Dunkin Donuts is one of the most recognized brands on the face of the earth. Since starting out in Quincy (Massachusetts) as a modest coffee shop in 1950, it has redefined an entire industry and built a community of loyal fans.
The brand’s evolution from “Dunkin’ Donuts” to simply “Dunkin’” reflects its growth beyond its donut roots and its commitment to staying relevant in an ever-changing market.
Dunkin’s marketing strategy is a textbook example of how keeping the big picture in mind pays off when adding new products and expanding into new markets. No wonder its approach is often highlighted in marketing courses worldwide.
In this blog post, we’ll take a closer look at how Dunkin Donuts marketing strategies have honed over the years to stay competitive to the present day.
Let’s dive in.
Table of Contents
Dunkin Donuts Market Analysis
To start with, here’s an overview of Dunkin Donuts’ worldwide business:
- Revenue – $1.25 billion (2020)
- Global presence – 13,200 outlets
- Markets – 42 countries
- US market share – 26%
- Customer loyalty – Ranked #1 by market research firm Brand Keys in 2021
Dunkin Donuts SWOT Analysis
Dunkin’ Donuts, a beloved name in the quick-service restaurant industry, has built a strong reputation for its coffee, donuts, and breakfast offerings. Let’s analyze its strengths, weaknesses, opportunities, and threats (SWOT) to gain some insights into how the brand can sustain its legacy while adapting to future challenges.
Dunkin Donuts strengths
Let’s look at its strengths first.
Strong brand recognition and loyal customer base
Dunkin’ Donuts is a well-established name, particularly in the United States, with a brand identity synonymous with convenience, quality, and familiarity. Its recognizable logo, catchy marketing campaigns, and long-standing presence in the market have cultivated a strong and loyal customer base that spans generations.
This loyalty is evident in its ability to retain customers despite increased competition in the quick-service restaurant (QSR) space.
Diverse menu (coffee, donuts, breakfast items)
Dunkin’ Donuts is not just about donuts; its diverse menu attracts a wide range of customers.
This strategic shift was one of the reasons Dunkin’ dropped “Donuts” from its name, signaling its evolution into a more versatile brand. Over the years, the menu has expanded to include freshly brewed coffee, breakfast sandwiches, and seasonal specialties, catering to a variety of tastes and preferences.
This diversity allows Dunkin’ to appeal to early-morning commuters, casual coffee drinkers, and families looking for a quick snack alike.
Affordable pricing compared to competitors
One of Dunkin’ Donuts’ major strengths is its affordability. By offering high-quality coffee and food items at competitive prices, the brand remains accessible to a broad audience.
This value-for-money proposition helps it stand out in a market where many competitors, such as Starbucks, are positioned as premium brands with higher price points.
Scalable franchise model, enabling rapid expansion
Dunkin’s scalable franchise model has been a cornerstone of its success. By partnering with franchisees, the brand has achieved extensive market penetration both domestically and internationally.
With a presence in over 40 countries, Dunkin’ ensures consistent branding and quality, which has fueled its rapid growth and solidified its strong market presence.
Dunkin Donuts weaknesses
While Dunkin’ enjoys immense popularity, several weaknesses could hinder its growth and brand perception. Let’s delve into these challenges.
Limited global presence compared to competitors
Despite being a recognizable brand, Dunkin’ Donuts lags behind major competitors like Starbucks in terms of global expansion.
Starbucks operates in over 85 countries, whereas Dunkin’ Donuts remains concentrated in fewer markets (40+ countries as of now). This restricted presence puts the brand at a disadvantage in tapping into lucrative markets where coffee culture is thriving, such as Southeast Asia and parts of Europe.
Expanding its global footprint will require significant investment and a tailored strategy to compete effectively.
A menu largely focused on high-calorie items, raising health concerns
Dunkin’s menu is heavily centered on high-calorie items such as donuts, pastries, and sugary beverages. While these offerings continue to attract loyal fans, the rise of health-conscious consumers poses a challenge, potentially impacting the brand’s image.
In response, Dunkin’ has introduced healthier options like egg white sandwiches and oatmeal. However, these alternatives may not be as profitable as their traditional indulgent treats.
Moreover, the brand’s core offerings of sugary and fatty products create barriers to diversifying into other food and beverage categories, limiting its appeal to evolving consumer preferences.
Inconsistencies in service and quality due to franchise model
Dunkin’ operates primarily through a franchise model, which, while cost-effective, often leads to inconsistent service quality and product standards. Customer experiences can vary significantly depending on location, which may harm the brand’s reputation.
Additionally, maintaining uniform training and quality checks across thousands of franchise locations remains a significant challenge. Resolving this issue will involve stricter oversight and better support for franchisees to ensure consistency in customer experience.
Dunkin Donuts opportunities
Dunkin’ Donuts is well-positioned to leverage several opportunities to grow its business and strengthen its market presence. Here’s a closer look.
Growing demand for coffee globally
The global coffee market is projected to grow at a CAGR of 5.4% from 2024 to 2030, fueled by rising consumption in both traditional and emerging markets.
As coffee culture continues to grow, Dunkin’ Donuts can capitalize on this trend by enhancing its premium coffee offerings and marketing campaigns. By catering to the rising demand for specialty coffee and cold brews, the brand can attract a wider audience and solidify its position as a coffee-first brand.
Potential for international market expansion
While Dunkin’ Donuts has a strong presence in the U.S., there’s significant potential for growth in international markets, particularly in Asia, Africa, and South America, where the coffee and quick-service restaurant industries are expanding.
Customizing menu items to local tastes and forming strategic partnerships with local businesses can help the brand penetrate these markets and tap into new customer bases.
Opportunity to introduce healthier menu options
The shift towards health-conscious eating presents an opportunity for Dunkin’ Donuts to diversify its menu. Introducing low-calorie, plant-based, and sugar-free options can attract health-conscious customers while retaining its loyal fan base.
Creating awareness around these offerings through marketing campaigns can position Dunkin’ Donuts as a brand that caters to evolving consumer preferences.
Digital growth through delivery apps and mobile ordering
The digital transformation of the food industry has created immense opportunities for Dunkin’ Donuts to grow its reach. Investing in mobile apps, delivery partnerships, and loyalty programs can enhance customer convenience and engagement.
Expanding its presence on platforms like DoorDash, Uber Eats, and Grubhub, along with refining its mobile ordering experience, can help the brand cater to the growing demand for on-the-go solutions.
Dunkin Donuts threats
Dunkin’ Donuts faces several external challenges that could impact its growth and market position in the competitive food and beverage industry.
Intense competition from brands like Starbucks and McDonald’s
Dunkin’ Donuts faces fierce competition from major players like Starbucks and McDonald’s in the QSR market. Starbucks leads the premium coffee segment with its strong branding and innovative marketing, while McDonald’s capitalizes on affordability and global accessibility.
With these brands often catering to similar customer preferences, Dunkin’ faces challenges in maintaining its market share amidst such formidable rivals.
Economic downturns affecting discretionary spending
In times of economic instability or recessions, consumers tend to cut back on non-essential expenses, including frequent visits to coffee shops and QSRs.
Dunkin’s reliance on middle-income customers makes it particularly vulnerable to fluctuations in discretionary spending, which can lead to a decline in foot traffic and overall sales.
Changing consumer preferences toward healthier & sustainable options
The growing trend of health-conscious and eco-aware consumers poses a challenge for Dunkin’ Donuts. Many customers are now seeking healthier menu options, such as plant-based, low-calorie, or organic alternatives.
Additionally, the demand for environmentally sustainable practices in packaging and sourcing is increasing. Failing to adapt to these evolving preferences could lead to a loss of relevance among certain customer segments.
Risk of supply chain disruptions impacting costs and product availability
As a brand heavily reliant on a consistent supply of ingredients like coffee beans, wheat, and dairy, Dunkin’ Donuts is susceptible to supply chain disruptions.
These disruptions, caused by global crises, natural disasters, or geopolitical issues, can lead to increased costs and product shortages, directly impacting the customer experience and profitability.
Dunkin Donuts’ Target Audience
Before the 1990s, Dunkin Donuts was seen as the coffee place for regular, blue-collar workers. Over time, it added donuts, bagels, and other breakfast fare, which were go-to options for office goers heading to work or a quick mid-day bite.
By the early 2000s, Dunkin Donuts decided to go after a new demographic – students and younger people serving healthy options like oatmeal and whole-grain sandwiches. Today, Dunkin Donuts has a fairly target audience across age groups and income categories.
Dunkin Donuts Marketing Mix
Dunkin Donuts uses a multichannel marketing mix to cater to the needs of customers. This includes traditional channels and digital channels to leverage the mass appeal built over decades of successful campaigns.
Let’s take a closer look at its marketing mix.
1. Pricing
Dunkin’ employs a multi-tier pricing strategy to cater to a wide range of customers. Budget-conscious patrons can enjoy on-the-go meal options starting at just $2, while premium choices like large espressos and lattes target those willing to spend more. Combo deals further enhance value, offering affordable yet quality meals.
Dunkin’ has long upheld its reputation as cost-effective due to its asset-light franchise model. This approach offers strategic and financial benefits, such as reduced capital spending and a leaner cost structure compared to Starbucks’ owner-operator model.
Additionally, Starbucks’ higher cost of goods sold (COGS) often translates to steeper prices for consumers, allowing Dunkin’ to position itself as a more affordable alternative without sacrificing quality.
However, inflation and rising costs of essential ingredients like milk, sugar, and plastic have pressured Dunkin’s pricing strategy. While still cheaper than its competitors, the impact of these adjustments is visible in changes to its loyalty and rewards program, subtly reflecting the brand’s effort to adapt while staying accessible.
2. Place
You’ll find Dunkin’ in almost every major city worldwide, with over 13,200 restaurants across nearly 40 global markets. No surprises there — the company was among the first in the fast-food industry to adopt the franchise model. It generally sets up shop in busy areas, turning millions of daily commuters around the world into loyal fans. The warm and comfy ambiance draws people in.
Dunkin’ has also embraced technology to improve accessibility and customer convenience. The Dunkin’ Mobile App, launched in 2012, introduced a seamless way to engage with the brand. This was followed by the DD Perks Rewards Program in 2014 and On-the-Go Mobile Ordering in 2016, solidifying Dunkin’s digital-first approach.
The app allows on-the-go guests to effortlessly order and pay for their favorites with just a tap, offering the same customization options as in-store. By catering to busy lifestyles, Dunkin’ has positioned itself as not just a physical presence but a digital companion for its customers.
3. Product
Dunkin’ is celebrated not just for its classic offerings but also for its seasonal specials, many of which are inspired by direct customer feedback. The company runs surveys on social media and in-store to crowd-source ideas on new flavors and combos. It ensures a diverse range of products that resonate with its customers.
For example, last New Year, Dunkin’ collaborated with GRAMMY-nominated global superstar Sabrina Carpenter to introduce “Sabrina’s Brown Sugar Shakin’ Espresso.” This limited-time iced beverage featured bold espresso, brown sugar notes, and oat milk, expertly shaken to perfection — a testament to Dunkin’s innovative recipes that cater to a broad audience.
Beyond its core food and beverage offerings, Dunkin’ has diversified into branded merchandise, including clothing, cosmetics, and other lifestyle products. This strategic expansion provides them more brand visibility and allows loyal fans to express their love for Dunkin’ in unique ways.
4. Promotion
In 2019, Dunkin Donuts rebranded itself as simply Dunkin’. This was to signify that it had evolved from a fast-food restaurant to an ‘on-the-go’ one. Though it didn’t drop donuts from the menu, it now has fewer options. The company logo still has a dual pink and orange color scheme.
However, in line with its evolution from a friendly neighborhood coffee shop to a global beverage and merchandise brand, there has been a clear break with its earlier messaging.
For example, in 2006, Dunkin paid tribute to the work ethic of its largely office-going audience with its ‘America Runs on Dunkin’ campaign. That changed to fun and entertainment with the ‘Charlie’ campaign of 2020.
Another noteworthy example is the “Flavor Radio” campaign in Seoul, where Dunkin cleverly used coffee aromas and radio ads in buses to attract commuters to nearby stores. Watch a short case study about the campaign in the video below.
Dunkin Donuts’ Traditional Marketing Strategy
As a nearly 75-year-old brand, Dunkin Donuts has long used traditional marketing, like TV advertisements and billboards, sponsorships, and local marketing campaigns. These channels are part of a nuanced marketing strategy aimed at creating brand awareness and loyalty at the hyper-local, regional, and national levels.
Today, the company is investing in multi-platform campaigns, including broadcast TV shows, exclusive live streams, social media, and branded merchandise. This approach has helped it reach younger audiences, particularly in the US.
Dunkin Donuts Social Media Marketing Strategy
Dunkin Donuts was quick to recognize TikTok and Instagram’s potential as a growth platform. Thanks to a mix of influencer marketing and user-generated content campaigns, it has acquired over 3.4 million followers on TikTok alone. The company prefers to partner with up-and-coming content creators to increase its reach and revenue. It also features the top-performing influencers in its branded TV ads.
For example, in collaboration with TikTok star Charlie D’Amelio, Dunkin Donuts co-created two signature drinks called the Charli and the Charli Cold Foam around 2020. They became an instant hit.
The campaign invited customers to use hashtag #CharliXDunkinContest, encouraging fans to recreate iconic Charli x Dunkin’ moments on TikTok. Participants vied for the chance to win a virtual Cold Brew date with Charli, creating buzz and amplifying brand visibility. The popularity of Charli’s drinks continues today, as evidenced by customer comments on Dunkin’s Instagram reels.
Dunkin’s social media influence extends beyond TikTok. As of Jan 2025, Dunin boasts 2.7 million followers on Instagram, where it frequently rolls out engaging collaborations. For example, its partnership with podcaster Kylie Kelce on Not Gonna Lie garnered over 2 million views on a single reel.
From innovative influencer collaborations to community-driven campaigns, Dunkin’s social pages are brimming with creative user-generated content that showcases the brand’s ability to stay relevant and resonate with its audience.
Dunkin Donuts’ Digital Advertising Strategy
According to Statista, digital ads accounted for $8.11m of the company’s total ad spend in September 2021 – roughly twice as much as Starbucks. Like its TV and billboard ads, Dunkin’s search ads, display ads, and social media ads use bright colors, images, and less text to communicate the offer.
Moreover, the company has also been running integrated campaigns in partnership with brands like Amazon and Discovery.
For example, it created a skill for Alexa with Amazon that lets users ask questions related to Dunkin Donuts’ business timeline. The Discovery campaign included a branded ‘experience’ on Xbox complemented by TV promotions, social media contests, and branded giveaways.
Dunkin Donuts Merchandise Marketing Strategy
Dunkin’ went through an expensive rebrand in 2018 because it had diversified in a big way into branded clothing, cosmetics, and other products. However, the company believes the investment is worth it as it can now expand in new directions.
That’s not all – it also reinforces brand affinity each time somebody uses or is exposed to these products. This means they are more likely to walk into a Dunkin Donuts outlet than otherwise.
Dunkin Donuts’ Email Marketing Strategy
The company runs a weekly promotional email campaign providing updates on all the latest deals. You can also opt-in to the DD Perks rewards program via email link.
Upon registration, you can download the associated mobile app that lets you order your favorite beverages on the go. If you already have the app, the company sends you personalized offers based on your purchase history.
Dunkin Donuts’ Mobile App Marketing Strategy
The DD Perks app takes the rewards experience mobile, giving you access to exclusive offers, contests, and contactless ordering options.
CRM: The Driving Force Behind Dunkin Donuts’ Marketing Strategy
The US beverage market is highly competitive, with players like Starbucks and McDonalds dominating. Consistency is a key factor for Dunkin Donuts in retaining its traditional customers even as it woos a younger audience. Over the years, the company has been investing in CRM tools to automate key elements like the DD Perks loyalty program.
This has enabled it to provide personalized menus to customers based on their purchase history and demographic data. EngageBay enables you to segment your audiences, create dynamic messaging, track engagement, and make strategic changes.
Dunkin Donuts Marketing Strategy: Lessons for Small Businesses
If you’re a small business owner, there are several lessons you can learn from Dunkin Donuts’ proven marketing strategy. Despite its scale, the core principles apply to businesses of any size.
1. Know your audience
You may have a great product, but you may not see much traction unless you can tell your target customers what’s in it for them. The success of Dunkin Donuts’ marketing strategy derives from its clearly defined customer personas, which translate into effective messaging. Segment your customers properly based on online activity and preferences data to create similar results.
Next, map the customer journey and identify the key touch points where they interact with you. This should give you plenty of insights to develop tailored messaging.
EngageBay helps you identify where your customers are coming from, their interests, and how they respond to each offer or promotion. This includes email open rates, social media shares, and SMS outreach. It integrates all the insights into a single dashboard so you can capitalize on new trends and opportunities as they emerge.
2. Highlight quality and affordability in your messaging
Dunkin Donuts’ messaging focused on quality and affordability to compete with rival Starbucks. It drove repeat purchases and increased average order value by creating pricing tiers. This element of Dunkin Donuts’ marketing strategy can be useful if you want to get customers to buy more categories of products every time they visit.
As an incentive, you can offer combos or bundles, free shipping, onboarding support, etc., depending on the industry you’re in. A combination of affordable pricing and value-added benefits can drive sales and revenues for your small business.
3. Leverage a mix of content marketing, email, and social media
Back in the 1950s, Dunkin Donuts likely relied on word–of–mouth to attract new customers and franchisees in the initial phase. If you’re just getting started in business or have a modest marketing budget, focus on organic content marketing, emails, and social media.
This will help you build brand awareness and reach out to new audiences. Run a mix of both inbound and outbound campaigns to attract and qualify leads and nurture them effectively.
For example, you can create keyword-rich blogs or social media posts on popular topics related to your niche. Next, use dedicated landing pages offering downloadable guides or checklists to get access to visitors’ email addresses. Finally, use drip email campaigns to nurture and convert them into paying customers.
Cold emailing can be effective for lead generation as long as it’s backed by proper research. Use an Account Based Marketing (ABM) strategy to identify high-value prospects and reach out to key decision-makers. With EngageBay, you can email select people from your contact lists, track engagement, and increase the odds of conversion.
4. Forge partnerships with other businesses
By building relationships with local business owners, you can offer exclusive discounts to each other’s customers. This can help you overcome some of the drawbacks of paid advertising. The key is to be strategic when setting up such partnerships.
Make sure a potential partner’s products or service offerings are aligned with your own. This enables you to create effective promotions that complement the other and vice versa. You can also offer bundled or package deals to drive growth.
5. Listen to feedback
Real-world customer feedback -critical feedback in particular – can help you improve your business like nothing else can. Like Dunkin Donuts, you can build customer feedback forms on your website, landing pages, and other channels. This can pinpoint any strategy or process-related problems affecting customer satisfaction.
EngageBay offers email templates and web forms to help you capture customer feedback and make use of it most effectively.
Conclusion
The big takeaway from Dunkin Donuts’ marketing strategy for small businesses is that it couldn’t have achieved all it did without using customer data efficiently. As a small business, you need to invest strategically in tools that can act as ‘eyes and ears’ when it comes to customer experience.
EngageBay offers a comprehensive all-in-one sales, marketing, and customer support automation solution that empowers you to proactively anticipate and meet customer needs. With seamless multichannel data in one place, you can make quick and effective decisions that take your business to the next level of growth.
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Additional content by Nikita Agarwal
