In Rockwell Power Plant (Commercial Center in the Philippines) you would be able to find a different target market of Dunkin Donuts which caters to the high end consumers.
When I first saw their store a year ago I was surprised to see large Donuts that cost 3 times the normal ones I have known for more than ten years. I quickly asked their staff a few questions while I was purchasing donuts; I learned it was the first of its type and that they were the only location that sold high end Dunkin donuts.
For more than ten years people have known their donuts as medium size and low cost items. For years they have enjoyed competing against only a single competitor, Mister Donuts. Today, so many kinds and brands of donuts are sold everywhere which could have prompted in their repositioning efforts.
Repositioning your business is risky especially when your customers are alienated to your new position which may prompt them to go other vendors.
Dunkin donut has been smart enough to put up a separate branch in one of the high end commercial areas in the Philippines to see and test the market’s response to their new position. Instead of changing their product line in existing branches they opt to risk their experiments in another venue. If the new model works out they could still maintain their low cost donuts and at the same time expand their business to another market area without risking their current business success.
Repositioning your business is more complicated than it seems and should be handled seriously. A thorough study should be made by the business before targeting another market area because any mistakes made could mean losing your current customers.
[tags]Business, Dunkin, Donuts[/tags]
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