The Short Description Of Dunkin Donuts Development

Dunkin essentially started out as a breakfast outlet with the name Dunkin Donuts. It has over 12,000 large chains of restaurants in 46 countries. But there is one market where the company failed to capture national attention which is India. Initially, it established a large market, as of 2018 it has closed more than half of its restaurants. Dunkin Donuts faced downfall due to lack of profitability and operational efficiency.

Dunkin has entered with the breakfast first strategy where Indians are not interested in an American morning routine. An Indian does not grab and go breakfast rather they prefer to have it at their homes. They prefer to have their traditional delicacies at their breakfast table. Consumer preferences are different; one must need to understand the preferences deeply to enter into the market. Initially, they have introduced the American style of donuts, which has been an obvious hit in the United States. But that strategy did not run well in India as they failed to meet the customer preferences. Then later, according to the local taste buds, they have added new products outside and different from their regular core products like Mango Tango donut, Litchi lychee donut, etc. They have also added spicy sandwich into their menu.

This coffee loving brand even downplayed its beverage branch in India, which actually generates 60% of its revenue across the world. Indians looked Dunkin as a pastry shop rather than a breakfast place as they do not prefer to eat sweet baked food for their breakfast. They consider donuts as a desert and high-calorie assortment. It is more like a luxury only purchased during celebrations, special occasion or once in a while to have a change for taste buds. They have introduced burgers which were never tried before. As the brand name focuses on Donuts, adding burgers to their menu and marketing on them diluted the brand image. Therefore, they have failed to implement the basic rule of marketing which is giving justice to its brand name.

In just over two years, Dunkin extended its stores too fast in big cities and in big spaces incurring high operational costs. Initially, they saw a surge in the Indian market because of the young population who have accepted the American tastes and considered it as a novelty. Then, later on health consciousness and loss of interest have made the market stagnant. Dunkin is not a favourite for Indians, especially adult customers. To maintain its existence, Dunkin is struggling by adding a tea-based menu in India. 

07 July 2022
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