Krispy Kreme Case Study
To become a Krispy Kreme franchisee, an entrepreneur must have the dream of one day owning their own business, have a willingness to take risks, be able to recognize opportunities when they occur and be a naturally optimistic thinker who can use their time, capital, and talent to achieve success. To be considered for a Krispy Kreme franchise, entrepreneurs must have demonstrated a time standing history of success as a businessperson, to be willing to work as part of and to foster a team environment, as well as have a large financial base in which to invest in the Krispy Kreme franchise. Although these characteristics are a solid base to be considered for any franchise, there is always risk of failure. In the words of General Colin Powell, former US Secretary of State, "A dream doesn't become reality through magic; it takes sweat, determination, and hard work". (Boone & Kurtz p.12) Krispy Kreme uses these characteristics to choose the right persons to run their businesses, and in doing so, they promote a high quality team oriented atmosphere that adheres to the highest customer service.
Using technology and innovation, Krispy Kreme could expand into an e-commerce retail establishment. Although Krispy Kreme has an internet merchandise e-business, they have yet to introduce the ability to deliver their fresh doughnuts to the masses through the use of the internet. This company could accomplish this by creating a reusable shipping container that has the ability to self-warm its contents. This combined with a Global Position System (GPS) tracking could activate the warming process near the final destination. Customers could order Krispy Kreme doughnuts on-line and have them delivered hot and fresh anywhere in the world within 24 hours using current e-mail and shipping practices. This process would entitle Krispy Kreme to reach customers in extreme rural areas in the US and in the world who would have to drive 50 miles or more to get to a Krispy Kreme store. Customers in these extreme rural areas are not in a market for a potential franchise.
Krispy Kreme has a competitive advantage over other bakeries because the self-rising yeast doughnut has an excellent reputation representing freshness at its finest and because of the innovative doughnut making process. This process appeals to its customers through anticipation and the sensory response. The first indication is the large red "hot Krispy Kreme now" neon sign that's displayed while the doughnuts are being made.
One thing Krispy Kreme needs to work on is diversifying their product. Competitors, such as Dunkin¡¦ Donuts¡¦, offer bagels, low-fat products, premium coffees, and newly cinnamon sticks. They offer these products to go with the changing times of the market. They remain to be the top competitor in the market because they are constantly changing their product line to suit their customers.
When reviewing the income statement for Kroger CO., sales have increased over the past three years. Sales were for the past three years were 2012 ($96,619 million), 2013 ($ 98,375 million) and 2014 ($ 108,465 million). The sales transactions need to be tested and validated. According to smallbusiness.chron.com, the following steps should be:
One of its biggest strengths is it is one of the top coffee companies in the world. Dunkin Donuts has built a strong brand for itself. The company has over 1000 selections of doughnuts, and its stores are a perfect place for having breakfast and coffee. They have worldwide franchisees, totaling to more than 10,000 locations across 32 countries (Marketing Coach). Dunkin’ Donuts uses the fixed price but yields more which lets it to sell at a lower price because fixed costs are spread over a larger number of components. Dunkin Donuts has standardizations for each location so where ever the customer goes they can expect the same thing. They have control over the supply chain which contributes to lower costs. This is achieved by bulk buying to quantity markdowns, talking suppliers down on price, establishing competitive bidding for agreements, and working with sellers to keep inventories low. Dunkin Donuts has a strong customer loyalty rate, which it cost less to keep customers than to gain new ones. Dunkin has good partnerships with JetBlue, Smuckers, and Keurig. Dunkin does a lot of charity work like feeding the hungry, supporting children’s health, and making sure that neighborhoods are safe and secure ("Brand Power"). Dunkin Donuts has recently launched a green campaign that will building green certified program designed to help franchisees build sustainable, energy-efficient
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.
The doughnut industry consists of few major competitors which are Dunkin' Donuts ($2.7 billion ), Tim Hortons ($651 million ), Krispy Kreme Doughnuts Inc. (KKD) ($665 million ), Winchell's Donut House and a large number of smaller, independent doughnut shops, including neighborhood bakeries/doughnut shops and bakery departments in supermarkets. (See Figure 1)
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
Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.
McDonald’s is known for its greasy and unhealthy food, but many disagree that McDonald’s is to blame for people, particularly children, being overweight. Schlosser creates this image that McDonald’s is to blame for the escalated weight of people, specifically Americans. In this article, Schlosser ignores the multiple other causes of obesity. Many people are overweight due to health issues and prescribed medications that can cause increased weight gain. Schlosser is so focused on his view of McDonald’s being bad that he does very little to address the other causes and factors for weight gain. Eating at McDonald’s is more about personal choice, parenting and lifestyle issues. Americans choose not to exercise, and they choose to play video games instead of participating in actual sports; they eat McDonald’s instead of healthy and homemade meals. If a
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
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.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
Compare the globalization approaches of Starbucks & McDonalds The parameters to be used for this comparison are:
McDonald’s USA has been feeding the American society since 1940. Recently, the company has had various issues with people posting on social media as well as questioning the restaurant’s food. Millennials created controversy about what McDonald’s was serving its customers and this showed itself in ongoing negativity between social media, blogs, and news sites. This caused an extreme decrease in the restaurants sales. The tactic proposed was to become more transparent with the public, but the focused audience was “curious skeptic” millennials.