Dunkin’ Donuts: Dunking the Competition

Dunkin’ Donuts is considering further expansion in the United States. Define the management-decision problem

Dunkin’ Donuts is considering further expansion in the United States. Define the management decision problem. To be profitable in the coffee business in the United States, Dunkin’ Donuts has to evaluate the strategy towards further management research and find a decision. The decision braces the company for market expansion and includes geographic and strategic approaches, for example, a further continuation of the partnership with Home Depot, Walmart, and 7-11 or establishing a full brand without any partners.

Define an appropriate marketing research problem based on the management decision problem you have identified

Define an appropriate marketing research problem based on the management decision problem you have identified. The geographical branch of the management decision can be solved by adopting the derivative research, such as the exploration of the purchaser level in the urban districts of the sugary beverages and snacks. Moreover, to reach a profitable level of income throughout the United States, Dunkin’ Donuts should research whether the greater amount of donuts is consumed by the younger or, the older population. As a result, the managers of Dunkin’ Donuts would be able to identify the most favorable position for the coffee shop, such as a center of the younger population.

According to Naresh K. Malhotra, “marketing research in the form of focus groups and survey research revealed that customers select a coffee and donut shop based on five factors: accessibility, quality, variety, image, and affordability” (1). The marketing research towards expanding the Dunkin’ Donuts network should be based on the available data of these five factors. Moreover, Dunkin’ Donuts should follow the existing strategy, which is described in the textbook: “every location is strategically placed and designed with these customers’ preferences in mind. Because these purchases are so convenience driven, the locations can be placed close together without cannibalizing business” (Malhorta 21). However, if the coffee shop would be placed in an urban district of different areas, the time the consumer is willing to spend on walking towards the shop varies greatly. For example, this time probably will be quite contrasting in New York and Albuquerque. The marketing research towards expanding would assuredly emphasize the expansive decisions that concern not only the ‘where’ component and the peddle market but also the components that are outside the limits of geography. The management decision problem related to the growth of the company should innately aim its attention towards the compatibility of the Dunkin’ Donuts trademark in the provided market and its approach to entering the market.

Use the Internet to determine the market shares of the major coffee shops for the last calendar year

Use the Internet to determine the market shares of the major coffee shops for the last calendar year. The chart provided below illustrates the primary competitors in the coffee shop retail in the United States. According to it, the first place is held by the Starbucks Corporation with the percentage of the market stake of a little more than thirty-two percent. The Dunkin’ Donut brand holds the second position after the Starbucks Corporation with the market percentage of sixteen percent. As a result, these two coffee chains conduct more than fifty percent of the whole coffee retail in the United States of America. These two competitive coffee chains’ distribution mostly consists of the sweet hot beverages that could be invested in a house or taken to go. Moreover, both Starbucks and Dunkin’ Donuts offer a broad variety of refreshments and fully wrapped coffee beans.

Starbucks and Dunkin' Donuts

Works Cited

Malhorta, Naresh. Basic Marketing Research: Integration of Social Media, New York City, New York: Pearson Education, 2012. Print.