Sample Instruction Plan
Case Name: The Coffee Wars (Chapter2)
Facilitator (Group):
Time Plan for Case Discussion: 5 minutes for checking attendance, introduction of case
20 minutes for case discussions
5 minutes for confirming scores of the case discussion
Class time and date: 5 p.m.~7:40 p.m., Monday
Summary of Case
In the US, considerably over half of the coffee market is dominated by Starbucks and
Dunkin' Donuts. The fact that Starbucks' net sales and stock prices have increased regu
larly since 2009 gives it an advantage against Dunkin' Donuts. Starbucks focuses on ex
pansion into the international market, while Dunkin’ Donuts aims regional-oriented stra
tegy. They both provide smartphone apps that allow customers to order food remotely.
The new Dunkin' Donuts app, in particular, intends to carry the battle to the mobile fi
eld. It provides not just smartphone ordering but also mobile delivery services. The riv
alry between these two companies is well-established and is certain to continue, especia
lly as Dunkin' Donuts shifts away from being only a donut store and toward a more co
ffee-centered business.
Questions:
1. Perform a SWOT analysis for Starbucks and Dunkin’ Donuts. Based on your analysis, in
which company would you invest? Justify your answer.
2. Which growth strategies have been pursued by Starbucks and Dunkin’ Donuts in the past?
Which strategies do you believe will be most successful for the two firms in the future? Why?
3. Which marketing metrics would be most helpful for an executive in charge of developing
new products for a coffee chain?
4. Referring to EXHIBIT 2.1 on page 30 (page 153 for pdf)that shows 'Macro Strategies for
Developing Customer Value,' what are the customer excellence, operational excellence,
product excellence, and locational excellence of Starbucks?
5. How Dunkin' Donuts could regain their net revenues and stock prices over Starbucks.
Explain thoroughly your marketing plan based on the following strategies - market
penetration, market development, product development, and diversification (you can choose
one or more).
6. Between Starbucks and Dunkin’ Donuts, what is your favorite brand? Explain the
attractiveness of the brand in relation to its marketing characteristics.