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Dunkin DonutsJohn Beebe-CenterTerrence GagalaMeghan O’BrienDrew RosenHOSP 3050 - Hospitality Strategic MarketingProfessor Howarth2/17/2014

Beebe-Center, Gagala, O'Brien, Rosen 2ContentsIntroduction . 3Core Product . 3Facilitating Product . 4Supporting Product . 4Augmented Products . 5Service Characteristics . 5Intangibility . 6Inseparability. 7Variability . 8Perishability. 9Price . 9Distribution Channels. 10Promotion . 10Conclusion . 11Works Cited . 12Work Breakdown Structure for Dunkin Donuts . 13

Beebe-Center, Gagala, O'Brien, Rosen 3IntroductionFrom the survey we conducted on the areas surrounding Providence, RI, we decided tolaunch a new line of tea's. Using Providence as a test market, we want to explore the success wecan have by offering more tea options. Tea is one of the world's most popular beverages, and itshowed on our survey's; almost 50% of respondents stated that they drink tea. Our menucurrently only has three tea options; the basics of green, oolong and black teas. Our new line willexpand upon our existing flavors and ideally allow us to capture a currently growing market.Teavana and Tealuxe are two chains that are two growing chains of "tea bars" that arecapitalizing on this market. Starbuck's also offers over 25 tea based options to cater to thismarket. By adding tea to our product line we can better compete with these companies. Our newproduct line will contain a raspberry herbal tea, a cranberry herbal tea and a peppermint herbaltea.Core ProductThe core product that people usually purchase at Dunkin Donuts is coffee. There aremany types of coffee but the two main coffees are hot and cold. They give you the options tochoose from once ordering your coffee. People usually order hot coffee when it’s cold outsideand ice coffee when it’s hot outside. Their slogan, “everyone runs on Dunkin” is true becausemany people can’t get their day started without coffee.This addition of these three herbal teas to your choice of beverages will not directly affectcoffee. We are not trying to replace our loyal customer's favorite brew; we are looking to expandour menu to bring in a new base of customers. The addition of tea also offers a healthier, lowercaffeine option to attract the growing health and fitness markets back to our shops.

Beebe-Center, Gagala, O'Brien, Rosen 4Facilitating ProductFacilitating products is mostly about the employees who serve the coffee to thecustomers. Furthermore, the employees who work the drive thru windows are a huge partbecause most of the people who go to Dunkin Donuts go thru the drive thru window. Obviouslythe workers at Dunkin Donuts will use their hospitality skills to make sure the customer getswhat he/she want. Usually if it’s cold outside, customers will need to use napkins to hold theircoffee or even if the coffee is hot or cold in general.The addition of the new line of herbal teas will not change the set up of our facilitiesmuch. We will possibly need more room for storage and more tea brewing stations set up at thefront counter. The drive thru, service counters and the service stations containing the paper goodsour customers rely on will remain the same. The biggest change will to be training the employeeson the new items and having them suggest them to the customers.Supporting ProductThe main supporting products that Dunkin Donuts has to offer is the donuts, sandwiches,and the merchandise that they offer. Most people like to get something to eat when they go toDunkin Donuts. Customers have different types of products to choose from. These differenttypes of products help the DD product differ from the types of products that Starbucks or othercoffee shops offer.With these new teas added to our menu, we will be able to compete with Starbuck's on ahigher level. Starbucks already offers twenty-four different varieties of tea drinks to compare toour simplistic menu. Dunkin Donuts only currently carries green, oolong and black teas. Bydiversifying our menu, it is our hope to attract new customers and be better fit to compete withStarbucks and other competitors. These tea's will act as a substitute good for coffee, leading to

Beebe-Center, Gagala, O'Brien, Rosen 5broadening of our customer base. We will still continue serving the same complimentary goodsas before.Augmented ProductsThe augmented product of Dunkin Donuts is the interaction you receive as a customerfrom the employee. As an employee you want be able to give the customer the visit of a lifetime, meaning that nothing goes wrong. Customer interaction is huge because the employeeneeds to greet and say goodbye to every customer.Looking at the variety of locations online, the atmosphere really grabs the customer’sattention. The customer has the opportunity to submit their feedback because Dunkin Donutslikes to hear the complements/complaints that are made by the customers. Customers want to bein and out of the door, so they employees of the store locations need to make sure that everythingis accessible to the customers. Customers expect the service and product to be good enough forthem to return in the future.This expansion of our beverage line gives us multiple opportunities to please morecustomers than before. By adding on this product, new customers will be entering and with a fewgood visits make Dunkin Donuts tea a ritual of their own. Once again, training the employees onthis new product is essential for success in the future with building these relationships.Service CharacteristicsTo promote our new tea lines we have to make sure our service characteristics are up todate. The four service characteristics that really help promote are product are intangibility,inseparability, variability, and perishability. Intangibility is the services that can’t be seen,

Beebe-Center, Gagala, O'Brien, Rosen 6tasted, felt, heard, or smelled before purchase. Variability is the quality of services that dependon who provides them and where, when, and how. Inseparability is services that can’t beseparated from their providers. Finally perishability is services that can’t be stored for lattersale or use. All these service characteristics are key factors for our new tea products to besuccessful.IntangibilityAccording to our textbook intangibility are services that can’t be seen, taste, felt, heard orsmelled before the purchase. It’s pretty much marketing using tangible objects, that don’t soyou’re probably wondering how this affects the coffee we drink almost every day. Our new teaproduct, will have to be advertised a different way because we want more customers to be able tocome in to Dunkin Donuts and purchase it. Marketing a product can be tough but if you advertiseit correctly, more people will purchase it.Another way it’s intangible with its coffee is the quality of Dunkin’s service that providesyou. Before you even purchase it Dunkin experts on average test out the new tea product everyday to make sure it stays consistent. Also all Dunkin Donuts have customer surveys that lets theemployees know what they can improve on. It may not help much with the first immediate trip,but it will help future trips before the first customer even walk in the door. This also have theadditional benefit of increasing management’s focus on the brand, which is set apart as a crucialasset. It also ensures that, rather than being given the brand to use for free, management is nowresponsible for ensuring a healthy return for its use. These intangible services help them competewith places like Starbucks and McDonalds that are high competitors in the coffee industry.

Beebe-Center, Gagala, O'Brien, Rosen 7InseparabilityWhat will make our products inseparable from the other places that serve herbal tea ishow our service is. Service is what keeps people coming back to the place. This means that weneed to make sure that all of our employees are up to date with the product and everythingabout the new herbal tea product, to re-ensure the consumer to buy the product. It’s themanager’s job to inform each employee every single fact about the tea, so employees can sellthe tea to the consumers. Consumers are more impressed and are more likely to buy a productwhen an employee can list off each fact about the product. We should also offer nutrition factsabout the product because today every one cares about how healthy the product is they’reabout to consume.Another way to keep the product inseparable is have each new employee that goes onshift to try the product, to re ensure that the tea is to perfection for every customer. This iswhat Dunkin does for their coffee every morning and it re ensures the customer that they’redrinking the highest quality tea every day. Finally, it’s important to leave out certain items thatgo in tea like honey/sugar for the customers to put in themselves. Even though Dunkin does puteverything in them to make life easier for the consumer, it’ll quicken up time for the employeeand also it allows the consumer to have the drink exactly how they like it. This will increasebusiness because it reduces time so employees can serve more quickly and the consumer canhave their drink exactly the way they want it.

Beebe-Center, Gagala, O'Brien, Rosen 8VariabilityTo make our new herbal tea products successful really depends on the quality of servicethat is provided by our employees serving the customers. To really promote it we need to placesigns promoting the new tea flavors all over the store to really catch the consumer’s eye. Thiswill actually let the consumer know and maybe they will even want to try out the new product.Maybe also have an advertisement place in the facility with someone famous to really make theconsumer try the product. For example almost every Dunkin Donuts one of our representativeswent to have a cardboard cutout with Ron Gronkowski promoting a new steak and eggsandwich. This really catches the consumer’s eye because in the eyes of consumer seeing a bigcelebrity holding a product really makes people want to try the product. This could also lead tomaybe a celebrity going to different Dunkin Donuts in different areas offering a meet and greet,and offering free samples to really bring in a lot of consumers to try the new products. Thiscould really expose our new herbal tea product.It’s also important for our employees to have top notch service. We believe that Dunkinshould implement to their employees to say the following when introducing themselves to thecustomer: “Hello my name is (insert name here) and welcome to Dunkin Donuts. Would youlike to try are new herbal tea today.” Many fast food places do this when they have any newproduct because it informs the consumer that there is a new product and the likeliness of theconsumer buying it increases. It’s also necessary for the consumers to have a great backgroundknowledge on the product like different flavors because if the consumer asks questions aboutthe product they’ll expect the employee to respond with an answer rather quickly and willagain increase the chances of the consumer to buy it.

Beebe-Center, Gagala, O'Brien, Rosen 9Another good idea for us is to monitor customer satisfaction by offering surveys of theservice and how they like the product. This will allow us to see how much they like the productand give us an idea how we can improve the product/ if we should keep the product going.Surveys are the most efficient way to see if the product will be successful in the long run. Alsoit’s important that the quality of service is very high and the facility is clean and up to foodsafety codes because these are important factors to have the consumer come back again andbuy our product.PerishabilityPerishability is defined as services that can’t be stored for later sale or use. This is prettyobvious when talking about the ne

It’s also important for our employees to have top notch service. We believe that Dunkin should implement to their employees to say the following when introducing themselves to the customer: “Hello my name is (insert name here) and welcome to Dunkin Donuts. Would you like to try are new herbal tea today.” Many fast food places do this when they have any new