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Read the Dunkin Case - Essay Example

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[Author] [Manager] [Subject] 24 November 2015 Dunkin’ Donuts and Market Segmentation Dunkin’ Donuts is known as the largest coffee and baked goods chain in the world. They now serve over 6,556 retail outlets, and sell more than 4 million doughnuts and over 2.7 million cups of coffee per day…
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Read the Dunkin Case

While the Dunkin’ Donut retail stores continue to expand, the Starbucks stores are closing by the hundreds. In the past Dunkin’ Donuts target markets where focused primarily in the Eastern part of the U.S. with little presence in the West. Starbucks already has a somewhat of a uniform distribution across the country which will constrain their growth as Dunkin’ Donuts expands into the West into untapped regions. Dunkin’ Donuts market strategy is different in that they are targeting a group of no frills, cost-conscious coffee drinkers. At Starbucks, there is a market segment that is willing to pay a premium for drinks like the ‘skinny half-caf soy caramel Macchiato’. While the market segment at Dunkin’ Donuts is focused at those who just want a consistent, well tasting, old fashioned brew of coffee that doesn’t exceed more than $3. (Mitchell, Dan). From the previously aforementioned statements, one can see how Starbucks marketing strategy has always focused as much on the overall store experience as they have the product itself. With free Wi-Fi provided by ATT&T and a recent partnership with HP to provide music downloads in the store, Starbucks has positioned their efforts towards creating an upscale informal coffee shop and social experience. (DiCarlo, Lisa). ... Read More
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