Dunkin Donuts , Marketing Arrangement, Franchise business
Dunkin Donuts is an American franchise that was established in 1950 in Quincy, Massachusetts (ROSENBLOOM, 2013). The brand was initially best known for donuts, hence the presence of the term ‘donuts' in the franchise's title. William Rosenberg, the founder of the franchise, opened his first restaurant, called the Open Kettle, in Quincy. Two years later, the same restaurant was renamed to the current name, Dunkin Donuts (ROSENBLOOM, 2013). In 1944, Rosenberg began thinking about franchising the business to have a greater reach. The main inspiration behind the decision to franchise came from his previous experiences. Rosenberg had experience selling food at factories and construction sites; he noted that the most popular commodities were coffee and donuts (ROSENBLOOM, 2013). The idea was to expand as fast as possible to take advantage of this market. Since he was unable to expand, the best way forward was to ‘lend' the name to other entrepreneurs (ROSENBLOOM, 2013).
Franchise business is powered by different entrepreneurs with the same passion. For example, the name of the franchise is leased to other business holdings (Luther, 2011). These holdings in turn sell the products advertised by the franchise. They also have a duty to help increase the popularity of the franchise. The original business on the other hand provides training and researches new additions to the existing products. These new products are sufficiently advertised before they are introduced, and all franchises have to stock these brands. This creates the impression that all entities are under the same management (Luther, 2011).
[...] Dunkin Donuts creates the image of an effective and fast growing franchise for all people. Their price range makes these establishments accessible for the average person, and their expansion into many parts of the world also create an impression of being everywhere. The wide variety of coffee served also creates the image of diversity. All these images created by the brand in the user contribute to the popularity of the brand and thus increase its appeal to the more people. [...]
[...] (2013). The new tycoons contained by the trillion dollar secretive equity industry that owns the lot (Unabridged. ed.). Hoboken, N.J.: Bloomberg Press. Luther, W. M. (2011). The marketing arrangement how to organize and put into action it (4th ed.). New York: AMACOM. ROSENBLOOM, B. (2013). Marketing channels: A management view . [...]
[...] Brand equity models Brands have a higher appeal to the masses. Having a branded product increases the volume of sales. However, brands also need to have a lasting impression on the clients in order to be appealing. Dunkin Donuts uses the brand image model. The characteristic and features of the franchise propose that this is the model. For example, the advertisements and the recent expansion suggest that the brand is looking to build an image that all people can associate with. [...]
[...] The leading generator of revenue for Dunkin donuts is coffee. This implies that a giant coffee maker is disguised as a donut seller. However, this indicates the brand strategy that has been used by the franchise from the start. Since they started with Donuts as the main item, they built on this success and they were unable to change the identity. In addition, this is the best strategy for the organization because it is a franchise (Kelly, 2013). This means that the new entrepreneurs who ‘lend' the name do this for the sake of the success that comes with the name (Luther, 2011). [...]
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