...Krispy Kreme Case Study: Adapting to the Changing Needs of Consumers By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson Table of Contents Executive Summary............................................................................................................................ 1 Introduction ...................................................................................................................................... 2 Company History ....................................................................................................................................... 2 Current Situation ....................................................................................................................................... 4 External Environment Analysis ........................................................................................................... 6 General Environment ................................................................................................................................ 6 Industry Environment ............................................................................................................................. 10 Competitive Environment ....................................................................................................................... 12 Internal Environment Analysis .......................................................................................................... 17 Peformance...
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...Krispy Kreme Case Study: Adapting to the Changing Needs of Consumers By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson Table of Contents Executive Summary............................................................................................................................ 1 Introduction ...................................................................................................................................... 2 Company History ....................................................................................................................................... 2 Current Situation ....................................................................................................................................... 4 External Environment Analysis ........................................................................................................... 6 General Environment ................................................................................................................................ 6 Industry Environment ............................................................................................................................. 10 Competitive Environment ....................................................................................................................... 12 Internal Environment Analysis .......................................................................................................... 17 Peformance...
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...Krispy Kreme Doughnuts Going Global? The American doughnut was born in 1847, so the lore goes, when a Maine seaman urged his mother to shove a fork through the center of her "fried cakes." That solved the problem of the cakes' soggy middle and created the doughnut's trademark hole. Today, perhaps the most celebrated of the sweet treats are those fried up by Krispy Kreme Doughnuts Inc., whose hot "original glazed" doughnuts have earned a cult-like following. With virtually no advertising, but an uncanny knack for creating free publicity through the media, the company keeps racking up double-digit gains in sales and profit. Skeptics keep trying to poke holes in the Krispy Kreme mystique-questioning whether the company can maintain its remarkable growth. Some analysts believe its growth rates already are beginning to ease. They also contend that the company's stock remains too rich for most tastes. Their argument appears to hold some water. Krispy Kreme's stock, after skyrocketing at first, trades for less than it did two years ago despite the company's consistent growth record. But the company is unmoved by the pessimists and has no intention of scaling back its aggressive expansion plans, which include Southern California. "We may be in the first or second inning of our market penetration opportunities around the world, including the United States," said Scott Livengood, Krispy Kreme's chairman and chief executive. With 288 stores in 38 states and Canada, Krispy Kreme...
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...Krispy Kreme Doughnuts Going Global? Where should Krispy Kreme go next ? List some next countries they should enter in order most vialbe. What criteria did you use to compose your list ? On our opinion, Krispy Kreme should enter next in Asia-Pacific market and Eastern Europe. As we know, luxury and brand western including American products attract firstly asian people. Moreover, most of asian have positive thinking and image for American. Nowaday, they believe that for being in trends, they must possess luxury brands and products or even react like American. For investment in foreign market, Krispy Kreme team marketing should understand deeply some important factors which could facilitate their products through each country’s market. The below are our analysis ; The first factor that is host-country government’s political policy. Krispy Kreme can achieve their goals when host-country government’s political policy encourage foreign investment. If not Krispy Kreme will suffer from the consequence of the boycott from host-country gouvernement. Next, we identify that closed-countries evaluate less about their visions that open-countries. Each culture environment can influence differently on the activities’s abroad. If a host-country’s culture accepts foreign food, this could be the advantage for Krispy Kreme investment. Additionally, we think that the host-country’s economic environment play a big role in the success of business. These are the countries in which...
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...Benefits, Costs, Risks Analysis of opening a Krispy Kreme Franchise in Sweden Mia T. Barton Norma Chapman Carissa Godsalve Tina Ricketts BMGMT 102 Professor MacKaben November 12, 2013 Table of Contents Introduction Barton, MT Summary of Findings Barton, Chapman, Godsalve, Ricketts Benefits Costs Risks Final Analysis Benefits, Costs, Risks Analysis of opening a Krispy Kreme Franchise in Sweden Introduction July 13, 1937 marked the day that Vernon Rudolph opened his doors in Winston Salem, North Carolina and started selling Krispy Kreme doughnuts. Initially his business plan was to sell to grocery stores but there was a customer demand for his hot doughnuts so he started selling directly to people on the streets. From that one store, Krispy Kreme has now expanded to 789 stores, here in the Continental United State and 22 foreign countries. The company has seen some highs and some lows. Since its original IPO on the NASDAQ the price of shares has fluctuated to as much as $50 and as low as $1.15. They are now traded on the New York Stock Exchange at approximately $25.74 a share. This summary details the benefits, costs and risks of an American and a Swede doing a joint venture to open a Krispy Kreme franchise in Stockholm, Sweden. Summary Findings Benefits For the business partners, Sweden is a very attractive...
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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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...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 per share of $0.69 and 85 times...
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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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...Krispy Kreme Case Study FINA 470-01 Strategic Financial Management Company Overview: Krispy Kreme is a retailer and wholesaler of “high quality doughnuts and packaged sweets” (2010 10-K report) as well as various beverages. Krispy Kreme consists of stores and franchises that include domestic and international franchises, company stores and the KK Supply Chain. Krispy Kreme is also the sole provider to all their stores and franchises of the ingredients and equipment needed for store operations via the KK Supply Chain. Notably, neither equipment nor ingredients can be purchased from any other vendor and thus the franchises/stores are completely dependent upon Krispy Kreme. Vernon Rudolph acquired the Krispy Kreme recipe from a New Orleans chef and moved to Nashville and opened his own doughnut shop in 1937. Initially selling to grocery stores, he ended up cutting a hole in the building to sell to passersby who inquired about buying hot donuts directly from the bakery. Mr. Rudolph patented Krispy Kreme in 1939. Family members joined the bakery to help Rudolph meet rising demand for his doughnuts. Rudolph invented and built all his donut making equipment. To date, the company still uses only company made equipment. Other stores started popping up around the south in the 1950s and 1960s as the company quickly expanded. Rudolph died in 1973 and as the company began to flounder, it was sold to Beatrice Foods in 1976. Original franchisees repurchased the company...
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...Running head: KRISPY KREME DOUGHNUTS, INC.: A CASE ANALYSIS Krispy Kreme Doughnuts, Inc.: A Case Analysis Presented to By October 09, 2009 Table of Contents II. Table of Contents 2 III. Executive Summary 3 IV. Situational Analysis 5 A. Environment 5 B. Industry Analysis 5 C. The Organization 7 D. The Marketing Strategy 9 V. Problems Found in Situational Analysis 10 A. Statement of primary problem. 10 B. Statement of secondary problem 12 C. Statement of tertiary problem. 13 VI. Formulate, evaluate, and record alternative course(s) of action 14 A. Strategic Alternative 1 14 1. Benefits 14 2. Costs 15 B. Strategic Alternative 2 16 1. Benefits 16 2. Costs 19 C. Strategic Alternative 3 19 1. Benefits 19 2. Costs 21 VII. Selection of Strategic Alternative and Implementation 22 A. Statement of Selected Strategy 22 B. Justification of Selected Strategy 23 C. Description of the implementation of strategy. 23 VIII. Summary 28 IX. Appendices 29 A. Financial Analysis and Selected Tables 29 B. Reference List 32 Executive Summary Krispy Kreme Doughnuts, Inc., began as a family-owned business back in 1937, as an expansion of a pre-existing business, when Vernon Rudolph purchased a doughnut shop along with the now-famous secret recipe for making yeast-raised doughnuts. His doughnuts, which he delivered to grocery stores in the Winston-Salem, North Carolina area, quickly became...
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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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...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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...CASE 8: KRISPY KREME DOUGHNUTS Krispy Kreme is a doughnut manufacturer and retailer that were founded in July of 1937. Within its seventy year life time KK went from a small rented out building in Winston-Salem, North Carolina to a global recognizable firm. Through that time KK has become a franchising company that has made changes within its life time. Most of the changes came in the late 1990s and early 2000s. A few years after those changes were made KK management realized that they had made a series of mistakes that gravely hurt the company. This paper will explain what caused the down fall of KK and how they should go about restoring their company. General Information After the company’s IPO KK announced to aggressively expand the number of its stores from 144 to 500 as well as grow internationally. KK revenues are made up of four sections: On-premises, franchised stores, sell (27% of revenues), Off-premises, grocery and convenience store, sells (40%), manufacturing and distribution of product mix and machinery (29%) and lastly franchisee royalties and fees (4%). Roughly sixty percent of all KK sells revenues come from their signature product, the glazed doughnut. This is very different than its number one competitor, Starbucks, whose main profit comes from coffee. The Problems Although the management team of KK made many mistakes there were two major issues as to why the company went downhill in 2003. The first major issue was the aggressive expansion which...
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...International Marketing 320004VA016-1124-001 Abstract When your Company makes a decision to do business globally, it is a huge decision that should not be taken lightly. There are a lot of checks and balances and one of the most important items to remember: Is this Venture going to make or break my company. This should scare anyone into doing as much thorough research as possible. You want to know if your product is a fit; who is your audience and will I be successful. Research and Development is a huge upfront cost but it can pay off in the end. Some key challenges that you will be facing is your branding and packaging. Your brand says a lot about the company and it should speak for itself. The packaging shows how much you care about your product and the environment. Global marketing is all about putting the right people in place at the right time to present your brand to the target market Explain the process for market research to assess foreign market potential When you are starting a new company, logo, packaging and all the design is how you get this party started. The creative process is long and tedious. Coming up with a brand and maintaining it is a dream and a nightmare (Wainainah, 2012). The first step is coming up with something that will appeal to the client. This requires a lot of research, forecasting and an audience. This process is not for the weak-minded. Due to the stiff competition, your main goal is to strive for recognition through...
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...Starbucks: Case Analysis | An in depth analysis of The Starbucks Corporation | Prestige Worldwide | Executive Summary Starbucks Corporation has been brewing and selling specialty coffee, espresso based drinks, and other novelty items since there conception in 1971. CEO and President, Howard Shultz, has been leading and driving Starbucks to be the world’s best coffeehouse since he joined the company in 1982 as a director of retail and marketing. After becoming CEO in 1987, Shultz has driven Starbucks to be a tycoon in the specialty coffee industry with a large competitive advantage. Some of the problems that face Starbucks are their limited product line, highly priced menu, and speed of service. Also Starbucks had expanded globally an in the United States over the past years but has been forced to close down a large number of stores due to the lack of demand for specialty coffee in certain places. Companies like Dunkin Donuts and McDonalds also offer a larger variety of food at a lot cheaper of a price compared to Starbucks. All of these factors together can be harmful to the future of Starbucks if nothing is done about it. Starbucks has time and the power to take this information and implement successful strategies to reverse these paths they are heading down. First by implementing a value menu Starbucks can gain back the people that do not want to spend too much money on their morning cup of coffee. McDonalds stated “4 dollars for a cup of coffee is dumb” and...
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