Compare And Contrast Dunkin Donuts And Costa Coffee

Targeting

Despite the similarity in segmenting methods that both Dunkin’ Donuts and Costa Coffee adopt, we can see the same pattern in their targeting strategy. The two brands pursue concentrated marketing strategy in their ads, targeting the two segments that they have chosen during the segmentation phase. Nonetheless, with the introduction of customization for their beverages, the brands also show a level of one-of-one marketing.

On the side Dunkin’ Donuts, the target market is the large segment consisting of normal coffee drinkers who need coffee everyday such as students, office workers, or drivers. In the third panel of their ads, Dunkin’ Donuts talk about how their coffee is the solution to a “crazy morning”, “commute”, and “life’s daily chaos”. This is a declaration from the company that their product is target toward everyday drinkers. Looking at this segment, the most prominent features we can identify is that this is an attractive, stable, and sizable market that can produce good profit. On their study of Coffee Drinking Statistics (2015) of America, Statistic Brain Research Institute shows that there are 100 million American who drink coffee daily. 29% of whom go to lower-price outlets such as Dunkin’ Donuts or McDonald). Considering that a cup of

This shows a major difference between the US and the UK coffee market. In the US, the market is more divided with Dunkin’ dominating the low-price, fast-food coffee segment, leaving Starbucks at the higher quality segment. On the other hand, the UK coffee market is all about the competition in the specialty coffee segment between Costa, Starbucks, and Caffe Nero. Moreover, brands who compete in coffee market tend to stick to one market segment that fits their image instead of trying to appeal to multiple