Dunkin Donuts, Managing Profitable Customer Relationships

For more than 50 years, Dunkin Donuts has offered customers throughout the Unites States and around the world a consistent experience – the same donuts, the same coffee, the same store décor – each time a customer drops in. Although the chain now offers iced coffee, breakfast sandwiches, smoothies, gourmet cookies, and Dunkin Dawgs in addition to the old standbys, devoted customers argue that it’s the coffee that sets Dunkin Donuts apart. To keep customers coming back, the chain still relies on the recipe that founder Bill Rosenberg crafted more than 50 years ago. The company is so concerned about offering a consistent, high-quality cup of coffee, that managers in Dunkin Donuts “Tree to Cup” program monitor the progress of its coffee beans from the farm to the restaurant. The result Dunkin’ Donuts sells more cups of coffee than any other retailer in the United States – 30 cups a second, nearly one billion cups each year. Building on that success, the company plans to more than triple its current number of stores, amassing 15,000 franchises by the year 2015. After viewing the video featuring Dunkin Donuts, answer the following questions about managing profitable customer relationships. 1. How does Dunkin Donuts build long term customer relationships?

They were able to build long term customer relationship by being simple. Per Will Kussell (Chief Operating officer for U.S. DD) Bill Rosenburg (started DD franchise) believed in great products and customer service and having great quality for their brand and making it very affordable. He ensured that their products were consistently well maintained. Also they listened to their consumers, did a lot of taste tests and research. They have extensive training programs and offer consumers fresh products. All this allowed them to have a bond with their consumers….these new products are what customers want….customers wanted something and Dunkin Donuts listened and provided customers with what they want.

2. What is Dunkin Donuts value proposition?
Value proposition would be the set of benefits or values the company promises to deliver to consumers to satisfy their needs. They started in Massachusetts in 1950 and by 1979, they had over 1,000 stores and sales approaching in the 300 million dollar range. By 1985, they expanded overseas and had 1,500 stores. In 2003, they had earned over 3 billion dollars in sales. Globally, they have over 5,000 restaurants around the world. Those figures tell me that they are doing something right….one example I will give about Dunkin Donuts doing something right is that they ensure that the public is aware that they have consistent fresh coffee, average life of coffee before being drained in sink is 18 minutes, thus ensuring a new batch every 18 minutes to the customer.

3. How is Dunkin Donuts growing its share of customers?
Share of customers is the share the company gets of the customer’s purchasing in its product categories. They are branching out, they have strategic partnership with stop and shop supermarkets, Home Depot and Baskin Robbins (creating Dunking Ice Cream). They have a variety of specialty flavored coffees like cappuccinos, lattes and espressos to name a few. They also made it easy to customers that their language was easy to understand, meaning, no fancy, complicated language in their stores like Starbucks has. They ensure their products are for the everyday person as shown on most of their commercials.