Dunkin Donuts

44577001079500Womens CampusCollege of Business AdministrationBUS351 globose Business CourseTERM 172GROUP PROJECT FINAL DRAFTDUNKIN DONUTS running(a) in the Quick Service eaterys patience gave Dunkin Donuts a huge scrap to face glob every(a)y, when inscribeing bleak commercializes using one fashion of entry, the Franchising, it meant establishing a topical anesthetic base for a international subscriber line, and great opportunities exist in the Saudi-Arabian-Arabian-Arabian-Arabian Market, yet great challenges to prove ability of continuing business.For 31 historic period, Shahia Food peculiar(a) was the privilegee global DD selected to represent the brand in the Kingdom, it utilize a localized industry by promoting Saudi terms associate to the brand, and was massively realizeed by the government to harbor satisfying the Saudi taste, with its 200 shops across the Saudi land. KeywordsDunkin Donuts, Kingdom of Saudi Arabia, franchising, libertye, enunciate venture , entry dashs, entry determinants, 2030 vision. IntroductionRecently, Saudi Arabia has been the spotlight of the enthronements supranationally. According to 2030s vision, Saudi is attracting new investors every year.The grocery store in Saudi is attractive and has signifi preemptt attributes. In roll to satisfy the Saudi taste and Saudi drug addiction causes, the go with essential meet what Saudi clients want, which will ensure an international winner in the warmness of the global world. Dunkin Donuts is considered one of the jacket crown ten companies worldwide, with much(prenominal) than 12,000 branches in all over the world. Dunkin Donuts is managed through chief(prenominal)taining a strong government agency in all its targeted commercializes, by using the modes of the entrance and proper strategies with an bring of nearly hundred years of crack baked goods and drinks.Overview of the IndustryQuick service restaurant (QSR) industry was established in 1921, whic h offers previously prepargond food this instant to the on-the-go consumers that were defined as a new type of restaurants. Donuts were created in 1847, and it has been highly-developed to be combined with a variety of flavors through years and associated with acid drinks, to please the American taste with sugary w bes. The size of the marketplace globally is predicted by more than 3 Trillion Dollars, due to the massive mo of workforce around the world, fixed assets spread worldwide, and size of activities practiced.The market of QSR maintains a small industry in it, for baked goods and coffee, maintains multiple international brands that croak in this field, and this industry is approximated in more than 1 Trillion Dollars annually, and the market is divided primarily between 4 brands as chases Company BackgroundIn 1948, William Rosenberg initiated his start-off shop for coffee and doughnuts, the render Kettle, which was based on a 40% of revenues, William was able to reac h from his food in-plants outlets and food trucks, which was the impending trend of fast food, introduced to the world.In 1950 William Rosenberg chose Dunkin Donuts as a new cook of ease up Kettle, to be the first Dunkin Donuts shop in Quincy, Massachusetts, USA, the shop offered 52 flavors, and William was able to open 6 more Dunkin Donuts shops during its first five years constructing a chain. In 1960 the planetary Franchising Association (IFA), was originated to exemption the brand globally and locally.At the moment, Dunkin Donuts is based in Canton Massachusetts, USA, Dunkin Donuts is part of the Dunkin Brands Group, Inc. family of companies.So far, Dunkin Donuts was able to pass success, which maintains more than 11,300 shops in 44 countries (8,500 in the 41 US arouses, and 3,200 worldwide), offering everyday a stop for baked goods and coffee, setting the brand as a market leader globally.In 1971, William was diagnosed with lungs cancer, he passed the business to early(a ) Dunkin Donuts leaders.An incline businessman, Nigel Travis is the current CEO for Dunkin Donuts, who has been running Dunkin Donuts since 2009. Dunkin Donuts tumbleWilliam Rosenberg (1916-2002) was American entrepreneur who was the founder of Dunkin Donuts. Rosenberg attended a public rail. Because of financial problems Rosenberg was forced to leave his school in the eighth grade to support his family. At the age of fourteen, Rosenberg worked as a rake boy for Simco.At the age of twenty-one, Rosenberg raised from delivery boy to national sales manager, supervising the production, cold storage, shipping, and manufacturing. In 1948, the Open Kettle was started by Rosenberg which is a coffee and doughnuts shop. Later, Rosenberg renamed it to Dunkin Donuts. Dunkin Donuts was popular offering 52 types of doughnuts over six stores. In 2001, Rosenberg published a book which is prison term to Make the Donuts The Founder of Dunkin Donuts.William Rosenbergs vision is kept until today under the name the philosophy of Dunkin Donuts Make and serve the freshest, closely delicious coffee and donuts speedily and courteously in modern, well-merchandised stores.Regarding Dunkin Donuts values, Dunkin Donuts attains twelve values applied perfectly to liberty owners, and they atomic number 18 as followsHonesty The truth is always the study learn to success.Transparency sharing thoughts fluency.Respect Give individuals their nobility and win new(prenominal)s regard.Fairness Do what is right wing even if it is hard to do.Humility supportering less fortunate individuals. It is roughly the team up and the society as a whole.Responsibility- Be accountable for the outcome whether the station is good or bad. Integrity Character indicates when no individual is looking.In 1990, consort Lyons the owner of Baskin Robbins purchased Dunkin Donuts that was renamed to Dunkin Brands in 2004.Dunkin Donuts reached the first rank in customer the true of coffee category by Brand Keys for 10 years successively.Dunkin Donutss major competitors worldwide Starbucks Starbucks is obviously the leader of all Competitors of Dunkin Donuts. It competes with Dunkin Donuts by offering a variety of baked food and drinks in a relaxed atmosp here. McDonalds McDonalds is one of the main fast food chains in the industry and one of the top Competitors of Dunkin Donuts.Offering a variety of food items and drinks at low prices with speedily service.Krispy Kreme Krispy Kreme offers doughnuts and coffee, which agency the toughest competition with Dunkin Donuts.Dunkin Donutss major competitors in Saudi Arabia In Saudi Arabia market, Dunkin Donuts has a variety of competitors both international competitors and local coffee shops. International competitors are Starbucks, Krispy Kreme and McDonalds.The local coffee shops are Coffee Day, 12cups, Alchemy. As a result, Dunkin Donuts should adopt and understand the Saudi socialisation to compete with their competitors. Furthermore, s electing some just areas that most of the locals whitethorn not view the capacity to manage the monetary value because of their limited budgets, Dunkin Donuts can gain a war-ridden advantage.Entering to the Kingdom of Saudi ArabiaGlobalization enabled local companies to become international, by giving them accessibility to invest in international markets, expanding their sizes, assets net worth, and targeted segments of customers.Also, it gave governments better opportunities for developing communities.Entering KSA as an international business is an easy bring, but must be applied with accuracy and professionalism. The competitive investing climate attracts investors to be on this land, and only the most notional innovative could last, since the mid-1970s as of recently.In 1986, Shahia food Limited Company wins the contract of Dunkin Donuts franchise and was able to introduce the brand Dunkin Donuts to Saudi Arabia.Dunkin Donuts is keeping spreading in KSA over thirty-one year . the first branch was established in Al Olaya. Nowadays, the family has more than 200 branches in all Saudi regions, beginning fromRiyadh function (King Khalid Intl Airport, Wadi Laban, Al Muzahimiah, Diriya, and more). Western Region, which includes (Mecca, Jeddah, and Madinah) Eastern Region (Khobar, Dammam, and Jubail)Qassim Region (Buraydah, Badiah, Bakeereya Unayzah, and Zulfi) Saudi employees versus Foreign employeesDunkin Donuts employes an acceptable number of Saudis.Its main purpose of having many an separate(prenominal) another(prenominal) a(prenominal) Saudi employees is because of the policy of its industry, that employing Saudis to easily serve Saudi consumers will help to reach Dunkin Donuts products. Moreover, Saudi employees can realize their nation consumption habits more than foreign employees. KSA modes to enter Saudi marketThere are many modes to enter Saudi market. every type serves organizations, governments, and customers, reaching their objectives.Meth ods can be summarized as followsExporting a land (exporter) sells goods and services and distributes them to another country (importer).Piggybacking Selling goods services to local businesses, but they market the vendor globally.Buying a company is the most expensive method of entering a country, it is about purchasing a local company.Turnkey Projects Forming a project from the ground, and change it to local companies to warranty an indirect existence. Contracting either through licensing, sound out ventures, or partnering, it refers to a contractor assists to introduce the brand to the local market. The voice of involvement the contractor obtains is different from a contract to another.Greenfield Investments heart a project where a firm builds operations in a foreign market beginning from scratch.This mode has a large cost and local lows control it.A number of elements, such as expenses, local laws, necessities, desired grapheme, and industry will affect the company choices o f these modes. Dunkin Donuts has chosen since 1960 using the franchising model to enter America and worldwide markets, and Dunkin Donuts used it in KSA too through Shahia Foods Limited that held the franchising method.Dunkin Donuts KSA has its own vision statement that sequel the overall Dunkin Donuts vision To be always the desired place for great coffee beverages and delicious complementary donuts & bakery products to enjoy with family and friends As well as Dunkin Donuts MissionTo be the leading provider of the wide range delicious beverages & baked product around the state in a convenient, relaxed, friendly environment, that insuresthe highest level of quality product and best value for money.We provide our guest, the elegant service, and unforgettable attend to meet their expectations in every single visit.?These strategic management tools state that Dunkin Donuts KSA works under the localization of function theme, because of Saudi community privacy, that Dunkin Donuts exis ts to return its enjoyable moments with delightful pastries and drinks, it is general in food firm to follow the localization theme because of the dependence of the food fields on the local tastes.The localization method is tracked through the Dunkinha and Dunkawy cards terms that support the customers loyalty, and a customized menu made by Dunkin Donuts for only Saudi Arabia.ConclusionIt is obvious that KSA was for Dunkin Donuts an important market, thats why it was chose from the beginning to be located in. Saudis location, the type of consumption trends the society maintains, the support of the government received by international market players, and the encouraging purchasing power obtained by the Saudi people all these and other considerations, were the reason why 31 Dunkin Donuts existed in KSA.The unique mode which is franchising is used by the company worldwide, this method was used due to the temper of the industry maintained by Dunkin Donuts, which is QSR, that means i t is a must to have the food on subscribe to, this point cannot be through by other types of entry, it should be done through actual existence, and to reduce cost and era of studying national taste and its trends. To represent the company in the kingdom Dunkin Donuts preferred to have a national local franchisee.The choice of this franchise was distinctive, due to the 31 years position of ruling the QSR in okay food and drinks industry in KSA, accomplished by Shahia, where the total market share reached is 49% of total market, compared to 29% for Starbucks and 22% for MacDonalds.Discussion Questions and Answers wherefore choose Saudi Arabia? Dunkin Donuts is considered as the quick service restaurant industry., it is fixed in Canton, Massachusetts, USA, it chose to invest in KSA because of its high concentration on create up the companys points of interest by existing in Saudi Arabia the heart of the world, which means rising the abroad experience. Moreover, it strongly support s the fact of investing where it can be focused on expanding resources, inattentive of having power.However, having the ownership flexibility, and publicizing risk.How the investment in Saudi Arabia? The comprehensive advantage of investment in KSA is cognise as stable. There is no need to concern about the nationalizing of the international businesses because of the encouragement practiced by the Saudi government towards foreign investors and the documentation for liberal ownership in the Saudi market.How do political global policies affect your business?The high rate of return, and the taxation system, for foreign investors in KSA, were factors of attracting the international business. The kingdom of Saudi has many advantages for foreign investors which are the highest digits for gross domestic product in the region, controlled inflation rate, the size of the Saudi market, and finally the size and support given for the infrastructure.These great advantages are not only to attra ct Dunkin Donuts to Saudi Arabia but all types of investors.Entering KSA as an international business is considered an easy process?Entering KSA as an international business is an easy process, but must be applied with accuracy and professionalism.What were the difficulties you faced to enter the Saudi market? Studying and analyzing the Saudi customer ask, was one of the greatest work done by Dunkin Donuts KSA.One of its studies stated that employing Saudi Staff, and practicing the Saudization, will give the Saudi clients a more pleasant and stratified experience. SWOT AnalysisStrengthsThe industrys most fundamental point of strength that occupys it worth to persist the business through the past years is the time-saving rule, which means the industry reaches what regular restaurants cant offer, all these restaurants guarantee fast processes and quick purchase of food.WeaknessesStaff who work in low conditions, with low wages, are considered from the weaknesses this industry face, which gave it a bad study among people worldwide.OpportunitiesDue to globalization every year there are new markets added to the demand forces as a huge opportunity to the industry.ThreatsConsumer demand for healthier food is increasing the threat in this industry, which will keep these restaurants under the consumer satisfaction indexes pressure.AppendixInterview questions answersWho are your national global competitors? Our competitors are other businesses operating in the same industry as we are. Which are Krispy Kreme, McDonalds and the main competitor is Starbucks.Does Dunkin Donuts buy from other countries or make the products?No, the raw material comes from America and Dunkin Donuts produces the products in Saudi.How is your marketing methods different here in Saudi Arabia to other countries?Marketing methods are different in each country because of cultural differences.In Saudi Arabia, Dunkin Donuts understands and respects the culture and religion of the region by follow ing the regulations and guidelines for advertizing the company.What is the entry mode that Dunkin Donuts use (Franchising, licensing, joint venturing, exporting, turnkey projects or wholly owned adjuvant?Licensing with Franchising, as a combined mode used by the company worldwide.How do political global policies affect your business?It impacts Dunkin Donuts by having many barriers to entry in different countries. Each country has its own policies that Dunkin Donuts needs to follow in order to operate the business there. These days, Saudi is graceful more strictly by developing new regulations regarding operating businesses.In strategic positioning, does your business choose differentiation or low-cost methods for their products in order to create value for Dunkin Donuts products?No, Dunkin Donuts likes to keep up with the standards in order to offer high-quality products to the customers. After the value-added tax, Dunkin Donuts just added one riyal to all products and make more offers to attract customers.Do you have different methods of choosing your employees here from other countries?Dunkin Donuts likes to follow the government requirements regarding the Saudilization. As well as to have non-Saudi employees as a percentage of the staff, but to be able to speak English and Arabic as well.The interviewee informationName Gilhesh PaulPosition Area Supervisor. call off number 0560-213-910Email emailprotectedReferencesDunkin Donuts. (n.d.). Retrieved celestial latitude 10, 2017, from http//www.dunkinbrands.com/about/donutsG. (2017, December 07).Dunkin Donuts franchise. Retrieved December 10, 2017, from http//worldfranchise.eu/franchise/dunkin-donutsMarket Entry Strategies. (n.d.).Retrieved December 11, 2017, from http//www.tradestart.ca/market-entry-strategiesNigel Travis. (n.d.).Retrieved December 10, 2017, from https//news.dunkindonuts.com/about/leadership/nigel-travisSaudi Arabia Market Opportunities Saudi Arabia Market Opportunities. (n.d.). Retrieved D ecember 11, 2017, from https//www.export.gov/article?id=Saudi-Arabia-Market-Opportunities(n.d.). Retrieved December 9, 2017, from http//www.dunkindonuts.sa/English/Dunkawy/Pages/default.aspx12,000Global Locations And Still Growing. (n.d.). Retrieved December 10, 2017, from http//www.dunkinfranchising.com/franchisee/en.htmlDunkin DonutsWhat are the stages in a product life cycle? What are the marketing implications of each stage? From my studies it has been provine that the product life cycle is a great marketing concept that focus on the revenues from the sales of a product. The product life cycle is drawn like a cost curve. The life cycle is divided into four stages they are introduction, growth, maturity, and decline. Introduction-It takes time of a new product to begin selling in volume. There may be manufacturing or logistics issues to contend with.The marketplace may be unknown with th product and creating awareness takes time. Consequently product sales give a slow growt h during the introduction phase. Growth- The growth space is characterized by a rapid increase in sales volume. This is created by increase product demand when customers are buying. Manufacturing and logistics issues are likely resolved and the market is far more aware of the product. Maturity-The maturity phase is established by sales volumes leveling off.At this point competition is strong and margins may begin to suffer. Signs of getting to this stage are that competitors may start advert more strongly or using other promotional means to increase sales. Decline-Is when a product sales begin to decrease and it is at this point that some serious marketing decisions need to be made. It is sometimes possible to extend the life of a product by changing some of its product attributes, repositioning it or by packaging it with other products.Dunkin DonutsWhat are the stages in a product life cycle? What are the marketing implications of each stage? From my studies it has been provine that the product life cycle is a great marketing concept that focus on the revenues from the sales of a product. The product life cycle is drawn like a ships bell curve. The life cycle is divided into four stages they are introduction, growth, maturity, and decline. Introduction-It takes time of a new product to begin selling in volume. There may be manufacturing or logistics issues to contend with.The marketplace may be unknown with th product and creating awareness takes time. Consequently product sales tell a slow growth during the introduction phase. Growth- The growth space is characterized by a rapid increase in sales volume. This is created by change magnitude product demand when customers are buying. Manufacturing and logistics issues are likely resolved and the market is far more aware of the product. Maturity-The maturity phase is established by sales volumes leveling off.At this point competition is strong and margins may begin to suffer. Signs of getting to this stage are that competitors may start advertising more strongly or using other promotional means to increase sales. Decline-Is when a product sales begin to decrease and it is at this point that some serious marketing decisions need to be made. It is sometimes possible to extend the life of a product by changing some of its product attributes, repositioning it or by packaging it with other products.