...Management International Marketing - Krispy Kreme In: Business and Management International Marketing - Krispy Kreme 1. Where should Krispy Kreme go next? List the next ten countries they should enter in order of most viable. What criteria did you use to compose your list? 1. Canada 2. United Kingdom 3. Australia 4. New Zealand 5. Mexico 6. Japan 7. Spain 8. Taiwan 9. China 10. Germany The criteria and questions used to compose the list of viable countries for Krispy Kreme to enter were: 1. Does the product and experience associated with product have a potential place in the new market? 2. Country of Origin Effects – Krispy Kreme should follow in the footsteps of McDonalds, Starbucks, and Coca Cola. 3. Ease in overcoming Cultural/Language Barriers 4. Transportation costs – it will be easier for Krispy Kreme to ship its doughnut mix from the US to Canada than to ship from US to Australia 5. Untapped potential in new market 2. Visit their website and critique their approach to marketing their franchises. Also, visit Dunkin' Donuts' website. KrispyKreme.com did not contain much information to critique the marketing of franchises. According to their web site, all franchising within the United States is handled by “Area Developers”. Outside of the U.S., individuals may contact Krispy Kreme headquarters for starting a franchise. The web site provides a product listing and information about Krispy Kreme's products and promotions (such as a Krispy Kreme card and...
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...baking experience and makes them feel like they are a part of the process. Another aspect of show business is product placements on hit shows like. The Sopranos and Will & Grace and movies like Bruce Almighty. Finally, international expansion is fueled by celebrities like Dick Clark, Hank Aaron, and Jimmy Buffet, who clamored for Krispy Kreme franchises of their own. Krispy Kreme doesn’t just grant franchise rights to anyone. Krispy Kreme makes 65 percent of its revenue selling donuts directly to the public through its 106 company-owned stores. Another 31 percent comes from selling flour mix, donut-making machines, and donut supplies to its 186 franchised stores. The final 4 percent of revenue comes from franchisee licenses and fees. Krispy Kreme is now expanding and selling donuts through convenience stores. Will this hurt the brand? Stan Parker, Krispy Kreme’s senior vice president of marketing, says it won’t because the company continues to emphasize freshness. It replenishes the packaged donuts daily from the local Krispy kreme store and removes any unsold packages. The donuts’ presence in convenience stores will help remind people of the taste of a fresh, hot Krispy Kreme donut, and that brings them back into a Krispy Kreme shop. The success of Krispy Kreme has been a wake-up call for competitor Dunkin’ Donuts, which had become complacent. The one-two punch of...
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...inefficiency in the management of Krispy Kreme Doughnuts, Inc. in terms of its operations, marketing, accounting, and investment planning. III. OBJECTIVES a. To gradually gain back analysts’, investors’ and lenders’ confidence in the company in the succeeding months. b. To increase sales and profitability in terms of its core business, selling of doughnuts. c. To regain and increase stock price therefore increasing shareholder value. d. To correct inaccurate entries in the financial statements of KKD and to present a clean and unbiased reports. e. To extend further reach to consumers strategically to achieve significant growth in the next five years. f. To implement extensive marketing measures for its brand and products and investment strategy for both on and off premise operations. IV. AREAS OF CONSIDERATION • Fortune magazine had dubbed Krispy Kreme Doughnut, Inc. “the hottest brand in America.” With ambitious plans to open 500 doughnut shops over the first half of the decade. • The company generated revenues through four primary sources: on-premise retail sales at company owned stores (27% of revenues), off-premises sales to grocery and convenience stores (40%); manufacturing and distribution of product mix and machinery (29%); and franchise royalties and fees (4%). • Roughly 60% of sales at a Krispy Kreme store were derived from the company’s signature product, the glazed doughnut. • On May 7, 2004, Krispy Kreme announced adverse results. The...
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...hgdsthyjuyktuikthgfhfghnyukmkmyuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuunnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuKrispy Kreme is an international chain of doughnut stores that was founded by VernonRudolph in 1937 in Winston-Salem, North Carolina, United States. The parent company isKrispy Kreme Doughnuts, Inc. (NYSE: KKD), which is based in Winston-Salem.While selling assorted types of doughnuts, Krispy Kremes signature item is a glazed doughnutthat is traditionally served warm.Products are sold in Krispy Kreme stores, grocery stores, convenience stores, gas stations, Wal-Mart and Target stores in the United States. Internationally, Loblaws supermarkets and Petro-Canada gas stations in Canada along with BP Service Stations and BP Travel Centres inAustralia carry Krispy Kreme. In the United Kingdom Tesco supermarkets, Tesco Extra andmost service stations carry Krispy Kreme products.The companys growth was steady prior to its initial public offering but profits have decreased inrecent quarters. However, new branches have opened in downtown Philadelphia and otherlocations.HistoryKrispy Kremes founder Vernon Rudolph and his uncle purchased Joseph LeBeoufs donut shopon Broad Street in Paducah, Kentucky along with a secret recipe for yeast-raised doughnuts in1933 acquired from a Buffalo, New York businessman. Rudolph began selling the yeastdoughnuts in Paducah and delivered them on his bicycle...
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...factors for Krispy Kreme? Krispy Kreme is a most popular food company in America. There are some key factors of Krispy Kreme to be most strong brand in America. Those are given below: • Old fashioned feel –They have been adopting one tradition for long time serving food to the customers which has worked as brand symbol. • Theater experience works – They perform different types of theater which entertains customs and draws them into the donut-making experience . Showing the manufacturing process – They invite to the people come to see how donuts are freshly made in a clean environment . So that, people are more attractive to buy donuts . • Concern with country people – Krispy Kreme dose not work with franchise. They busy with own country people to serve donuts so that maintaining the best food quality. People buy donut more for the best quality. • Following different way to convince media – Sending boxes of donuts into television media as gift which is one of strategy to bring out of publicity. • Selling in half price – Krispy Kreme is selling donut in half price in charity shows. But charity shows organizer sell donuts at same price .That is why Donuts became popular very frequently. Because people are getting donuts at same price as outside of charity shows. 2.Where is Krispy Kreme vulnerable? What should it watch out for? Krispy Kreme vulnerable into their international business...
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... Situation Analysis-Environment The business environment of Krispy Kreme deals with economic conditions, cultural and social values, and political and legal issues. The doughnut industry has generated five to six billion dollars in the years 2003-2004. The estimated sales at outlets specializing in doughnuts rose nine percent in 2002 to $3.6 billion. In 2002, worldwide sales were at $2.7 billion. According to these recorded results, the expected earnings per share in 2004 were expected to be between $1.16-$1.18. Due to lower than expected off premises sales, Chief Executive Officer, Scott Livengood said the company is lowering earnings guidance to .23 per share. During July and August of 2004, system wide sale increased 14.8%, company revenue went up 11.5%, and company store sales rose by 18.7%. Americans consume an estimated ten to twelve billion doughnuts annually. This social trend was a great benefit to Krispy Kreme. Today, most of society hears about companies through social networking. However, to mark its 75th anniversary and connect with consumers, Krispy Kreme has launched its national “Glaze the Nation” Tour. In February 2012, the Krispy Kreme cruiser made at least 500 scheduled stops at local fairs and festivals, major events and Krispy Kreme...
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...Krispy Kreme Background An international retailer of premium-quality sweet treats, including its signature hot Original Glazed® doughnut. Headquartered in Winston-Salem, NC, founded in 1937. Over 580 locations in 19 countries Strategy KKD executives believe the key to improving the firm’s performance and capitalizing on industry growth is to increase the percentage of stores operated by franchisees. Problems Buying and operating a franchise can be a great way for an entrepreneur to get into business with a proven brand, business model, and marketing strategy. However, while most franchises can offer sound home office support and allow an enthusiastic entrepreneur a way to make a great income, there are still franchise risks that are out of the hands of the individual entrepreneur. Krispy Kreme is one example of a franchise-gone-wrong. The Krispy Kreme craze in the early 2000s drove millions of customers to stores, waiting in line for the cherished fresh glazed delicacies. As a result of the demand, the number of Krispy Kreme franchises exploded, with new entrepreneurs trying to enter in the market. New stores emerged in 400 locations all over the country and the world, and the Krispy donut that enjoyed a large fan base. However, the rapid growth became a problem for Krispy Kreme, and a few years later, the financial fallout became apparent. One of the reasons behind Krispy Kreme’s downfall was its incredibly rapid growth. During the start of the glazed...
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...industry in the United States, Krispy Kreme Doughnuts, Inc. offers a wide variety of doughnuts at select markets nationwide, including the signature “Original Glazed.” Add a bright neon-light sign indicating “Hot Doughnuts Now” at every Krispy Kreme store, the appeal of their doughnuts is more enhanced. Since 1937, Krispy Kreme has relied on a tried-and-true marketing strategy that has worked for the American market. Recently in 2001, management expanded the franchise into Canada. But this expansion wasn’t without problems. Sales have slowed down, prompting management to scrap plans for new stores in new markets. There are two major reasons contributing to this sluggish sales growth: 1. A failure to understand the market trend towards low-fat and low-carbohydrates products; and 2. A failure to understand that the retail doughnut industry in Canada is much more competitive and distinct than what management has been used to in the United States. Currently, there are six stores in operation within the City of Toronto. We believe this number can grow, but only with a marketing plan appropriate to the Canadian market. We thus propose suggestions to enhance sales specific to the Toronto market, including an emphasis on positioning the company as a producer and retailer of premium foods, which will lead to strong brand recognition from area consumers. 3 Situation Analysis The retail doughnut market in Toronto is much different than what Krispy Kreme management has been used to in...
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...Ador, Camille Marie B. MG11A KRISPY KREME DOUGHNUTS 2008 Abstract Krispy Kreme Doughnuts, Inc. (KKD) was founded by Vernon Caver Rudolph. Rudolph purchased a secret recipe for yeast-raised doughnuts in Paducah, Kentucky from Joseph LeBeouf of Lake Charles, Louisiana and began making, selling, and delivering them through bicycle. The first store with the brand name “Krispy Kreme” was opened in Charlotte Pike, Nashville Tennessee in 1933. Rudolph’s business partner then was Mike Harding. In July 13, 1937, Rudolph sold his shares in Tennessee and transferred to Winston-Salem, New Carolina where he started as a retailer that supplies doughnuts to grocery stores until some customers figured where he had been making his doughnuts and asked if they could buy it right away. So, he cut a hole in an outside wall and began selling hot Original Glazed directly to potential customers on the sidewalk. By the 1940’s, the KKD, which began as a family-owned business, had expanded and opened some other chain of stores. However, to make the doughnuts’ flavor precise and consistent with the first few ones, Rudolph and his equipment engineer invented and built KKD’s own doughnut-making equipment. Then they focused on automating the doughnut-making process by the 1950’s. However, during the 60’s, KKD had expanded more and grew geographically large –having the original design of the stores uniform to be easily-recognized. In 1973, Rudolph died and the KKD was recognized for...
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...Project of Strategic Management Case Study Krispy Kreme Doughnut HAILEY COLLEGE OF COMMERCE UNIVERSITY OF THE PUNJAB We are thankful to ALLAH (all mighty) for guiding us and giving us power and courage. Project submitted: Sir Ishfaq Ahmed This project is based on our course of S.M. We have tried to utilize our knowledge about the subject which was taught by our professor. S.M is a vast field and it was a bit difficult for us to cover it all at our learning phase. We have applied many concepts of S.M to the case study We are very much thankful to our Sir Ishfaq Ahmedfor teaching us this important subject with all dedication and interest. It was very necessary for us to understand the real concepts of S.M.for our future practical working life. Project prepared by: Bilal Raja 792 Krispy Kreme Doughnut History and Growth The founder, Vernon Rudolph, worked for his uncle, Ishmael Armstrong, who purchased a secret recipe for yeast-raised doughnuts and a shop on Broad Street in Paducah, Kentucky, from Joseph LeBeouf of Lake Charles, Louisiana. Rudolph began selling the yeast doughnuts in Paducah and delivered them on his bicycle. The operation was moved to Nashville, Tennessee, and other family members joined to meet the customer demand. The first store in the nation with the Krispy-Kreme name opened on Charlotte Pike in 1933. Rudolph sold his interest in the Nashville store and in 1938 opened a doughnut shop in Winston-Salem, and began selling to groceries and then directly...
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...North Carolina, Krispy Kreme is a chief branded retailer and wholesaler of high-quality doughnuts, including its innovative Hot Original Glazed. Vernon Rudolph bought a secret yeast-raised doughnut recipe from a French chef from New Orleans, borrowed a building in Winston-Salem to bake in, and began selling Krispy Kreme doughnuts to the local grocery stores. Krispy Kreme has sustained its intensification and lengthened the design of the reliable Krispy Kreme store throughout the Southeast. They now have about 300 Krispy Kreme factory stores and 90 satellites, and have continued growth. The speedy development fashioned challenges in making sure products were always fresh and obtainable. With this continuous growth, Nathan Mucher, Vice-President of Information Services realized that an long-drawn-out web presence would aid, and be a underpinning in their expansion proposals. The company was able to start escalating internationally in 2001. It opened its first store in the United Kingdom in 2003 at Harrod’s Department Store in Knightsbridge. Krispy Kreme is doing well in the United Kingdom and they ought to continue expanding into other countries, as well as other parts of the world. The best candidate for a entering new in a foreign country market at this time would be Brazil. This report will methodically examine the reasons why it would be a superior business decision for Krispy Kreme to enter into the Brazilian market. Mission & Vision One of Krispy Kreme’s main flaws...
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...Attempt Only Four NO. 1 MARKETING SPOTLIGHT- NIKE Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the company focused on providing high-quality running shoes designed especially for athletes by athletes. Founder Philip Knight believer that high-tech shoes for runners could be manufactured at competitive prices if imported from abroad. The company’s commitment to designing innovative footwear for serious athletes helped it build a cult following among American consumers. By 1980, Nike had become the number-one athletic shoe company in the United States. From the start, Nike’s marketing campaigns featured winning athletes as spokespeople. The company signed on its first spokesperson, runner Steve Prefontaine, in 1973. Prefontaine’s irreverent attitude matched Nike’s spirit. Marketing campaigns featuring winning athletes made sense. Nike saw a `pyramid of influence’’ – it saw that product and brand choices are influenced by the preferences and behavior of a small percentage of top athletes. Using professional athletes in its advertising campaigns was both efficient and effective for Nike. In 1985, Nike signed up then-rookie guard Michael Jordan as a spokesperson. Jordan was still an up-and-comer, but he personified superior performance. Nike’s bet paid off: The Air Jordan line of basketball shoes flew off the shelves, with revenues of over $100 million in the first year alone. Jordan also helped build the psychological image of the Nike brand...
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...Krispy Kreme’s Dilemma Preston Bass David Braziel Tyler Bullock Adam Hefton Ryan Tarrant Corporate Finance 4360 Dr. Steve Rich Table of Contents Executive Summary 3 Introduction 4 Purpose, Scope and Limitations 4 Sources and Methods of Literary Search 5 Report Organization 5 Krispy Kreme’s Dilemma 6 Krispy Kreme’s Current Solutions 9 Recommendations 11 Appendix 1: Corporate Overview 14 Appendix 2: Graphs 17 Appendix 3: Income Statement 18 Appendix 4: Revenue Chart 19 Bibliography 20 EXECUTIVE SUMMARY The purpose of this report is to evaluate the current situation of Krispy Kreme Doughnuts, Inc. and to discuss the reasons for such status. We will also look at current strategies the company is taking to better the situation, and finally, submit some of our own recommendations for ways to maximize potential at Krispy Kreme. Currently, Krispy Kreme faces many obstacles in operations and capital structure. Recent SEC filing discrepancies have added to the existing lack of optimism among stockholders. In addition, it appears that the money from loans made by the company to franchises has not been repaid at any type of acceptable rate. One major reason for the decline in franchise sales is that Krispy Kreme has oversaturated the market. This is made evident by nearly a 20% decrease in same store sales for the last quarter of fiscal 2004. Also, the company has doubled...
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...Healthy Fast Food? Women Are Buzzing About McDonald’s Jan. 27 2011 - 1:24 pm | 3,391 views | 0 recommendations | 3 comments By JENNA GOUDREAU While many may deem “healthy fast food” an oxymoron, a recent report finds that fast food and sugary brands with new health initiatives are gaining women’s approval. Marketing research group Women at NBCU tracks the top 500 brands that are most important to women each month by following what they search for and talk about online. In the last six months, several fast food brands shot up in the rankings. Burger-and-fries chain McDonald’s climbed 10 places to become the 14th most popular brand among women. The surge comes after a partnership with social game FarmVille, likely an effort to align the brand with fresh farm produce. Meanwhile, fast-food company Wendy’s ascended into the top 100 brands, taking the No. 96 spot, after rolling out four new salad options. Domino’s Pizza leaped up 140 notches in December alone following a major ad push about its fresh ingredients, like farm-grown tomatoes and real cheese. Chocolate-maker Nestle and syrupy soda Sierra Mist also shot up the index after announcing new health initiatives. “With the national obesity crisis at an all-time high, women are clearly taking notice,” said Melissa Lavigne-Delville, VP of trends and strategic insights for Women at NBCU, in a statement. The news comes on the heels of this week’s release by The National Academy of Sciences that links obesity with America’s...
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...case teaching note | 14 Krispy Kreme Doughnuts, Inc. Overview With 181 Krispy Kreme stores in 28 states, Krispy Kreme Doughnuts in 2001 was rapidly building something of a cult following for its light, warm, melt-in-your-mouth doughnuts. Sales were on an impressive climb, exceeding 3.5 million doughnuts a day. The company’s business model called for 20 percent annual revenue growth, mid-single digit comparable store sales growth, and 25 percent annual growth in earnings per share. Krispy Kreme had created a flurry of excitement with its expansion into metropolitan markets outside the Southeast—its grand openings in newly entered markets attracted long lines of customers and created traffic jams around its store sites. The first new store in San Diego racked up $365,000 in sales the first week, with 5 TV crews covering the opening day event. The first store in Denver produced first-week revenues of $369,000, drew 50,000 visitors, and had $1,000,000 in sales the first 22 days; the crowds were so large that three off-duty deputy sheriffs were hired to direct traffic from 5 a.m. to 11 p.m. during the Tuesday-Saturday period of grand opening week—one night there were 150 cars in line at the drive-thru window at 1:30 a.m. But despite the enthusiastic reception that Krispy Kreme stores were getting, a number of securities analysts were dubious whether the company’s strategy and growth potential merited a stock price nearly 70 times projected 2002 earnings...
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