Krispy kreme Doughnuts

Antoine MarionBayou JulieHazet CharlesHéberlé CamilleHelson Yohann

Summary

1. Krispy kreme Doughnuts presentation

2. Internal and external analysis

3. Decline

4. Recommendations

1. Firm presentation

1933 creation (Vernon Rudolph)

1950s 29 shops, 12 states

1960 Standardization

1982 bought by Joseph McAleer (develops franchise)

1990s agressive expansion strategy

2000-2004 Growth

2001 Digital java acquisition (coffee/beverages)

2005 Decline

A quick and effective Growth

Problem Statement

2006,

Is a turnaround possible?

2. Internal and external analysis

• PEST• PORTER• MAPPING• SWOT• STRATEGY• FINANCIAL ANALYSIS

PestOpportunities Threats

Politic• Health campaign• Foreign politic

Economic• Consumer’s will to save

money• Crisis• purchasing power • Competition

Social

• Leisure time • Loyalty decrease• Change in consumption

habits

Technologic

• Innovation in the production

• New ways of selling

Main factor of change: consumption habit

Porter Analysis

Customers :High

++

Substitutable Product:

High++

CompetitorsHigh +++

High Competitive market

Threaten new entrants :

High +

Suppliers : Low

---

Mapping

Diversification

Quality

+

+

Focus on the brand key product

SWOT AnalysisStrengths

• Quality• Loyalty

Weaknesses

• Communication• Monitoring & Control

Opportunities

• New ways of selling• Leisure time

Social network Event

Threats

• Health campaign• Competition• Change in consumer’s

habits

Comsumption

ExperienceBad results

Key Success Factors

• Diversify the sales locations

• Franchise

• Historical basic product with many variations + coffee

• Vertical Integration principle

• Customer’s experience

Strategy (until 2005)

DIFFERENTIATION A unique experience

BUSINESS STRATEGY 1 Market 1 Product

• Atmosphere• Emotional link

Financial observations• Revenue: 2000 to 2004: + 202%• Stores: 1998 to 2004: + 237

2005• Revenue Q4 2005 to Q3 2006: -15% • 88% of the share• Stores: - 30

DECLINE

3. Decline (End 2005)

• Campaign against obesity

• Inappropriate products

• Lack of control in the accounting results

• Unqualified managers

WHY?

4. Recommendations

A new strategy

RECOVERY STRATEGY

• corrective measures (Financial monitoring)• long term vision (repositioning)

4. Recommendations

• Establish a regular BP to control accounting

• Hire qualified people

• Focus on the successful stores

• Communication campaign

Strategy Implementation

4. Recommendations

• Adaptation to consumers desires

• Healthy products diversification

• Franchise in harmony with the brand philosophy

A Turnaround is possible!

Control & Monitor the success

Thank you for your attention!