Krispy Kreme (1)
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Transcript of 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?