A Marketing Plan Paper presented to the Faculty of the College of Hospitality and Institutional

Management

In partial fulfillment of the requirements for the Degree in Bachelor of Science in International
Tourism Management

DUNKIN’ DONUTS SM CITY VALENZUELA

Presented by:

Dimaranan, John Carlo

Francisco, Khatlyn Joy

Jao, Claries

Nerveza, Chinell

Pecpec, Airon Hen

Villanueva, Kristine

ITM TTO-2Y2-1

Presented to:

MR. SERGIO SORIANO

March 09, 2020

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Section 1: Executive Summary

Dunkin’ Donuts is probably the oldest running donut shop in the world. Dunkin’ Donuts
started way back last 1950 in Massachusetts, USA. Dunkin’ Donuts is a brainchild of Bill
Rosenberg. When Dunkin’ Donuts came to the Philippines, it has a tagline of ―Pasalubong ng
Bayan‖. Despite building an identity as a coffee seller, food is still an important element of
Dunkin’ Donuts offering. It does transform itself from a small store into a global enterprise.
After beginning their business by selling donuts, they have now ventured into new business by
selling coffee, sandwiches and other baked items making it a fierce competitor in the coffee
industry. Being the market leader in the category and maintaining the same for years is
commendable. Dunkin’ Donuts is a market leader in flavored coffee, muffins and donuts.

The main competitors of Dunkin’ Donuts are Mister Donut, Krispy Kreme, Starbucks,
JCO and various bakeries and convenient stores. Dunkin’ Donuts has a big advantage to their
competitor, which is by continuing to buy their products in large quantities at a much
lower/affordable price. This do allows them to serve their customers at a high quality coffee and
baked products at a lower price than their competitors.

The target customers of Dunkin’ Donuts ranges across all ages, but mostly the millennials
and middle age group customers are the one who’s interested in eating in joints or fast food
restaurants. A major group of customers of Dunkin’ Donuts are the college or school-going
teenagers. The Dunkin’ Donuts relies on both traditional and online media channels to reach its
customers daily. Some traditional marketing channels that the company continues to use are
television advertisements, newspapers and billboards but they have expanded to using online
media channels such as their website, email, Facebook, Twitter and other mobile apps.

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Historical Background of Dunkin’ Donuts

The Dunkin’ Brands Group, Inc is a franchisor of quick service restaurants (QRS) serving
hot and cold coffee and baked goods, as well as hard serve ice cream. The company franchise
restaurants under its Dunkin’ Donuts business food retail, they are the world largest coffee and
baked goods chain. Dunkin’ Donuts is having been in business since 1950 and has franchising
since 1955; this franchise serves more than 2 million customers a day, and now it is globally
known specially here in the Philippines. It has 1,459 stores nationwide alone. Dunkin’ Donuts
sells up to 52 varieties of donuts and more than dozen coffee beverages as well as bagels,
breakfast sandwiches and other baked goods.

Dunkin’ Donuts founded in Quincy, Massachusetts in 1950 by Bill Rosenberg, its mission
back then was served guests in high-quality coffee and donuts with fast and friendly service at an
affordable price. Fast forward to 67 years later and Dunkin’ Donuts is still living up to that
mission across its more than 12,600 restaurants in 45 countries, while much has stayed the same,
the brand recognized the need to make key changes and additions to maintain its relevance.

Mission

To be the leading provider of the wide range delicious beverages & baked product the
kingdom in a convenient, relaxed, friendly environment. That insures the highest level of quality
product and best value for money. We provide our guest, the elegant service and unforgettable
experience to meet their expectations in every single visit.

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Vision

To be always the desired place for great coffee beverages and delicious complementary
donuts & bakery products to enjoy with family and friends.

Section 2: Target Customers

Dunkin’ Donuts clearly positions themselves to the more popular ―everyman‖ type of
person. Dunkin’ Donuts built itself around serving simple expenses to working class costumers.
Dunkin’ Donuts’ customer base ranges across all ages, race and income demographics, including
blue- and white- collar workers. Dunkin’ Donuts’ customers are known as ―the tribe‖ – VP
Lewis says, ―they seek out things to make them more in‖. Members of the Dunkin’ Donuts tribe
don’t need to be any more important than they are.

Here are the SWOT (Strength, Weakness, Opportunity, Threats) Analysis of Dunkin’
Donuts and its two (2) main competitors, the Mister Donut and Starbucks.

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SWOT Analysis

DUNKIN’ DONUTS MISTER DONUT STARBUCKS

Strengths Strengths Strengths

- Ideal place for having - Brand reputation - Known for its brand
breakfast and coffee. - Accessibility - Loyal customer reward

- Dunkin’ Donuts has a - Affordability - Near from Students and

reputation for brewing high
- Marketing Strategies and Universities
quality of coffee for more
than 5 decades. Management - High number of customers

- Friendly Staff
- Sports Figures as Promoters
and franchiser.

- Dunkin’ Donuts has a strong

brand name that recognized
over the world.

- Customer's loyalty

Weaknesses Weaknesses Weaknesses

- Lack of healthy food - Inability to join other market - High pricing

alternatives.
segments - Small branches
- Rift with the franchisee - Weak product development - Insufficient seats and tables
owners and numerous
- Damaged reputation for customers
instances of suing them.
- Low customer service
- Inconsistent product
offerings in every franchise
store nationwide.

Opportunities Opportunities Opportunities

- Stronger modern technology - Introduction of new coffee

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- Franchise available presence - New cakes and other pastries

- Advent of new technologies - Promotional activities using - More promotions and

- The increase of using social social media discounts to offer

media sites. - Invest in other market

segments

Threats Threats
Threats
- Competition of other donut - Competition with low-cost
- Competition from other
national snacking joints seller coffee sellers

means limited market share - The rising price of raw - Many coffee-houses
growth for Dunkin’ Donuts.
materials - Imitation of products
- Starbucks entry into
- Declining retail traffic
breakfast sandwiches.

- McDonald's gourmet coffee

- Mister Donut is its main

competitors that offer similar
food items and snacks.

- Increase in the cost of raw

materials from the supplier.

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Section 3: Unique Selling Proposition

I. Dunkin’ Donuts is more affordable

Even though in recent years Dunkin’ Donuts has raised prices according to the cost of
beans, but they still remain the most economical choice in the minds of coffee lovers. Their price
also supports the next few branding choices, aside from that their doughnuts remain a good
tasting one even if it is only for 35 pesos.

II. Dunkin’ Donuts is more accessible

Have you ever been walking to the mall and notice a jump pack of customers waiting for
their turn to order the famous Choco butternut which Dunkin’ Donuts offers? Everyone knows
Filipinos love visit malls and do shopping and basically their store is near to churches and parks.
They offer convenience to its customers and it is accessible.

III. Dunkin’ Donuts is more relatable

Considering the "Pasalubong ng Bayan" Tagline they used and established them as a
business here in the Philippines. The message is that we Filipinos are known for being hospitable
and family-oriented always wanted to bring something on home such as food and dine it together
with family. Dunkin’ Donuts provides the simple and easy quick pick-me-up in between tasks.
They don’t want the suits, (Starbucks already has them), they want the much larger population of
middle class people—the 99% if you will. Part of reaching out to a larger population is making
sure all your guests are happy, even relating to their norms and cultures.

IV. Dunkin’ Donuts is non-exclusive

There’s no order-anxiety at Dunkin’ Donuts; everything is in plain English, which makes

their customers comfortable even though most of Filipinos are English speaking people. Unlike
to the other stores it is less-obvious-jargon-filled ordering process, which to some feels like an
exclusive club. Clearly, Dunkin’ Donuts has a target audience: the guy/gal who just wants to get
his/her donut and get out.

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V. Dunkin’ Donuts is simple

Some people like a burger with ketchup and mustard and others want a veggie burger
topped with mashed potatoes and truffle oil. Both sound oddly rewarding, but one is easier to
order and less risky. By sticking with the classics, Dunkin’ Donuts can get the right order to the
right customer in the right amount of time.

Dunkin’ Donuts used their tagline "Pasalubong ng Bayan" which resembles the culture of
the Filipino wanting to get something such as food on the way to their home to dine with their
family etc.

Section 4: Pricing & Positioning Strategy

In order to create a loyal and strong customer base the company has tried to maintain a fair
pricing policy for all its products. To provide its customers ultimate satisfaction the company has
kept the pricing reasonable so that an average person can easily buy from a Dunkin’ Donuts
outlet without thinking about the expenses. The clean environment, fresh products,and realistic
prices have helped in generating maximum revenues. The pricing of every food item is variable
so that every customer can find something or the other that might suit their budget. In order to
maintain the volume of sales, the prices are kept realistic and coupons and discounts on selected
items are periodically provided. These keep the customers interested and leads to profits.
Dunkin’ Donuts have positioned themselves towards customers that are looking for a quick
service and an on the go experience. Many customers that come into Dunkin'Donuts do purchase
their pastries or sandwiches. Dunkin’ Donuts rely on their fast service as this has higher benefits
than their competitors. The company needs to step up in terms of new flavors that attract the
younger generation.

Special attention has been given to the opening of Dunkin’ Donuts outlets at strategically
important locations to generate the maximum number of customers. It is a given fact that easy
accessibility of the outlets will help in a healthy customer base. Therefore, all the outlets are
located at places where a person can quickly avail himself to a bite. Dunkin’ Donuts have opened
1, 459 outlets in various parts of the Philippines.

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Section 5: Distribution Plan

Every day, many new products and promos are unveiled to entice customers to come to
the store and try them. In Dunkin’ Donuts SM City Valenzuela you can order online by using
grab food.

The Dunkin’ Donuts also relies on both traditional and online media channels to reach its
customers daily. Some traditional marketing channels that the company continues to use are
television advertisements, newspapers, and billboards but they have expanded to using online
media channels such as their website, Facebook, Twitter mobile apps and email.

The first channel of marketing that Dunkin’ Donuts uses is television advertisements. The
second channel of marketing that Dunkin’ Donuts uses is newspapers that can be found in
broadsheet newspaper, usually accompanied by coupons to have incentive and also enticing for
those who have never tried Dunkin’ Donuts products to come and try them. The third channel of
marketing that Dunkin’ Donuts uses is billboards. Billboards are a great way in
reaching customers while on the road in their cars and even just walking around in big cities.

Dunkin’ Donuts also has evolved in using online marketing channels in the hopes of
retaining more customers. The first channel it uses is its website to mainly allows for visitors and
customers to see what types of products the company sells. Dunkin’ Donuts has also made use of
social media tools such as Facebook and Twitter in their goal of retaining customers. The
company has its own social media team that works to provide engaging content and media in
order to promote a two-way dialogue between the brand and its passionate fans. The company
also uses social media tools such as Google, Instagram, YouTube and Pinterest. Facebook and
Instagram have been its core social media tools that it has used to reach customers.

Lastly, Dunkin’ Donuts relies heavily on email to reach their customers. Just by signing up,
Dunkin’ Donuts is able to offer new and existing customers access to promotions, coupons,
and prizes by email all the time.

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Section 6: Your Offers

Dunkin’ Donuts offers hot and cold coffee, tea, baked goods, and savory snacks. Dunkin’
Donuts’ variety of coffee flavors includes Mocha, Caramel, Blueberry, Cinnamon, Coconut,
French Vanilla, Hazelnut, Raspberry and Toasted Almond, among others. All Dunkin’ Donuts
hot and iced coffee beverages are freshly brewed throughout the day.Dunkin’ Donuts alsooffers
more than 70 varieties of donuts, including beloved favorites such as Boston Kreme, Glazed,
Chocolate Frosted and Jelly Filled.Over the years, Dunkin’ Donuts has built on its rich bakery
heritage with the introduction of bagels, muffins, croissants and other delicious baked goods. As
part of its pledge to eliminate synthetic dyes from all of its food and beverages, donuts sold at
Dunkin’ Donuts restaurants nationwide are now made with colors sourced from natural
ingredients.

Dunkin’ Donuts often have promos that will surely be enjoyed by the customers; some
popular discount coupons for this month:

DD Perks is the Dunkin’ Donuts loyalty program where you can earn rewards in return for
your loyal custom. Your Dunkin’ Donuts account is a simple way of storing your DD Cards and
receiving Dunkin’ emails online. You can create an account by registering your DD card online.

Coupon Description DiscountType ExpiryDate

DD Perks Members Earn More at Dunkin' Online Deal Jan 2, 2020

Donuts!

Earn Free Coffee Online Deal Mar 15, 2020

Free Shipping Code Coupon Code Mar 15, 2020

30% Off + Promo Code Coupon Code Mar 15, 2020

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I. Dunkin’ Donuts offers Bundles, Piso Craze, and Occasional Promos.

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 Why not go all out and add drinks that would pair well with the doughnuts? For an
additional P109, you can get a special twin cup with two 12-oz drinks. You can choose from Icy
Orange, Pinky Lychee, Cucumber Lemonade, and Icy Choco.

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II. Dunkin’ Donuts also offers Delivery Service for their customers.

Here are the selling prices of those products:

DONUTS

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BEVERAGES

SAVORY SNACKS

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Section 7: Marketing Materials

Dunkin’ Donuts use different promotional activities in different festivals based on the
theme and target audience. In every type of promotional campaign, the company uses the color
of pink and the orange in the logo of the company along with different theme. Dunkin’ Donuts
will use the Billboard advertisement and Social Media campaign to reach the highest number of
targeted consumers by short time.

The other promotional activities could be:

 Coupons and vouchers for the first 100 customers

 Lifetime membership cards
 Raffle draw based on purchase

The promotional strategy of the Dunkin’ Donuts includes advertisements through print
media like popular magazines and newspapers. The pink and the color orange in the logo of the

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company along with a coffee cup have made it a memorable one. It also has created catchy
slogans that are aired at television and radios.

Here are the marketing materials of Dunkin’ Donuts:

1, Website- Dunkin’ Donuts account is a simple way of storing your DD Cards and receiving
Dunkin’ Donuts’ emails online. You can create an account by registering your DD card online. It
can also accommodate delivery and deliver it on your listed address.

2. Public Relations- Dunkin’ Donuts maintains active accounts on Facebook, Twitter, Pinterest,
and Youtube. Through the use of these platforms the marketing team is able to engage with their
followers, share news and information about promotions, run contests, monitor customer
feedback, and integrate their social media profiles.

3. The ―FREEquent‖ visit card- Dunkin’ Donuts Perks is a loyalty and rewards program for
customers who choose to enroll. They can create and manage their accounts, follow points and
rewards earned, and even upload money to their DD Perks card all online.

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4. Billboard- Dunkin’s billboards are sprinkled along highways all over the country, but on
National Donut Day (June 1 st) in 2012, the company sweetened this form of advertising when it
unveiled its digital billboard in Times Square.

5. Coupons- Select an offer and read the small print for specific instructions on how to redeem
your discount. You may need to follow the link to the Dunkin’ Donuts website to download the
app, show the coupon in-store, or simply let your server know the promotion you would like to
use.

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6. TV Commercials- In the past 30 days, Dunkin' has had 4,209 airings and earned an airing
rank of #227 with a spend ranking of #163 as compared to all other advertisers.

Section 8: Promotions Strategy

Since Dunkin’ Donuts founded in Quincy, Massachusetts in 1950 by Bill Rosenberg, its
mission back then was served guests in high-quality coffee and donuts with fast and friendly
service at an affordable price. Fast forward to 67 years later and Dunkin’ Donuts is still living up
to that mission. The brand recognized the need to make key changes and additions to maintain its
relevance to the public and connect to the new generations.

They used different kind of media to reach its target customers and attract new ones such as
using modern technologies and adapting changes in advertising. Instead of normal bill boards,
advertising in news papers they adapted and used the following:

1. Television Commercials

Dunkin’ Donuts launched their first television commercial on the year 2012 talking about
how family maybe apart and busy all throughout the day but when the special day comes they
have a way to enjoy with their love ones together with doughnuts. It results a huge positive
impact followed by their commercial in 2019 with the theme of ―Barkada‖ (Best Friends) which
talk about bonds during eating time with Dunkin’ Donuts. They aim to promote socialization and
get together of friends that has been reduced and taken away by many reasons and one of them is
too much use of social media.

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2. Social Media Sites

The very well-known Facebook and Google are easily to search the brand of Dunkin’
Donuts. It is used to promote their activities, promotions and introductions of new products. You
can visit their Facebook page Dunkin’ Donuts. Aside from that their Facebook page content
adapted the viral memes or cheesy posts updated to what are recent events into the country.

3. Website and Delivery

The Dunkin’ Donuts has its own website and it can be visit by the customers that wants to
buy in Dunkin’ Donuts through Delivery, this page utilizes to promote and informs their
consumers and also the stakeholders. Aside from delivery they also adapted the food delivery
app such named Grab Food to attract its users to choose them aside from their competitors.

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 4. Event Marketing

Due to the fandom emerging all throughout the showbiz they also team up to the
concerts of bands etc. such as what they launched last February 26, 2020 of the boy group
SB19 to their concert this March 19, 2020, where you can pay your concert ticket to any
participating stores of Dunkin’ Donuts.

5. Billboards

Since there have a huge target market, Dunkin’ Donuts use billboards that can easily see to
the busiest roads here in the Philippines, where they provide quotes about their product or

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announcing their new product variations and promos to avail in every event we have in the
country.

6. Product launching with endorsers

Dunkin’ Donuts also has event for the press and the public such as the product launching
they created last year together with the meet and greet to their endorsers namely (from left to
right); Derek Ramsey, Dingdong Dantes, and Piolo Pascual. The company wants to have an
engaging event where they can interact to the public, promoting their brand and products and
using the popularity of their endorsers to persuade their fans to try or to switch brands.

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Section 9: Online Marketing Strategy

Dunkin’ Donuts utilizes different form of advertisement to reach their target market. Its
current online marketing strategies includes:

1. Television Commercial that can also be watch in Youtube

Dunkin’ Donuts DD Bars "Bar" Philippine TV Commercial 30s launched on the year 2019
with Derek Ramsay, Dingdong Dantes and Piolo Pascual. It can also be watch in Youtube as an
advertisement.

2. Social Media Site (Facebook)

The world’s most popular social networking site Facebook is being utilized by Dunkin’
Donuts. It is used to promote their activities, promotions and introductions of new products.

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 Dunkin’ Donuts presents event concert for its customers. It is called A’TIN! Dunkin’
Presents Give In To SB19. It will be happening at the Araneta Coliseum on March 19, 2020.
Customers can visit the link http://dunkinpresentsgiveintosb19.eventbrite.com and begin the
process of getting tickets to Dunkin’ Presents. By also presenting the voucher to the
participating Metro Manila outlets, the customers can purchase the qualifying products to claim
their tickets.

3. Website

The Dunkin’ Donuts has own website and it can be visit by the customers that wants to
buy in Dunkin’ Donuts through delivery. The Dunkin’ Donuts utilizes the use of one website to
promote and inform their consumers and stockholders.

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Section 10: Conversion Strategy

I. Increasing Social Proof

As you can see, social proof is all around you. And while you’re often subject to social
proof as a customer, it’s imperative that you begin to leverage it on your own website. When
used effectively, social proof can drastically and swiftly improve online conversions.Posting
satisfied customers using social media sites like Facebook, Instagram and Youtube. Social media
platform is the best way to connect with your audience to build your brand, increase sales, and
drive website traffic.

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II. Celebrity Endorsements

Dingdong Dantes, Piolo Pascual, and Derek Ramsay as today’s yummiest endorsers of
Dunkin’ Donuts Philippines, who launched its brand new DD Bar offerings in five delightful
flavors, giving us Filipinos more reasons to love the brand.Celebrities are well-known industry
experts are great resources when it comes to establishing authority and proving your
value.Depending on your brand, celebrity approval may come in the form of paid endorsements
or even natural endorsements. The former would refer to formal contracts where you pay a figure
to represent your brand.

III. Display Customer Testimonials

Dunkin’ Donuts has 4.1 out of 5 ratings based on the opinion of 1,104 people in their
Facebook page. A really powerful way to leverage your existing customers for social proof is by
surveying them and then stating the percent of customers who would buy your product again.
Recommendations from satisfied buyers that affirm the value of a product or service will help.
These are sometimes paid endorsements, as found with influencer marketing. But more often
than not, they are given by happy customers, voluntarily, or upon a company's request.

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Section 11: Joint Ventures & Partnerships

Dunkin’ Donuts is considered as one of the world’s leading baked goods and coffee
chains, serving more than 5 million customers daily worldwide. As of the third quarter of 2014,
there were a total of 11,123 operational Dunkin’ Donuts stores globally.

Jollibee Foods Corp. said that Golden Cup Pte Ltd., a joint venture between the fast food
operators wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. and Jasmine Asset Holding
Ltd., has signed a master franchise agreement with Dunkin’ Donuts Franchising LLC.

Jollibee Foods Corp. operates the largest fast-food service network in the Philippines with
2,283 branches as of end-November. Its brands are composed of Jollibee, Chowking, Greenwich,
Red Ribbon, Mang Inasal and Burger King.

Also, the fast food giant Jollibee Foods Corp. has finalized an agreement to be the
exclusive operator of the Dunkin’ Donuts brand in China. The two firms have already committed
to invest up to $300 million to the joint venture, in which Jollibee Foods Corp. would contribute
$180 million.

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Section 12: Referral Strategy

Dunkin’ Donuts customers’ referral program is currently available. New members in the
DD Perks Reward Program will still automatically receive a free beverages coupon when you
sign up directly on their website or application. The Dunkin’ Donuts’ DD Perks Refer-A-Friend
Program let you earn free beverages for referring your friends to join the free DD Perks Rewards
Program. Guests can accumulate points with every purchase by scanning their DD Perks loyalty
ID QR code in the Dunkin' Mobile App or a new physical loyalty card, now available at
participating Dunkin' Donuts restaurants, before payment.

How to Refer Friends to DD Perks

1. Log in to your DD Perks account.

2. Visit the ―Manage My DD Perks‖ section and then the ―Refer A Friend‖ section.

3. Enter your friend’s email addresses to send them a referral.

4. When your friends sign up for a free DD Perks account through your referral email, you will
receive 1 free beverage coupon.

5. You can earn up to 10 free beverages in total for your referrals.

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 However, this DD Perks referral promotion provides a great opportunity for friends to go
get free drinks together at Dunkin’ Donuts.It simply requires 1 friend with a DD Perks account
already and 1 friend without a DD Perks account, and when the current user refers the new user,
you will both instantly receive free beverage coupons, which you can then go redeem together to
enjoy your free drinks at Dunkin’ Donuts.The only way to refer new members to DD Perks is
using the online email referral system, and they unfortunately do not provide users with unique
referral links or referral codes.

Section 13: Strategy for Increasing Transaction Prices

Dunkin’ Donuts have Promo Bundles, Piso Craze, and Occasional Promos that are being
offered to customers because it is part of their marketing strategy against its competitors and to
maintain their loyal customers and attract new ones.

Even though in recent years Dunkin’ Donuts has raised prices according to the cost of
beans, they still remain the most economical choice in the minds of coffee lovers. Their price
also supports the next few branding choices, aside from that, their doughnuts remain a good
tasting one even if it is only for 35 pesos.

The main competitors of Dunkin’ Donuts are Krispy Kreme, Starbucks, JCO and various
bakeries and convenient stores. Dunkin’ Donuts has a big advantage to their competitor, which is
by continuing to buy their products in large quantities at a much lower/affordable price. This do
allows them to serve their customers at a high quality coffee and baked products at a lower price
than their competitors.

Dunkin’ Donuts products are moderately priced and kept close to competition, as the
company wants to make things affordable and attract more crowds. Dunkin’ Donuts is
targetingacross all ages but mostly, 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.In order to maintain the volume of sales, the prices are kept
realistic and coupons and discounts on selected items are periodically provided. These keep the
customers interested and leads to profits.
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Section 14: Retention Strategy

Dunkin' Donuts understand that loyalty can only be earned by putting the customer at the
center of everything. It does a commitment that has earned the #1 ranking in customer loyalty
and engagement in the out-of-home coffee category for 10 consecutive years. Dunkin' Donuts
turned to the sales force customer success platform to bring its customer engagement initiatives
on one platform, as well as automate and streamline internal process so that it can dedicate more
time to delivering unmatched customer experience. Dunkin’ Donuts loyalty program, DD Perks
is designed to provide its customers with reach, personalized experiences through delivery of
content and offers that are relevant to their individual preferences.

As the brand continues to shift more focus onto its mobile app users, these are the benefits
when customers join the DD perks loyalty Program:

1. Only customers who sign up for a DD card can reap the benefits of its reward program.

2. Customers can pay using either a physical or in-app DD card funds need to be prepaid onto the
card.

3. 5 points are earned for every 60 pesos spent.

4. When a customer reaches 200 points, they receive a voucher for a free beverage.

5. DD perks members also receive a voucher upon enrollment and when it's their birthday.

6. The rewards program also gives DD Perks members access to special offers and the chance to
earn bonus points.

Section 15: Financial Projection

The Dunkin’ Donuts in SM City Valenzuela is a franchise store established inside the SM
Mall. Here is the Financial Projection of Dunkin’ Donuts in SM City Valenzuela:

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 MONTHLY PERCENTAGE ANNUALLY PERCENTAG
E
Sales
Food ₱ 117,972 75.3% ₱ 1,415,670 75.3%
Beverage 38, 667 24.7% 464,005 24.7%
Total Sales 156,640 100% 1,879,675 100%

COST OF SALES
Food 37,751 32% 453, 014 32%
Beverage 10,581 27.4% 126, 968 27.4%
Total Cost of Sales 48,332 30.9% 579, 962 30.9%
Gross Profit 108,308 69.1% 1,299,693 69.1%

PAYROLL
Salaries and Wages 47,518 30.3% 570,214 30.3%
Employee Benefits 10,895 7.0% 130,745 7.0%
Total payroll 48,332 37.3% 700,959 37.3%
Prime cost 108,308 68.1% 1,280,941 68.1%

OTHER CONTROLLABLE
EXPENSES
Direct operating expenses 8,320 5.3% 99,835 5.3%
Music entertainment 250 .2% 3,000 .2%
Marketing 3,250 2.1% 39,000 2.1%
Utilities 4,250 2.7% 51,000 2.7%
General and Administrative 9,104 5.8% 109,254 5.8%
Expenses
Repairs and Maintenance 1,800 1.1% 21,600 1.1%
Total other controllable 26,974 17.2% 323,689 17.2%

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 expenses
Controllable profit 22,920 14.6% 275,045 14.6%
Occupancy cost 14,498 9.3% 173,960 9.3%
Depreciation and 7,006 4.5% 83,067 4.5%
amortization

OTHER INCOME
EXPENSES
Other (income) 0 0% 0 0%
Interest expense 4,379 2.8% 52,547 2.8%
Other expense 200 .1% 2,400 .1%
Net income before income 3,162 2% 37,949 2%
taxes

ADD BACK
Depreciation and 7,006 4.5% 84,067 4.5%
Amortization
Deduct
Loan principal payments (3,843) (2.5%) (46,117) (2.5%)
Cash flow before income 0% 0%
taxes

BREAK EVEN SALES

WEEK ₱ 36,148
MONTH ₱ 156,640
YEAR ₱ 1,879,675

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