Dunkin Donuts Global Expansion: Franchise Model and Marketing Strategies

Abstract

Discussion 2: Dunkin donuts LLC [Name] [University] Instructor’s Name 6/21/23 Multinational companies such as Dunkin donuts must choose an appropriate entry mode especially in foreign markets to service their target market and maximize their international expansion. Direct and indirect exporting and incensing and franchising are entry modes a company can access foreign markets. Exports is a common entry mode that requires less risks and commitment. Direct exports take place when the producing firm enters a contract with its clients in the foreign target market and the firm deals with the negotiations, contract, signature, and documentation (Keegan &Green, 2020). Dunkin donuts uses direct exporting to countries such as middle east and Asia. Indirect exports are where the producing farms sells its products and services to a foreign target market through an intermediary such as a broker or an exports agent. Licensing is a cross border agreement that gives organizations in foreign markets the rights to use the property of the licensor such as patents or trademarks in exchange of a fee. Franchising is an entry mode where the franchisee pays royalties and fees to the franchiser to use its trademark to sell its products and services (Keegan &Green, 2020). The lion’s share of Dunkin donuts sales is generated in the US despite operating internationally and the brand is more popular with a young generation (students and young adults) and persons with busy work schedules who find their menu affordable. The company uses the opportunity in that the most sold food are donuts and coffee. In 2018, Dunkin donut changes its company name dropping the donut making it a beverage company. Its stores are owned and operates in a franchise model and in 2022, the initial investment required for a franchise stands at over $1.7 million (Dunkin’ Donuts Target Market...