Problem
Marketing: Dunkin' Donuts and the 4 Ps
For more than 60 years, Dunkin' Donuts has been a popular spot to grab a quick coffee and donut breakfast. But while these core products have allowed the company to flourish for decades, Dunkin' Donuts must also update its offerings regularly to keep up with current tastes. After all, not many people these days rely on a simple cup of coffee to get them going in the morning. Many modern consumers drink coffee throughout the day and enjoy variations including iced coffee, espressos, and flavored blends like hazelnut.
The increasing popularity of coffee has also brought a bevy of competitors into the breakfast market that Dunkin' Donuts deals with on a daily basis. That's why the company makes extensive use of marketing to make its brand stand out. This video highlights the four Ps of marketing-product, price, place, and promotion-and shows how Dunkin' Donuts utilizes the marketing mix effectively.
At Dunkin' Donuts, everything starts with the product. If the coffee or food does not meet the customer's expectations, the chance of developing brand loyalty is lost. Dunkin' Donuts regularly develops and tests new products in order to understand what people want. For example, consumer research convinced the company to start offering seasonal blends like pumpkin spice coffee.
Place is another critical part of Dunkin's success. The company studies where people live, work, play, and go to school in order to make sure its stores are located in convenient spots. Dunkin' Donuts tries to place its stores on the right side of the road so customers can easily stop by on their way to work. It also provides drive-thru locations that allow customers to visit at any time during the day. Ultimately, Dunkin' Donuts knows it will lose out to competitors if its stores are not located where customers want them to be.
The company also makes sure its high-quality products are available at reasonable prices. Dunkin' Donuts offers everyday value pricing along with special deals to encourage consumers to try new items. The DD Perks program lets customers accumulate loyalty points for every purchase they make. When a person collects enough points, he or she receives a free coffee. Sales promotions at Dunkin' Donuts are generally offered through its mobile app. The company also ties in with local sports teams for special giveaways. Dunkin' Donuts views its approach to marketing as one that is focused on developing, cultivating, and expanding customer relationships.
Dunkin' Donuts demonstrates the full range of marketing activities, including the use of social media and marketing research to promote and sustain its brand. This video also shows how important relationship marketing has been to Dunkin's success. And as long as the company remains committed to the 4 Ps of marketing, Dunkin' Donuts should continue to thrive in the increasingly competitive world of breakfast and coffee.
i. Why is customer loyalty of particular importance to a company like Dunkin' Donuts?
ii. Briefly describe the role that marketing research plays at Dunkin' Donuts.
iii. What sort of information does Dunkin' Donuts consider when it's determining where to locate a new store?