DUNKIN DONUT: SWOT ANALYSIS

STRENGTH

GLOBAL OPERATIONS

Dunkin’ had 5,000 food joints in 38 countries, which has increased over the past two
decades to 13,000 restaurants in 46 countries. It has evolved into the largest
coffee-and-baked-goods chain in the world.

- We are all aware that Dunkin Donuts is well-known in the Philippines and other
countries. They have grown in popularity as a result of their excellent and
high-quality donuts, particularly the choco butternut. It's my favorite, and I'm sure
it's yours as well.

CORE COMPETENCY IN SUPPLY CHAIN MANAGEMENT

Dunkin’ has become an expert at managing the flow of products and materials from
suppliers to their franchises, ensuring that everything runs smoothly and efficiently.

- Dunkin Donuts has several locations where we may see them, such as malls.
Dunkin Donuts assures that their products and supplies are properly and
arranged from the supplier to its franchisees.

ECO - FRIENDLY POLICIES

Dunkin' set a target to reduce its carbon footprint and successfully transitioned all its
outlets from polystyrene cups to paper cups.

- If you've had their cup of coffee before. I recall it being a plastic cup, but it is now
a paper cup since the company uses double walled paper cups, which are more
environmentally friendly and cost effective for the company. Dunkin Donuts has
also saved up to 20 million pounds of paper each year by switching to 100%
recycled paper bags
WELL BUILT POSITIONING

Dunkin maintains a competitive advantage in offering low-priced caffeinated beverages and

warm pastries.

Dunkin donut marketing strategy uniquely merges the marketing mix, social media marketing,
and influencer promotion.

FOCUS ON CORE PRODUCTS:

One of Dunkin’s strengths lies in its unwavering commitment to its core products: coffee and
donuts. By concentrating on these two staples, Dunkin has built a strong reputation for quality
and consistency. They have consistently invested in sourcing high-quality coffee beans and
developing a wide range of donut flavors to cater to diverse consumer preferences.

Brand Positioning and Messaging:

Dunkin has strategically positioned itself as an everyday, affordable indulgence. Their

messaging revolves around the idea of providing joy, convenience, and familiarity to
customers.Through effective marketing campaigns and memorable slogans the brand has
successfully ingrained itself in the minds of consumers.

Menu Innovation:

While Dunkin remains loyal to its core offerings, it has also embraced menu innovation to cater
to evolving consumer tastes. Recognizing the demand for healthier options, Dunkin introduced a
broader range of beverages, including smoothies, tea, and flavored coffees. They have
expanded their menu beyond donuts to include breakfast sandwiches, bagels, and other baked
goods.

Digital Transformation:

Dunkin has been quick to embrace digital technologies, making it easier for customers to
engage with the brand. Through the app, customers can order ahead, access exclusive
promotions, and earn rewards for their purchases. Dunkin has effectively utilized data analytics
to understand customer preferences, target marketing campaigns, and refine its offerings

Brand Partnerships and Collaborations:

Dunkin has successfully leveraged strategic partnerships to enhance brand visibility and tap
into new markets. Collaborations with different brands to reach new audiences and extend its
product offerings. Additionally, Dunkin has capitalized on pop culture by collaborating with
influencers, sports teams, and TV shows, which strengthened its brand presence

Community Engagement:
Dunkin has built a strong sense of community by actively engaging with its customers. The
brand supports various charitable initiatives, including fundraising for children’s hospitals and
military organizations. Dunkin’s commitment to giving back to the community resonates with its
customers and fosters a positive brand image.

WEAKNESSES

LIMITES OFFERS
- Dunkin donuts doesn't have a lot of options and variety when it comes to there products.

"For what I've observed, Dunkin donuts only provide limited offers of donuts and limited
products, yes donuts is their main product but as time goes by dunkin donut can have the ability
to add and to construct a new product that they can offer. Especially in the local country
because Dunkin donuts provides a different variety of food internationally but can't provide in the
local country."

HIGH IN SUGAR CONTENT

- The company most focused is the desserts products.

" Like what I stated earlier, people find it more not interesting because of the sugar because
people actually become more and more conscious with the food that they intake. Imagine one
glazed donut contains 13 grams of sugar but most professions recommend that no more than
25 grams of sugar per day. And that's why they have small profitability is because donuts or
pastries and coffee are their main products that they can provide to people"

LACK OF ADVERTISEMENT AND PROMOTION

- They only rely on business models

" Dunkin Donuts only rely on models and they actually don't have advertisements and
promotions, like the other product and I believe that the company thinks that they will have a lot
of customers for having models but little they don't know is they are only having short term
customers."

SLOWER EXPANSION
- Dunkin donuts does have slow expansion, because of its financial issues that the company is
facing.

" The reason why they have slower expansion is due to financial issues or they only have
limited financial capabilities. Dunkin donuts is controlling the growth of their company's,
compared to others they have speed expansion with global brands such as mcdonalds,
starbucks and so on "
OPPORTUNITIES

HEALTHY MENU ADAPTATION

-They can also remove artificial sweeteners, flavors, and preservatives from their menu.
- By doing this, Dunkin can attract customers who want healthy breakfast and snacks. They can
also advertise their healthy menu on social media platforms to let people know and attract
customers who are looking for healthier options.

DIVERSIFICATION INTO
NEW VARIANTS AND FOOD PRODUCT CATEGORIES
-Dunkin can also acquire the opportunity of diversification by introducing new product lines in its
menu such as new sandwich variants, salads, snacks, smoothies, juices, and tea, which can be
adapted to tastes region or culture-wise. Customers are looking for a wider variety of food and
beverage options, and Dunkin can attract them by offering co-branded products and
partnerships with other companies.

EXPANSION INTO NEW COUNTRIES

-Dunkin can acquire the opportunity of expansion by opening new stores in areas where it does
not currently have a presence.
-This can include international markets, smaller towns, and rural areas.
Dunkin can also consider partnering with other companies to open stores in non-traditional
locations such as airports, train stations, and malls. Dunkin can also focus on opening drive-thru
stores to cater to customers who prefer quick and convenient service.

IMPROVE CURRENT VARIETY

-Dunkin has an opportunity to add seasonal items.
- This can help attract customers who are looking for unique and exclusive options. Dunkin can
also consider introducing regional flavors and specialty drinks to cater to local tastes. Dunkin
can also conduct surveys and focus groups to gather feedback from customers and use this
information to improve its menu and offerings.

THREATS

HIGHER COMPETITIVE RIVALRY

- Dunkin' faces stiff competition from rivals like JCO, and Krispy Kreme, all of which offer
comparable products and services while often having locations in close proximity to
Dunkin' establishments. This competitive landscape poses a significant challenge for
Dunkin', both in retaining its existing market share and in appealing to new customers.
To address these challenges, Dunkin' should consider elevating its product offerings,
elevating the quality of its customer service, and intensifying its marketing endeavors.
Additionally, exploring investments in cutting-edge technological solutions to enhance
 operational efficiency and reduce expenses could prove instrumental in preserving its
competitive edge and upholding its position in the market.

LOSS OF CONTROL

- Dunkin' confronts a substantial risk regarding its ability to maintain control over its
network of franchisees. While franchisees operate Dunkin's outlets, the company may
not always have complete oversight over the quality of their products and services. This
can become a significant issue if franchisees deviate from Dunkin's established
standards or fail to provide a consistent customer experience. To address this concern,
Dunkin' should establish a closer partnership with its franchisees, ensuring that they fully
comprehend and adhere to the company's guidelines. Dunkin' could bolster this effort by
offering enhanced training and support programs for franchisees and implementing
regular quality checks to verify compliance with its standards. This proactive approach
can help Dunkin' maintain consistent brand integrity and customer satisfaction across its
franchise network.

CONCLUSION

The SWOT analysis of Dunkin’ Donuts reveals a multitude of strategic opportunities to pursue,
as well as some internal weaknesses and external threats to address. Leveraging the menu
selection catering the changing customer preferences, brand recognition and reputation are
clear strengths that Dunkin’ Donut can build upon. Additionally, the global expansion of the
business, healthy menu adaptation, as well diversification into new variants and food product
categories presents a promising opportunity.

However, it is also important to address the different weaknesses of the brand, such as slower
expansion, limited variety selection, lack of advertisement and promotion, as well as the high
sugar content of the products. Furthermore, competition in the coffee and fast food industry,
posing continuous innovation.

By crafting and implementing strategies that align with these findings will position Dunkin’
Donuts for sustained growth and success in the ever-evolving food and beverage market.