Starbucks and Dunkin' Donuts
Coffee has been around the market and homes for a very long time now. The first coffee shop in the United States opened in 1697 in New York. Today, nearly two-thirds of americans drink coffee. Coffee is usually associated with 'waking up' or 'staying awake' due to your high caffeine level, and it's invevitable to these two coffee chains be overcrowded during the rush hours in the morning. Coffee shops are always trying to innovate with different coffee flavor or mixtures to make them standout more than the other competitors. Starbucks and Dunkin' Donuts are the two coffee chains most popular in the United States. Starbucks was founded in 1971 in Seattle, Washington. While Dunkin' Donuts has been a bit longer around the market, being founded in 1950 in Quincy, Massachusetts. Dunkin' Donuts is famous for your convencience and for your coffee accompainments as donuts and sandwiches. On the other hand, Starbucks gets the customer's attention with its stress-free athmosphere and the extensive options of coffee mixed drinks.
The price is a major factor when differentating the two companies. For a medium Dunkin’ Donuts iced coffee, the price is $2.09, while at Starbucks, the same sized drink is priced at $2.79 ("The Coffee"). The customer will be paying more at Starbucks due to the experience, environment, fancy names, and a different taste (not necessarily a better taste as it depends on the customer's preference).The menu options of both shops are very similiar, and just few unique items make them differ from each other. Starbucks for example, use italian language to name their cup sizes and some drinks which makes it a bit confusing for the first time customers. Starting off with the drinks, both shop...
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...n favor of Dunkin' Donuts and still is due to the fact that Strabucks just started the last year to build your stores with drive-through and it will take awhile until all Starbucks stores are adequated with this service.
In conclusion, Starbucks and Dunkin' Donuts share some similarities on their menu options and customer's treatment, but they also have their unique items and ways of attract customers to your stores. Eventually, Starbucks is a more sophistcated coffee shop and a place where you can have your coffee while enjoying the great environment it provides. On the other hand, Dunkin' Donuts is a great place to get a simple, quick, and less expensive coffee while having some original coffee accompainments on the go. Moreover, it all depends on the customer's intention and what is the occasion to the customer decide which one will fit better his/her lifestyle.
Coffee is coffee, yes it may have a different taste to different people, but that is because of your biological make-up or better known as your taste buds. Starbucks is one of the number one places where people get their coffee from. Now some people would choose to go somewhere else to get there coffee everyone is entitled to their own opinion. Starbucks is definitely another overrated thing. Everyone is head over heels because of Starbucks, but do they realize you can get the same quality of coffee at a different place for a way cheaper price? Starbucks is more of a social status thing. By saying this I mean that the more socially popular and people with a higher income choose to drink Starbucks because it is the best coffee around or so they think it
In the competitive world of the coffee industry, or any industry for that matter, it is essential for companies to have a clear understanding of what they do best, and where they can be the best. Dunkin’ Donuts is well known by generations and loved by a growing number of customers around the world. It was first established in 1950, in Quincy, Massachusetts, by William Rosenberg. Back then, William had a simple philosophy: “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores” (Dunkin’ Donuts, 2008). That philosophy still holds true today, and is the foundation that has enabled Dunkin’ Donuts to grow to be the largest coffee and baked goods chain in the world.
Dunkin’ Donuts main priority is their loyalty and commitment to their customer base. The company prides itself in being the leading coffee and donut business in the fast food industry. In order to maintain
The long, debated question has been asked for decades… which doughnut company reigns supreme, Krispy Kreme or Dunkin Donuts? Many people believe that Krispy Kreme is better because of it more traditional flavors and being able to get their doughnuts hot and fresh. On the other hand, many people like Dunkin Donuts because it is more modern with many different flavors to choose from and The choices of a variety of hot or iced coffees. Many people love coming into Krispy Kreme and watch their doughnuts being made right in front of them. Watching the creamy, white glaze fall over the hot doughnut is a wonderful sight for anyone that wants to sink their teeth into a fresh, sweet doughnut. However, in today’s busy times people love that they can go to Dunkin Donuts and go in and get a coffee and a doughnut of their choice for a quick, delicious breakfast that can get their day started. Another question to be asked is the amount of stores there are for each and their advertisements. Are the two companies really as different as they seem, or are they similar in ways we don’t see?
Location: 11,300+ stores in 40 countries (Dunkin' Donuts, 2014) Demographic Age: All ages (families, students, working class, elderly) Social class: middle class, affordable for lower class Income: All ranges, lower-middle income Gender: Not geared towards a certain gender Race and ethnicity: Many cultures, expanded internationally, room for growth Occupation: student, working class, retired, parents/families Psychographic Activities: people who work, pursuing education, traveling or need boost of energy Interests: Coffee-fanatic, donut-fan Motivation: need energy and caffeine fast, quick service Behavioral Benefits: quick service, efficient, good for on-the-go people, additional items for purchase, family-friendly, open early/open late/some 24 hours, frequent promotions Usage patterns: more coffee drinkers in the morning, caffeine pick-me-up, tourists, businesses (morning meetings) Target
Dunkin Donuts is one of the most recognizable names in the fast food industry. It dominates the Northeast market. One of its most popular slogans is “America runs on Dunkin”. Their prices are unbeatable for the quality of coffee; all the coffees are mostly under 3 dollars unlike their rival star bucks which can go over 5 dollars for a large coffee. Baskin-Robbins ice cream parlor has been around since the 1940’s and its 31 different ice cream flavors made it stick out. Another one of Dunkin Donuts strengths is brand loyalty. Most Dunkin Donuts customers are repeat, loyal customers. These customers value the convenience that Dunkin offers and the low prices that everyone can afford. These have drive-through stores which helps people get their food and coffee at a quick rate.
The first Dunkin Donuts was opened in 1950 by founder Mr. Bill Rosenburg in Quincy, MA. Five years later the very first franchised branch was licensed. Sixty years later, under “Dunkin Brands Inc.”, there are now over 10,000 stores including more than 7,000 franchised locations, all in 36 of the United States. There are over 3,000 Dunkin stores internationally in 32 countries other than the United States. Dunkin' Brands Group, Inc. is one of the world's leading franchisors of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Dunkin Brands is head quartered in Canton, MA (Company Snapshot).
Howard Shultz and the senior management at Starbucks have to decide how to react to the opportunities that are being made available because of their rapid growth. The decision for a strategic growth plan has to be made in the near future. This will prove to be key for Starbucks reaching their long-term goal of becoming the most recognized and respected brand of coffee in the world.
McDonald's is planning to capitalize on the public's willingness to pay $4 for a cup of coffee by hiring baristas and dropping espresso machines in 14,000 of their fast-food outlets. Meanwhile, Starbucks, with business lagging, is fighting back with an "if you can't beat 'em, join 'em" strategy, by offering heated breakfast sandwiches and adding drive-thru windows to some of their locations.
The story of Starbucks coffee history begins in Seattle in 1971 when the first Starbucks opened at Pike Place Market, which is Seattle's and the Nation's oldest Farmer's Market. At this time the company was a local coffee roasting facility. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began right away to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and the beginning of coffee history should be one year later when Schulz traveled through Italy. He got inspired by the Italian coffee bar tradition to serve fresh brewed Espresso and Cappuccino. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle, named Il Giornale. (Wilson)
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
I first became interested in this American breakfast restaurant, when I first took a bite of the outstanding Boston Creme Donut. After the delicious doughnut, I began to wonder about the history. Who created Dunkin’ Donuts? Why did they create it? Where was the first site opened?
Foreign policy with foreign nations that host the Starbucks brand. Import and export tax is an expenditure that may and can become costly and profits can be lost. Other companies like McDonalds, Dunkin Donuts, and the Coffee Beanery provide consumers with an ambient environment and some specialty coffee flavors. Proximity may be the only thing required for the consumer to select the services of the rival coffee dispensing businesses.
One of its biggest strengths is it is one of the top coffee companies in the world. Dunkin Donuts has built a strong brand for itself. The company has over 1000 selections of doughnuts, and its stores are a perfect place for having breakfast and coffee. They have worldwide franchisees, totaling to more than 10,000 locations across 32 countries (Marketing Coach). Dunkin’ Donuts uses the fixed price but yields more which lets it to sell at a lower price because fixed costs are spread over a larger number of components. Dunkin Donuts has standardizations for each location so where ever the customer goes they can expect the same thing. They have control over the supply chain which contributes to lower costs. This is achieved by bulk buying to quantity markdowns, talking suppliers down on price, establishing competitive bidding for agreements, and working with sellers to keep inventories low. Dunkin Donuts has a strong customer loyalty rate, which it cost less to keep customers than to gain new ones. Dunkin has good partnerships with JetBlue, Smuckers, and Keurig. Dunkin does a lot of charity work like feeding the hungry, supporting children’s health, and making sure that neighborhoods are safe and secure ("Brand Power"). Dunkin Donuts has recently launched a green campaign that will building green certified program designed to help franchisees build sustainable, energy-efficient