Summary of Why Dunkin' Donuts Is Failing in India
Main Financial Strategies and Market Analyses:
- Market Entry and Franchising: Dunkin' entered the Indian market in 2012, granting exclusive franchising rights to Jubilant FoodWorks, which had previously succeeded with Domino's Pizza.
- Consumer Preferences: Dunkin' adopted a breakfast-first strategy typical in Western markets but failed to resonate with Indian consumers who prefer sit-down meals and local cuisine for breakfast.
- Menu Localization: Although Dunkin' attempted to localize its menu with items like mango doughnuts and spicy sandwiches, it struggled to shift its image from a doughnut shop to a broader food provider.
- Operational Challenges: Rapid expansion and large retail spaces increased operational costs, leading to store closures. In 2018, Dunkin' announced a shift to smaller stores and kiosks.
- Health Trends: A growing health consciousness among Indian consumers has led to declining interest in sugary products like doughnuts.
Business Trends:
- Shift in Product Focus: Dunkin' began to market burgers and downplay its doughnut offerings, which diluted its brand identity.
- Success of Competitors: Other dessert chains, like Baskin-Robbins, have thrived by focusing on their core products, unlike Dunkin'.
- Potential Market: Despite its struggles, experts believe India remains a significant opportunity for international fast food brands due to its low penetration of chain restaurants.
Methodology/Step-by-Step Guide:
- Reduce Store Sizes: Transition to smaller retail spaces and kiosks to cut operational costs.
- Focus on Core Products: Reinstate emphasis on core offerings (like beverages) that align with local consumer preferences.
- Adapt Menu: Introduce more regionally preferred items, such as tea-based beverages, to cater to Indian tastes.
Presenters/Sources:
The video references insights from various experts and sources, including Dunkin' Brands and CNBC.
Notable Quotes
— 06:10 — « Dunkin's big problem in India seems to have more to do with the fact that it's failing to give Indian consumers what they're looking for and less to do with any mistake made by either Dunkin brands or Jubilant FoodWorks. »
— 07:16 — « With the population size second only to China, India is thought of as the last great battleground for international fast food rivals. »
— 08:10 — « Dunkin' in India has had to overcome a lot upon entering the market and it still does. »
Category
Business and Finance