External Environment Economic 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. Sociocultural/Global If and when Krispy Kreme decides to go global they will enter a whole new world of adaptation to different markets. They will no longer be able to offer their staple hot fresh plain glazed doughnuts and expect them to sell in every market. France for instance has built a world reputation on fresh baked goods; therefore their key branding technique would not be as effective in such a culture. However the hot fresh plain doughnuts strategy works very effectively across the United States with two exceptions. First is the growing number of obese Americans. With growing media attention turned towards sliming up American quick service restaurants, Krispy Kreme has come into the crosshairs of mainstream media. The other hindrance on Krispy Kreme's complete success is the all in one convenience attitude. Demonstrated by Wal-Marts success, giving clients as much as possible with one stop is a sure draw for modern American consumers. Aside from breakfast there are not many who consider doughnuts as a full meal, it is generally considered a desert or at most a snack. Thus Krispy Kreme is faced with the problem of offering a greater variety of meals to suite lunch and dinner, or changing the way America perceives doughnuts to increase sales in existing markets. Technological Although doughnut-making technology has not progressed a great deal in the recent past, however... ... middle of paper ... ...w-fat doughnuts Co-branding opportunities such as sell doughnuts in Starbucks Threats Increasing competition from large and small doughnuts chains. Krispy Kreme market share erodes slightly in highly competitive markets. Though there are many complaints from local chains when a Krispy Kreme opens, aggregate doughnut sales increase. Additionally, casual diners and quick service restaurants have begun to offer premium coffee. Customer resistance to purchase tracking. The food price inflation means the ingredients cost go up Late entrant to the international market means higher cost to promotion Dunkin’ Donuts has gone global, besides millions of local quick service restaurants internationally Direct promotion may conflict with doughnut buyer culture Culture and custom differences may be a obstacle for foreign buyer from purchasing doughnuts
While analyzing Pop Tart’s depth and breadth it became clear that they are a well-established brand that is well-known nationwide. Pop Tart’s depth is very good, I believe consumers can easily recall and recognize the brand; this may be because the brand has been around for a very long time and they only have one competitor with a similar product but a completely different mission. This competitor is Fibre One’s Toaster Pastry and although it is a toaster pastry it’s main mission is to sell an organic product while Pop Tarts is focused on creating a tasty product regardless of how healthy it is. When I think of a toaster pasty Pop Tart is what comes to mind,
First, the comeback of this company was worthwhile because of it’s company worth. As mentioned in the article, “410 million dollars was the price that ‘Apollo Global Management’ and ‘C. Dean Metropoulos and company’ paid for the Hostess Cake division.” This shows that investors want to invest in the company because these two hot shot companies are showing confidence in Hostess. Also, the Twinkies were off the market for eight months after, …“having failed to reach a deal on a new contract with its striking bakers.” These eight months were spent in idle mode for this large company when it could be producing more companies. With these eight months not producing investors started to lose interest even though the public is still roaring over this. In addition, having failed to make a deal with bakers this shows that Twinkies are not appealing to bakers to produce, even though it is apparently “Americas favorite snack.” These facts are a negative weight to the company worth if Appollo and Metropoulos hadn't stepped in and had interest in the ‘indestructible snack’, overall been underdogs in saving the Twinkie and launching it into a successful comeback.
As mentioned in the case study, Panera Bread Company is known to be one of the leading bakery/café that offers freshly baked pastries and French inspired entrées across various states in the US. However in the recent years, Panera Bread faced a decrease in their usual high growth rate from 9.1% and 12.0% in the year 2000 to merely 0.2% and 0.5% of comparable sales and annualized unit volumes respectively.
Although United Cereal’s products are diversified into many different types of foods and beverages, its main source of revenue remains the breakfast cereals market. The real challenge of this market is clearly seen in the European market, where the national tastes and breakfast traditions vary between countries. As a result, its approach in Europe is more complex than in the United States, which causes higher costs and slower processes.
Demand for Panera franchising opportunities was very high, which allowed Panera to be picky about where and with whom they would do business. Panera determined where bakery-café locations could be. The franchisees bore the cost of opening new locations, and were required to obtain their ingredients from the home company. Expansion using the franchise model provided many upside benefits for Panera, while limiting the downside r...
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.
Once they brought back Colonel Sanders as the face of KFC, they have made a rapid incline in sales. The leadership team realized that one way that they were going to turn around the steady decline is to gain the trust of the customers. This is a great marketing strategy for Kentucky Fried Chicken. If they are going to take the number one fast food restaurant chain for chicken back, they will need to have their loyal customers come
This plan would be the ideal choice as we would be able to receive additional revenue due to the three new additions to our restaurants. Research has proven that customers who drink coffee prefer to have donuts with it above any other food. In addition, the most popular time to drink coffee is from 6:00 to 9:00 AM and from 11:00 PM to 1:00 AM. Plan one provides the opportunity for customers to have both of these necessities. Despite having to renovate all of their stores, which could decrease profit at times, plan one will still increase profit in the long
Breakfast cereal brands can reach out their targeted segments like women (who is normally the decision maker in kitchen), children (the influencer) and young people (who usually prefers quick and convenience breakfast) by utilizing many communication channels, such as TV, cinema ads, magazines. In addition, direct promotions which include discounted offers like coupons are considered the best way to attract customers who like purchasing bargain
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.
Until June 2010, KFC has over 3,000 outlets in China, whereas McDonald’s operates 1,100, or only one third as many (Ministryoftofu.com 2011), one of the key reasons behind such difference is the local food cultural differences which is different from the US style fast food and KFC has been adapting their products to the local needs. Kentucky Fried Chicken entered the Chinese from the beginning with the focus on the special nature of the Chinese market; they are caring about the Chinese culture and consumer habits through in-depth research and investigation, recognizing China’s market and Western European and American markets with unique features. KFC continue to meet consumer demand in the Chinese people and added a lot
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
Drive, will- power, creativity, independent, self confident, dedication, perseverance, and goal oriented. These words are some of the characteristics that describe a successful business. A business needs drive to continue to strive and focus on the business even during the hardest of times. A good business needs will-power to do what is in the best interest of the business even if running the business is not enjoyable anymore. Creativity is definitely a key factor because with creativity to make the business unique, the business is just like any other corner shop, and will not get the desired attention from the consumer. Creativity is also very important for marketing strategies. For example, America is on a low carb craze which has the potential to cause problems if Krispy Kreme does not have a creative plan to keep them profitable. Success entrepreneurs are independent. They tend not to rely on other people to make decisions for them. They want to make their own decisions and do something they enjoy. Self confidence is another key factor. If a business owner is not confident in them self, it will be extremely have to be confident in the success of a business. They must also have the confidence to bounce back for a poorly made decision. Dedication may be the most important characteristic. In order to make the business a success and for the business to have continued successful the owner must be dedicated. For example, if the owner of the business is not dedicated to his work; the employees will not be dedicated. The work will not be done to its full capability. The customers will not enjoy shopping with the company which will result in loss of profit. The business continues to lose revenue, and ultimately it will have to shut down. Business owners must also have perseverance. They need to be able to persist through hard times until goals are met. Lastly, the successful business owner must be goal oriented. To ensure success entrepreneurs must set high standard but maintain realistic goals for the business. They must know what it is they want to see happen with their business and continue to be focus to make sure it happens. All of these characteristics are extremely important in franchising the business. Krispy Kreme seems to have all of the listed characteristics which attributes to their continued success.
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.