Starbucks market is “strongly positioned as a sort of high-brow “third place”—outside the home and office—featuring couches, eclectic music, wireless Internet access, and art splashed walls” (Dunkin' Donuts: Positioning of the average Joe, p. 209). On the other hand, Dunkin Donuts is “more low-brow, “everyman” kind of positioning” (Dunkin' Donuts 209). The target market of Dunkin’ are the simple working class people which includes “middle-income blue-andwhite-collar workers across all age, race, and income demographics” while Starbucks focus are the professional groups or the higher income class (Dunkin' Donuts 209).
The segment that Dunkin’ is attempting to reach are the professional groups from Starbucks. They are trying to do this by offering not only doughnuts but adding to their menu sandwiches, pizzas, smoothies and gourmet cookies. They are also attempting to reach the more price-conscious market especially during hard times. They want to be seen as a complete breakfast store like Starbucks.
At present, Dunkin’ Donuts strategy is working well for them. One would not recommend a new value proposition because they might just “rock the boat” and instead of increasing sales, it might even result in a decrease in market share. For the past four years, they ranked number four in the coffee category, followed by Starbucks at the number two position. A change in strategy should not be done at present. They have to stick to their target market and not be a copy cat of Starbucks. One thinks that the Dunkin’ Donuts target market is much larger than the Starbucks market so Dunkin’ should stick to their target customers. One believes that the competitive advantage of Dunkin’ is its relatively low price yet high quality products.
Works Cited
"Dunkin' Donuts: Positioning of the average Joe." n.d. 209-210.
