Dunkin Donuts Market Segmentation Analysis

Create the Value: Market Segmentation Analysis and a Value Proposition for New Retail Brand Dunkin' Donuts Kidd Milky Beverages

Brief Description of the New DD Retail Brand - Dunkin' Donuts KiDD Milky Beverages

Dunkin Donuts has pursued a policy since 2000's to be more than ' just a donut store, the company started putting more emphasis on growing its coffee business (Champagne, Iezzi, 2014). Specially since 2006, DD's proved its brewed coffee, espresso, cappuccino and latte options to the 'fancy' coffee drinkers and today, more than 3 million customers per day visit 11,300 Dunkin Donuts restaurants in nationwide and 36 other countries (Dunkin' Donuts Press Kits, 2015). The brand's slogan "America runs on Dunkin" is now evolving to "Kids

The brand has created an unique market segment for itself in quick-service coffee house sector. It caters to the customers of every major segment of family life cycle with variety of food and beverage options. The result of U.S. Census Bureau in 2012 gives the number of household at least one child under 12 years old is 25,596 which corresponds to 31.8 percent of all households (Population Characteristics,2012, p.8, table 2). These numbers show the magnitude of the segment. However, one of the world's leading franchisors of quick service restaurants, Dunkin Donuts does not offer many drink options for DD young customers. A consumer insights study among the Starbucks and Dunkin Donuts coffee drinkers, conducted by CivicScience, shows that Dunkin' Donuts persuadables are 25 percent more likely to be parents or grandparents other than Starbucks (Dick,2012). According to a study in Pediatrics, the journal of the American Academy of Pediatrics, found that kids and young adults ages 2 to 22 are getting a bigger share of their caffeine by fancy coffee drinks, with that portion of caffeine intake reaching 24% in 2010, up from 10% a decade ago versus the share of caffeine children get from soda declined to 38% from 62% over that same time period

In DD retail stores, Frozen Coolatta® and smoothie options have not drawn enough attention to fulfill the demand of these beverages. There are a lots of drinks out in the market for children but almost no option for handcrafted milky beverages besides the drinks which serve only in these days authentic coffee and soda shops nowadays. Starbucks also offers Flavored Steamed Milk, Organic Chocolate Milk Box and couple seasonal drinks for kids but their fancy-creamy coffee based Frappuccino® drinks are still the favorite item in the market among today's