Dizon
MKT
3260-01
Spring
2013
Table
Of
Contents
Cover
Page
................
1
Table
of
Contents
.................
2
Part
I
..............
3
-
5
Part
II
.....................
5
-
7
Part
IV
..................
10
-
17
Merchandising
Strategy.
10
-
12
Pricing
Strategy..
12
Promotional
Strategy
...
13
References
..................
18
-
20
PART
I
Store
History,
Background,
&
Mission
Statement
Founded
by
William
Rosenberg
in
the
year
1950,
the
first
Dunkin
Donuts
store
was
opened
in
Quincy,
Massachusetts.
Over
the
next
five
decades,
Dunkin
Donuts
continues
to
expand
their
brand
by
introducing
a
wide
variety
of
choices
on
their
menu.
These
introductions
brought
muffins,
bagels,
breakfast
sandwiches,
Munchkins,
and
different
sorts
of
beverages
both
hot
and
cold.
Through
the
years
and
continued
expansion
of
Dunkin
Donuts,
they
have
successfully
forever
cemented
their
name
in
modern
society.
Becoming
the
worlds
leading
baked
goods
and
coffee
chain,
Dunkin
Donuts
has
become
one
of
the
most
recognized
and
loved
brands.
The mission statement of Dunkin Donuts stores was originally derived from the
original
founder
himself
stating,
Make
and
serve
the
freshest,
most
delicious
coffee
and
donuts
quickly
and
courteously
in
modern,
well-merchandised
stores.
In
addition
to
this
statement,
Dunkin
Donuts
follow
twelve
key
values
and
principles
as
a
guide
to
further
success.
The
values
include:
honest,
transparency,
humility,
integrity,
respectfulness,
fairness,
and
responsibility;
while
the
principles
consist
of:
leadership,
innovation,
execution,
social
stewardship,
and
fun.
an
important
aspect
for
Dunkin
Donuts
when
it
comes
to
marketing
their
brand.
To
make
this
possible,
Dunkin
Donuts
takes
multiple
steps
through
different
outlets
of
marketing
including
promotions,
partner
and
sponsorships,
and
social
media.
Probably
the
most
important
area
in
their
marketing
strategy
is
through
email
and
social
media
where
they
can
constantly
keep
customers
informed
while
also
receiving
feedback.
Through
the
various
outlets
of
online
communication,
it
allows
Dunkin
Donuts
to
offer
any
special
offers,
promotions,
coupons,
or
sweepstakes
that
customers
can
participate
in.
An
example
of
this
would
be
the
Dunkin
Donuts
Perks
Card
and
Loyalty
Program
where
customers
receive
one
Dunkin
Dollar
for
every
$20
spent
at
a
Dunkin
Donuts
store
location.
Moreover, Dunkin Donuts has held multiple contests online on their official
website
to
not
only
attract
customer
participation
but
in
hopes
of
gaining
new
ones.
These
contests
and
sweepstakes
have
been
important
especially
the
past
decade
when
building
customer
relationships.
Creating
the
next
donut
was
one
contest
held
online
where
individuals
had
the
opportunity
to
make
the
next
Dunkin
donut
in
hopes
of
winning,
along
with
a
cash
prize.
Furthermore,
Dunkin
Donuts
is
continuing
to
expand
their
image
in
the
social
network
world
through
an
official
Mobile
App
and
multiple
social
media
sites
including
Facebook,
Twitter,
and
Foursquare.
In recent years, Dunkin Donuts has partnered up with sports teams based on
store
locations.
Such
as
in
the
Northeast
of
the
United
States,
Dunkin
locations
organize
partnerships
with
the
New
York
Giants,
Yankees,
Mets
and
Jets
with
sweepstakes
and
even
team-themed
donuts.
Also,
promoting
upcoming
movies
like
Captain
America
and
Men
In
Black
through
customized
themed
beverages.
One
current
promotion
taking
place
today
is
a
free
donut
with
a
purchase
of
a
large
coffee
for
all
AARP
members.
All
in
all,
Dunkin
Donuts
underlying
strategy
mainly
centers
a
customer
driven
strategy.
Through
the
continuation
of
these
many
marketing
outlets
and
practices,
Dunkin
Donuts
will
continue
to
attract
the
3
million
customers
they
serve
per
day
and
more
to
come
in
the
future.
PART
II
Ownership
Structure
&
Store
Based
Strategy
Mix
When
it
comes
to
the
ownership
structure
of
Dunkin
Donuts,
nearly
all
locations
are
franchisee
owned
and
operated.
Moreover,
the
store-based
strategy
mix
can
actually
be
composed
of
more
than
one
of
the
types
of
retailers.
Looking
at
Table
5-1
in
the
Retail
Management
textbook,
it
can
be
concluded
that
Dunkin
Donuts
is
a
food
oriented
convenience
store
with
aspects
of
a
specialty
general
merchandise
store.
Looking
at
Dunkin
Donuts
as
a
convenience
store,
it
perfectly
fulfills
all
necessary
traits.
Most
Dunkin
Donuts
stores
are
well-located,
food-oriented
that
are
open
long
hours,
and
carry
a
moderate
number
of
items.
Many
Dunkin
Donuts
are
typically
located
in
a
neighborhood
location
but
can
also
sometimes
be
in
a
business
district.
Moreover,
many
Dunkin
Donuts
are
open
24
hours,
7
days
a
week
for
customer
convenience
and
carry
different
food
items
such
as
donuts,
breakfast
sandwiches,
and
most
importantly,
coffee.
On the other hand, Dunkin Donuts can also be a specialty general merchandise
store.
Their
specialty
goods
dominantly
being
food
and
beverages
or
broken
down
more
specifically,
coffee
and
donuts.
In
addition,
Dunkin
Donuts
has
demonstrated
scrambled
merchandising
where
goods
or
services
that
may
be
unrelated
to
each
other
are
added
to
the
firms
original
business.
Especially
in
recent
years,
Dunkin
Donuts
has
introduced
new
menu
items
as
well
as
limited
time
seasonal
items.
New
menu
items
vary
depending
on
seasonal
and
holidays
from
pumpkin
muffins,
dark
hot
chocolate,
turkey
sausage
breakfast
sandwich,
apple
orchard
donuts,
and
French
toast
bagels.
Other
non-food
items
include
travel
mugs
and
tumblers,
Christmas
ornaments,
Keurig
K-
Cups,
and
official
Dunkin
t-shirts.
All
in
all,
Dunkin
Donuts
practices
an
assortment
with
a
narrow
width
and
a
deep
depth.
the
colors
that
represent
the
Dunkin
brand:
orange,
pink,
and
brown.
Also,
specific
activities
that
can
be
done
at
both
sites
include
gift
card
registration
and
balance,
viewing
the
full
menu,
and
buying
particular
merchandise
such
as
coffee
grounds,
thermoses,
and
coffee
mugs.
Both
sites
also
promote
identical
products
and
new
items
that
are
available
at
the
physical
site.
The difference between the online site and physical site more than anything else
is
the
ability
to
receive
the
actual
product
physically
in
your
hands.
While
in
a
physical
Dunkin
Donuts
store,
you
have
the
opportunity
to
actually
consume
any
food
or
beverages
while
online
you
cannot
whatsoever.
In
addition,
while
in
a
physical
store
you
are
able
to
see
and
smell
the
products
and
environment
in
person,
which
may
add
an
important
dimension
in
the
shopping
experience.
The
online
website
also
offers
an
elaborate
nutrition
catalog
of
all
food
items
offered
which
is
limited
at
a
physical
site.
Apart from physical stores and the online website, Dunkin Donuts is limited
when
it
comes
to
selling
through
other
outlets.
Any
other
Dunkin
Donuts
branded
merchandise
that
can
be
seen
outside
of
a
Dunkin
store
will
narrowly
be
grounded
coffee
bags
at
local
neighborhood
supermarkets.
Ready
to
eat
donuts,
sandwiches,
and
coffee
are
exclusives
available
only
at
Dunkin
Donuts
store
locations.
PART
III
Target
Market
&
Store
Location
Since its conception, Dunkin Donuts has grown to have a very broad target
market
that
covers
a
wide
range
of
individuals.
The
one
specific
location
I
personally
visited
and
also
work
at
draws
this
very
kind
of
audience.
We
serve
almost
every
one
of
all
ages,
races,
genders,
and
occupations;
from
families
with
children
to
business
people
going
to
work.
Most
customers,
if
not
all,
come
to
Dunkin
Donuts
as
a
stop
during
a
trip
to
get
a
quick
fix
whether
it
is
coffee
or
a
quick
snack.
This
particular
Dunkin
Donuts,
located
in
Piscataway
and
borders
South
Plainfield,
is
located
in
a
significant
trading
area
where
business
is
consistently
flowing.
Based
on
its
definition
of
encompassing
50
to
80
percent
of
a
stores
customers,
this
location
is
surely
based
in
a
primary
trading
area.
business
district,
basically
what
is
considered
downtown
for
Piscataway
and
South
Plainfield
where
many
other
retailers
are
present
nearby
and
vehicular
traffic
is
very
high.
Working
at
this
Dunkin
Donuts,
it
is
easy
to
conclude
that
we
are
a
destination
store.
There
are
many
different
options
nearby
to
purchase
coffee
and
breakfast,
but
many
customers
will
take
the
time
and
choose
to
come
to
Dunkin
Donuts.
In
addition,
you
almost
never
see
this
Dunkin
Donuts
empty
without
customers.
Having
a
24/7-
store
operation,
it
is
convenient
for
consumers
to
come
and
go
whenever
they
like.
Additionally, the location of this Dunkin retailer is prime because of the easy
access
to
major
highways
and
transportation.
The
location
gives
customers
the
ease
of
entrance
and
exit
to
the
store.
Also,
the
parking
provided
is
abundant
where
spaces
are
available
all
around
the
store
both
in
front
and
back
of
the
store
for
customers.
All
in
all,
Dunkin
Donuts
targets
all
markets
especially
individuals
who
have
an
on-the-go
lifestyle
providing
fast-service
and
convenience,
staying
true
to
their
motto,
America
Runs
on
Dunkin.
Management
Structure
The
management
structure
at
this
location
is
fairly
simple
containing
five
specific
job
positions.
The
franchisee,
who
essentially
owns
the
store
itself,
is
responsible
for
making
important
end
decisions
regarding
the
store
while
keeping
a
consistent
leadership
role.
The
next
position
is
the
general
manager;
at
this
location
our
general
manager
manages
multiple
stores
and
visits
each
of
them
on
a
daily
basis.
His
responsibilities
include
distributing
payroll,
explaining
any
new
tasks,
and
keeping
the
overall
image
of
the
store
in
order.
Next
is
the
store
manager
who
is
present
daily
at
the
actual
store
location
and
help
manages
the
employees.
Responsibilities
of
the
store
manager
include
creating
the
weekly
work
schedules,
assigning
specific
work
duties,
and
financial
tasks
while
working
closely
with
the
general
manager.
The
last
two
job
positions
are
where
I
currently
stand
as
an
employee
at
this
store
location;
shift
leader
and
crewmember.
essentially
working
at
the
register,
taking
orders
from
customers,
and
serving
them
their
orders.
As
a
crewmember,
you
have
many
different
job
assignments,
which
are
often
done
in
job
rotation
where
a
different
employee
is
assigned
a
different
job
each
day.
Some
of
these
job
assignments
include
sandwich
maker,
meats
re
stocker,
and
equipments
washer.
From
crewmember,
there
is
opportunity
for
advancement
to
become
a
shift
leader
where
more
responsibilities
and
decision
making
is
given.
As
shift
leader,
in
addition
to
crewmember
jobs,
you
are
responsible
to
count
out
the
registers
at
the
end
of
the
shift
while
helping
manage
other
crewmembers
is
kept
consistent.
PART
IV
Merchandising
Strategy
Upon
Dunkin
Donuts
merchandising
plan,
they
rely
much
on
forecasts
by
10
predominantly
using
staple
merchandise
and
basic
stock
lists.
With
a
retail
restaurant
like
Dunkin
Donuts,
it
is
fairly
easy
to
project
the
expected
sales
for
giver
periods.
Staple
merchandise
including
donuts,
coffee,
bagels,
and
muffins
will
have
a
consistent
quantity
in
sales
which
creates
a
clear
guideline
for
inventory
re
stocking.
Another
factor
in
the
merchandise
plan
is
assortment.
Like
previously
mentioned
in
part
2
of
this
paper,
Dunkin
Donuts
has
a
narrow
width
and
deep
depth
in
their
assortment.
To
illustrate
this
further,
Dunkin
Donuts
carries
coffee,
donuts,
baked
goods,
and
breakfast
sandwiches,
making
it
a
narrow
width
assortment.
Between
each
of
these
categories
there
are
different
flavors
of
coffee,
varieties
of
donuts,
types
of
baked
goods,
and
combinations
of
sandwiches-
making
it
a
deep
depth
assortment.
One
last
factor
affecting
the
merchandise
plan
of
Dunkin
Donuts
is
timing.
One
may
not
think,
but
Dunkin
Donuts
merchandise
is
effected
by
seasons
and
holidays.
Every
month,
a
new
food
item,
drink
flavor,
or
donut
is
introduced
to
coincide
with
the
current
season,
holiday,
or
other
intangibles.
Sometimes,
special
promotions
for
current
events
like
the
Super
bowl
or
upcoming
movie
releases
are
influenced
in
Dunkin
Donuts
merchandise
(and
promotional)
strategy.
inventory
management.
With
inventory
orders
and
deliveries
made
twice
a
week
at
a
typical
Dunkin
Donuts
store,
this
demonstrates
inventory
and
assortment
planning
as
a
pivotal
strategy
for
Dunkin
Donuts.
Another
aspect
of
this
includes
the
delivery
or
baking
of
fresh
donuts,
bagels,
muffins,
etc.
on
a
daily
basis
at
Dunkin
Donuts
11
contributes
to
the
merchandise
strategy
by
serving
fresh
items
while
keeping
sales
and
inventory
constant.
Pricing
Strategy
Dunkin Donuts uses many different types of pricing strategies. The overall
prices
on
the
menus
of
different
Dunkin
Donuts
stores
follow
the
idea
of
horizontal
price
fixing.
Because
of
different
franchise
owners
of
each
store,
the
prices
may
vary
by
a
few
cents
but
generally
all
follow
a
similar
set
price.
Another
strategy
Dunkin
Donuts
focuses
on
is
market
penetration
pricing
which
is
setting
low
prices
and
selling
many
units
in
seeks
of
large
revenue.
This
strategy
benefits
Dunkin
Donuts
because
it
positions
them
as
a
much
affordable
brand
when
being
compared
to
such
counterparts
like
Starbucks
who
follows
a
market
skimming
strategy.
of
pricing
including
odd
pricing,
multi
unit
pricing,
bundled
pricing,
and
markdowns.
Examples
of
odd
pricing
used
at
the
Piscataway
Dunkin
Donuts
store
is
one
dozen
donuts
for
$7.99
or
one
donut
for
99
cents.
Secondly
and
example
for
multi
unit
pricing
would
be
the
sale
of
the
pounds
of
coffee
where
two
pounds
can
be
purchased
for
$16.99
rather
than
one
pound
for
$9.99.
For
bundled
pricing,
several
items
are
put
together
for
a
grand
total
price
such
as
a
Box
O
Joe
and
a
Dozen
Donuts
together
for
$23.04.
Lastly,
markdowns
often
take
place
at
Dunkin
Donuts
mainly
through
monthly
promotions,
coupons,
and
special
deals.
Examples
of
this
would
be
6
donuts
for
$3.99
12
Promotional
Strategy
Dunkin
Donuts
promotional
strategy
includes
several
elements
of
the
retail
promotional
mix.
Probably
the
mostly
invested
promotional
effort
would
be
advertising.
This
includes
everything
from
print
ads,
newspapers,
radio,
television
commercials,
and
on
the
web.
In
relation,
social
media
and
public
relations
has
been
a
huge
impact
to
Dunkin
Donuts
recently
by
giving
publicity
through
the
different
online
outlets.
Online
blogs,
Facebook,
Twitter,
and
Instagram
help
bring
awareness,
enhances
image,
and
demonstrates
innovativeness.
Another
significant
promotional
strategy
to
Dunkin
Donuts
includes
sales
promotion
which
can
include
displays,
contests,
sweepstakes,
coupons,
frequent
shopper
programs,
prizes,
samples,
demonstrations,
referral
gifts,
and
other
limited-time
selling
efforts.
Donuts
to
keep
communication
intact
with
consumers
online.
Tying
in
sales
promotion
with
public
relations,
online
contests
are
sometimes
held
online
using
social
media.
In-
store
contests
also
take
place
such
as
the
Create
The
Next
Donut
contest
as
mentioned
in
part
1
of
this
paper.
Moreover,
POP
displays
are
always
used
at
Dunkin
Donuts
stores
that
help
promote
new
food
items,
seasonal
coffee
flavors,
or
a
current
sales
promotion.
13
Retail
Image
To
maintain
and
present
a
proper
retail
image,
Dunkin
Donuts
follows
the
different
components
that
make
up
a
retail
firms
image.
Relevant
components
followed
by
Dunkin
Donuts
include:
target
market
characteristics,
store
image
and
atmosphere,
store
layout
and
facilities,
and
community
relations.
The
target
market
characteristic
is
important
to
Dunkin
Donuts
image
because
it
reminds
consumers
that
their
brand
is
targeted
to
everyone.
Dunkin
Donuts
is
a
nationwide
brand
that
especially
targets
America
hence
their
slogan,
America
Runs
On
Dunkin.
Furthermore,
the
store
image
and
atmosphere
is
critical
to
a
store
like
Dunkin
Donuts.
A
place
where
fast
paced
service
is
valued,
it
is
important
to
make
the
in-store
experience
enjoyable
for
the
customer
both
exteriorly
and
interiorly.
The Dunkin Donuts that I personally work at excels in both store interior
and
store
exterior.
The
stores
exterior
includes
two
doors
for
entrance
and
exit,
windows
with
multiple
displays
and
posters
on
the
windows,
and
a
color
coded
building
fit
to
the
Dunkin
Donuts
brand
image.
The
colors
of
orange,
pink,
brown,
and
beige
run
throughout
the
store
both
exteriorly
and
interiorly
creating
a
uniqueness
compared
to
surrounding
stores.
Additionally,
the
exterior
includes
abundant
parking
all
around
the
store
with
wide
enough
driving
lanes
to
prevent
congestion.
The
building
is
an
acceptable
size,
large
enough
to
be
seen
and
to
be
identified
as
a
Dunkin
Donuts
store
from
afar.
14
Walking inside the store, the first thing one notices is the scent of coffee
which
is
a
trademark
of
Dunkin
Donuts.
The
flow
of
customers
runs
smoothly
with
an
appropriate
placement
of
the
customer
line
and
cash
registers.
The
interior
of
the
store
is
boarded
with
glass
windows
as
walls
which
give
the
store
a
bright,
friendly,
and
welcoming
atmosphere.
The
fixtures
including
tables
for
dining
,
merchandise
displays,
and
overall
cleanliness
are
all
also
demonstrated
at
this
specific
store.
The
price
display
(or
menu)
is
bright
with
legible
font
and
provides
pictures
of
the
food
items
for
customer
reference.
Lastly,
the
store
offers
free
wireless
Internet
which
contributes
to
not
only
the
stores
technology
and
modernization
but
also
innovation.
Overall,
with
all
these
aspects,
they
all
in
fact
work
well
together
to
create
an
identifiable
image
for
Dunkin
Donuts.
The
image
for
Dunkin
Donuts
being
non-driven
by
status,
simple
and
no-frills,
down
to
earth,
regular
average
people,
and
efficient.
Through
the
years,
Dunkin
Donuts
has
earned
the
image
of
being
an
affordable
brand
especially
when
compared
to
competitors.
This
image
definitely
works
for
all
store
retailers
because
it
puts
Dunkin
Donuts
as
reliable
and
positive
in
the
eyes
of
their
customers.
Their
tagline
says
it
all,
America
Runs
on
Dunkin,
indirectly
saying
how
Dunkin
Donuts
will
help
and
be
responsible
in
serving
the
customers
of
America
the
overall
country.
15
Looking at both the short-term and long-term future of Dunkin Donuts, all one
can
see
is
more
customer
loyalty,
innovation,
and
global
recognition.
The
short-term
future
of
Dunkin
Donuts
may
include
opening
more
store
locations
in
the
United
States
but,
possibly
more
non-traditional
stores
like
in
Colleges
&
Universities
or
major
transportation
hubs.
For
the
long-term
future,
Dunkin
Donuts
can
focus
on
opening
more
store
locations
abroad
and
to
create
a
more
international
global
image
that
can
compete
with
Starbucks.
Also,
for
further
future
development,
Dunkin
Donuts
should
continue
their
presence
in
the
online
world
which
is
a
good
direction
for
the
retailer.
Continuing
to
market
the
brand
as
technologically
friendly
will
not
only
make
the
future
brighter
for
Dunkin
Donuts
but
also
strengthen
their
brand
image.
pricing
and
menu
diversity.
Having
more
coupons
will
not
only
create
more
customer
awareness
but
they
will
help
further
the
brand
image
of
the
store.
Coupons
are
relatively
inexpensive
and
low
on
investment;
and
ultimately
make
the
brand
popular
among
end-users.
Moreover,
affordable
pricing
should
be
a
constant
aspect.
Relatively
low
and
affordable
prices
sets
Dunkin
Donuts
apart
from
its
competitors
and
ultimately
draws
more
customer
revenue.
Lastly,
the
continuation
of
menu
diversity
is
a
positive
aspect
Dunkin
Donuts
should
continue
to
develop.
Introducing
new
food
items
or
new
beverage
flavors
will
keep
the
retail
brand
fresh
and
new
with
frequently
new
items
added
on
the
menu.
Not
only
will
current
customers
become
more
loyal
but
also,
16
new
customers
can
be
attracted.
Potential
new
products
can
also
create
more
brand
awareness
for
Dunkin
Donuts
and
solidify
their
brand
image.
Overall,
Dunkin
Donuts
has
been
taking
the
right
steps
in
improvement
and
innovation.
Which
takes
us
back
to
the
original
mission
statement,
continuing
to
serve
the
freshest
coffee
and
donuts
courteously
in
modern,
well-merchandised
stores.
This
will
not
only
continue
to
make
Dunkin
Donuts
run
America
but
in
hopes
of
running
the
world.
17
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20