Thesis on "International Business Three Company Profiles: Dunkin' Donuts"

Thesis 4 pages (1437 words) Sources: 5 Style: APA

[EXCERPT] . . . .

International Business

Three Company Profiles:

Dunkin' Donuts, Krispy Kreme, Carvel Ice Cream

Company 1: Dunkin' Donuts

Dunkin' Donuts, the famous purveyor of breakfast pastries and coffee drinks, according to its website, was first born 1950 in Quincy, Massachusetts as the brainchild of Bill Rosenberg. The first Dunkin' Donuts operated as a mere, humble purveyor of coffee and snacks. However, its reputation has since grown and blossomed: today "Dunkin' Donuts is the world's largest coffee and baked goods chain, serving more than 3 million customers per day. Dunkin' Donuts sells 52 varieties of donuts and more than a dozen coffee beverages as well as an array of bagels, breakfast sandwiches and other baked goods" ("About us," 2008, Dunkin' Donuts).

Company 1: Scope of operations

While at first it was feared that competition from Starbucks would threaten Dunkin' Donuts, the New-England-based chain's overall marketing strategy for each of the regions in which it operates has remained consistent: that of a quality, no-frills product. While its strongest base remains in the American Northeast: "Dunkin Donuts is moving west. The privately held company is expanding with the aggressiveness of, well, someone buzzed on caffeine and donuts, right into the territory dominated by one of its chief rivals, Seattle-based Starbucks. Dunkin' Donuts hopes the sour economy will provide a sweet spot for its brand" (Hansen 2008). Value, as opposed to 'bells and whistles' like venti (versus large) sized coffees reign.

Dunkin' Donuts also has its eye upon typical fast food consumers. It has begun to offer a successful line of breakfast sandwiches, including typical sausage and egg combinations as well as trendier egg white flatbreads, for calorie-conscious coffee drinkers. It thus manifests a desire to have a marketing finger in both 'pots' -- in the world of typical Dunkin' Donuts consumers as well as more typical urban Starbucks calorie-counters who might be feeling the economic pinch of recent times.

Company 1: Differences among the company's marketing strategies per region

Dunkin' Donuts however, does know how to use regional knowledge and sensitivity, particularly in the Northeast, to secure a marketing advantage. A love of sports fits in with the blue-collar, anti-Starbucks profile of a typical Dunkin' Donuts consumer. The company's Boston-based roots run strong, as revealed in a recent promotion for Red Sox tickets, reflecting the rabid fan base of the New England area. However, although slightly less securely based in the Mid-Atlantic region, the company is sensitive enough to offer Eagles tickets and Mets/Yankees tickets in another promotional campaign.

Company 1: Similarities among the company's marketing strategies per region

Blue-collar, sports-based promotions, a stress upon value and a mocking of the 'soy latte sipping' crowd runs through all of Dunkin' Donuts advertising. Cheapness along with cuteness and downscale American blue-collar New England hipness, merged with uncomplicated love of sugar, coffee, sports, and occasionally slightly lower fat goods like eggs, cheese, biscuits, and bacon are its trademarks, nationally and internationally.

Company 2: Brief company profile

Krispy Kreme, an obvious Dunkin' Donuts rival, was once the darling of the doughnut-loving world. It began as a regional Southern-based chain with a local cult following, and then went public. However, "Krispy Kreme, once a powerhouse stock on Wall Street, is being investigated over accounting practices. It has struggled in recent years with falling sales, concerns over sweet, high-carbohydrate foods and lawsuits by shareholders. Most of Krispy Kreme's products are high in trans-fatty acids, which are fats that can raise the risk of heart disease. Many food-service companies have removed trans fat from their products, but Krispy Kreme is still trying to develop a zero-trans- fat doughnut" (Jackson 2007).

Company 2: Scope of operations

Krispy Kreme has continued to expand internationally. "Krispy Kreme also plans to open smaller stores overseas through overseas developers...The company opened 12 international stores during the first quarter, for example" (Jackson 2007). However, rather than regionally or nationally specific, doughnuts remain the focus of the operations: plans to expand the coffee part of the franchise have fallen flat.

Company 2: Differences among the company's marketing strategies per region

Krispy Kreme's quintessential American flavor and image has been the focus of its marketing. As a novelty, this has created a revenue draw in Japan and other nations where it has expanded: "after years of staying slim on a humble diet of fish, vegetables and rice,… READ MORE

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