What are the risks when a company that is so closely identified with one product decides to change its focus to a different product? What marketing strategies can help reduce the risks and increase the probability of success?

Case Studies

Read the article about Dunkin’ Donuts and answer the two questions at the end of the article.

Dunkin’ Donuts made a strategic decision to make its business about the coffee, not just the donuts. What are the risks when a company that is so closely identified with one product (it’s in their name!) decides to change its focus to a different product? What marketing strategies can help reduce the risks and increase the probability of success? What are the key differences between the marketing strategy of Dunkin’ Donuts and its chief competitor, Starbucks? What else could the company do from a marketing manager’s standpoint to successfully compete with and clearly differentiate Dunkin’ from Starbucks?