Dunkin´ Donuts A popular franchise
Introduction
Dunkin ’Coffee is characterized by economy of scale on its production part and consumers’ own purchases. Currently, it has 67 Annual Sales and Sales 21 million euros. For this amount of stores, special flour from the United States is imported since it was the recipe developed many years ago, creating original and different donuts to those of competitors. This has achieved a cost reduction of 3% by the 9 stores that opened in 2019. This is already agreed with the same supplier with 2% discount, being possible for 10 stores in 2020. Of the 10 stores, fixed expenditure can be prorated, so there is no growth in the same.
Developing
Between the new stores and those that were already previously, it has had to increase production in factories. This has increased electricity expenditure by 5% and the cost of workers by 7%. Coffee production in Dunkin ’Coffee is from its highest productions. Every year more 1 is sold.700.000.000 coffee cups in all parts of the world. In Spain, about 60,000 cups per day are sold estimated. In Spain a production of more than 50 is calculated.000 "Dunkins" a day. This amount has increased during the years, since the company becomes more recognized and popular, making the demand to grow.
Dunkin ’Coffee offers a variety of products. Of the many coffees that are sold, the espresso is one of the most popular for its rapid preparation. This product has a cost of 1.30 euros. Of these one 1.30 euros, 0.65 is what costs it according to the ingredients used. These ingredients are coffee that is used about 150 milliliters, costing 0.45 of 0.65 euros and hot milk, costing 0.20 euros of 0.65 euros. On the other hand, when a frappe is prepared, more ingredients are added, so it ends up costing more in terms of production and ingredients. Dunkin ’Donuts are part of the most popular products.
A box containing 6 of these costs 6.95 euros. A Dunkin ’Donut Glaseada that is one of the most common, however of the most successful, it costs 1.40 euros. Of these 1.40 euros, 0.70 euros costs production and ingredients to do it. Of these 0.70 euros, 0.35 are for the dough and the other 0.35 are for the glaze. Each price contains the costs of the necessary ingredients to create both parts of the Dunkin ’Donut. Provision of raw material: the raw material achieved for each establishment comes from the area. This guarantees fresh ingredients and a high quality local product. Coffee being the most important for the company, is 100% Arabic.
This coffee is chosen for its great flavor and must be certified by Fair Trade. This implies that when the coffee producer is chosen, they make sure they help the farmer and guarantee a fair price for their coffee beans. Rosquillas flour is a recipe developed in the US, which is sent to Spain to maintain the same donut quality. This ingredient and coffee are the only ingredients that are not local due to the great value they contain. Product portfolio: Star products: Star products are those that generate a lot of liquidity. That is, money, but they are needed an investment to be able to create in abundance and achieve a good market positioning.
Within this category, in Dunkin ’there is products like some of their hot drinks: Capuchino, Special Lesses and Chocolate. Bull products such as Canela roll are also found, as well as salty products such as "Cesar," consisting of grilled chicken, bacon and confused cheese. These products are popular and generate a lot of money to the industry but they are needed to invest in order to place them in the desired positioning. Vaca products: cows products are those that like stars products, generate a lot of liquidity. The difference is that these are not needed to invest a large amount as stars products.
In this category are Dunkin ’products that are the most important for the franchise. These are coffees such as espresso, cut, ice coffees and also the variety of donuts they offer. Dog products: These products are those that generate little liquidity and have low market sales. Within this category the products we find in Dunkin ’are: Munchkins, Donut Cake, beer, smoothies. PRODUCTS QUESTIONING: The questions questions are those that are not known the future of their market share or their evolution. In this category there are Dunkin ’products such as Dunkaccinos, Wraps, Frapes, Green Frozen, Bloomer and Mezzaluna.
Also in this category a new range of products can be included. Commercial investment: the necessary investment for a Dunkin ‘Coffee in Spain is between 90.000 and 12.000 euros. This investment is for a branch between 75 and 100 meters. Sales team: throughout Spain there are 67 Dunkin ’Coffee branches, of which 31 are under a franchise and 26 are typical of Dinkin Brands. In each of these is the store manager, the head on duty and the operators. Each is carefully qualified so that they can correctly represent the brand and transmit its same values, which are very important for the company.
Distribution channels: Dunkin ’Coffee products are only in their stores, which can be found in several parts of Spain. The company also has home service, taking products to consumer’s homes. This service has become very popular for the brand, increasing sales and recognition. Likewise, more and more weight is gaining in the business model and has become a fundamental tool. Sales and annual growth rate: in 2017, sales in 2018, sales in Spain amounted to 21 million euros. Currently, donuts are 25% of sales.
The rest that is offered for pastries represents 10% of sales. On the other hand, beverage sales have increased during the years now assuming 60% of sales. The new salty products line represents 8% of sales, demonstrating that it has gone well with this new launch. Market quota: In the general market in Spain, Dunkin ’Coffee stimulates 25%. Then in the different segments that participate are in the coffee market, in Donuts and in the pastries. In the coffee market, it currently controls 65%, which is wanting to increase in the coming years.
In the Donuts market, its participation is 40% and in pastries it is 20% for the great traditional furnace competition among other companies that offer these types of products. Its control in each segment and in the general market has evolved during the years. In 2017 it was when growth was seen, which has remained relatively constant during 2018 and 2019. Sales seasonality: in Spain, coffee consumption is high quantity. The Spaniards enjoy a coffee at all hours a day but they are consuming much more to the first hours.
For this reason there is a large number of sales during the first part of the day in stores, since customers who need coffee and breakfast quickly. The highest season for Dunkin ’Coffee in terms of products such as donuts is in the summer, which is when one has more vacations and freedom to take one day and go to enjoy a donuts to one of our stores. Evolution of sales in different geographical markets. Brand image and positioning: The brand image consists of a striking logo, with orange colors and pink. It also contains a cup of coffee to represent your most important product.
In this way the consumer can easily recognize. The franchise is very recognized for being a fast restaurant, which provides food instantaneously. This is why the consumers who arrive are those who move, work, study, who live busy. Dunkin ’Coffee has an image of coffee and good quality food that is delivered at the time. Dunkin ’Coffee’s image is positively perceived. Currently, in Spain there is not a large amount of recognition for traditional ovens and what they offer, since it is where the Spaniards are being and identified more.
The brand positioning has remained relatively the same during the years. Is well positioned in the market for its low prices, high quality, convenience and experience. Has the space to grow and get on the market. For now Dunkin ’Coffee stimulates 65% of the coffee market and has more loyal consumers. Main clients by type of activity: the main clients found in Dunkin Coffee lead an agitated lifestyle, a coffee culture present and belong to the middle social class. They turn to Dunkin ’for the reason that they provide good coffee quickly, or a fast breakfast.
conclusion
In this way customers can get their food and coffee instantly and continue with their day. Main customers due to geographic location Dunkin ‘has locations in many countries such as Spain, Germany, United States, Brazil, Japan, New Zealand, Guatemala, Bahamas, Bulgaria, Canada, South Korea, Ecuador, Honduras, Chile, Colombia, Panama, Indonesia, Indonesia and many more. In these different countries customers who arrive at the franchise share love for coffee. Segments in which he has entered and left. Before there were branches in Nicaragua, Italy, Australia, Argentina, Bolivia, Venezuela, Turkey, Greece, Romania, Poland, Ireland, Czech Republic, Hungary, Cuba and the Dominican Republic.
Leave feedback