Professional Documents
Culture Documents
Department of Management
Bachelor of Science in Business Administration Major in Marketing Management
AY 2023-2024
Industry Concept
Dunkin’ has its humble beginning in 1950 as Dunkin’ Donuts established by William
Rosenberg in Massachusetts, USA, that aims was to serve “the freshest, most delicious coffee and
donuts quickly and courteously in modern merchandised store” which is true that up until now it
remains in every store of Dunkin’. Dunkin’ is a global chain of coffee shops and donuts bakeries that
wins the heart of millions of people around the world. Before Dunkin’ offered just two varieties of
donuts but they immediately expanded to include more than 50 different varieties of choices of
delicious baked goods, including bagels, muffins, and breakfast sandwiches. The ability to adapt to
changing consumer trends and preferences is one of the reasons why Dunkin’ is successful. Also,
they remain to its founding principles of offering delicious coffee and baked goods at affordable prices.
The company changes its focused to include more healthy and convenient options, such as oat milk
and plant-based “Beyond Meat” breakfast sandwiches. Dunkin is part of restaurant groups with a
focus on coffee. The cafe' or food and beverage category is a part of the hospitality industry. Due to
the availability of coffee and baked items, Dunkin is thought to belong in restaurant franchises. They
do provide some food products, such sandwiches, but their main specialties are coffee and
doughnuts.
Two of the most well-known businesses in the sector are Dunkin' Donuts and Starbucks, each
of which have distinctive menu offerings. People who want a fast snack or even a full dinner frequently
go to coffee shops and donut cafes. Customers now have more options for food and drink thanks to
the growth of chain eateries. Compared to Dunkin' Donuts, Starbucks has developed a more premium
brand. Starbucks provides a wider selection of food and a greater degree of product personalization,
which is emphasized by the addition of each customer's name to the side of their cup. In order to
entice consumers to remain and socialize, work, study, read media, or listen to music while consuming
Starbucks goods, the business provides a cozy and quiet environment with free wireless internet
connection. In order to appeal to the middle class, Dunkin' Donuts offers more affordable prices. The
management of Dunkin' Donuts has stated its intention to be the market's lowest cost provider while
maintaining quality above an acceptable standard in corporate earnings conference calls.
Dunkin is a part of the food industry that focuses on desserts. Many years ago, Dunkin was
still competing with other companies in the food industry, and they are still popular. Dunkin offers
coffee, donuts, and sandwiches. Two of the most popular in that industry are Dunkin Donuts and
Starbucks. Let's talk about Starbucks. Starbucks built a strong brand name, and they are popular right
now because of their trusted products, etc. Starbucks offers fresh-brewed coffee, hot and iced
espresso beverages, Frappuccino coffee and non-coffee blended beverages, Starbucks Refreshers,
smoothies, and Tazo teas.
Dunkin Donuts chose to erase the "donuts" in the brand name because they wanted to
compete with Starbucks because the main product is coffee, which is the reason why they decided to
erase it. Starbucks has built a strong name in our country. They don't need advertising because the
people who always go there do the advertising for them. While, Dunkin has a lot of advertising just to
promote their business. The products on the menus of both businesses are irresistible, which is why
most coffee lovers find it hard to decide where they are going to have a coffee break.
The two biggest coffee-focused restaurant chains in the United States are Starbucks Corp.
(SBUX) and Dunkin' Brands. Both businesses have comparable overall business methods and
provide comparable coffee alternatives, albeit with differing food options. The volume, shop
ownership, and branding of their business models do, however, differ significantly. Of course, Dunkin'
Donuts' coffee is quite well-liked. On the 2015 American Consumer Satisfaction Index Restaurant
Report, Dunkin' Donuts actually bested Starbucks. Furthermore, its customers, especially those in the
Northeastern United States, are fiercely devoted to the brand, thanks in large part to its coffee, which
is thought to have a gentler and more popular flavor than Starbucks.
Market Size
Based on Statista Research Department, as they published on the 10 th of October
2023, Dunkin came in second place in terms of sales in the Philippines in 2022 around 142
million U.S. dollars in total sales that year. Dunkin' currently operates over 800 stores in the
Philippines, and it is estimated that the company sells over 10 million units of food and
beverages per month. (World Coffee Portal, August 2023). Therefore, it is difficult to say
exactly what percentage of Dunkin's sales in the Philippines come from donuts and coffee,
as the company does not release this information publicly. However, it is likely that donuts
account for a significant portion of Dunkin's sales in the Philippines, given the popularity of
donuts in the country. According to these reports, the coffee and donut market in the
Philippines is expanding and Dunkin' is one of the market's leading players. Dunkin' is also
well-positioned to capitalize on the growing coffee and donut market in the Philippines that is
constantly evolving and adapting to its customers changing needs giving its commitment to
staying ahead of the curve and maintaining its position as a leading coffee and pastry chain.
Since the company is also investing in new technologies and marketing initiatives to reach
more Filipino consumers. Overall, Dunkin' has a significant market share in the Philippines,
and the company is expected to continue to grow in the coming years.
Accordingly, the Philippine coffee shop industry is expected to grow from US$1.6
billion in 2023 to US$2.3 billion by 2028, at a compound annual growth rate (CAGR) of 7.5%.
This means that the coffee shop industry in the Philippines is expected to grow by an average
of 7.5% per year over the next five years. This growth is being driven by a number of factors,
including:
• Increasing urbanization and disposable incomes
• Growing popularity of specialty coffee
• Expanding presence of international coffee chains
• Rising demand for convenient and accessible food and beverage options
The coffee shop industry in the Philippines is relatively young, but it is growing rapidly.
The country has a young population with a growing taste for coffee. In addition, the
Philippines is becoming increasingly urbanized, and people are looking for convenient and
accessible places to eat and drink. Filipino consumers are becoming more discerning in their
coffee tastes and they are looking for coffee drinks that are made with high -quality coffee
beans and prepared by skilled baristas. International coffee chains are also expanding their
presence in the Philippines. These chains are appealing to Filipino consumers because they
offer a wide range of coffee drinks and other food and beverage options at affordable prices.
The rising demand for convenient and accessible food and beverage options is also driving
the growth of the coffee shop industry in the Philippines. Coffee shops are located in
convenient locations, such as shopping malls, office buildings, and residential areas. They
also offer a variety of food and beverage options, making them a one-stop shop for busy
consumers.
Market Trends
PRODUCT (MENU INNOVATION)
DUNKIN' HAS INTRODUCED POPPING BUBBLES TO ITS MENUS, FOLLOWING A
NATIONWIDE SHORTAGE OF BUBBLE TEA.
DUNKIN' WAS ONE OF THE FIRST MAJOR FAST-FOOD CHAINS TO OFFER A PLANT-BASED
SAUSAGE BREAKFAST SANDWICH
Dunkin' was one of the first major fast-food chains
to offer a plant-based sausage breakfast sandwich,
and it has been a big hit with customers. The
sandwich is now the second best-selling item in
Dunkin's Manhattan stores, and the company is
planning to roll it out to more locations across the
country. This is a sign of the growing popularity of
plant-based meats
Dunkin' Donuts is focusing on improving its in-restaurant experience to increase market share
and store sales. The company is rolling out a simplified menu, improving franchise profitability and
guest experience. The company is also evolving its mobile ordering platform, On-the-Go Mobile
Ordering, which optimizes speed in drive-thru locations. Upgrading its POS and back-office software
systems and enhancing employee training tools are also being implemented to improve order
accuracy and speed of service. These initiatives aim to improve employee retention and customer
service.
ADVERTISING TREND
DUNKIN' RUN CAMPAIGN
The Dunkin' Run campaign was launched in 2018 and featured celebrities like Ben Affleck
and Rachel Boston. The campaign focused on Dunkin's convenience and its ability to help people
start their days off right. The campaign was a success, and it helped to boost Dunkin's sales and
brand awareness. In fact, the campaign was so successful that it won the 2019 Effie Award for Best
Integrated Marketing Campaign.
The Dunkin' Run campaign was a multi-channel campaign that included TV, digital, social
media, and print advertising. The campaign also featured a number of celebrity endorsements. The
campaign was also a success in terms of social media engagement. The campaign generated over 1
billion views on social media.
The Dunkin' Run campaign was a success in terms of both sales and brand awareness. In the
first quarter of 2019, Dunkin's sales increased by 2.6%. The campaign also helped to increase
Dunkin's brand awareness by 10%.
New battlegrounds
Dunkin's successful move from doughnuts to coffee has made them a coffee giant. Dunkin'
appears to be winning its unofficial fight with McCafé and Starbucks. Its smart switch to social media
marketing and focus on fast-served cold coffee has helped it thrive in practically all its territories, from
China to Germany. The Indian market has been difficult for it. After a series of closures in 2018 that
cut its shop numbers in half due to a lack of profitability and operational inefficiencies, the company
stated in November 2022 that it will renovate its locations and menus to attract younger customers.
Bangalore coffee retailer Something's Brewing CEO Abhinav Mathur.
Dunkin' has decreased from 25 shops to 9-12 in India, he claims. In contrast, McCafé and
Starbucks have 300+ shops and are growing. “They may need to implement their success from other
Indian markets, but it has not happened yet.” Multinational corporations are fighting in non-traditional
coffee-drinking countries as US coffee consumption reaches capacity. Due to its franchise concept,
Dunkin' can adapt to local markets. Not sure if its brand recognition will carry weight as domestic
competitors start coffee chains. Dunkin' has shifted away from doughnuts, but the evidence will be in
the pudding.
MARKET SHARE
15%
10%
5%
0%
Dunkin' Starbucks McDonald's Coffee
As shown above, the market share of four companies is compared to each other. It shows
which company performs well and which company has poor performance.
Many cafes in the Philippines have varying percentages of marketing shares. Both Dunkin’
and its major competitor, Starbucks, has 22% market share. Other competitors include Krispy Kreme,
which has a 5.4% market share in the Philippines, and McDonald's, which has a 9.4% market share.
As we can see, Dunkin' Donuts and Starbucks share the same market. Yet they have different
methods and goods. Their marketing strategies are represented by percentages.
In the current year, 2023, Dunkin' Donuts has reduced their marketing proportion to 16.09%
owing to poor performance; they have lost about 6% of their percentage, while Starbucks has reduced
its percentage to 21.83%; they have lost nearly 1% of their market share. And McDonald's coffee
increased 2% of the market share to a total of 11.94%. We can see that Dunkin’ is catching up with
its major competitor, Starbucks, both local and international.