Market Research

Proposal
Group A2

Group A2

20M113 - Collette D’souza

20M117 - Harshit Nahata
20M128 - Nikhil Anand
20M141 - Shivangi Arora
20M144 - Shweta Khonde
20M149 - Sparshith PS
 Dunkin Donuts

Brief introduction –
Dunkin Donuts is a part of one of the largest food service companies in India, Jubilant Food
Works Limited (JFL/Company). Jubilant Food Works Limited holds the master franchise
rights for two of the major international fast-food brands, i.e., Domino’s Pizza and Dunkin'
Donuts
Founded back in 1950, Dunkin’ Brands is one of the world’s leading franchisors of Quick
Service Restaurants (QSRs). It was launched in India in April 2012in New Delhi. It is
extensively known for its breakfast on the go, and offers a wide range of donuts, beverages,
and other baked food products. With its amazing ambience it caters to friends and families
looking for a relaxed and comfortable environment. There are around 27 Dunkin Donuts
outlets in India, present across 8 cities. Especially for its Indian consumers, Dunkin Donuts
has customized its menu to suit the taste buds as well as the make it affordable to the
middle-class population of India.

Mission & Vision of the firm –

 Mission- “To be the leading provider of the wide range of baked foods & beverages”.
 Vision- “To be always the desired place for great coffee beverages and delicious
complimentary donuts & bakery products to enjoy with family and friends”.
 Tagline- “Get your mojo back”

Different Product offerings –

1. Donuts
2. Fudge Croissant Donut
3. Bagel with Cream Cheese
4. Sausage, Egg & Cheese on a Croissant- with Hash Browns
5. Bacon, Egg & Cheese on a Bagel- with Hash Browns
6. Veggie Egg White Flatbread
7. Ham, Egg & Cheese on an English Muffin- with Hash Browns
8. Big n' Toasted- with Hash Browns
9. Wake-Up Wrap (Bacon, Ham or Sausage)
10. Turkey Sausage Flatbread with Hash Browns
11. Snack N' Go Chicken Wrap
12. Snack N' Go Steak Wrap
 13. Ham & Cheese Flatbread- with Hash Browns
14. Deluxe Grilled Cheese (Ham or Bacon)- with Has Browns
15. Turkey, Cheddar & Bacon Flatbread- with Hash Browns
16. Chicken Salad or Tuna Salad Sandwich- with Hash Browns
17. Chicken Bacon Sandwich- with Hash Browns

Financials –

Title Sep 26, 2020 Jun 27, 2020 Mar 28, 2020 Dec 28, 2019

Total Revenue 361.54 287.38 323.14 335.92

Gross Profit 342.27 269.39 305 319.87

Operating Income 128.91 81.62 101.31 105.68

Net Income 73.97 36.45 52.11 57.71

Strengths of the Firm –

 Niche offerings –Dunkin focused on niche products like Desserts like Donuts,
Pastries, Bagels, Muffins, Cakes, etc. It also focused more on its Coffee than any
other products.
 Brand loyalty – Its coffee and donuts are loved by everyone around the world.
 Robust Supply chain: The company has a strong and robust supply chain network.
Being a food service supplier, its products are highly susceptible to being damaged or
getting infected. Dunkin’ Donuts has a very robust and string supply chain network to
ensure health and safety of its consumers.
 Experience – Its an old firm which was found in the US and has a good experience of
catering to the customers’ needs.

Weaknesses of Dunkin Donuts –

 Growing local firms – Local competitors have come up lately and which are posing a
threat to Dunkin in local markets.
 Direct competition from rivalry firms – Starbucks and Costa Coffee pose a direct
threat to Dunkin’ Donuts
 Intense Indirect Competition – Intense competition from Pizza Hut, McDonalds, and
Dominoes. Moreover, Pizzas are prepared freshly and lasts longer whereas baked
products need to be procured from a third party and gets stale faster.
  Poor Franchise relationships – Poor relationships with the franchisers led to
business losses in many geographical locations across the globe.
 Late expansion in developing economies – Dunkin donuts should have expanded
earlier into growing economies to build a robust donut dependency among the
masses.

Mad over Donuts learnings from the Indian Market

Mad over Donuts entered India instead of potential markets like Thailand, Vietnam, and the
UAE to get the first-mover advantage in the country.
After the initial 6-8 stores, people gradually started recognizing the firm. The firm realized
that Indians prefer hot donuts that did not match with the rest of the world where Mad
over Donuts sold freeze donuts.
The second problem was getting space across the country. Mad over Donuts slowly and
gradually expanded its operations in the major cities and slowly opened 46 stores.
One of the most important learnings was to open small stores of 335 sq. feet as against
3000 sq. feet stores as originally planned by the firm.
Facebook and Instagram came as saviours. Mad over Donuts was successful in leveraging its
image in the Indian market via social media channels. Regular posts and online campaigns
helped Mad over Donuts to boost sales. Mad over Donuts was also successful in boosting
sales during festivals in the Indian market by engaging customers through online campaigns.

Krispy Kreme Donuts

A US based firm which start in the year 1937, has been a brand which has been growing ever
since. With hardly any investment on advertising they are known for majorly replying on the
“Word of Mouth” strategy.

The Krispy Kreme is very famous among the Indian population based in the UK which made
them want to venture into India. But they were aware that many Indians do not prefer
sugary treats for breakfast and do have their own delicacy’s as well hence they began
Indianizing their menus from the beginning to suit the local palates. One of their digital
campaigns highlighting the egg-free recipe that is being used for its doughnuts, one
developed only for India. Its eggless recipe will also be applied to its original glazed
doughnuts, the signature variety of any doughnut chain, to appease vegetarians, found in
greater numbers in the north and west for India

Despite this being a successful campaign MoD also sells eggless doughnuts and cupcakes at
all its outlets in India, while Dunkin Donuts has both egg-based and eggless doughnuts in its
stores.
The classical, glazed original doughnuts are priced at Rs. 50, Rs. 52 and Rs. 45 for Krispy
Kreme, Dunkin Donuts and MoD’s respectively.
 Dunkin Donuts
Dunkin Donuts campaign failed in India on two accounts,
1) Indians do not consume sweet dishes for breakfast.
2) Tea is the preferred drink and not coffee.

Dunkin Donuts did not consider the Indian breakfast habits before launching its campaign, it
being a breakfast-focused fast-food joint doesn’t sit right with the breakfast meals of most
Indians which varies drastically across several states and regions.
Secondly, Dunkin Donuts began serving coffee with variety offered in the milk and
condiments section. But India being majorly a tea drinking country which didn’t use plant
milk and relied on condiments like cardamom and not nutmeg. Just aided in the downfall of
Dunkin Donuts.
Lastly, India is a home to many sweets and has specific states specialising in their own
sweets that donuts would have been an afterthought in most places.

References:

https://www.marketing91.com/swot-analysis-of-dunkin-donuts/

https://bettermarketing.pub/why-dunkin-donuts-failed-in-india-62bbbabc0227

https://brandequity.economictimes.indiatimes.com/news/business-of-brands/mad-over-donuts-
marketing-strategy-revealed/57883926

http://economics-files.pomona.edu/jlikens/seniorseminars/gotham2007/reports/kkd.pdf

https://economictimes.indiatimes.com/can-mad-over-donuts-capitalise-on-its-early-mover-
advantage-to-take-on-global-giants/articleshow/57871560.cms?from=mdr

https://www.business-standard.com/article/management/krispy-kreme-wastes-no-time-to-
indianise-113121601106_1.html

https://www.investing.com/equities/krispy-kreme-doughnuts-inc-income-statement

https://www.youtube.com/watch?v=BXXdcgchAVw

https://www.forbesindia.com/article/my-learnings/what-mad-over-donuts-learnt-from-
india/35301/1

https://www.forbesindia.com/article/work-in-progress/the-story-of-how-mad-over-donuts-pipped-
dunkin/55527/1
https://www.thebalancesmb.com/krispy-kremes-digital-strategy-1326363