BM2212

Name OCLINARIA, JHAREL JAMES Section BSTM 602 Date MARCH 8, 2025

Dunkin’ (formerly known as Dunkin Donuts)

Dunkin’ Donuts has been a mainstay in the donuts and coffee industry for nearly 70 years.
The company started emphasizing growing coffee products over the years from what used
to be just about donuts. In the early 2000s, Dunkin Donuts announced their Dunkaccino,
which was the prelude to the company’s espresso, latte, and cappuccino revolution.
Although Dunkin Donuts has been around for more than 20 years longer than its
competitors, the company has found it difficult to appeal to the younger generation. So, in
the year 2019, the company went through a rebranding of its name and image. It dropped
the “Donuts” in the name, leaving only “Dunkin” to emphasize its diversification efforts on
other items beyond coffee and donuts.
This step towards rebranding may come as a shock to many customers. Still, Dunkin’s
research suggests that adopting a single-word name allows Dunkin’ the flexibility to
expand its reach into new demographics, allowing the brand to continue its road towards
domination of the coffee market. However, not everything about the company is changing.
Despite the name change, Dunkin’ is keeping its original typography and color scheme to
pay homage to its iconic heritage.
Besides the more upscale image, Dunkin redesigned their store colors, cups, napkins,
and donut boxes into a fresher and brighter look that brings new energy to the brand.
Dunkin’s menu now includes more premium coffee — thicker, richer, and less bitter than
the espresso the company premiered in 2003. Dunkin also included non-coffee beverages
and merchandise, as Dunkin is trying to inch closer to becoming a lifestyle brand.
In the end, Dunkin’ has more than doubled its stock price on the New York Stock
Exchange (DNKN) just in the past three (3) years, whereas one of its major competitors,
Starbucks’ stock price, has only increased by a little over 20% in the same period.
According to the reports, in 2020, Dunkin’ has over 12,900 stores spread across 42
countries. Dunkin’ has become one largest coffee and donut stores-chains in the world.
Throughout the Dunkin Donuts Company’s planning, the customer’s interests are
constantly kept in mind. They regularly allude to their goal statement, which states that
they would improve customer happiness and loyalty by providing the fastest and most
accurate service and the freshest products in the nicest and cleanest environment
possible.

Answer the following items: (3 items x 10 points)

1. What elements of Societal Environment or Task Environment are present in
the given case study?
- I think the task environment that is present in the given case study is the
customers and competitors; they are a group of individuals that directly affect or
have direct involvement with Dunkin. It is mentioned that despite having been
in business for more than 20 years longer than its competitors, they have trouble
connecting with millennials or the younger generations. So, to make a
competitive advantage over its competitors while getting the attention of
younger generations, the business underwent a rebranding in 2019. To
underline the company's ambitions to expand beyond coffee and donuts, the
word "Donuts” was removed from the name and replaced with the word
"Dunkin." They also updated their donut boxes, cups, napkins, and store colors
to give the brand a brighter, more youthful appearance. Without customer
preferences, the business will not achieve its long-run success, all we need to
do is change or redevelop our operations if needed to adapt to the shifting
preferences of our customers. Like Dunkin’, they change almost every aspect
of their business in order to generate demand from customers and increase
consumer satisfaction. Additionally, competitors may also be the cause of why
they want to change and add a new product line to the market because maybe
their offerings are like the customer's or to provide them more options. These
actions were taken for them to excel and outperform their competitors in the
eyes of their customers.

2. Explain the most appropriate industry analysis tool to help Dunkin’ maintain
its future healthy position in the market.
- The most appropriate industry analysis tool to help Dunkin’ maintain its future
position in the market is the SWOT matrix. This industry analysis tool can be a
method for analyzing the internal and external factors that influence a business's
competitive position. From the definition itself, the use of the SWOT matrix is to
examine the internal, external, present, and potential future aspects that could
have an impact on the organizations in the market. Knowing their strengths and
weaknesses will help them identify what to maintain, alter and grow in the areas
of improvement to keep their business ahead of its competitors. While
opportunities and threats, Dunkin’ should open for opportunities and the bad or
negative impact of the action they made in the present. An opportunity is based
on a more complex vision of a potential future business than an idea, which is
rarely worth anything. So be sure to test their idea to the surroundings to fill in
the gaps and establish market acceptability to avoid threats.
 3. Perform an industry analysis for Dunkin based on the present context, using
your recommended method or tool in item #2.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• Largest coffee • Expensive • Younger • High-cost

and donut rebranding generation can maintenance for
store-chains appreciate new equipment’s
• Difficult to colors of store,
• 12,900 stores appeal to the napkins, boxes, • Rises in the
spread across younger and cups cost of other
42 countries generation ingredients
• Redevelopment
• Has a good • Major of products • Changing
vision competitors’ customer
statement brand • Expansion of preferences
products