A Proposal to launch the coffee range of Dunkin’ Donuts in the UK market
Contents
Title Page Number
Executive Summary 3
1. Introduction 4
2. Company Overview 4
3. Attractiveness Assessment 1. Market Size 5 2. Competition 6 3. Consumer expenditure 6 4. Coffee consumption 7 5. Rate of growth 7
4. SWOT 8
5. Marketing Mix 9
6. Marketing Segmentation 11
7. Target Market 12
8. Product Positioning 12
9. Entry Modes 13
10. Conclusion 15
References 16
Appendix 17
Presentation Slides 22
Executive Summary: • The product chosen is the coffee range of Dunkin Donuts. • The country chosen is the
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This rising and great demand is expected to support the growth of coffee retail volume. (Table 1, refer appendices)
3.2 Competition
The coffee house sector has become one of the largest growing in food service. The competition does not just start and end with nationalized coffee house chains, but also includes the smaller local coffee house businesses.
On launching in the U.K. market, Dunkin’ Donuts would receive most competition from the already established coffee house brands such as Starbucks, Costa Coffee, Caffé Nero, Puccino’s and Coffee Republic (Table 2, refer appendices).
3.3 Consumer expenditure
For Dunkin Donuts’ international market sales, they mainly focus on low-income consumers, and its major products (coffee, donuts) are affordable for UK’s consumers. Looking at the following data, the annual expenditure on coffee proves a strong purchasing power on coffee products. Based on this data, it is significant for DD to note that the expenditure on the coffee, tea and cocoa in the UK grew by 27.7% from 1995 to 2007 (Euro Monitor, 2008) (Table 3, refer appendices).
3.4 Coffee Consumption
For the assessment of coffee market attractiveness, coffee consumption is anther crucial criteria applied in this report. By exploring the available statistic of some targeting countries coffee consumption, it is notable that in the volume of hot drink consumption, the coffee is
Costa coffee founded in 1971 in London, UK. Now, it has become the biggest top coffee shop chain in UK. However, Costa should be prepared for danger in times of peace. In this report, some suggestions will be proposed to improve Costa coffee’s marketing mix over the next three years. We begin with a brief description of the data we collected, then go on to analyses coffee shop market environment in UK; the next section looks at Costa coffee’s current statement of marketing mix, and finally we give recommendation of the marketing mix in the next year for Costa Coffee. Section 1 Primary research method Primary data was collected in the form of questionnaire with 15 questions, which was posted on the Internet. Also,
“Coffee is not just a drink. It 's a global commodity. As one of the world 's most traded products-second in value only to oil-the coffee industry employs millions of people around the world through its growing,
The company under analysis in this report is Dunkin Donuts. The brand of Dunkin Donuts originated in 1950 when Bill Rosenberg opened the very first outlet in Massachusetts, USA. Today Dunkin' Donuts is the world's leading baked goods and coffee chain, serving more than 3 million customers per day worldwide. It sells about 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast, sandwiches, subs and other baked goods. Dunkin Donuts is a subsidiary company of Dunkin Brands Inc that owns companies like Dunkin Donuts, Baskin Robins etc. Dunkin Donuts is a multinational company with its presence in more than 32 nations. By the end of 2011, there were 10,083 Dunkin' Donuts stores worldwide that included 7,015 franchised restaurants in the United States of America and 3,068 international outlets in more than 32 countries across the globe employing more than 9000 people. According to the financial report published by Dunkin Brands Inc, the parent company of Dunkin Donuts the net sales worldwide totaled up to $8.77 billion, up 5.2 percent from the previous year and the Net income for the year was $108.3 million, up 214.5 percent as reported by the company.
Dunkin’ Donuts was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Over the years the company expanded and now is the largest coffee and baked goods chain in the world. They serve over 5,500 retail outlets; selling more than 4 million doughnuts and 2.7 million cups of coffee daily!
All began in 1946 as “Open Kettle” in Quincy Massachusetts. A few years after the founder changed the company’s name for “Kettle Donut” in 1949. Not until 1960 when corporate renamed America’s largest retailer of coffee for “Dunkin’ Donuts” (DD). It took more than 15 years until the DD first logo was introduced using a hot pink color and a bright color orange. Not only Dunkin’ Donuts has been the best coffee in America for the past 55 years, but as well around the world; with a total of 10,858 Dunkin’ Donuts retail locations in United Stated and other countries in
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
Along with the second biggest part of the equation are the consumers of the products, not only the countries that import the goods. In the last six months, the European Union fluctuated, but did not falter being the leading importer of coffee with 9,994 units in july 2017, 10,439 units in September 2017, and 9,509 units in December of 2017. The United States imported 2,453 units in July 2017, 2,255 units in September 2017, and 2,328 units in December 2017. Japan imported 580 units in July 2017, 607 units in September 2017, and 460 units in December 2017. The Russian Federation imported 476 units in July 2017, 446 units in September 2017, and 467 units in December 2017. All units in thousand 60 kilogram bags (“Trade Statistics Table”). Within the European Union is the biggest coffee market as well as the oldest coffee market, which are the United Kingdom and the Netherlands. Both countries’ fair trade sales increased by 24% in 2011 and continue to increase as more producers become Fair Trade certified (Ladhari,2015). The United States fair trade sales increased by 12% in that same year. While these statistics were acquired, it was also noted about the consumer’s purchasing trends compared to their personal values. According to Pelsmaker, consumers’ ideal purchasing trends are not completely reflective of their actual buying behavior (Pelsmacker, 2005). Therefore, the
To formulate success factors for coffee at a choice location, it is necessary to realize the functional purpose of the coffee shops to understand who the main visitors to coffee shops are, establish the reasons for the visit and the expectations of clients. Extensive market research to ensure an acceptable accuracy on these factors, Russia has not carried out, and use the western calculations on similar topics can be used only in extremely limited range.
The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.
There is an excessive demand and cost for gasoline nowadays, coffee is believed to be the following utmost exchanged product in the global market place succeeding to oil. Coffee is developed way more than fifty nations in a stretch everywhere around the equator and offers an income for more than twenty million growers. Overall, estimation is about one hundred million societies universally that are included in the spreading, releasing, interchanging and selling of the production. During 2001, coffee growers and farms created around fifteen billion pounds of coffee whereas the global market place merely acquired thirteen billion pounds. The overstock in the coffee business is not a typical mechanism and is one of the
A coffee industry is a growing market as recent studies show that the world coffee demand growth are considerable potential for more dramatic increases. ‘An initial estimate of world coffee consumption in calendar year 2014 comes to 149.3 million bags. This represents an average annual growth rate of 2.3% over the last 4 years. The strongest growth over this time has been found in emerging markets, averaging 4.6% since 2011, with particularly strong demand in Russia, South Korea, Algeria and Turkey’1 .Nespresso company is one of nestle group which is located in Switzerland. An employee of Nestle invented the Nespresso machine. The Nespresso Company manufactures both machines and the capsules they use, and makes most of its revenues from these capsules. Nespresso sells their pure coffee in capsules which has been
Starbucks sells coffee, alcoholic beverages, tea, bottled tea, bottled beverages and snacks. Dunkin donuts offers plenty of options in terms of sweet delicacies like brownies, muffins, pastries and donuts apart from espresso and cold coffee. Incidentally, both the restaurants have breakfast on their menus.
Research showed that 54% of the Americans over the age of 18 drink coffee everyday and 62% of the regular coffee was purchased from a coffee shop, rather than homemade. For corporation coffee house chain, Dunkin’ Donuts is developing very well in home base country and has its chains everywhere including Asia. That is why it is chosen to study within this industry for its financial performance.
Dunkin ' Donuts is an American worldwide donut organization and café chain situated in Canton, Massachusetts in Greater Boston. It was established in 1950 by William Rosenberg in Quincy, Massachusetts. Since its establishing, the organization has developed to turn into one of the biggest espressos and prepared merchandise chains on the planet, with 11,000 eateries in 33 unique nations. The affix has developed to incorporate more than 1,000 things on its menu, including doughnuts, bagels, other heated merchandise, and a wide assortment of hot and frosted refreshments. The organization principally contends with Starbucks, as over a large portion of the organization 's business is in espresso deals, and additionally with Krispy
People want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although most of clientele are college students and faculty. My market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, many college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with friends without the necessity to pay cover charges. For Café , this will provide a unique possibility for building a loyal client base. In addition, location of all three Bon! Café in city located to most visited places by young