Sunday, March 01, 2009

Dunkin Is Dipping Into Consumer Opinion

e-Marketer has reported that Dunkin Donuts has made good use of social networking to better connect with their customer base. According to the article, the donut retailer has utilized FaceBook, where they have almost four hundred thousand fans, to facilitate a forum on their new healthy menu - DDSMART.

As many of you know, Starbucks has been having some competitive challenges with Dunkin Donuts in the coffee game. Unlike Starbucks, Dunkin donuts has a few advantages that really work in their favor:

  1. Older and more established brand

  2. More retail space

  3. Stronger B-2-B ties

  4. A real food menu

It's not quite sure if Starbucks has run out of steam, ran into a dead end, or been clueless about their sustainable competitive advantage. One would assume this fast-growing organization would have a counter measure to fight off the very aggressive Donut king. For now, it doesn't look good for the coffee superstar, which leaves many questions about the six sites per square block strategy. How much will it cost to retreat? What is a realistic level of demand? How can they regain growth with limited product and square footage? These are just a few questions that need to be answered internally and externally.

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