Krispy Kreme (1)

8/12/2019 Krispy Kreme (1)

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Presented by: Celeste DiFerdinando, Etana Kenter,Stephen Thai, and Avi Weinstein

Our Sweet Idea


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Mission & Target Market Mission: To touch and enhance lives through the

joy that is Krispy Kreme.

Broad mission has led to poorly defined targetmarket


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History Founded in 1937 in North Carolina

Only started experiencing growth in 1960s

New York in 1996: First store outside of theSoutheast

IPO in 2000

Expanded internationally since


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The Decline Value of stock has declined since 2004

Starting in 2008, KK has experienced a net loss

Americans became more health-conscious

Lack of promotion

No clear target market


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The Marketing Mix


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Product Strongest aspect of KKs marketing mix

Narrow but deep product mix

Doughnuts Hot, original glazed Known for being hot and fresh Consistent across all stores 20 varieties Aesthetically pleasing

Coffee 8 varieties Only 10% of sales

Ice Drinks & Ice Cream Products Kool Kremes


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Place 582 stores; only 83 are operated by the company

Distribution Warehouses

Enterprise Resource Planning

Brick and Mortar sites Factory Stores

Satellite Stores/Kiosks

Grocery Stores

Selective Distribution


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Price DoughnutsKK is marginally cheaper

Krispy KremeApprox. 55

DunkinDountsApprox. 60

CoffeeKK is significantly cheaper

12oz. Bags of Coffee Grounds

KK$6.99

DD$9.49 Starbucks$25.47

But the quality


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Word-of-Mouth Marketing

Promotional Fundraising

Funding Large Organizations

Social Media

Seasonal Product Promotion

Lack of Standard Commercial Marketing

Promotion


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SWOT AnalysisStrengths

Variety

Doughnut Quality

AvailabilityBrand Name

Weaknesses

Expanded too fast

Lack of promotion

Lack of target market

OpportunitiesExpandable product mix

ThreatsA Health-Conscious America

Threat of New Entrants

Fierce Competition

SWOT


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Competition Krispy Kreme must catch up with early-morning

rivals Dunkin' Donuts and Starbucks when it comesto caffeine.Marc Hogan, Business Week

KK vs. DD KK doughnuts are fresher and last longer

DD makes most of its profits from coffee

DD has 8 times as many stores

DD is expanding in the southeast

KK vs. Starbucks KK is cheaper

Starbucks has many more stores and has a higherquality product


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Health Generally considered to be unhealthy

Original glazed: 200 cal, 12g fat

Vs. DD: 240 cal, 14g fat

In 2006, started selling the whole wheatdoughnuts

Reduced in 2008 to .5g trans fat

Mini-doughnuts


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Recommendations


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1. Define Target Market Working person in their 30s and 40s who wants to

satisfy their caffeine fix, grab a bite to eat, bringin something for the office, and occasionally

indulge


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2. Expand Product Mix Introduce breakfast foods, like bagels and basic

spreads

Improve coffee by doing consumer research


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3. Optimizing Location Eliminate grocery and convenience store sales

Store Cannibalization

Boost satellite store and kiosk presence attransportation terminals and in commercial areas

Increase drive-thrus


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4. Advertising Campaign Promote mini-doughnuts for health reasons

Promotional bundles in the form of combo meals

Coffee, bagel, mini-doughnut

TV Spots

Social media

Twitter Facebook


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Conclusion Without changes, Krispy Kreme is destined to

fail

Our recommendations deliver the neededspark for a comeback


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References Adams, Stephen. "Middle Aged Are Driving Twitter's Success - Telegraph." Telegraph.co.uk - Telegraph Online, Daily Telegraph and Sunday Telegraph - Telegraph.

13 Apr. 2009. Web. 30 Nov. 2010. .

Clark, Amy S. "Doughnut Wars: Krispy Kreme Vs. Dunkin' - CBS News." Breaking News Headlines: Business, Entertainment & World News - CBS News. 20 Oct. 2006.Web. 30 Nov. 2010. .

"Dunkin Donuts - Food and Drink." Shopping.com. 30 Nov. 2010. Web. 30 Nov. 2010. .

Hoover's Company Records. "Krispy Kreme Doughnuts, Inc." LexisNexis Academic. LexisNexis, 30 Nov. 2010. Web. 30 Nov. 2010..

Integrated Visual Systems. "Krispy Kreme Doughnut Case Study." Rev. of Krispy Kreme Macola Progression Series ERP System. Web. 30 Nov. 2010..

Krispy Kreme. "About Us." Krispy Kreme Doughnuts and Coffee. Web. 30 Nov. 2010. .

Krispy Kreme Doughnuts, Inc.2010 Annual Report. Rep. EDGAR Online, Inc., 15 Apr. 2010. Web. 30 Nov. 2010. .

Luna, Nancy. "Krispy Kreme Launches First-ever Mini-doughnut." The Orange County Register. 17 Oct. 2008. Web. 30 Nov. 2010..

"Marketing Mix and Brand Analysis of Krispy Kreme." HubPages. Web. 30 Nov. 2010. .

Munarriz, Rick A. "Saving Krispy's Kreme." The Motley Fool. 21 Mar. 2004. Web. 30 Nov. 2010. .


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Thank You!Questions? Comments?

Krispy Kreme (1)

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