Dunkin' Donuts Hypothetical Marketing Strategy Case Essay
Dunkin’ Donuts are famous for their many varieties of doughnuts and their wide range of bakery products - muffins, bagels and munchkins® donut hole treats. Their products are represented by more than 6,590 worldwide points of distribution, including approximately 4,815 units in the United States alone.
History of Dunkin’ Donuts
1946: Bill Rosenberg invests $5,000, forms Industrial Luncheon Services.
1948: Bill Rosenberg opens …show more content…
By transforming their image from quality donut seller to bagel expert, Dunkin’ Donuts' goal is to have the best product in the market. Dunkin’ Donuts planned a ‘rollout’, which called for 2,700 stores around the United States to be supplied with bagels within one year at a target to grow by 10% in sales.
4. Identifying Strategic Alternatives
Dunkin’ Donuts faced problems with Harold’s Bakery and their co-packer instigating the slowing down of the “rollout” plan that they had anticipated. As Will Kussell, company President stated:
“Bagels are a tremendous opportunity for our company. It is once in a lifetime that an opportunity comes along in the food service industry with this kind of growth. The speed at which the bagel market is growing is the kind of growth that high technology companies in the Internet are seeing.
We cannot afford not to be in the game. Another point, however, is a business decision. I want to be out ahead of competition. I don’t want to send the message that we are pulling back, only that we are plowing ahead.”
This stresses the importance of bagels to the company and a brief overview of the incredible growth opportunities present in the bagel market. Three options were uncovered in order to overcome the problem. These are:
a. Continue the rollout at the current pace with a partial product line.
b. Slow down the rollout by limiting advertising