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STARS ARE NOT SHINING

Dunkin Donuts started in 1950 by Bill Rosenberg in Quincy, Massachusetts was initially a
coffee and pastry retailer. During the war, a doughnut and coffee became a normal meal and
when men came back from the war the company saw a huge opportunity to capitalize on this
market and started selling a larger variety of doughnuts which later began the grab-and-go usual
morning breakfast. Dunkin Donuts expanded globally with its unique taste of doughnuts. Its
main sales accounted for doughnuts at one point but things were about to change.

Dunkin Donuts has repeatedly spotted and adopted new trends even when it meant not focusing
on its key products like doughnuts. Dunkin Donuts increased beverage products this would
help the company lower the labour cost which would increase profitability and raw material
and inventory costs. The average time spent by the customer would decrease and check size
would increase. All these methods would help Dunkin Donuts increase its profitability. Now
the current revenue generated by the company accounts for 60% from beverages which used
to be the share of donuts and the company is looking to gain market share in the beverage
industry competing with McDonalds and Starbucks. In 2018 the company completely
rebranded itself. It changed its name from Dunkin Donuts to just Dunkin and the key focus of
the company moved from doughnuts to beverages. 50 new beverages items are added to the
menu whereas the varieties of doughnuts from 30 has been limited to a maximum of 20 other
than that the company introduced new food products such as burgers, wraps, and sandwiches
on the menu looking at the increasing shift towards veganism the company introduced beyond
meat products to this is all part of David Hoffmann the current CEO of the company, 100
million dollar investment campaign.

Dunkin is not just limited to drip coffee on the menu it has everything right from cinnamon,
sugar, and pumpkin lattes to premium products like coollattas and espresso. At the chain’s
newest store, one can even find cold nitro brew on the tap; it's all part of Hoffman’s investment
plan. The company has heavily invested in making the outlet technology ready to give
customers a better experience and increase the efficiency of the store. The Company
aggressively wants to expand across the globe and revamp stores with this ideology. This is
feared by Starbucks and McDonalds though these large companies have huge market share yet
the shift in consumer preference is what's bothering them. A larger menu and more products to
offer is one of the reasons for them to be worried.

Starbucks, which is a global leader in the beverage industry, doesn't like this campaign of
Dunkin. The sales of Starbucks could be affected shortly due to the next-generation store
ideology of Dunkin. The average check size of Starbucks has decreased in the past few quarters
as well.

TASK AT HAND

As the chief strategy officer of Starbucks, you have asked to come up with solutions to this
situation.

1. Revamp Strategies to revive the company

2. Methods adopted to regain the market share

3. 5-year development plan

4. New marketing and sales strategies

5. Strategies for new-generation outlets

6. Marketing budget and sources of funds

7. Revised Menu list

DELIVERABLES

1. PPT not more than 8 slides

2. Excel containing all necessary financials

3. Press Release about change in the company’s product line

5. Posters about the new marketing campaign

4. Any Other creative that you deem necessary


GUIDELINES

• Submit the ppt in the following format FULLNAME_BM_PRB23.pdf


• The excel needs to be submitted in NAME_BM_PRB23.xlsx
• The use of Chat GPT or any other AI is strictly prohibited

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