Krispy Kreme Doughnuts is a specialty retailer of doughnuts, owning and franchising stores where it makes and sells over twenty varieties of doughnuts, including its famous Hot Original Glazed variety (Company profile, Yahoo! Finance). As of February 1, 2004, there were 357 Krispy Kreme factory stores in operation, of which 338 were located in the United States. It also uses third-party retailers to distribute its product. To grow its business, Kripy Kreme has sought aggressive domestic and international expansion of new factory stores and has expanded into coffee roasting to attract some of Dunkin' Donuts loyal coffee market (Rusch). The company has also introduced a new line of frozen blended beverages to grow revenue (Drinking those cool Krispy Kremes. 2004).
Like most companies, Krispy Kreme has a lengthy code of business conduct and ethics. However, Krispy Kreme is currently being investigated by the U.S. Securities and Exchange Commission and is being sued by shareholders for making false statements about its business (Krispy Kreme lenders grant 2-month waiver, 2005). And, the company has not responded to consumer demands for more healthy products (Drinking those cool Krispy Kremes. 2004).
Krispy Kreme's closest direct competitor is Dunkin' Donuts (Rusch). Krispy Kreme...
Krispy Kreme Corporation is primarily known for the quality of its donuts. Since the company's inception in 1937, it has grown to be for many customers the best amongst its competitors. The company thus has many strengths, not least of which is its sustained popularity among customers, and the effectiveness of word of mouth advertising. Below is a "SWOT" analysis, identifying strengths, weaknesses, opportunities and threats to Krispy Kreme. This
There is abundant opportunity in the western U.S. that KKD has yet to address. Each aspect of the strategy plan is now addressed by functional area: Market Development Over the next three years, KKD needs to first concentrate on competing more effectively in those regional markets where Dunkin' Donuts to this point has dominated the sale of donuts and related food and beverage items. This must begin with a build-out of
There has been increase in the number of franchise stores that are operating, which generate critically needed income for the company. Currently, the company is also involved in a credit agreement that contains provisions that, among other requirements, restrict the payment of dividends and requires the company to maintain compliance with certain covenants, including the maintenance of certain financial ratios (Management Discussion and Analysis (MD&a) of 10-K for 2007: 36).
Advertising for TITB is placed in high traffic, high consumer areas (subways, bus stops, etc.) Evaluation Why KK? Taste, freshness, and thinking of the office? KK looks better than competitors. Choice Something special as treat for oneself or office mates Don't just purchase one. Alleviates guilt and adds emotion to purchase Evaluation What do people think? Encourages multiple purchases. Allows for multiple opinions and feedback loop. Critique and Recommendations Krispy Kreme's advertising campaign of a combination of making it a dozen and thinking inside
Krispy Kreme Industry Environment Krispy Kreme (KK) operates in two industries, both of which are highly competitive. The QSR side of the business has low switching costs, moderate brand loyalty, and at the local level especially there are few barriers to entry. At the national level, barriers to entry are much higher, but intensity of rivalry, especially between Krispy Kreme and Dunkin Donuts, is high. This affects pricing power, though KK has
Krispy Kreme: The Unsweetened, Unglazed Truth of Its Equity, Cash Flow, And Notes To the Managers of Krispy Kreme, Inc.: As well you all surely know, although it does bear repeating for the sake of company pride, the publicly traded firm Krispy Kreme began as a small, independent business and is now a large, publicly traded firm with franchises extending all over the country, as well as the potential of gaining numerous
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