Dunkin Donuts Market Segmentation Analysis

The commercials on the television, the advertisements placed on newspapers and the banners by big conglomerates have one thing in common: They are mostly geared towards children. Chapter 2 of the book Fast Food Nation, written by Eric Schlosser provides a history of two big American companies, McDonalds and Disney, and how their selfish desires led to marketing directed towards children. Schlosser’s central idea and usage of argumentative techniques along with bias define this chapter’s purpose as an educational work designed to reveal the antics of big money corporations.

Eric Schlosser, the author of “Kid Kustomers”, puts a spotlight on the marketing on children. He starts off by talking about the effect on present day marketing. Companies like phone, oil, and automobile are targeting the children the most. He argues that kid-based companies weren’t that bad in the past, but now there are tons of companies who only focus on children. He has provided a lot of studies that support his explanation on marketing strategies. One strategy is to increase present sales, but also future sales. He says that "growth in children’s advertising has been driven by efforts to increase not just current, but also future consumption” (pg. 354). He is basically saying that targeting children as young as possible will create a “brand loyalty’’. Another marketing research he provided was the study on 7

3. Customers from ages 37 to 55 are concerned with their nutrition. Also, a large portion of the population is baby boomers. As they become seniors, they are more concerned about life choices that will impact their life expectancy. That will continue to affect the non alcoholic beverage sector by increasing the demand for healthier

High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver. Also impacting per capita coffee consumption, another industry driver.

Dunkin Donuts is facing more challenges in the business due to change in the taste and preference of the customers. There are more shifts in the consumer taste and preference towards health-conscious food that is affecting the entire existing business. Next, there is a decrease in the number of customers visiting the store exclusively for donut as there are more companies in the market to provide coffee and other beverages and other foods and donuts that are pulling the crowd. The next major issue is that Dunkin Donuts is generating more revenue from various beverages and shakes sell when compared to donuts indicating about declining

1. For example, “ researchers have found a 21 percent higher risk of death among people younger than age 55 who drank…more than four cups of coffee a day” (“Drinking More Than 4 Cups,” 2013).

This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior.

Product Development – Burger King differentiates its product by innovative product. Diversify/widen product mix to address current product mix limits

Caffeine is a chemical found naturally in few plants all over the world. From these plants it is processed into its pure form and then put into other things such as soda, energy drinks, tea, and pills. Energy drinks and soda are some of the most widely marketed products in the world, even though they contain the highest concentration of caffeine outside of pure caffeine supplements. It is a stimulant that affects everyone in strange but semi predictable ways. Research has been done on this topic since the 1920’s and many different conclusions have been reached. In modern schools of thought, caffeine has been found to be a lightly addictive, moderate to severe stimulant that affects neurological function in various ways, though scientists disagree

Geographic segmentation calls for dividing the market into different geographical units such as regions, cities, or neighborhood. Coca-Cola has a countrywide network of product distribution but the company segments more in urban and suburban areas as compared to rural areas.

Every business organization is using a marketing concept which is used as a tool to identify customer’s needs. And further try to meet them by making right decisions in line with customer’s needs. In line with meeting customer’s needs the ultimate goal of every business is to gain profit. That’s why they make use of different marketing strategies to meet not only the need of the customer but as well as the goal of the company. We know for a fact that marketing strategies comprises everything from developing a product, to introducing it to the market, to selling and improving it as the need of the target market changes.

Carrefour had to segment their customers because they had different needs, behaviors, and preferences; therefore, it was difficult for the company to meet every consumer’s personal characteristics (Wedel and Kamakura 2012, p. 6). Carrefour also had to segment their customers because they needed to come up with a marketing mix that will help the firm meet the needs its customers in their target market. Market segmentation refers to the division of a market into segments that are identifiable and similar. These segments refer to a group of people or organizations that have one or more features in common, which prompts to have same product tastes and needs. According to Wedel and Kamakura (2012, p. 6-7), market segmentation is important because it helps the organization to use their resources efficiently and make better strategic decisions. For instance, Carrefour will not waste their resources on advertising because they have already identified a specialized market for their fruits. Market segmentation helps the company to serve better their customers and attracts more; thus, helps in gaining competitive advantage. Lastly, market segmentation helps organizations to create a sustainable customer relationship, which contributes to increasing their loyalty. It is because it allows the firm to provide products that satisfy customer needs and preference and they can cater for their changing pattern of behavior over time.

Unilever recognises that it cannot cater to needs of all the consumers present in the market. Consumers are present in a very large number in the market place and they vary greatly in their needs and buying behaviour. Companies also are well aware that themselves vary greatly in their ability to serve various segments of the market place. Unilever is no different from other companies in this regard. It recognises that it is far better for it to cater to certain segments that it can serve the best rather than attempting to cater to the needs of the entire marketplace as a whole.

Declining sales and failure to capture market share led to Nestlé’s withdrawal of Milo from the market in the year 2009. Brands and products tend to age over the years if not nurtured properly. The First objective of the project is to study about the awareness and Brand equity of Nestle Milo. In this phase, the key factors that led to decline of the Brand Milo, how Milo’s positioned itself and targeted its customers were evaluated. The Second objective is to recommend Segmentation, targeting and positioning strategy for relaunching the Brand Milo. In this phase we analysed the perceptual maps and identified the gaps between nestle milo and its competitors. The overall purpose of this study is to understand the dynamics behind success or failure of the brand.

Nestle is a Swiss based multinational food and beverage company Nestle was founded in the year 1867 by Henri Nestle (German Pharmacist) in Switzerland. Nestlé’s products include baby food, bottled water, coffee and tea, dairy products, ice cream etc. Nestle setup its first factory in India in the year 1961 in Moga, Punjab. The other factories are located in Karnataka, Goa, Haryana and Tamil Nadu. In India, the first factory was setup in order to sell ‘Nescafe’, their coffee product which was well known in other parts of the globe by then. Nestlé now has nearly 150 factories in 195 countries. The share value of Nestle has increased by a massive 28% in past one year to 6400.