1950 vs. 1971

It’s all about reputation, speed, quality, value, and money for Dunkin Donuts and Starbucks. It’s up to customers which brand they want to choose between Dunkin Donuts and Starbucks. The low cost of Dunkin Donuts coffee is a big factor why it is the leading coffee brewery in the Country. Dunkin Donuts and Starbucks both have their own one of its kind flavors. National Coffee Drinking Trends Study of 2004 says, “More than 100 million people in the U.S. alone drink coffee everyday”. Most of the people have their own different taste to which coffee brand they like. Dunkin Donuts and Starbucks have two different coffee beans, only difference is price and style. Dunkin Donuts started with the donuts and then their coffee, After Dunkin Donuts started doing well in the business Starbucks came along in 1971. The only difference between both brands is that Dunkin Donuts coffee is 100% Arabica coffee while Starbucks has choices of different coffee from different countries.

According to Dunkin Donuts website, “Dunkin Donuts is America’s largest seller coffee by the cup, serving nearly 1.5 billon cups of brewed coffee each year. Dunkin Donuts sells more than 30 cups of freshly brewed coffee each second”.  Drinks at Dunkin Donuts are least 20% less in price than at Starbucks. This helps Dunkin Donuts capture business of price sensitive customers. At Starbuck a customer would pay $1.49 for a shot of espresso while at Dunkin Donuts espresso shot is only 99 cents. Dunkin Donuts prices are low and they offer high quality products. So customers can afford the price and have a good quality of coffee. Starbucks has recently launched a new line of flavored drinks. The new flavored drinks that Starbucks came out with are Blueberry, Coconut, Raspberry, Marshmallow, Caramel, Toasted, Almond and Cinnamon. These flavors can be added with different items of coffee you are getting. The most popular and top selling flavors for both Dunkin Donuts and Starbucks are Original Blend, Hazelnut, French Vanilla, and Decaf. Dunkin Donuts operates approximately 12000 units worldwide, while about 7600 of those are in United States alone. Starbucks operates about 8500 shops in more than 30 countries while most of their shops are in United States.

According to my research Dunkin Donuts is more popular then Starbucks. However, I personally choose Starbucks as my personal choice of coffee, because in my opinion Starbucks products cost more but, have better quality. What coffee shops would you pick between Starbuck and Dunkin Donuts and why?







5 thoughts on “1950 vs. 1971

  1. Starbucks and Dunkin Donuts have different strategies for competitive advantage which is the reason they are both successful. Dunkin Donuts is obviously implementing cost leadership while Starbucks is implementing differentiation. Starbucks has a coffee master program to translate the processes and the specialization that goes into Starbucks customers to baristas and customers. Expected sales after training a barista to become a coffee master are to increase 30% for individual cafes. This is a brilliant program because essentially each cafe has a salesperson to push sales for bag coffee and retain loyal customers.

  2. Very interesting article. There has always been a blind battle between Starbucks and Dunkin Donuts, and it all comes down to the way customers measure quality when it comes to their cup coffee. I believe that they both have a competitive advantage, hence the fact that they are both well known coffee shops all over the world. Dunkin Donuts might have a competitive advantage when it comes to pricing, but Starbucks definitely keeps their customers minds off their prices by offering different services such as great customer service, for example calling you by your name and giving you the option of personalizing your cup of coffee to the max. Starbucks also offers cozy, open space where their customers can sit down and enjoy free wi-fi along with their delicious cup of coffee. This is a way they separate themselves from Dunkin Donuts, which is considered a grab-and-go coffee shop. So at the end of the day, I can’t really choose between the two coffee shops, because although it might be said that Starbucks has higher quality coffee beans from all over the world, the quality of Dunkin Donuts coffee is not to far behind. Again as I mentioned before, it all comes down to how customers measure quality and their preferences.

  3. Interesting article. I had no idea that Starbuck’s entered the market in 1971 after Dunkin Donuts was already established. I thought it was the other way around. As for what coffee I prefer would also have to be Starbucks. I think they do a terrific job with the quality and overall presentation of their coffee’s. I think that these two different coffee shops do however appeal to different consumers. Starbuck’s typically is your white collar corporate worker while Dunkin Donuts is typically your blue collar worker. I don’t know if that has anything to due specifically with the difference in price or just how each company presents itself. Starbucks acts more as a social meeting place than Dunkin Donuts does. Maybe if Dunkin Donuts tried to appeal more to a lounging area to sit and enjoy your coffee they would continue to do better; however they do take pride in the grab-and-go. Overall I think both places are going to stay very competitive because they appeal to such different consumer markets.

  4. I personally have Dunkin Donuts on a more daily/casual way and I have Starbucks when I want to indulge, because I feel that it is higher in calories. But the coffee business is changing and I think Dunkin Donuts will soon have more of a variety or change its image to look more like a cozy space.

  5. Starbucks vs. Dunkin Donuts is almost like asking Pepsi or Coke. I do believe the initial decision may be on exposure and/or price. In Chicago, you can barely walk a block without seeing both so it would be more of a price consideration. I am 100% Starbucks, can’t be swayed. If I am in dire need of caffeine, I would rather wait for Starbucks than have to settle for Dunkin Donuts. That goes the same for Coke vs. Pepsi. I would rather have water than have to settle for Pepsi.

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