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Dunkin’ Brands Group Incorporation Expansion Research Paper

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Updated: May 18th, 2020


Dunkin’ Donut is a leading multinational firm. The company has identified new locations to market its quality products. This discussion identifies the major issues associated with the company’s business strategy. The paper also outlines the major external factors that will affect the company’s marketing strategy in Asia. The essay also offers useful recommendations that can make Dunkin’ Donuts more profitable. Such practices will ensure the company achieves its business goals.


Dunkin’ Brands Group Incorporation has been one of the most successful franchises (“Dunkin’ Brands,” 2014). The organisation is currently a competitive player in its industry. The company has established hundreds of locations in the United States. The firm’s brand has attracted and retained more customers and stakeholders. Dunkin’ Donuts has identified new continents to expand its operations. The firm is also identifying new regions in order to achieve its goals. Dunkin’ Donuts “is currently undertaking more franchise recruitments in several countries across the globe” (“Dunkin’ Brands,” 2014, p. 1).

The firm has signed a new franchise agreement with a Chinese company called Fast Gourmet Group. This approach will promote the firm’s brand in China. Baskin-Robbins is also expanding its business in different parts of the world. The company expects to establish more franchisees in Asia. The firm plans to have over 685 new Dunkin’ Donuts restaurants before the end of 2014 (“Dunkin’ Brands,” 2014). The company’s decision to invest in Asia will support its growth strategy. The firm must identify new opportunities that can make its strategy sustainable.

Six Key External Environmental Factors

A good marketing plan should focus on the expectations of the targeted consumers. Dunkin’ Donuts must analyse the six major external factors that can affect its performance in the global market. Political factors are important towards the success of every organisation. Dunkin’ Donuts should examine the political issues encountered in every targeted country. Political factors “determine the kind of governance, taxations, policies, and business approaches that are common in a particular region” (Musonera & Ndagijimana, 2014, p. 4). Economic factors are also critical towards the company’s success. Dunkin’ Donuts should “analyse the interest rates, inflation, exchange rates, and economic growth patterns of the targeted country” (Musonera & Ndagijimana, 2014, p. 7). These factors determine how businesses make their strategies. The factors also encourage investors to use the best marketing strategies for their commodities.

Social factors determine the success of every business. Marketers should understand the expectation, consciousness, culture, taste, and tradition of every customer. According to Cui, Griffith, Cavusgil, and Dabic (2006, p. 103), “societal demands, age issues, and preferences are critical whenever marketing various products to different consumers”. Technological factors determine the effective of many firms. Such firms use new technologies in order to produce quality products. These factors promote competitiveness and performance. Every attempt to introduce new technologies in a region will be costly (Stern & John, 2011). Dunkin’ Donuts should identify the technological aspects existing in every targeted location. Many consumers are also conscious about the environment. New terms “such as re-using and recycling have become common than ever before” (Cui et al., 2006, p. 103). Many customers “consume foods that are produced using sustainable practices” (Cui et al., 2006, p. 104). This situation explains why Dunkin’ Donuts must consider these environmental factors. Legal factors determine the performance of foreign firms. Every society has its laws and business regulations. Such laws “promote different practices such as customer protection, employment relationship, and employee safety” (Marder, 2010, p. 75).

Two Key External Environmental Factors

Asia is currently experiencing a new wave of economic growth. The above economic factors explain why Asia is a stable market for different multinational companies. The decision by Dunkin’ Donuts to expand its business will succeed because of the region’s economic position. Inflation is also decreasing in the continent. Some countries such as China and Japan have strong economies. The political factors experienced in Asia are encouraging more foreigners to invest in the continent. Many countries have appropriate political practices that continue to promote new trade activities. Such countries also safeguard the rights and expectations of every investor. This discussion explains why “Asia is the best market for Dunkin’ Donuts and other brick and mortar retailers” (Marder, 2010, p. 89).

Marketing Strategies

Similarities in Marketing Strategies

The company uses specific approaches to market its brands to different customers in the United States and Asia. Dunkin’ Donuts begins by identifying new franchisees in these regions. This approach has made it easier for the company to identify new partners. The idea to develop new franchises reduces investment costs and expenses. This approach supports the company’s expectations. The company is currently planning to open over 685 new Baskin-Robbins and Dunkin’ Donuts locations (Dunkin’ Brands, 2014). The company opened 700 new restaurants globally in 2013. This situation explains why the company’s brand is currently becoming successful.

The company markets similar products in these two regions. This strategy has been useful towards making Dunkin’ Donuts profitable. The strategy has also created a unique brand that supports the needs of many customers. A proper marketing strategy should consider the expectations of different stakeholders (Griffin & Moorhead, 2011). The strategy should also consider the uniqueness of the marketed brand.

Differences in Marketing Strategies

Some differences also exist when it comes to “the marketing strategies of the company in the United States and Asia” (Griffin & Moorhead, 2011, p. 48). To begin with, Dunkin’ Donut uses a unique approach in order to support its customers. This marketing approach entails the use of “drive-through practices” (Griffin & Moorhead, 2011, p. 53). Such approaches ensure every customer purchases different products from the comfort of his or her car. Many marketers also offer unique ideas and support to their customers. The country’s culture supports this marketing practice. This strategy differs significantly because the culture of Asia is different. Many customers do not liaise or interact with their marketers.

The use of social media sites and promotional events supports the company’s marketing strategies in the United States. Dunkin’ Donuts uses powerful promotional messages to inform more customers about its quality products. The use of social media sites and celebrities supports the company’s domestic strategy. This practice is not common in Asia. The use of franchises in this continent has eliminated the use of celebrities and social media networks (Cui et al., 2006). However, Dunkin’ Donut plans to use better marketing practices in Asia.

Impacts of External Factors

The above discussion explains why different external factors determine the marketing strategies embraced by this company. The cultural aspects encountered in these two regions encourage Dunkin’ Donuts to use different marketing practices. Socio-cultural values “determine the behaviours, expectations, and practices of different communities” (Cui et al., 2006, p. 108). Many individuals in Asia do not interact with foreigners or marketers. Many marketers in Asia follow the instructions provided by their managers. This strategy explains why the marketing strategies in these regions differ significantly.

On the other hand, “some marketing tactics such as product quality and price are critical towards achieving the targeted goals” (Musonera & Ndagijimana, 2014, p. 9). However, prices might differ significantly depending on the economic factors encountered in every targeted country. This discussion explains why different external factors have the potential to determine the best marketing strategy.


Dunkin’ Donuts must examine the socio-cultural issues encountered in every targeted country. This approach will ensure the company’s marketing strategy achieves the targeted outcomes. The use of appropriate marketing platforms such as social media sites will produce positive results. The role of social media is also significant. The company must use appropriate messages to inform its customers about every new product. A proper marketing plan will attract more customers from different societies. The firm must form new partnerships and mergers in order to emerge profitable. A proper supply chain management (SCM) will ensure every customer gets quality products (Stern & John, 2011). Dunkin’ Donuts should identify new pricing strategies in order to emerge profitable. The firm can use modern information technology (IT) in order to market more products to its customers.

Personal Reflection

The case of Dunkin’ Donuts explains why marketers should identify new opportunities in order to emerge profitable. This project has equipped me with new marketing ideas. I am ready to use the power of critical thinking whenever marketing different products. The six external factors mentioned in the project are useful towards designing the best marketing strategy. I have also identified new ideas that can make every marketer successful. Some approaches such as proper communication and decision-making are useful in every marketing plan. I now understand how to analyse the effectiveness of different marketing strategies.

Reference List

Cui, A., Griffith, D., Cavusgil, T., & Dabic, M. (2006). The influence of market and cultural environmental factors on technology transfer between foreign MNCs and local subsidiaries: A Croatian illustration. Journal of World Business, 41(1), 100-111.

Dunkin’ Brands Announces Strong Global Growth in 2013. (2014, ). Progressive Media, p. 1.

Griffin, R., & Moorhead, G. (2011). Organisational Behaviour: Managing People and Organisations. New York, NY: John Wiley and Sons.

Marder, E. (2010). The Laws of Choice: Predicting Customer Behaviour. New York, NY: The Free Press.

Musonera, E., & Ndagijimana, U. (2014). . Web.

Stern, J., & John, D. (2011). Global Business Management. Oxford: Oxford University Press.

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