hours.

Promotion:

The promotional and advertising strategy in the Dunkin Donuts marketing strategy is as follows:

Dunkin Donuts promotes its brand by using a brightly coloured coffee cup logo. It makes the
brand memorable and leaves a good impression in the minds of the people. Print media, online
ads in websites, television ads are used to promote the brand. Long gone are the times when
Dunkin Donuts were all about donuts. Today it has locked its horns with coffee brands like
Starbucks, Barista etc. Now it has to stay relevant among calorie conscious, healthy yet tasty
food seeking consumers. Its new tagline ‘Dunkin. Coffee and more’ was seen in a few
storefronts of Pasadena, Calif. This trend was also seen in Dunkin shops in Delhi. People from
India are not into the donut eating culture yet. The company wants to shed its Donut heavy image
and be a coffee products leader. Catchy tagline like ‘Dunkin. Coffee and more’, ‘America runs
on Dunkin’, ‘you ‘kin do it’, ‘get your mojo back’ have played well for the company in
promoting the brand. The biggest way Dunkin Donuts stays relevant in any new market even
after 67 years of operating in various countries, is by localizing the brand and making it suit the
local market. Loyalty programs like, DD perks programme, discount coupons, buy one get one
free” promotions.

People:

Dunkin Donuts knows the importance of serving its customers. Hence the company has a lot of
focus on its people i.e. its customers as well as staff. The staff at the outlets are very well trained
and are well equipped to serve to the customer needs. The company gives its employees intense
training so that they are well verse in ensuring a great customer experience, which is a must for a
service brand.

Process:

Dunkin Donuts has several business processes which help the business grow. The business
processes can be procurement of raw materials, distributing them to different locations,
preparation of food items etc. The processes at the outlets are also very well defined. World over
streamlined processes have helped Dunkin Donuts establish a strong presence in the fast food
segment.

Physical Evidence:

Dunkin Donuts has several outlets, which is the biggest physical evidence of the brand. Apart
from the restaurants, many things like merchandize, indoor branding, boxes, mugs etc show the
physical presence of the brand. Hence this completes the marketing mix of Dunkin Donuts.
KFC

 Products
• Core product offering is pressure fried chicken • Chicken burgers ( including Zinger and Tower
burgers) • Wraps ( “Twisters” and “Boxmasters”) • Variety of finger foods like crispy chicken
strips and hot wings • Popcorn chicken and chicken nuggets • It has launched Flaming Crunch
Chicken • Side dishes include French fries, bread rolls, salad, PepsiCo soft drinks • Krusher
frozen beverage
 Price
 The current pricing strategy to set the price level that KFC follows is a competitive based
pricing strategy. This is because the data on competitors is easily available due to a large number
of competitors that exists within the industry.
 It also takes costs into consideration to set prices for a few products for which either
information is not available on competitors, or are costlier to make,
 KFC sells its products at a higher price than competitors. This is because it offers more
features, and the high price makes up for these.
 It currently uses product bundle pricing as well, where products are bundled together and
sold at prices lower than the total of individual items.
 It also uses an optional product pricing strategy for certain products, where it offers a price
for the base product and separate prices for the accessories that come along with it.
 It charges a greater price for the products it sells online. This is because delivery costs have
been included in the price of the product.
 KFC has fixed the prices of the final product. Channel members; retailers and wholesalers,
buy the product at a lower price and earn through their own margins.

 Place
• It has over 300 outlets across 81 cities • Planning to have over 500 outlets by the end of 2015 •
Distribution based on franchisee and company run outlets • Delivered through online media as
well • It has overtaken Pizza Hut in Quick service restaurants

 Promotion
• KFC does promotional activities by offering add-ons to the existing menu, gift coupons, T-
shirts, Kids meal etc • KFC promotes its products through LCD displays kept inside its outlets
which promotes their products • Online advertising • Advertising on television

 People
• The people involved in providing services to the customers • The staffs working in the outlets
are trained by the company itself • They are provided with certain guidelines to communicate
with the customers

 Process
• The process starts when the customers visit the outlet. • It also involves if the customers order
the products online • The easier and convenient the process it will lead to greater customer
satisfaction

 Physical evidence
• This refers to the physical environment of the outlets where the customers visit. • The interiors
are made according to the certain standards given by the parent company • This also helps in
creating positive influence on the customer satisfaction • There is use of good technology
equipment