Submitted by:

Leal, Rosielyn

Mariano, Shainne Anne

Panuelos, Lia Angela

Valiente, Rica Andrea

Submitted To:

Prof. Maria Vicenta C. Magpantay

 HISTORY

Dunkin Brands Group Inc. was established in 1950. This holdings company acts as a
franchisor of Quick Service Restaurants (QSR) for its brands, the most popular among them
being Dunkin Donuts and Baskin Robbins. The former offers both hot and cold coffee variations
and baked items while the latter offers Ice Cream products. These brands are further segmented
as Dunkin’ Donuts-Us, Dunkin’ Donuts International, Baskin-Robbins-Us and Baskin Robbins
International. The major sources of the company’s revenues arise from royalty from the
respective franchisees, lease income, sales of their products and licensing fees for their products
sold over retail channels. It has operations in 60 countries with 20,500 distribution points around
the globe out of which 12,538 belonged to the Dunkin’ Donuts brand while 7,982 were of the
Baskin-Robbins Brand.

SWOT and PEST Analysis of Dunkin Brands Group, Inc.

SWOT ANALYSIS

STRENGTH

 Firm Brand Recognition and Recall

 Remarkable Growth
 Product Quality and Trust
 Global Reach And Accessibility
 Unparalleled Convenience
 Pricing and Promotions Strategy
 Franchisee Business Model

Firm Brand Recognition and Recall: the Dunkin’ Brands Group is made up of two trademark
brands. Dunkin’ Donuts is widely recognized for its delicious doughnuts and impeccable service.
It also doubles up as a coffee house. Towards the end of FY 2017, the company saw an increase
in their loyalty program membership by 2 million. DD Perks is now an 8 Million member strong
program. The Company has recently been rated as a leader in consumer engagement by Brand
Keys Customer Loyalty Index for the 12th year in a row.

Remarkable Growth: Over the years, Dunkin’ Brands profits have quadrupled and their
economic standing is looking very optimistic. In FY 2017, the store sales growth had gone up by
0.6% in the U.S. Out-of-restaurant retail sales saw a 30% rise in 2017. The overall demand is on
an ever increasing trend line. The company has successfully established 440 new restaurants in
FY 2017. Their loyalty program DD Perks saw an increase of 2 million members bringing the
total to a grand 8 million members. The Earnings per share (diluted and adjusted) jumped by
7.5% while revenues increased 3.8% for FY 2017.

Product Quality and Trust: In terms of their products, Dunkin Donuts offers a variety of 1,000
doughnuts to their customers. In addition to this, they have been a brand that has always listened
to their customer feedback. In a recent announcement from Dunkin’ Brands, Dunkin’ Donuts
decided to remove all artificial dyes from their doughnuts ushering in the New Year in style.

Global Reach and Accessibility: The Company has given due credence to the place attribute of
the marketing mix elements. They are located at places where customers density is at the
maximum. It is common to find them at International airports and town squares. They also offer
drive-in facility at certain key outlets. Dunkin Brands are established in the leading economic
markets of the world. The Company increased their total restaurants count by 4440,313 of which
were Dunkin’ Donut restaurants for FY 2017. The total sales of retail out-of-restaurant products
rose by 30%. In 2017, CPG goods of both their chief brands achieved $900 million in retail sales
out of which $150 million attributed by ready-to-drink iced coffee. Dunkin’ Donuts branded
CPG business doubled to $400 million in retail sales as compared to 2014.

Unparalleled Convenience: The On-the-Go Mobile Ordering (OTG), feature for privileged
members under DD Perks program, is highly successful with an 80 percent retrial rate.
Furthermore, digital initiatives in tandem with the Next Generation concept restaurant will be
implemented in 2018 after its inception in January, 2018. It would include features such as
innovative drive-thru technology and mobile order drive-thru lane, which will be a first in the
U.S. The online dessert sales rose by 8% in FY 2017.

Pricing and Promotions Strategy: Dunkin Donuts follows a competitive pricing strategy that
has rendered them an edge over other biggies like Starbucks who are known for their Coffee
Brand. A majority of Dunkin’ Brands shops operate on the franchise business model. This goes a
long way in reducing their capital expenditures and promotions strategies. This allows their
finance team to concentrate on more futuristic problems such as product differentiation and
identification of potential markets.

Franchisee Business Model: Dunkin’ Brands operates on a 100% franchised business model.
This lends it a great competitive advantage over its competitors as the company is not tied down
with overseeing the day-to-day operations of the restaurants and outlets, it can better focus on
menu innovation, marketing, expanding accessibility, customer tastes, franchisee business model
comes packaged with many strategic and financial benefits. With limited capital investment, this
business model permits Dunkin’ brands to expand their points of distribution and work on brand
recognition. They also generate revenue by charging royalty and fees associated with franchised
restaurants, claiming rent from restaurant properties that Dunkin’ leases or subleases to
franchisees and sales of ice cream and other products to franchisees in certain international
markets.
WEAKNESS

 Understanding Customers Palate

 Surmounting Debts
 Sluggish International Expansion
 Legal battles and Lawsuits against Franchisees

OPPORTUNITIES

 Opportunities:
 Co-creation in Customer Service
 Corporate Social Responsibility
 Product Differentiation
 Increased offering in the health Segment
 International Expansion

THREATS

 Global Food Regulations

 Market Share Volatility
 Health and Fitness Fads
 Price Wars
 Shelf Life
 Raw materials Procurement Expenses

PEST ANALYSIS

POLITICAL

 Pro American scenario

Pro- American Scenario- the Trump administration encourages Americans to ‘start up’ their
own ventures and the food industry opened its arms to welcome new players. In America, this
may be an added advantage to home companies but in other markets, it has caused customers to
voluntary abstain from all American products. For example in India it is found that an increasing
number of Indians have switched to local players to satisfy their taste buds. This is favorable for
Dunkin’ Brand has as it runs regular campaigns that have an underlying All American agenda.
Such events are usually done on National Donuts day.
ECONOMICAL

 Remarkable growth
 Restaurant Industry Prowess
 Franchise Agreements
 Futuristic Strategy

SOCIAL

 Competition from Indigenous players

 Market Saturation
 Lifestyle changes

Competition from indigenous players: Everybody loves a good doughnut, but i the matter of
taste and food preference, the variation of in preference among customers is astounding.
Indigenous player are at an advantage in this respect. They do not have to worry about
uniformity in their offerings. Their products are made keeping in mind the preferences of native
consumer. This causes the customer make a hasty decision in deciding among these two options.
In most cases the customer share of wallet tilts in favor of the indigenous players.

Market Saturation: Dunkin' brands have been in business for over decades and the food
industry is fast approaching saturation with a large number of buyers and suppliers. There is very
limited scope for expansion if it is not fuelled by culinary innovation first. Also, Dunkin' Brands
revenues are susceptible to foreign exchange rates fluctuations. In the event that their business
abroad takes a hit then the U.S facilities will also face the brunt of it in terms of global market
share.

Lifestyle Changes: In this fast paced world. People are always on the move and find very little
time to cook or even sit down and have a meal at their home. Hence, the opportunity to attract
customers for traditionally home cook meals like breakfast has opened up. Conventional
methods are fast replaced by convenience driven options. As Dunkin's specializes in its breakfast
offerings, this particular trend acts a tailwind.

TECHNOLOGY

 Research & Innovation

 Process excellence