| Summary: | Market Share With entrants to the coffee category market, including chains such as Starbucks and Krispy Kreme, or even local specialty shops, Dunkin’ Donuts has had to rethink its strategy. Had it maintained its focus on its core products – donuts & coffee (regular & decaf only), or even its core target market – the company would have failed. Dunkin’ is a great example of a company that has adapted to the changing times to not only survive but thrive. Dunkin’ Donuts accomplished this by expanding its product offerings (product mix) to grow into new market segments. According to the case study video, whenever the brand has elected to introduce new products into the product mix, the company has conducted extensive consumer marketing studies to ensure the products will be well-received. This is another testament to customer commitment. Andrea McKenna, Director of Advertising & Sales Promotion, led the team in developing an integrated marketing program with a new positioning “coffee and…” featuring coffee, with a secondary emphasis on the namesake product. She helped introduce new products in coffee and expanded the category to hot, cold, iced, flavored, and frozen choices with various roasts. She also introduced complimentary baked goods as “addons” to coffee and expanded purchase cycle to other times of day with appropriate new products that included lunch items. The result was an expanded target market (including multi-generational appeal), increased frequency of purchases, ultimately resulting in increased profits (Perez, 2017). Another reason to consider improving the product mix was the declining sales in donuts due to the expansion of the more health-conscious consumer. The result was the DDSmart® product offerings. This line of products offers a reduction in calories, fat, saturated fat, sugar, or sodium by at least 25 percent. Featured menu items include oatmeal, multi-grain or whole wheat bagels, turkey sausage, egg whites, and reduced fat muffins. I believe there is still an opportunity to keep growing the low-calorie menu options as I do not foresee this market segment declining. Adding more vegan or gluten-free options should be a consideration for the brand. The brand has been expanding domestically and internationally. “Dunkin' Donuts opened 55 stores across Europe last year, boosting its continental footprint to more than 220 locations, according to the company. The store openings are part of expansion plan in Europe that began at the end of 2014” (Groden, 2016). In 2015, Dunkin’ Donuts expanded its market share by opening in four European countries— Denmark, Georgia, Iceland and Poland—for the first time. When Dunkin' launched the expansion, it told Bloomberg 21
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