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KRISPY KREME DOUGHNUTS: An American Food Retailing Franchise

Enters the British Market

- How should a company transfer its brand across cultural boundaries and communicate it through architectural interior design?

Larissa Stockton MA in Architectural Interior Design

INCHBALD SCHOOL OF DESIGN / UNIVERSITY OF WALES September 2003

ABSTRACT

International expansion is one way for an American retail

franchise to grow financially reaching beyond mature markets and/or

an economic downturn at home. Securing growth in foreign markets

requires a strong consistent brand image as communicated across each

area where the consumer interacts with the brand. Commonly known as

the “Four P's of Marketing”, customer interaction points include the

Product, Price, Promotion, and Place.1

With increased global competition and a more sophisticated

consumer base, American franchises with international aspirations

must increasingly focus on the use of the retail environment, or

“Place”, as a three dimensional multi-sensory consumer and brand

interaction point. To gain international acceptance, an American

franchise developed within and for the United States market must re-

address their brand strategy, particularly their interior brand

environment, for application in each targeted international market.

The process of determining how to communicate an American brand

through architectural interior design to the UK consumer market and

culture is demonstrated in this Thesis through example franchise

Krispy Kreme Doughnuts. The result of this process of analysis is

presented both verbally and visually through a new retail store

concept design suitable for application in the United Kingdom today.

1 McCarthy, Basic Marketing: A Global-Managerial Approach, pp.13-23.

ACKNOWLEDGEMENTS

I would like to express my sincere appreciation to the

following individuals for sharing their professional views and

contributing to the development of this Thesis.

• Tony Allen – CEO, Interbrand London

• David Anderson – Partner, CADA Design, London

• Lorraine Baldry – former CEO, Chesterton Realty, London

• Jim Biber – Partner, Pentagram, New York City

• Jean-Baptiste Danet – CEO, Interbrand Paris

• Guy Greenfield – Architect, Guy Greenfield Architects, London

• Donald Henshall – President of International Development, Krispy Kreme Doughnuts, London

• Alan Hughes – Director, Inchbald School of Design, London

• Orvar Litsjo – Director, Store Design, Shurgard Worldwide, Seattle

• John Mayhew – Owner, Rules Restaurant, London

• John N. McAleer - Vice Chairman and Executive Vice President of Concept Development, Krispy Kreme Doughnuts, Winston-Salem

• Craig Moffat – Architect/Designer, Studio Moffats, London

• Nick Roberts – Head of Development, Chelsfield plc, London

• Philip Sandzer – Co-founder and Partner, Shelley Sandzer leisure industry real-estate, London

• Philip G.C. Whitting MCSD FDIA – Partner, Qube Retail Design Strategy, Brisbane, Australia

• Simon Wise - Deputy Director, British Franchise Organization, London

• Ceres Wood - Senior Vice President of Store Design, Krispy Kreme Doughnuts, Winston-Salem

• Christina Wright – International Brand Manager, Prêt A Manger, London

CONTENTS

CHAPTER PAGE

1. INTRODUCTION 1

2. COMPANY BACKGROUND AND OVERVIEW 5

3. DEVELOPMENT OF THE COMPANY’S REQUIREMENTS 7

4. SITUATION APPROACH 11

5. BRANDING AND INTERIOR BRAND ENVIRONMENT 13

6. CONSUMER BEHAVIOR AND CROSS CULTURAL MARKETING THEORY 18

6.1. KEY DIFFERENCES BETWEEN THE US AND UK 21

6.2. UK MARKET OVERVIEW 24

6.2.1. MARKET FOCUS – INDUSTRY TRENDS 24

6.2.2. PRODUCT FOCUS – COFFEE AND FAST FOOD 26

6.2.3. CONSUMER FOCUS – BEHAVIOURS, BELIEFS, TRENDS 27

6.2.3.1. STYLE ASSOCIATIONS 29

6.2.3.2. CONSUMER SURVEY ANALYSIS 31

6.3. CHAPTER SUMMARY 38

7. FRANCHISING AND DESIGN 41

7.1. THE NATURE OF FRANCHISING 41

7.2. FRANCHISING IN THE UK 42


8. SITE SELECTION PROCESS AND DESIGN 45

8.1. SITE SELECTION CRITERIA 47

8.2. SITE STUDY: 103 CLARENCE STREET 48

8.2.1. SURROUNDING COMMUNITY 49

8.2.2. SITE ADJACENCIES AND EXTERIOR 51

8.2.3. SITE INTERIOR AND LAYOUT 55

8.2.4. SPECIAL CONSIDERATION 59


8.3.1. RECENT SITE SELECTION UPDATE 62

9. THREE COMPARATIVE CASE STUDIES 63

9.1. CASE STUDY 01: STARBUCKS 65

9.1.1. BACKGROUND 65

9.1.2. DESIGN APPROACH AND INTERNATIONAL EXPANSION 66

9.1.3. APPLICABILITY 70

9.2. CASE STUDY 02: MCDONALD’S 71




9.3. CASE STUDY 03: AU BON PAIN 79





10. DELIVERING THE BRAND EXPERIENCE 84

10.1. PLACE 84

10.1.1. STORE LAYOUT 85

10.1.1.1. “BACK OF HOUSE” AND SPACE REQUIREMENTS 89

10.1.2. INTERIOR DESIGN SCHEME FIXTURES AND FITTINGS 89

10.1.3. PRODUCT MERCHANDISING AND DISPLAY 91

10.2. PRODUCT 97

10.2.1. PRODUCT PACKAGING AND GRAPHICS 98

10.3. PROMOTION 101

10.3.1. INTERESTING PROMOTIONAL DESIGN APPLICATIONS 103

10.4. CURRENT DESIGN CRITIQUE 103


11. RETAIL DESIGN OVERVIEW 107

11.1. INDUSTRY PROFESSIONALS’ INSIGHTS 111

11.2. INTERNATIONAL INSPIRATION 112

11.3. RETAIL DESIGN ELEMENTS 114

11.4. HIGH TECH TRENDS 115

12. TRANSLATION OF ANALYSIS 117

12.1. SET OF ANALYSIS RESULTS GUIDELINES/VISUAL ASSOCIATIONS 118

13. CONCEPT DESIGN SOLUTION 129

13.1. SET OF CONCEPT DRAWINGS 131

13.2. SET OF FUNCTION DRAWINGS 141

13.3. SET OF DETAIL DRAWINGS 155

13.4. DESIGN APPROACH 168

13.5. COLOUR PALETTE 170

13.6. MATERIAL SELECTION 171

14. CONCLUSION 172

15. BIBLIOGRAPHY 179

16. APPENDIX CONTENTS 184

LIST OF FIGURES, BAR CHARTS, GRAPHS, DIAGRAMS, AND TABLES

ITEM PAGE

FIGURE 01 - Rosie’s Diner, Rockford, Michigan 30 FIGURE 02 - Ed’s Diner Interior, London 30 FIGURE 03 - Ed’s Diner Entrance, London 30 FIGURE 04 - Area Map of Kingston-Upon-Thames 50 FIGURE 05 - Street Map of Kingston-Upon-Thames 51 FIGURE 06 - Retail Map of Clarence Street 52 FIGURE 07 - 103 Clarence Street Building 53 FIGURE 08 - 103 Clarence Street Viewed from West 54 FIGURE 09 - 103 Clarence Street Viewed from East 54 FIGURE 10 - View Across the Street from 103 Clarence 54 FIGURE 11 - 103 Clarence Ground Interior East Wall 56 FIGURE 12 - 103 Clarence Ground Interior West Wall 56 FIGURE 13 - 103 Clarence Street Ground Floor Plan 57 FIGURE 14 - 103 Clarence Street First Floor Plan 58 FIGURE 15 - First Starbucks Retail Store, Seattle 1971 66 FIGURE 16 - Starbucks Aroma Interior, New York City, New York 69 FIGURE 17 - Starbucks Roast Interior, London 69 FIGURE 18 - Starbucks Brew Interior, Montclair, New Jersey 69 FIGURE 19 - First McDonald’s Store, Des Plaines, Illinois 71 FIGURE 20 - McDonald’s Interior, Darien, Connecticut 74 FIGURE 21 - McDonald’s Wall Art, Darien, Connecticut 74 FIGURE 22 - McDonald’s Exterior, Darien, Connecticut 74 FIGURE 23 - McDonald’s Counter, Gothenburg, Sweden 75 FIGURE 24 - McDonald’s Wall Murals, Midtown, New York City 76 FIGURE 25 - McDonald’s Seating, Midtown, New York City 76 FIGURE 26 - McDonald’s Lighting, Midtown, New York City 76 FIGURE 27 - McDonald’s, New York City 77 FIGURE 28 - McDonald’s, Store Image 77 FIGURE 29 - McDonald’s, London 77 FIGURE 30 - McDonald’s, Concept Image 77 FIGURE 31 - McDonald’s, New McCafe Concept 77 FIGURE 32 - Au Bon Pain, Ovens, Midtown, New York City 80 FIGURE 33 - Au Bon Pain, In-Store Goods, Midtown, New York City 80 FIGURE 34 - Au Bon Pain, Counter, Port Authority, New York City 80 FIGURE 35 - Au Bon Pain, Store Concept 81 FIGURE 36 - Au Bon Pain, Concept Self Serve 81 FIGURE 37 - Factory Retail Store Layout 85 FIGURE 38 - Doughnut and Coffee Shop Layout 87 FIGURE 39 - Ordering Point, Scottsdale, Arizona 90 FIGURE 40 - Seating, Scottsdale, Arizona 90 FIGURE 41 - Store Interior, New York City, New York 90 FIGURE 42 - Product Display Cases, Charlotte, North Carolina 92

FIGURE 43 - Merchandise Display Case, Concept 92 FIGURE 44 - Doughnut Display, Scottsdale, Arizona 92 FIGURE 45 - Merchandise Menu, Scottsdale, Arizona 92 FIGURE 46 - Merchandise Display Case, Scottsdale, Arizona 92 FIGURE 47 - Kiosk, Sedona, Arizona 94 FIGURE 48 - Close-up of Kiosk, Sedona, Arizona 94 FIGURE 49 - Tesco Doughnut Kiosk, London 94 FIGURE 50 - Doughnut Theatre, Scottsdale, Arizona 96 FIGURE 51 - Doughnut Production, All Factory Stores 96 FIGURE 52 - Coffee Product Packaging 99 FIGURE 53 - Doughnut Take-away Box 99 FIGURE 54 - Façade and Signage, New York, New York 100 FIGURE 55 - Road Sign, Ashville, Virginia 100 FIGURE 56 - Historic Krispy Kreme Road Sign 100 FIGURE 57 - Website Entrance Screen / Home Page 102 FIGURE 58 - Website Doughnut Variety Tab 102 FIGURE 59 - Krispy Kreme Car 103 FIGURE 60 - Krispy Kreme Truck 103 FIGURE 61 - Photo of Wall of Inspiration 113 FIGURE 62 - Stage Set, “Valkyrie,” Mariinsky Theatre, St. Petersburg 169 CHART 01: How Important Is Interior Design in a Snack Food Coffee Shop? 33 CHART 02: How Often Do You Visit Snack Food Coffee Shops? 33 CHART 03: What Environment Do You Prefer in a Snack Food Coffee Shop? 36 CHART 04: Colour Proportion Guide 170 GRAPH 01: How Important Is Interior Design in a Snack Food Coffee Shop? 34 GRAPH 02: How Often Do You Visit Snack Food Coffee Shops? 35 DIAGRAM 01: The Four P’s for Krispy Kreme 3 DIAGRAM 02: Starbucks - Balance of Standardization and Customization 83 DIAGRAM 03: McDonald’s - Balance of Standardization and Customization 83 DIAGRAM 04: Au Bon Pain - Balance of Standardization and Customization 83 DIAGRAM 05: Krispy Kreme - Balance of Standardization and Customization 109 DIAGRAM 06: Interior Brand Environment Design Strategy Matrices 175 TABLE 01: Selected Differences between United States and United Kingdom 22 TABLE 02: Site Selection Objective Summary for 103 Clarence Street 60 TABLE 03: Material Recommendations and Rationale 171

NOTE: All photographic, computer-aided, and hand drawn figures, charts, graphs, diagrams, and tables in this Thesis were produced by Larissa Stockton unless otherwise noted.

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CHAPTER ONE

1. INTRODUCTION

If London is anything to go by the world has gone fast food mad. Coffee bars, hamburger joints, pizza parlours, soup and juice bars, bagel and noodle bars, and sandwich shops – the list of fast food choices is almost endless. On any given street you may find four coffee and three hamburger choices, let alone a few new concepts putting their first tentative toe in the water. What distinguished these companies? Take coffee bars as an example. It is hard to tell at first glance. They all seem to offer the same choice (filter, latte cappuccino, espresso, etc.). Unless you are a true coffee aficionado you probably cannot tell any real difference between the coffee they serve, or that one brews coffee the purist’s way and another uses a machine which makes the right noises but has been manufactured to cater for volume rather than quality. Yet some people prefer one fast food outlet over another. Sometimes this comes down to the product, sometimes it comes down to selection, or you may dislike the rather cumbersome process some of them employ to take your order and your money and then deliver your food to you. You may even prefer the choice of music they play or have a fetish for synthetic coloured uniforms. Often if comes down to the environment and what this says about the values and personality of the brand.2

This Thesis explores the process of designing an interior

retail store environment which can visually communicate a company’s

brand across international and cultural boundaries in today’s

consumer market. This process will be investigated in detail

through American food retail franchise Krispy Kreme Doughnuts. In

addition, case studies focusing on the international retail interior

environments of established brands will be addressed and design

concepts considered.

2 Calver, Retail Graphics, p. 112.

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In late 2002, Krispy Kreme Doughnuts announced international

expansion plans in multiple markets around the globe. Krispy

Kreme’s current brand strategy, including their retail store

interior design, is centred on the American consumer and related

behavioural patterns as well as American commercial real estate

trends and requirements. This is logical for a franchise that,

until very recently, has not been focused on growth beyond the

American market.

This Thesis focuses on Krispy Kreme’s expansion into the

United Kingdom. The United Kingdom is a primary target market for

Krispy Kreme Doughnuts. Focusing this Thesis on the United Kingdom

market entails specific detailed data on consumer and retail trends

to be gathered, analysed, and compared to the United States market.

Results of this analysis will allow conclusions to be drawn with

regard to the impact of culture on retail interior design generally

and specifically with regard to example company Krispy Kreme. The

process and procedure used to obtain these results can later be

applied to other international markets if desired.

Retail design encompasses just about every facet of design

including promotional graphics, product packaging, and interior

design of the retail place.3 These four areas of design are

commonly referred to in the marketing profession as the “Four P’s of

Marketing”: Product, Price, Promotion, and Place. Collectively

these include: product planning, pricing, branding, distribution

channels, personal selling, advertising, promotions, packaging,

display, servicing, physical handling, and fact finding and

analysis. This “Marketing Mix” is the parameters that a marketing

manager can use to make decisions that center on the customers in

the target market creating perceived value and generating business.4

3 Whitting, Magazine of the Chartered Society of Designers, pp. 14-15. 4 McCarthy, op. cit., pp. 13-23.

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There are many variations of this model, some tailored to

different businesses and situations. For the purpose of this

Thesis, I have interpreted the “Four P’s” model for retail design,

as opposed to marketing, and have grouped different retail design

and marketing elements specific to Krispy Kreme as follows:

DIAGRAM 01: The "Four P’s" for Krispy Kreme

This Thesis will focus on “Place”, specifically the interior

retail store environment. Here “Place” is not intended to refer to

distribution or distribution networks. As depicted in the diagram

above, it is difficult to separate out other design areas while

developing a consistent overall brand image. Therefore elements

crossing over “Place” (such as branding, product packaging design,

graphics, e.g.) will also be addressed as necessary. As advertising

and related advertisement graphics are a part of Promotion, this

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area is only touched upon briefly as it is outside the scope of this

Thesis. Specific Product and Pricing strategies will not be

addressed.

The body of this Thesis will address “If” and “Why” Krispy

Kreme must redesign its current retail store environment to

successfully communicate its brand to the UK consumer culture.

Through drawn concept designs, this Thesis will answer the question,

“How can Krispy Kreme transfer its brand image across cultural

boundaries and communicate it through architectural interior

design?”

Specifically, to answer the question posed, research and

analysis in the following chapters will be conducted with respect

to: company background, company requirements, branding and the

retail interior environment, consumer behaviour and cross cultural

marketing (including UK market competition and product and consumer

trends), franchising, international site selection, established

international brand case studies, Krispy Kreme Doughnut’s existing

brand strengths and weaknesses, and international retail design

trends.

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CHAPTER THIRTEEN

13. CONCEPT DESIGN SOLUTION

After a year of research and analysis, this chapter presents

the concept design solution for Krispy Kreme United Kingdom. It is

the visual answer to the question of this Thesis, “How should a

company transfer its brand across cultural boundaries and

communicate it through architectural interior design.”

The visual solution is presented in three sets of drawings.

Concept drawings are shown in Chapter Section 13.1, function

drawings in 13.2, and drawings illustrating important details in

13.3. These drawing sets are followed by a discussion on the design

approach in Chapter Section 13.4, colour in 13.5 and material in

13.6.

The Set of Concept Drawings begins with the overall

perspective for a typical Krispy Kreme store and floor plan. It is

then broken down into individual perspective drawings for each of

the six modules comprising the design. As previously noted, the

modules are based on Krispy Kreme’s six components of store design

referenced in Chapter 10.1.1. The collection of perspective

drawings is intended to communicate the feeling of the design.

Please note that Module 05: Featured Lighting Design and Module 06:

Repositionable Merchandise Display Case is not presented in the

coloured perspective drawing to prevent over-complication of the

image. Furthermore, the Repositionable Merchandise Display Case is

an optional module in the design and may not necessarily be used in

every store.

The following Set of Function Drawings demonstrates the

flexibility and functionality of the design. Here the six modules

are combined and applied to various store layouts. Five example

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store floor plans are shown based on standards typically used for

multiple format retail design planning.5 These floor plans are also

sized to fit the Krispy Kreme minimum required area of 2,000 sq.

ft.6 A Lighting Grid is included to demonstrate the application of

the featured lighting design to an example store floor plan.

Finally, a flow diagram and desire line diagrams demonstrate the

ordering process and traffic flow pattern applicable to all of the

floor plan types shown.

The third and final set of drawings, Set of Detail Drawings,

provides further notation and dimensions for each module. Here it

is possible to understand the design considerations and rationale

behind each module.

5 Moffat, op. cit., 3 March 2003. 6 McAleer, op. cit., 14 November 2003.

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13.1. SET OF CONCEPT DRAWINGS

CONCEPT DRAWINGS BY MODULE

(9 drawings to follow)

PERSPECTIVE 01: Interior Brand Environment Concept

PERSPECTIVE 02: Key to Concept Modules

MODULE 01: The Vestibule: Entrance, Mixing Station, Merchandise Display MODULE 02 and 03: The Order: Doughnut Display and Doughnut Theatre

MODULE 04: The Seating: Solutions 01, 02, and 03

MODULE 05: Feature Lighting Design

OPTIONAL MODULE 06: Repositionable Merchandise Display Case

13.2. SET OF FUNCTION DRAWINGS

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FUNCTION DRAWINGS


FLOOR PLAN TYPE A: 2,000 sq. ft. Square

FLOOR PLAN TYPE B: 2,000 sq. ft. Wedge

FLOOR PLAN TYPE C: 2,000 sq. ft. Rectangle: Entrance on Long Side

FLOOR PLAN TYPE D: 2,000 sq. ft. Rectangle: Entrance on Short Side

ELEVATIONS TYPE D: Display Case/Theatre Side and Front Elevation

FLOOR PLAN TYPE E: 1,000 sq. ft. Airport/Shopping Plaza Format

LIGHTING GRID: Application of Feature Lighting to Example Plan

FLOW DIAGRAM: Mechanics of Space for All Floor Plan Types

DESIRE LINE KEY: Key to Fields of Vision at Point of Entrance

DESIRE LINES TYPE A: 2,000 sq. ft. Square

DESIRE LINES TYPE B: 2,000 sq. ft. Wedge

DESIRE LINES TYPE C: 2,000 sq. ft. Rectangle: Entrance on Long Side

DESIRE LINES TYPE D: 2,000 sq. ft. Rectangle: Entrance on Short Side

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13.3. SET OF DETAIL DRAWINGS

DETAIL DRAWINGS BY MODULE


MODULE 01 DETAIL: The Vestibule: Entrance, Mixing Station, Merchandise Display (1 drawing)

MODULE 02 DETAIL: The Order: Doughnut Display (2 drawings)

MODULE 03 DETAIL: The Order: Doughnut Theatre (1 drawing)

MODULE 04 DETAIL: The Seating: Three Seating Solutions (4 drawings)

MODULE 05 DETAIL: Feature Lighting Design (1 drawing)

OPTIONAL MODULE 06 Repositionable Merchandise Display Case (1 drawing) DETAIL:

MENU BOARD DETAIL: Ordering Point Information Sign (1 drawing)

PERSPECTIVE: Thesis Visual Conclusion (1 drawing)

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13.4. DESIGN APPROACH

When moving into the design section of this Thesis, the

approach was naturally modular. When it was time to begin sketching

and drawing, design requirements were already outlined through

analysis. Ideas and mental images had been forming for some time.

Five key words were developed to represent and capture my

interpretation of the Krispy Kreme brand. These key words,

previously documented, include: Factory, Magical, Heavenly, Fun, and

Fresh. These words conjure up images and thoughts which should come

to life when viewing the new concept for the interior brand

environment.

As can sometimes be the case, initial design ideas felt

complicated. Referencing notes from an interview with QUBE Retail

Design Partner Philip G.C. Whitting, enabled a refocus of ideas.

Philip Whitting advised that retail design must be simple to work.

Whatever design one arrives at should be stripped of the frills to

get back to the basic form. It is this basic form that works best

as the final concept. Acknowledging these professional thoughts,

concepts presented in this Thesis strive to achieve this simplicity.

The forms and shapes are in a scale and relationship to one another

that is balanced creating overall impact.

The underlying idea for the three solid stainless steel forms

crossed by the horizontal glowing doughnut display case came from

the most unusual inspirational source, Valkyrie. One of three parts

of the opera Rings of the Nibelungs written by Richard Vaugner,

Valkyrie was performed during the spring 2003 season at St.

Petersburg's Mariinsky Theatre, Russia. The stage set, shown in

Figure 62, made an incredible impression in its simplicity, changing

light, and exaggerated scale. To show the scale of the set, the

opera singers have been circled in red. Viewing this opera was a

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CHAPTER FOURTEEN

14. CONCLUSION

This Thesis identified and investigated seven areas of

analysis that addressed the complexities of communicating a brand

internationally through architectural interior design. To explore

this question in detail, Krispy Kreme Doughnuts was utilized as an

example company. The conclusions of this analysis were demonstrated

visually through an interior brand environment solution which was

presented in Chapter 13. As a result of the work captured in these

pages, one can conclude that Krispy Kreme Doughnuts has great

potential to strengthen its brand with a re-design of its store

environment upon implementation in the United Kingdom. The results

here will be presented to Jack McAleer, Head of Concept Development

at Krispy Kreme, after the opening of the Harrods store October

2003. It is hopeful that there will be receptivity to the suggested

designs and employed method of analysis.

While historically having a strong focus on Product, Price and

Promotions, as Krispy Kreme looks to grow internationally they must

engage in the 4th “P,” Place. They must do so as the current store

design does not address the designation of areas for integration of

local culture, and is not flexible enough to allow for

implementation in various floor plan layouts. Furthermore, it has

not found the appropriate balance of standardization and

customization with regard to its brand awareness and new target

market distinctions.

Nevertheless, Krispy Kreme has developed packaging graphics,

kiosk designs, and promotional car designs and graphics that are

highly effective. Overall brand consistency across the customer

interaction points would be significantly improved if the retail

store environment leveraged some of these design strengths.

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Therefore, it would be a missed opportunity (and possibly a risk to

new market acceptance) for Krispy Kreme to push forward

internationally with their current retail store design without

incorporating these elements.

This Thesis is interested in something other than a “yes” or

“no” answer to the question of re-design for Krispy Kreme. This

Thesis specifically asks, “How should a company transfer its brand

across cultural boundaries and communicate it through architectural

interior design?” And further, this Thesis seeks a strategy for

entrance into new markets, in this example the market being the

United Kingdom.

From comparative case study analysis, it is my conclusive view

that there are really two key questions any company must ask itself

when moving into new markets:

1. What are the cultural differences between the new target market and our company’s home market? Depending on expansion goals and style of the existing store design, the home market can be defined on a city, region, or country basis. Then a decision must be made on whether or not the targeted market is mostly “Similar”, “Different,” or “Very Different” to the home market identified.

2. What is the strength of our brand on a global level? Is it “New”, “Established”, or “Mature”, following that of the brand’s life cycle?

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The following are the responses to these two key questions for

example company Krispy Kreme Doughnuts:

1. Because Krispy Kreme’s design is not specific to any region within the United States, they are placed at a country level for the definition of their home market. Krispy Kreme’s home market is therefore, the United States. The target market has been identified as the United Kingdom and, through the analysis in Chapter 6.1, has been proven to be “Different” from the United States.

2. Krispy Kreme is an established brand in the United States. It is also a publicly traded company which broadens its level of awareness. Furthermore, the company is visible in movies of international reach. Therefore, this brand is entering the level of “Established” with regards to global brand awareness.

With the broad answers to these questions identified, we can

now position Krispy Kreme on four design strategy matrices to better

understand these interrelationships (as shown in Diagram 06). Each

matrix identifies a different area or opportunity to adjust the

store environment. While these areas will change with the evolving

company and brand, the basic form and modular structure of the

concept should remain constant.

Based on answers to the two aforementioned questions

(“Different” and “Established” respectively), Krispy Kreme can

identify its position on each matrix as “Circle B2” and follow the

recommended interior brand environment design strategy. Every time

the answer to one of these two questions changes, the matrices can

be re-visited and the design strategy adjusted accordingly.

To further illustrate the use of the tool, Starbuck’s can be

positioned as “Circle C3.” In this case, Starbucks’ answers to the

two questions are “Very Different” and “Mature,” respectively.

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DIAGRAM 06: Interior Brand Environment Design Strategy Matrices

The recommended strategies for Krispy Kreme, found in the

centre “Circle B2” of the matrices, have been interpreted visually

and previously presented in Chapter 13. The conclusive strategies

outlined here and in the visuals found in Chapter 13 are in

alignment. As time elapses, Krispy Kreme may find that they move

within each matrix. Movement would indicate changing levels of

global brand awareness and/or entrance into new markets, and as a

result the recommended strategies and visuals would correspondingly

change.

A B C

1

2

3

Glob

alBran

dAw

aren

ess

SIMILAR DIFFERENT VERY DIFFERENTNE

WES

TABL

ISHE

DMA

TURE

Similarity of Culture to Home Market

Additional Bespoke Elements; varied colour schemes, use of new materials and textures, lighting fixtures, packaging, surface treatments, and Wi-Fi

STANDARDIZATION

Highly Standardized Stores; create brand recognition and level of customer comfort – sensitivity to local culture through artwork and information displays

Introduce Bespoke Elements; reflect culture through wall treatments, graphics, music, and packaging

A B C

1

2

3

Glob

alBran

dAw

aren

ess

SIMILAR DIFFERENT VERY DIFFERENTNE

WES

TABL

ISHE

DMA

TURE


Additional Bespoke Elements; varied colour schemes, use of new materials and textures, lighting fixtures, packaging, surface treatments, and Wi-Fi

STANDARDIZATION

Highly Standardized Stores; create brand recognition and level of customer comfort – sensitivity to local culture through artwork and information displays

Introduce Bespoke Elements; reflect culture through wall treatments, graphics, music, and packaging

A B C

1

2

3

Global

Bran

dAw

aren

ess

SIMILAR DIFFERENT VERY DIFFERENT

NEW

ESTA

BLIS

HED

MATU

RE


Vary Seating Types to Suit Customer Base; e.g. family/group Vs. individual seating arrangements

New Fun Arrangements; test new concepts and keep customers interested

NoChange

SEATING ARRANGEMENTS

A B C

1

2

3

Global

Bran

dAw

aren

ess


NEW

ESTA

BLIS

HED

MATU

RE


Vary Seating Types to Suit Customer Base; e.g. family/group Vs. individual seating arrangements

New Fun Arrangements; test new concepts and keep customers interested

NoChange

SEATING ARRANGEMENTS

A B C

1

2

3

Global

Bran

dAwaren

ess


NEW

ESTA

BLISHE

DMATU

RE

Similarity of Culture to Home MarketUSE OF LOGO & MERCHANDISE DISPLAY

Logo Appears in Key Areas; introduce variationsMerchandise Display for Growing Loyal Customer Base

Frequently Use Logo to Reinforce BrandLittle or No Merchandise on Display

Hint at Logo In-Store; use variations on the themeWide Merchandise Selection and Ample Displays

A B C

1

2

3

Global

Bran

dAwaren

ess


NEW

ESTA

BLISHE

DMATU

RE

Similarity of Culture to Home MarketUSE OF LOGO & MERCHANDISE DISPLAY

Logo Appears in Key Areas; introduce variationsMerchandise Display for Growing Loyal Customer Base

Frequently Use Logo to Reinforce BrandLittle or No Merchandise on Display

Hint at Logo In-Store; use variations on the themeWide Merchandise Selection and Ample Displays

A B C

1

2

3

Global

Bran

dAwaren

ess

SIMILAR DIFFERENT VERY DIFFERENTNEW

ESTA

BLISHE

DMATU

RESimilarity of Culture to Home Market

Re-awaken the Brand; introduce new product promotions and packaging both in-store and take-away

INFORMATION

Create Awareness and Provide Information; wall graphics, additional menu, point of sale brochures, window displays, table-top information

Lessen Information Intensity; communicate through subtle wall graphics and menus

A B C

1

2

3

Global

Bran

dAwaren

ess

SIMILAR DIFFERENT VERY DIFFERENTNEW

ESTA

BLISHE

DMATU

RESimilarity of Culture to Home Market

Re-awaken the Brand; introduce new product promotions and packaging both in-store and take-away

INFORMATION

Create Awareness and Provide Information; wall graphics, additional menu, point of sale brochures, window displays, table-top information

Lessen Information Intensity; communicate through subtle wall graphics and menus

A15

As a tool used to guide the direction of a design strategy,

the specific recommendations in each matrix were defined based on

the elements this Thesis identified as adjustable design components

of a retail environment. They also fall within the six areas of the

retail store as defined by Krispy Kreme. The components identified

here can be expanded upon or tailored on a company by company basis.

This matrix is simply a tool. The success of the tool depends

on the ability to investigate and answer the two key questions

appropriately. Furthermore, any strategic tool is not a guarantee

for success. If it were, more brands would be successful. The tool

presented here allows Krispy Kreme to logically assess, "How to

transfer its brand across cultural boundaries and communicate it

through architectural interior design."

For Krispy Kreme, the answer to this “How to” question was

to refresh and extend the colour palette and to introduce these

colours through new materials such as stainless steel and mosaic

glass floor tiles. In addition, the logo and some variations of the

logo were introduced into the store at key points such as on chair-

backs, the front entrance door handle, and the menu board. A bit of

sparkle for a magical environment was created through reflective

Corian displays and the mirror-backed “Doughnut Theatre.”

Flexibility of the design was a critical consideration.

This was solved for through a modular design approach which included

multiple seating solutions, optional displays, and an adjustable

polka-dot lighting grid. Furthermore, components were simple and

scalable such that they might fit a variety of ceiling heights and

store layouts. Additionally, the flow of traffic was redirected,

and the local culture accented through unobtrusive murals and

pictures on walls and the backs of high booth seating. Through the

course of study, the most interesting and unexpected discoveries

were the unique complexities of the franchise business and the

A16

importance of consistent brand communication across customer

interaction points.

There was, at the onset of this Thesis, an expectation for

arrival at a Krispy Kreme design conclusion which incorporated a

high degree of bespoke elements sensitive to the local community or

market. However, while it is my recommendation for Krispy Kreme to

re-design its store environment, only part of this proposal is

attributable to its new international intentions. A considerable

part is a result of temporarily overlooking “Place” during a period

of rapid expansion. Krispy Kreme must constantly evolve, and this

Thesis demonstrates that their brand has the opportunity to take a

great leap forward.

The solution for Krispy Kreme was a significant departure

from the home market strategy, which was appropriate in this

situation. However, this solution is specific to Krispy Kreme and

cannot be applied across other brands. Each brand situation with

regard to maturity and new entrance market similarity needs to be

considered individually. To begin with, a brand’s unique message,

which should reverberate throughout the retail environment, must be

clearly identified and considered at the forefront of all design

decisions. Existing brand strengths across different interaction

points should be emphasized. Outdated or inappropriate design

features should be retired. The design approach defined through the

use of the strategic matrices, augmented with an appropriate degree

of cultural references and tolerance, will ultimately determine the

proper strategy for any brand expanding internationally.

A17

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