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Krispy and kreme case study
Situational analysis of krispy kreme
Krispy and kreme case study
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TO: FROM: DATE: November 12, 2006 SUBJECT: "Krispy Kreme Doughnuts Going Global?" This memo contains the answers to Questions 1 through 4 from the International Marketing assignment titled, "Krispy Kreme Doughnuts Going Global?" The questions are offset in the shaded area and the answers are provided below each question. (1) Where should Krispy Kreme go next? List the next ten countries they should enter in order of most viable. Describe the criteria you used to develop your list. 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: 1. Political / Legal 2. Economic 3. Cultural Political / Legal Political and legal considerations were given first priority in this analysis with primary emphasis given to whether a country's legal or political system prohibits or impedes foreign investment. If a country's political or legal system discouraged or prevented foreign investment, that country was disqualified from further consideration. Factors considered when assessing the political and legal environment: 1. Ease of doing business 2. Transparency International's Corruption Ranking 3. Relative political stability 4. Enforcement of ownership rights 5. Degree to which foreign investment is encouraged Economic Environment A country's economic environment plays a significant role in the success of businesses operating within that country. Countries with struggling or shrinking economies were not included in the top ten ranking. Economic indicators and trends selected for this analysis: 1. Gross Domestic Product (GDP) 2. Gross National Income (GNI) 3. Market size (population and population density) Cultural Environment Assuming a country had a favorable political, legal and economic environment; its cultural environment was evaluated. Culture impacts demand and the marketing mix; therefore, if a country's culture was deemed unfavorable, it was not included in the top ten ranking. Similarly, if a country's culture seemed especially favorable, that aspect is denoted later in the analysis. Cultural factors considered in this analysis: 1. Hofstede's Cultural Typology 2. Structural eating habits and trends 3. Acceptance of prepared and take-out food 4. Dietary considerations (to assess product adaptation requirements) 5. Perceptions of doughnuts as a breakfast food or a snack food 6. Preference for freshly prepared foods 7. Language and how "Krispy Kreme" translates The aforementioned criteria were used to determine the ten most viable countries/regions for Krispy Kreme's international expansion. The list of countries/regions, presented in descending order, with especially attractive characteristics denoted adjacent to the apposite country, is presented in Table 1 on the following page. Table 1 Rank Country Attractive Cultural Characteristics 1 Hong Kong Densely populated, open to Western ideas with positive U.
Simpson, B. (2008). “New Belgium Brewing (B)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 1-5.
Choosing to forfeit market share in several states was an unlikely success, but it didn’t come without opportunity cost. Growth before Expansion: balancing production capacity, brand equity, and development. Production capacity issues will arise and could impact our ability to “mine” current markets. Opening two additional breweries allowed us to adequately serve current markets and enter new ones (15 states total). Still, demand is steadily increasing in and around these markets and should be a priority over new ones.
The ice-cream space in Russia can be visualized in context of three strategic groups namely –
Johnny Rocket’s invades Belgium! Restaurants continue to play a significant role in the Belgian franchise market, and their presence is increasing rapidly, with the fast food franchising market growing at an annual rate of approximately 12%. American fast-food franchising concepts, such as standardized restaurant chains that offer a limited but popular range of dishes served in packaging for on-the-spot consumption has been widely adopted. We plan to bring Johnny Rocket’s to Belgium with a twist of catering to business people, by catering lunches.
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.
Kellogg’s share of market includes 7 out of the top 10 breakfast cereals in the country. Kellogg has 96% of their breakfast cereal products are made in Australia from Australians produce. Kellogg’s Australia leads in exports with 22 Australian made breakfast cereals exported into 16 countries. Kellogg holds the majority share in the health oriented convenience food market with Kellogg’...
Post Cereals was the first company to come up with the idea for a pastry that would later inspire Kellogg's Pop-Tarts. In the early part of the 1960s, Post began developing a method of packaging dog food in foil in order to keep it fresh and avoid refrigeration. They began applying this method to food for human consumption and created a new breakfast pastry that could be prepared in a toaster and would complement their already popular cold cereals. The announcement of this new breakfast pastry, which Post had decided to call “Country Squares,” came in 1963. Because the product was released so hastily, however, one of Post's biggest competitors, Kellogg, was able to come up with their own version and release it six months later. Even though Post had released their Country Squares prior to Kellogg's version, their sales were lackluster. Many believed that this was due in part to their name. In a time of progressive pop culture, the name Country Squares could be seen as a backward way of thinking. The developers working on the proje...
Worldwide extension: The eatery's strategy for success is situated essentially in the North American Market which brings down the level of worldwide prominence. The reason for our proposal for a greater worldwide chain is an all-around created focused methodology and the absence of cheesecakes items in
Dunkin’ Brands, Inc., a global player in the fast food business, while targeting Asia for its global expansion, concluded that South Korea’s economy was stronger than those of other Asian countries. Dunkin’ Brands, Inc. launched in South Korea in 1992. Dunkin’ cited the fact that U.S. Military troops have long been a presence in South Korea, which has allowed South Koreans to be exposed to Western influences and which makes the Dunkin’ Donuts brand familiar to South Korean consumers. Dunkin’ was right on both counts, and now counts its South Korean franchises as one of the largest contributors to its business interests located outside the U.S. In 2008...
President and Chief Executive of KremeKo, insures the public that they think long and hard before the considering expansion. He said, “Krispy Kreme doughnuts won’t suddenly become available everywhere because we don’t think that’s appropriate for the brand at this juncture in its evolution in the marketplace” (Krispy Kreme Steps up Wholesale Business in Canada, 2003,)
The report suggests the specific recommendations through a logical three-stage process. It is constructed to define the targeted markets. These stages are closely linked together as they look at different levels of the business environment to offer firms a complete map of market’s prospect and the company’s condition. Managers will be able to approach a comprehensive evaluation of the future marketplaces and prioritise which market is the optimal destination.
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government. Here steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient features of political features of global markets they plan to enter. THE SOVEREIGNITY OF NATIONS From the international laws point of view a sovereign state is independent and free from external control; enjoys full legal equality; governs its own territory; selects its own political, social, economic systems; and has the power to enter into agreements with other nations. It is extension of national laws beyond a country's borders that much of the conflict in international business arises. Nations can and do abridge s...
The company generally operates in the United States and has the majority of its restaurants in the home country. With a total of 199 full-service dining locations under the name Cheesecake FactoryⓇ, Puerto Rico, Canada, and the United States are familiar with the company’s menu. The company also has two other business lines licensed under The Grand Lux CafeⓇ and RockSugar Southeast Asian KitchenⓇ. There is a total of 13 Grand Lux CafesⓇ and 21 licensed Cheesecake FactoryⓇ internationally. In figure 1, the global map shows locations where the company has globalized internationally and the two countries with opportunities to globalize
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...
Tylor has pointed out that "culture is complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a member of society". According to this definition, it is easy to know that every nation has different cultural preferences, national tastes and value standards. These factors impact on every part of management in multinat...