Question

1. Why has Dunkin’ Donuts increased its focus on coffee?

2. Describe the strategy that Dunkin’ Donuts uses to differentiate the brand from its major competitors?

3. How Dunkin’ Donuts has achieved brand loyalty?

Dunkin’ Donuts: Delivering on the Brand Promise. Dunkin' Donuts has been known for its donuts for over sixty years, but over time and in response to consumer trends and preferences, the company has been diversifying its product offering.

Answer 1

Answer 1:-

The main reasons for the Dunkin’ Donuts increased focus on the coffee is that the company is looking to tap the increasing market of coffee and it is seeing Starbucks as its main rival in the segment. The company has also changed its name by removing donuts from its main and now it is only Dinkins so that it can also reflect the importance of the coffee segment. The company is also looking to make its menu more simple and trying to promote its beverage by offering a deal for afternoon happy hour.

Answer 2:- In recent years, the company has started marketing itself as the main coffee seller which also offers different types of food items and donuts to its customers and this has been reflected by the coffee mug which is being shown in its logo and the company is promoting itself as a beverage company. In recent times, the main focus of the company is on nonconventional food items so that it can attract more number of customers apart from the breakfast hours. In order to do so, the company has come up with an increased number of sandwich options and heartier food items. The interior of the stores of the company is also different from its main competitor Starbucks as the company has its furnishings and decor similar to fast food stores

Answer 3:- The role of facilitating the guests with superior customer experience is the main reason for the increased customer loyalty of the company. The company is also focused on providing an increased number of options in food items to its customers.

Dunkin’ Donuts’ DD Perks Rewards program is an important aspect of having increased loyalty. In fact, the company is also focusing on mobile technology to increase the convenience of the customers to facilitate the with On-the-Go Ordering. Apart from this, the company also changes its menu and offerings as per the local cultures and tastes of the customers.

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