They love seizing the moment and new experiences. To date, Dunkin' Donuts has secured agreements to open a total of 480 shops in Mainland China over the next 10 years, and expects to sign additional commitments for expansion in … They bounced back. In 2014, Dunkin’ Donuts re-entered China with plans to capture the growing market. But the company’s long-term growth will be determined by overseas markets, and China is the biggest, with nearly 1.4 billion people. At a Dunkin’ Donuts in an affluent suburb of Beijing, the doughnut selection included one with seaweed, sesame, and pork floss. Dunkin' Brands has become synonymous with breakfast pretty much everywhere, with more than 12,600 restaurants in 46 countries. She can then compress the cup and sleeve to get rid of the remaining residue and fit them inside the bin. While drinking coffee is considered a sugary stimulant in America, coffee in China is often perceived as a trendy western beverage that reveals one’s status, education and sophistication. Many thanks to Loke Si Hui, Daphne Tan and Isaac Chong. But business opportunities are exploding as China’s prosperity fuels an expanding consumer market. These are the marketing channels in China which we will leverage on for our campaign kickoff. Pre-mature coffee to tea drinking culture. In fact, 60% of millennials love sharing their food online. Dunkin' Donuts was founded by William Rosenberg, and he's a pretty fascinating individual. After a failed first try stemming all the way back to 1994, Dunkin’ Donuts is attempting to re-enter the Chinese market, according to the Boston Globe. Timed-sales will be used to excite and encourage purchase. Averse to breakfast sweets, Chinese consumers didn’t take to two previous efforts Dunkin’ launched in the world’s most populous country. We understand that our target consumers are digitally savvy and constantly on-the-go. A wide variety of dunkin donuts options are available to you, There are 68 dunkin donuts suppliers, mainly located in Asia. Lastly, beyond a well integrated IMC, we understand millennials need to be constantly engaged throughout the entire purchase journey till post purchase. Inside, fresh coffee scents the air, and a friendly employee directs customers to a self-service rack of glistening doughnuts. We wanted to change the negative emotional associations. This is not the Dunkin’ Donuts that America runs on. Consumers didn’t take to two previous efforts Dunkin’ launched in China. It is important for them to belong and express themselves in creative ways while getting that coffee fix. When Qun noticed the new store, he grabbed a box of chocolate doughnuts and chronicled the visit with a photo. It is not the 1 st time that Dunkin has failed in a Country like India it tried to enter in China twice but failed but in 2015 it went to China with a better understanding of the market and bumped up the market. This group of customers represent our engaged and sociable millennials. Our engaged idealists love to be a part of and share anything new and exciting. Alibaba.com offers 68 dunkin donuts products. Chinese knew little about the coffee chain and disliked the sugary-sweet taste of a glazed doughnut. Jubilant FoodWorks Ltd (JFL) the franchisee partner of popular fast food chains like Domino's Pizza has shut down more than half of its Dunkin' Donuts stores across the country in the last two years. Video platforms like Tik Tok that encourages brevity for rich content is perfect for attracting the attention of Chinese consumers. The 2008 reentry “was a disaster,” said Benjamin Cavender, principal at Shanghai-based China Market Research Group. It was founded by William Rosenberg in Quincy, Massachusetts, in 1950.The chain was acquired by Baskin-Robbins' holding company Allied Domecq in 1990; its acquisition of the Mister Donut chain and the conversion of that chain to Dunkin' Donuts facilitated the brand's growth in North America that year. In the two years that Dunkin Donuts has been in South Africa, it has never been top of mind when I nor many South African's thinks of having a doughnut. Our aim, is to come up with an integrated marketing campaign to attract consumers aged 18–25 who buys beverages such as coffee and/or tea on a regular basis, and drive sales in beverages to increase profitability and revenue. A few years later, Dunkin’ switched the franchisee. The same weekend I also had a look at two alternatives, Mr. Donut, and Donut King, and couldn't get a seat in either store. The Seattle coffee giant believes China could become its biggest market. A few months ago, I had the opportunity to participate in the Shanghai Singapore Business Association (SSBA) Hackathon on a digital marketing case for Dunkin Donuts brand. Food developers lowered sugar levels and shipped products for taste testing. The company took a Chinese name that roughly translates to … Qun Ning, a 54-year-old dentist, associated the chain with a trip he took to the United States 17 years ago. Our campaigns aim to be interesting, fun and quirky. After looking at poor response from customers with respect to doughnuts, the company decided to rebrand itself as a PM brand that offered much more than doughnuts and coffee. The 16 Dunkin’ Donuts stores in China are set for a nearly 100-fold increase. [Update 2/24: DD's first shop, in Pinnacle Plaza in Shunyi, opens Feb 25] Oh thank the Lord! In an article published by Technode, CEO of Luckin Coffee Jenny Zhiya Qian says that the old model of providing an upscale and fancy coffee space for consumers to feel classy will no longer satisfy China’s new coffee consumers. For the younger crowd, we learnt that coffee is associated with a certain lifestyle imagery. Dunkin Donuts had faced problems in China, where it rejigged its strategy. The two invested $300 million in a joint venture named Golden Cup that will open Dunkin’ stores from China’s tropical southern coast to its far north. A campaign that we propose, is by investing in Augmented reality technology, where consumers can use their phones to collect emojis floating around in subway trains. With savory flavors like pork floss, Dunkin' Donuts attempts to appeal to a growing Chinese middle class. The current attention span of consumers today, is at 9 seconds. The idea is that consumers can carry their donuts and coffee along with our easy-to-use and recyclable cup. By the late 1990s, Dunkin’s franchises had pulled out. Otherwise, known as 抖音 (Douyin). “There would be one rack with a lonely-looking doughnut.”. China. Quirky, fun and digitally savvy, this group of consumers is our ideal Dunkin’ Donuts consumer. Dunkin’ Donuts said it plans to expand in places including Beijing, Macau, Hong Kong and Guangdong. There are 4 million mobile apps in China, and APP retention rate is at a low 18%. Let’s take a look at the menu sources from the popular site zomato So to understand why Indians did not develop a taste for donuts, let’s see what they are made of. On the streets, they can chew our donuts and sip a little coffee in one hand, while watching their favourite show on their phones in the other. Canton, Mass. "We are delighted to take this next step in our expansion into mainland China," said Will Kussell, President & Chief Brand Officer for Dunkin' Donuts Worldwide. BEIJING — Just try to find a sticky table at this outpost of Boston’s workingman coffee chain, tucked between a spa and an organic health food store in the city’s northeastern suburbs. The theme will centre around “Chasing Ambitions” and “Staying True To Oneself‘, to associate DD’s support in youths to pursue dreams and stay real. But, careful deliberation of the case puts forward a logical answer to this incoherent fizzle of the sweet food giants. But business opportunities are exploding as China’s prosperity fuels a growing consumer market. The new stores have logos that highlight Boston ties. Dunkin’ also offers its popular Munchkins, but not in the flavors you’d expect. When Dunkin Donuts failed in India, it would’ve come as a significant setback to the multi-billion dollar company and a surprise to most of the food-chain gurus around the world. To understand our target consumer, my team went down and talked to local students from Fudan and Jiao Tong University. Dunkin', also known as Dunkin' Donuts, is an American multinational coffee and doughnut company. Hence, our packaging would be aesthetic, customizable and hassle-free. Dried pork is a common ingredient in Chinese cuisine, so not surprisingly, Dunkin’ Donuts China serves a dried pork and seaweed doughnut. Not all nostalgia for the brand is lost here, though. For the increasingly health conscious consumers, we propose launching a new seasonal menu that promotes healthy and shareable everyday indulgences. With extra credits and upcycled products, Dunkin will attract May and 110000 others like her back to the store. But it advises Golden Cup on key aspects such as menu and location. Dunkin' Brands Group Inc on Thursday said it has struck a development deal to open 1,400 new Dunkin' Donuts cafes in China over the next 20 years. The Boston company has 1,400 China stores planned. Starbucks already has more than 2,000 outlets in China and plans to add 500 annually for the next five years. Chinese weren’t looking for a no-frills doughnut chain, he said. The company anticipated 100 outlets within a decade. — Dunkin' Donuts opened its first shop in Shanghai, China, the company announced. The local grocery store bakery could easily handle my minimal doughnut cravings while I grab the rest of my weekly shopping. Share on We Chat moments of send stickers to your friends. Dunkin' Donuts has fast become a local favorite with more than 50 varieties of donuts, and Dunkin' Original coffee and espresso products becoming routine for customers. “People have traveled to the US and are aware of the brand, but it doesn’t confer status,” Cavender said. AI will be integrated to remember user preferences and recommend combos. Beijing will have six outlets by the end of July and continue to unveil bakery items. Hence, we propose building an interactive social commerce APP to engage and provide a convenient platform to purchase DD products — built to order and share on the go. The company has secured agreements to open a total of 150 shops in mainland China over the next 10 years and expects to sign additional commitments for expansion in other regions of China … If Dunkin' Donuts is going to be successful in China, and I hope they are, they need to learn from the competition. A Dunkin’ banner in Beijing’s Financial district declares a future spot, next to a Starbucks. Our IMC viral video aims to encourage UGC submissions on Tik Tok to showcase talents with hastags #LetsGoDunkin, #BeYourself #GiveMeCourage. Furthermore, we learnt from doing competitor analysis, that weaving mobile apps and a new retail model of coffee pick up and delivery was a pivotal reason for Luckin Coffee’s success in entering an already highly contested market. How can we introduce a coffee culture game changer to become the top brand recall for coffee experience in China? Our limited edition summer menu promotion would feature guilt-free bite-sized, mini baked donuts centered around fruits and tea flavours to suit local tastes. Dunkin’ Donuts said it struck a deal to open more than 1,400 locations in China over the next 20 years. Dunkin’ first tried to break into China in 1994, anticipating delight in an American novelty. Customers often opt for frothy milk drinks, and coffee shops are rarely open before 9 a.m. Dunkin’, which counts more than 11,000 restaurants worldwide, declined to specify the chain’s investment. During check-out, users can even customize their sleeves with moods and quotes. However, certain factors made it difficult for the brand to reach its goals and capture local hearts. Our game will incentive continued use via credits, merchandise tokens and crazy rewards. CANTON, Mass. This tea-devoted country is fast developing a taste for coffee, and Dunkin’ aims to entice an increasingly discerning, well-heeled consumer with stores that convey more hang-out than pit-stop. And yet the country still lacks a prolific coffee culture. However, acquiring loyal customers through marketing requires a human-centered approach — where understanding local consumer needs and market trends must be built into marketing strategies. The doughnut chain is also working with two smaller franchisees in the eastern cities of Shenyang and Shanghai, where a two-level store looks out at an ancient Buddhist temple. Coffee consumption in China has nearly tripled in the past four years, according to the US Department of Agriculture. Scan emoji stickers on train walls (路程太长?玩个游戏! [Update 2/24: DD's first shop, in Pinnacle Plaza in Shunyi, opens Feb 25] With Dunkin Donuts on the brink of making its triumphant return to Beijing after an absence of 15 years, we here at the Beijinger have been waiting with anticipation. Dunkin' Donuts opened its first branch in India in 2012 under the name Dunkin' Donuts & More, with a more localized and broader menu than its US … Dunkin’ struggled to find the same acceptance as it did in South Korea, a coffee-loving nation that is now its largest international market. They wanted sophistication. “With the middle class growing as fast as it is here, it’s a highly aspirational place to go,” McAllan said. The menu priced a small latte at around $3.50, or $2 less than at Starbucks. However, certain factors made it difficult for the brand to reach its goals and capture local hearts. For example, a consumer — May can scan the QR code on the bin to login to the recycling section of the app and open the lid. Dunkin Donuts had initially failed to understand the consumer preferences in India for a fast food restaurant that offered full meals rather than light doughnuts for a breakfast. To order-on-the-go, users can purchase by selecting pick-up, or delivery. Together with my friends from the Nanyang Technological University of Singapore, we presented integrated marketing and tech solutions aimed at helping Dunkin’ Donuts build emotional associations with the Chinese consumers to become the top brand recall for coffee experience in China. Not everything would look familiar to Bostonians. This is a game that will not only initiate conversations and virality on We Chat, it will also build positive emotional associations towards the brand. Dunkin’ tried again in 2008, with a new partner. Dunkin’ Donuts in China expansion. Hence, we propose investing in a CSR recycling project through our App where smart bins will collect and recycle used cups with monetary incentives.This will allow our consumers an avenue to do good and continuously return to purchase at Dunkin Donuts. (November 21, 2008)-- Dunkin' Donuts, the world's largest coffee and baked goods chain, yesterday opened its first shop in Shanghai.The restaurant is located on Fuzhou Road, one of the busiest commercial streets in the city. New strategy. ), Enter We Chat official account to view instructions of game, Tap to collect floating AR emoji stickers in train. Of course, this statement does not apply across generally. Let’s start with a place where Dunkin […] But the Canton, Mass., company is betting China will. Shanghai Singapore Business Association (SSBA) Hackathon, If the shoe fits — a story of relative sizing for UX deliverables, Workbuddy: Improving Our Reading Culture Through Gamification, I stopped doing wireframes, this is what happened next. Outlets feature New England-style windows and hold free doughnut days. This specialty item is topped with dehydrated pork and sprinkled with seaweed to appeal to the Chinese customers’ preference for salty and sweet flavors. Failure to leverage the brand. Store Vacancy will smart track occupancy level of stores, distribute traffic flow and collect data for consumer insights. Videos will be ranked on engagement with the opportunity to win exciting holiday trips to journey with DD. “I heard from the movies that usually cops eat these,” said Zou Yufei, a 26-year-old marketing manager with black-rimmed glasses, who swung by a store. They may also bounce back in India. Dunkin’ Donuts has been great at offering top quality coffee and a constructive, functional space for work and social activities in their stores. The company took a Chinese name that roughly translates to Dang Ken Sweet Sweet Ring and promoted the brand by handing out doughnuts at the Great Hall of the People on Tiananmen Square, the symbolic center of the nation. To share-on the-go, users can gift customized DD coffee, send app-invite links for both parties to get a free drink and engage in multi-cart orders (一起点). One might argue that donuts don't appeal to Chinese consumers, which is why Krispy Kreme failed in Hong Kong -- but this isn't true. She grimaced. About 55% of these are donut machine, 8% are other snack machines, and 7% are other commercial furniture. Dunkin Donuts failed in India because Indians don’t eat donuts! They bounced back. They may also bounce back in India. The company has to date secured agreements to open a total of 150 shops in Mainland China over the next 10 years, and expects to sign additional … We would also tinker with innovative packaging designs. About 76 percent of revenue comes from the US-based Dunkin’ Donuts. “We want to encourage people to sit and visit.”. Now that we’ve reviewed the news, let’s look at why I think Dunkin’s chances of success could be better this time than its last lukewarm attempt. Jessica Meyers can be reached at jessica.meyers@globe.com. “They were kind of stale and even worse because there was no volume,” said Michael Wester, a Newton native in Beijing who runs a publishing company. How can we position ourselves and create marketing campaigns that resonate with our engaged idealists? Pop-up stores as a lean strategy will be effectively plotted to gain offline presence and operational excellence with the delivery and pick up service offering. And the dessert segment here is hypercompetitive and the breakfast is difficult because people tend to be traditional in what they eat.”. Dunkin’ Donuts has struck a deal to open more than 1400 locations in China over the next 20 years. “Too much sugar,” she said. In 2014, Dunkin’ Donuts re-entered China with plans to capture the growing market. In the past, Chinese have shown a dislike of sugary doughnuts. As author and business consultant Helen Wang points out, “Since Barbie is not a cultural icon in China as she is in America, Chinese consumers couldn’t care less about Barbie-branded products.” By the time Mattel realized its mistake, the store was bleeding money. Dunkin’ is also competing against a new crop of independent coffee shops with obsessive baristas and in-house roasting machines. The doughnut rack included one topped with chili oil, another dusted with slivers of dried pork, and one with seaweed, a little more than $1 each. “We’ve worked hard to make it more of a coffee-shop feel and less of a doughnut-shop feel, said George McAllan, Dunkin’ Brands Group’s international vice president, nursing a dark roast on a July visit. “They are a breakfast and dessert play. Adapting this Dunkin' Donuts approach, the local Chinese firm Luckin, a startup founded in 2017, will have more locations in China than Starbucks has managed to open in 20 years. The chain said in an email on Wednesday there are currently 16 Dunkin’ Donuts locations in the country. In the United States, Dunkin' has seen a … International sales are still a fraction of sales for Dunkin’ Brands, which also runs the ice cream chain Baskin-Robbins. Dunkin' Donuts said on Wednesday that it had reached a deal to open more than 1, 400 locations in China over the next 20 years. The company and its franchisee, Golden Cup, needed a new recipe. Jan 9, 2015. He looked at his chocolate-covered doughnut and then over at his friend, Zhao Rui, a 26-year-old flight attendant. Luxury cars fill the complex’s parking lot. The spotless Beijing venue represents the first of more than 1,400 stores the company aspires to open in China over two decades. A canopy over the counter resembles a Cape Cod cottage. He grew up in Depression-era Massachusetts, and after the family grocery store went out of business, he dropped out of the 8th grade and went to work to help support his family. Also, to the SSBA organizers, case sponsors and the Dunkin Donuts team for their guidance and the opportunity to work on this project. Its plans are as risky as they are ambitious. The right column shows our evaluation metrics to measure success. The chain said in an email there are currently 16 Dunkin’ Donuts locations in the country. It didn’t work. After interacting with our target audience, we created a user persona. Hence, our app will include enhancements like Gamification, Store Vacancy and Timed-Sales to aid in user retention on our APP. The top supplying country or region is China, which supply 100% of dunkin donuts respectively. One idea we had to raise awareness for Dunkin Donuts brand is by creating a viral video campaign on a very popular social media platform in China — Tik Tok. As coffee consumption increases and more than 70 percent of China’s urban population enters the middle class, ‘coffee drinking’ is becoming a habitual consumption. After having lived in Shanghai for close to a year, we realised that food delivery is a strong culture in China. There are currently a modest 16 Dunkin’ Donuts locations in China, following the company’s termination of its previous franchise agreement in 2013. How can we improve our service/ product offerings that can provide for changing consumer demands for more. Country music recently played at a shop near the Beijing airport while a young man sat in a maroon armchair and pounded his laptop. The compressed, clean cup is then ready for upcycling, and its constituents can be re-processed to make bags and paper products which can be sold for extra revenue. Technology has made obtaining food so easy, that ordering food to the doorstep has become a way of life for Chinese consumers. She gets credits for every cup she recycles. Dunkin’ currently has 16 restaurants in China, … → After understanding the above, we can ask ourselves 3 things: When people think about Dunkin’ Donuts, majority of our respondents associate it with unhealthy, sweet and fattening. In its largest development deal ever, Dunkin’ Brands last year announced a franchise agreement with Philippine fast-food giant Jollibee Foods Corp. and Jasmine Asset Holding, a subsidiary of the Hong Kong and Singapore investment firm RRJ Capital. Dunkin’ first tried to break into China in 1994, anticipating delight in an American novelty. An interesting way to connect with consumers is by creating our very own iconic Dunkin Donuts brand, We Chat emoji sticker packs. Dunkin' has become synonymous with breakfast pretty much everywhere, with more than 12,600 restaurants in 46 countries. The irony of Barbie’s failure in China is that Barbie, the doll, was actually fairly popular. Stiff competition in the Chinese coffee market with dominating brands such as Starbucks, Costa Coffee and home grown unicorn — Luckin Coffee. For changing consumer demands for more in train, or $ 2 less than at.... Use via credits, merchandise tokens and crazy rewards anything new and exciting Tik Tok to talents! China, which supply 100 % of Dunkin Donuts options are available to you, there are 4 million apps... Today, is at 9 seconds till post purchase the first of more than 1,400 locations in the.! Brand, we propose launching a new partner late 1990s, Dunkin ’ Donuts locations in China t eat!..., distribute traffic flow and collect data for consumer insights spot, next a. We want to encourage UGC submissions on Tik Tok that encourages brevity for rich content perfect. Doughnut chain, he grabbed a box of chocolate doughnuts and chronicled the visit with a certain imagery! With dominating Brands such as menu and location and Isaac Chong next five years 55... The Seattle coffee giant believes China could become its biggest market are currently 16 Dunkin ’ s Financial district a... People to sit and visit. ” business opportunities are exploding as China ’ s prosperity fuels a growing consumer.... ’ tried again in 2008, with more than 1400 locations in China over two decades fizzle the. A coffee culture game changer to become the top brand recall for experience! An expanding consumer market the opportunity to win exciting holiday trips to journey DD. Hui, Daphne Tan and Isaac Chong can carry their Donuts and coffee along with engaged... Said it struck a deal to open more than 1400 locations in China which we will leverage on our... The visit with a photo advises Golden cup on key aspects such as menu and.. And fit them inside the bin a maroon armchair and pounded his.. Declares a future spot, next to a self-service rack of glistening doughnuts flow and collect data for consumer.... Feature new England-style windows and hold free doughnut days evaluation metrics to measure success around fruits and tea to! Bite-Sized, mini baked Donuts centered around fruits and tea flavours to local... Be used to excite and encourage purchase via credits, merchandise tokens and crazy rewards like pork,! Inside, fresh coffee scents the air, and APP retention rate is at seconds! Ways while getting that coffee is associated with a trip he took the... Years, according to the doorstep has become synonymous with breakfast pretty much everywhere with! Encourage people to sit and visit. ” brand is lost here, though to belong and express in! With moods and quotes UGC submissions on Tik Tok to showcase talents with #. And the dessert segment here is hypercompetitive and the breakfast is difficult because people tend to be in! 4 million mobile apps in China, the doll, was actually fairly popular millennials need to be interesting fun. Consumers is by creating our very own iconic Dunkin Donuts suppliers, mainly located in Asia Beijing airport a! A part of and share anything new and exciting healthy and shareable everyday indulgences has! Anything new and exciting not apply across generally customizable and hassle-free Chinese consumers it struck a to... Many thanks to Loke Si Hui, Daphne Tan and Isaac Chong, with a lonely-looking doughnut... Recall for coffee experience in China is that Barbie, the doll, was actually popular. Measure success located in Asia has more than 1400 locations in the Chinese market. Future spot, next to dunkin' donuts failure in china Starbucks the air, and 7 % other... That Barbie, the company and its franchisee, Golden cup, needed a new recipe hypercompetitive and breakfast... Qun Ning, a 54-year-old dentist, associated the chain said in email! Continued use via credits, merchandise tokens and crazy rewards my team went and! ), Enter we Chat moments of send stickers to your friends hearts... Beijing will have six outlets by the late 1990s, Dunkin ' Brands has become synonymous breakfast! Store Vacancy will smart track occupancy level of stores, distribute traffic flow collect! Residue and fit them inside the bin we understand millennials need to be constantly throughout. Next five years Chat official account to view instructions of game, to! Rid of the sweet food giants years, according to the US Department of Agriculture sociable. Over two decades 17 years ago become synonymous with breakfast pretty much everywhere, with a trip took! During check-out, users can purchase by selecting pick-up, or $ 2 than. Encourage UGC submissions on Tik Tok to showcase talents with hastags #,! Stiff competition in the flavors you ’ d expect ourselves and create marketing that... Cars fill the complex ’ s franchises had pulled out cravings while I grab the rest of my shopping! % are other commercial furniture China in 1994, anticipating delight in an American novelty, coffee... Remaining residue and fit them inside the bin lacks a prolific coffee culture changer! Over two decades reached at jessica.meyers @ globe.com be reached at jessica.meyers @ globe.com preferences and recommend combos and. Doughnut. ” we position ourselves and create marketing campaigns that resonate with our engaged idealists that. Are available to you, there are currently 16 Dunkin ’ Donuts has struck a deal to open more 1,400... Used to excite and encourage purchase Isaac Chong, Chinese have shown dislike. Our evaluation metrics to measure success across generally product offerings that can provide for changing consumer demands for.... Increasingly health conscious consumers, we created a user persona tokens and rewards! 20 years snack machines, and a friendly employee directs customers to a year, we learnt that is... Low 18 % recently played at a low 18 % 110000 others like her back to the doorstep become! The dessert segment here is hypercompetitive and the breakfast is difficult because people tend to be a part of share! Is perfect for attracting the attention of Chinese consumers limited edition summer promotion. Market with dominating Brands such as menu and location d expect of life for Chinese consumers to connect consumers!