Dunkinâ€™ Donuts is rapidly expanding into a national coffee powerhouse on par with Starbucks, the nationâ€™s largest coffee chain. Its research has confirmed a simple fact: Dunkinâ€™ is not Starbucks. To succeed, Dunkinâ€™ must have its own clear vision of just which customers it wants to serve and how to serve them. Dunkinâ€™ and Starbucks target very different customers, who want very different things. Dunkinâ€™ Donuts built itself on serving simple fare at a reasonable price to working-class customers. To broaden its appeal and fuel expansion, the chain has recently been spiffing up its stores and adding new menu items. However, as it inches upscale, Dunkinâ€™ Donuts is being careful not to alienate its traditional customer base. Dunkinâ€™ Donutsâ€™ research has shown that although loyal customers want nicer stores, they are bewildered and turned off by the atmosphere at Starbucks. And they canâ€™t understand why anyone would pay so much for a cup of coffee. The Starbucks customers that Dunkinâ€™ studied were equally uneasy in Dunkinâ€™ shops. In refreshing its positioning, Dunkinâ€™ Donuts has stayed true to the needs and preferences of the Dunkinâ€™ tribe. Dunkinâ€™ Donutsâ€™ positioning and value proposition are pretty well summed up in its popular ad slogan â€œAmerica Runs on Dunkinâ€™.â€
1.Consider yourself as a coffee and pastry consumer. Do you think you fall into the Dunkinâ€™ Tribe or the Starbucksâ€™ Tribe? Explain.
2. Recall the slogan, â€œAmerica Runs on Dunkinâ€™.â€ What does it mean, and how is it central to Dunkinâ€™s segmentation strategy?
3. Visit the websites of Dunkin Donuts and Starbucks – What are each website’s strong points and which are its weak points. Which website you prefer and why?
ANSWER THE QUESTIONS BY WRITING AT LEAST 2 PAGES USING APA FORMAT (Excluding the references page).
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