Krispy Kreme Case Study

1002 Words3 Pages

Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets. Krispy Kremes's strong brand name, highly differentiated products, high-volume production capability and multi-channel market penetration strategy has worked well. With each new store opening there are lines waiting at the door all night to experience the Krispy Kreme quality. In Denver, more than 3000 people stood in a line extending for more than three city blocks on opening day. They have production areas in full view and a neon light that lights up when "Hot Donuts" are actually coming off the line. Krispy Kreme makes customers feel good about indulging. Even Krispy Kreme's name brings a smile to people's faces. Question 2. I think Krispy Kreme's financial performance has been good. Since its initial public offering in April 2000 it has grown from 140 stores to one with 218 locations in 33 states and Canada. Preliminary results for fiscal year 2002 showed sales topping $621 million, up 39% from the previous year. Revenues climbed 30% to $392 million. Krispy Kreme is a product company and the most profitable part of the business is doughnut sales due to the high volume of loyal customers. Many Wall Street analysts considered Krispy Kreme to be overvalued. Analysts said in April 2000 the stock was destined for the $15 to $20 share range at best, which is where most known food related stocks are located. Instead it had been hovering at a value of $40 a share for most of the year. The stock rose to a high of $54 and many analysts doubted Krispy Kreme's strategy and potential growth merited a stock price nearly 70 times projected 2002 earnings per share. I agree with the statement "the numbers just don't work." Question 3. SWOT ANALYSIS

Show More
Related

  • Unit 9 P2 Business

    453 Words  | 1 Pages

    We will develop an app that will be installed upon entering our restaurant complete with menu and a call button for help while someone waits at a table. We will have kiosks for customers not wanting to wait in lines where one can order all products inside the store. We will have an online app to order and pick up at the store. We will need to entice customers away from two big competitors: Burger King and McDonald's. The competition has these incentives in place already and to win we will use the same successful methods to keep them coming back. We will update and email info to our customers and/or text to their phones which will be even better. We will make sure product pictures are sent out with cups that present a great way of having a hot chocolate at KFC. KFC will become part of Polish culture just like McDonald’s has become. KFC Poland will constantly excel and outperform its main competitor

    Read More

  • Food Truck Vending Business Case Study

    1048 Words  | 3 Pages

    The fast food industry has increasingly attracted many customers in the recent years, thus attracting several investors to the business. The organization is aimed at increasing performance through innovation and expanding their menus to increase their product offering in the market. There are many competitors in the truck food vendors, and they include King of Pops, Via 313, John Mueller Meat Co., Roxy’s Grilled Cheese, The Fat Shallot, Beavers Coffee Donuts, Easy Sliders, and Quiero Arepas among other organizations. The competition in the market is intense as the organizations are scrambling for the few customers that are found in the market for improved efficiency in the market.

    Read More

  • Ratio Analysis Of Starbucks

    1252 Words  | 3 Pages

    Each competitor 's current ratio, quick ratio, and cash ratio are able to be found in this exhibit for the year ended in 2015. McDonald’s currently has a cash ratio of 0.76, a quick ratio of 1.20, and a 1.52. Starbucks has a cash ratio of 0.44, a quick ratio of 0.64, and a current ratio of 1.19. Finally, the Dunkin Brand Group Inc. has a cash ratio of 0.59, a quick ratio of 0.74, and a current ratio of 1.25. When looking at these ratios one is able to find that compared to its competitors, Starbucks is less liquid than McDonald 's and Dunkin Brand Group

    Read More

  • Customer Relationship Management Strategy And Objectives Of Kroger

    1859 Words  | 4 Pages

    Kroger was also an inventor, of food products. What was born in his mother’s kitchen, of just a tangy German sauerkraut has grown into over 30 facilities that manufacture the Kroger brand. Just another example this company meeting its objective to serve and please its customer base. Kroger understood from the very beginning, the value of the customer base, which according to the text Managing Customer Relationships is simply put, is to get, keep, and grow customers and is the very objective of the Kroger brand. Mr. Kroger was a natural born leader and servant and built this concept into the very framework of the company. Every step he took, focused on this premise, and soon he built a successful model that many other merchants fervently attempted to duplicate. The modern supermarket owes it roots to this early adventure in

    Read More

  • Kinko's

    1089 Words  | 3 Pages

    Local Business Market: this segment represents half of Kinko’s total revenues, which also includes walk-ins customers, small businesses with larger and more profitable jobs being handled. Revenues for this segment had also been declining, 5 % per year.

    Read More

  • Case Study: Burger King

    1868 Words  | 4 Pages

    Burger King adds value through the good quality products served. What the customers perceives is what the customer gets and sometimes more than what the custome...

    Read More

  • Krispy Kreme

    1985 Words  | 4 Pages

    Economic Factors: studies were conducted to show that in the United States people consumed just about 10 billion doughnuts. Krispy Kreme is in a low cost industry, therefore a rise or fall in the market will not affect their revenues as significantly as higher priced luxury goods.

    Read More

  • Krispy Kreme Case Analysis

    2241 Words  | 5 Pages

    I identified, evaluated and ranked the countries in which I think Krispy Kreme should enter next. The results of the analysis are summarized below. The criteria, presented in order of their importance and followed by a narrative description are:

    Read More

  • Analysis of Dunkin Brands

    1134 Words  | 3 Pages

    The first Dunkin Donuts was opened in 1950 by founder Mr. Bill Rosenburg in Quincy, MA. Five years later the very first franchised branch was licensed. Sixty years later, under “Dunkin Brands Inc.”, there are now over 10,000 stores including more than 7,000 franchised locations, all in 36 of the United States. There are over 3,000 Dunkin stores internationally in 32 countries other than the United States. Dunkin' Brands Group, Inc. is one of the world's leading franchisors of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Dunkin Brands is head quartered in Canton, MA (Company Snapshot).

    Read More

  • Krispy Kreme's Financial Health

    1312 Words  | 3 Pages

    To begin the analysis on Krispy Kreme, the first analysis is that of the depreciation analysis. There are three different methods to calculate depreciation and they are straight-line, units-of-production and double-declining-balance (Larson, Wild, & Chiappetta, 2005). The Krispy Kreme Company uses the straight-line method to calculate their depreciation on building, machinery, equipment and leasehold improvements. The breakdown of the depreciation on property and equipment consist of land, buildings, machinery and equipment, leasehold improvements and construction in process (Larson, Wild, & Chiappetta, 2005). Krispy Kreme’s total gross property and equipment in 2002 was a total of $156,484,000 and in 2003, it was a total of $252,770,000. The accumulated depreciation for the year 2002 was a total of $43,907,000 and for the year 2003, the total was $50,212,000. To find the net property and equipment amount, taking the gross property and equipment and subtracting the accumulated depreciation is the equation used. The net property and equipment for the year 2002 would be $112,577,000 and 2003 would be $202,558,000. Once b...

    Read More

  • Panera Bread Case Analysis

    1800 Words  | 4 Pages

    Their financial objectives are to open more bakery stores, gain a larger market share, achieve average sales gains at 4-5 percent, and grow diluted earnings per share at the low end of its long-term target of 15 to 20 percent. They choose not to fund their franchisee stores, thus reducing their long-term debt.

    Read More

  • Krispy Kreme Obsession

    1068 Words  | 3 Pages

    Since I was about four years old I had an obsession with fast food: Krispy Kreme. My obsession takes me way back I can even remember everything growing up. According to my grandmother, whenever we drove by a Krispy Kreme when I was about four, I would say the word "doughnut" seeing the big red circle sign the words saying hot Krispy Kreme doughnuts now. And that is where it all started for me and my favorite type of sweet junk food. Krispy Kreme, in particular, had an influence on me growing up. I’m however, very passionate about American doughnuts. Most kids I grew up with were passionate about cheese balls, pizza, popcorn, and ice cream; I never seemed quite interested in those type of goodies. There has always been something that were completely irresistible to me about a little sweet glazed or fill doughnut and some hot chocolate .I am not sure if it is the way the chocolate iced glazed with sprinkles doughnut that caught my eye and attention or the way the original glazed doughnut smelted in my little mouth. I had gotten hooked from what seems like birth.

    Read More

  • Krispy Kreme Essay

    1689 Words  | 4 Pages

    Taking into consideration all KKD's publics, it is no shocker that Krispy Kreme continues to grow. For the first time, it successfully expanded nationally during the late 1990s in California (Saltzman). A main point of Krispy Kreme’s continued financial success has been their expansion into international markets.

    Read More

  • KFC (Kentucky Fried Chicken) in China

    1110 Words  | 3 Pages

    Fast food restaurants are popular among the consumers nowadays. Many fast food restaurants are trying to serve the needs in the market as people seek for quick and convenient place to eat. Due to the fact that there are a huge amount of fast food chains available in the global market, fast food companies have to strive for success. Just by providing quick and convenient style of eating for the customers is not sufficient to stay competitive. This is why it is interesting to study and learn about a fast food company that stands out in such a competitive environment. What has KFC China been doing to become successful? What marketing strategies did they use to dominate the market? We shall find out in the following sections.

    Read More

  • Krispy Kreme External Anaylsis

    1208 Words  | 3 Pages

    The US economy is still recovering from a recession. Despite the poor economic conditions, Krispy Kreme managed to have a steady growth in revenues. Krispy Kreme however is in a low cost industry therefore the rise and fall in the market does not affect their revenues as significantly as higher priced luxury goods.

    Read More

More about Krispy Kreme Case Study

Open Document