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Dunkin Donuts is a brand for people on the move. It is a preferred choice for young professionals to provide morning coffee and breakfast to keep them energetic and also for teenagers who consider Dunkin Donuts as a hangout place.
Distribution is providing the product or service to the customer directly. Dunkin Donuts’ strategy for distribution includes direct and indirect channels. The direct channels help Dunkin Donuts serve the customer directly and get the feedback instantaneously which is very important in today’s world to improve and satisfy the customer by proving value. The direct channels include the Dunkin Donuts outlets in America which serve the customers most of the 52 products each day (Dunkin Donuts, 2008). The light and warm ambiance is found in each outlet where the customers come in and enjoy the offerings each day. For the global customers of Dunkin Donuts, has opened up the direct channel of online shopping where the customers can order coffee, tea, apparel, coffee equipment and gifts. These items are shipped over to the customer.
Likewise, Dunkin Donuts has opened indirect channels through retailing in America. Coffee is available in packages in stores like Wal-Mart, Kroger and CVS. They have made a deal with P&G for their retail distribution with more than 4000 stores lined up to be selling Dunkin Donuts’ Coffee (Jewell, 2007). On a global level, Dunkin Donuts is present in the form of franchises with more than 24 countries on the current list. Also, strategic alliances have been formed with local home décor outlets to open up Dunkin Donuts right next to it. Also in top-notch malls in other countries, the Dunkin Donuts outlet is located right next to another Dunkin Donuts brand, Baskin Robbins.
Variations by Target Market
As mentioned above, the target market for Dunkin Donuts is divided into Professionals (Adults), Teenagers and Children. Their marketing campaigns are allocated within these segments. However, when we consider distribution, there is almost no segmentation on this basis. The physical outlets and the retail stores are both accessible by all segments and are equally approachable by all. The online distribution strategy is usually availed by professionals who have access to credit cards and online accounts. However this is not Dunkin Donuts’ strategy, rather it is a segmentation that comes naturally due to age restriction. (Dunkin Donuts, 2008)
|Adults||It will include professionals i.e. doctors, bankers, etc., people who generally like to drink coffee|
|Teenagers||It’s a place for them to hang out, have Lattes, donuts, etc.|
|Children||They are targeted for munchkins|
Alternative Methods of Distribution
Dunkin Donuts is a brand that can be enjoyed anywhere and at any time. Coffee and donuts are pretty much all seasons sell while sandwiches are items for consumption for snacks. With such diversity in edibles, Dunkin Donuts doesn’t have much of a choice to cater to their customers apart from their outlets and retail stores. One option that may be implemented is the idea to have to roam Dunkin Donuts agents on the streets with smart backpacks containing the early morning delights like coffee and sandwiches. This would cater to the early morning professionals who would want coffee on the go while in their car, or on the road. This idea can also be turned into road site stalls at various places but this may be restricted due to the legality of putting roadside stalls. However, this would help Dunkin Donuts gather more customers who would be unwilling to travel to an outlet due to distance at a very low cost.
Service to Customers
As mentioned above, Dunkin Donuts is now catering to its customers through three channels namely, outlets, retail stores and home delivery for online purchases. I would say that all these channels try to capture the market that would usually not go to the outlet, particularly for a Dunkin product. By stocking Dunkin coffee at retail stores, those people who go there for routine shopping would also be intimidated into purchasing a coffee for which they would hardly go to the outlets. Online shopping is aimed at customers who like having Dunkin products at the peace of their homes, are too lazy to go out or cannot access the outlets due to distance and availability. Both of these channels are good at increasing the number of customers and also making the public aware of the Dunkin products. But the problem that can occur here is that the Dunkin customers wouldn’t get customized and personalized service. Neither will they get the ambiance and experience of the Dunkin Donuts that is available at the outlets. Therefore the best customer service can be gotten at the outlets in terms of customer feedback and responsiveness. (Dunkin Donuts, 2008)
Dunkin Donuts (2008). Web.
Jewell, M. (2007). Grocers to sell Dunkin’ Donuts coffee. USA Today.