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.
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.
Although doughnut-making technology has not progressed a great deal in the recent past, however...
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Co-branding opportunities such as sell doughnuts in Starbucks
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
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