ANALYSIS Dunkin views coffee-based drinks as a major driver in its new strategy to compete effectively with chained coffee shops and growing health concerns 2 The rising popularity of coffee and the coffee shop format is reflective of the growing the premiumization trend 2 Following the growing health trend, coffee may be a good fit benefiting the companys overall image 2 Attracting a new consumer group through an emotional connection and premium coffee products 3 Dunkin aims to attract new consumers with a range of premium coffees 3 Dunkin attempts to establish a more inviting retail environment to encourage its new customers to linger 3 Dunkin endeavors to attract new customers through online marketing 3 The company is keen on retaining its core consumer base, emphasizing its heritage as a key selling point 5 The companys heritage is an important marketing tool 5 Dunkin researches the Starbucks phenomenon 5 Dunkin releases a new coffee-focused tagline to appeal to a wider demographic 5 The company has been careful not to confuse its core customers with its new offerings 7 Dunkin undertakes an aggressive outlet expansion to benefit growing demand for coffee 7 Dunkin plans an aggressive retail expansion across the US and abroad 7 The company has formed deals with service stations to gain a bigger share of morning coffee traffic 8 Packaged coffee brings yet another opportunity for building new brand equity 8 The company recently introduced packaged coffee in US supermarkets 8 Dunkin follows Starbucks into the packaged coffee sector, aiming to enhance its premium image 9 Growth in the packaged coffee sector is falling, but premium brands could go against the prevailing trend 10
APPENDIX Case study series 11 Methodology 11 Secondary sources 11 Further reading 11 Ask the analyst 11 Disclaimer 12
List of Tables Table 1: Dunkin now offers a comprehensive line of coffees 4
List of Figures Figure 1: Fred the Baker promoted Dunkin with the Time to Make the Donuts tagline for around 20 years 6 Figure 2: Dunkins new tagline refocuses the company towards coffee, and is designed to appeal to its core customers 7 Figure 3: The new retail line of Dunkin coffee incorporates five different ground coffee flavors, as well as a whole bean variety 9 Table 2: Sales of retail coffee in the US have been steadily falling 10
