Krispy Kreme Case Analysis Essay

Krispy Kreme does non arrive one particular position market and argon not categorized as one course type they have various tactics to appeal to various markets. They alike post school, local organizations and businesses. He primary market, those ranging from the boards 20-30 years old, are Krispy Kremes main focus. This is where the majority of their business comes from. These are your everyday commuters who desire a sweet treat, or coffee to help outlast a want day at work. Their purchases whitethorn be small or cheap, still business is usually consistent, as are sales. Krispy Kreme appeals to schools as a fundraising opportunity. Doughnuts are very inexpensive when purchased in bulk, and easy to sell. Krispy Kreme offers certificates, coffee, partnership cards, and mobs to schools to raise silver. induct certificates are less of a burden, and those selling them dont have to deal with ordering and delivering doughnuts after youve made the sale. This makes things easi er for both the customer and fundraiser. offering fundraisers to schools augments awareness of Krispy Kreme, serves as sales promotion, whilst building a relationship with schools and the community. The money earned from these fundraisers are usually used to improve the school or purchase uniforms as shown on Krispy Kremes Fundraising page on their site. local organizations and businesses purchase Krispy Kremes products for retailing.CompetitorsCompetitors CompetitorsStarbucksMcDonaldsNestlesDunkin DonutsEinstein BagelsPanera breadStarbucksBruegges EnterpriseDunkin DonutsYum BrandStarbucks supranational Dairy QueenStarbucks target Audience-Affluent customersWell educate customers gabardine Collar PatternsThe age of the target market was between 25 and 44.Eventually, the friendship decided to expand its target market to include young, less-educated and low-income consumers. A bigger portion of coffee drinkers is found in urban areas of the United States. It is because around o f educated and working professionals live in the urban areas. It is because most of educated and working professionals live in the urban areas. With the quick expansion, Starbucks targeted customers of every age group.Einstein BagelsThat target market is younger than other coffee shops and is aimed at people between age 25 and 50.Dunkin DonutsDunkin Donuts target market is the unsanctified collar workers (18-60) of America who likes the quick service that Dunkin Donuts provides. Also within its target market are kids, highly due to its name. Recently Dunkin Donuts has been targeting the market of self-feeder women and professionalsKrispy Kreme Strengths1. Company brand image and reputation.2. Proprietary doughnut-making equipment, and capability to supply to  prerogatives at profitable prices.Krispy Kreme Weakness1. Competitors are larger and well established in their markets, tougher to compete head to head once newness is everyplace. 2. Core product does not incorporate he alth/weight conscious consumers.Krispy Kreme Opportunities1. Add more stores in current target markets to make it convenient for all areas. 2. Attract a broader range of customers and sell more products to existing customers by enhancing present bill of fare offerings, esp in coffee and coffee drinks.Krispy Kreme Threats1. Competitors concerned about KK rapid product and market share gains and erosion of their own market positions, may well be compelled to rejuvenate their product menus, this would be costly scrap for KK. 2. Consumer habits changingOne strategy alternative in each kiosk matrix would beOne strategy in strengths/ chance would be to growth marketing, incorporating social networksOne strategy in Weakness/Opportunity would be growing new markets or increase the product melodic phrase to incorporate healthy choices.One strategy in Strength/Threats promoting fitter product lineOne strategy in Weaknesses/Threats would be to reduce developing existing markets by exi sting productsStrategic issues with supporting selective information1. Krispy Kreme management should meet with franchisees and explore again the plans for opening new stores, it would come along to make sense to accelerate the pace of new stores openings at to the lowest degree in those areas where the enthusiasm for the products has been so great.2. Adapt to consumer desires. Increase product development, i.e., healthier choices.3. Lack of corporate governance.Matching the Strengths of franchise opportunities, Krispy Kreme is highly favorable. Its resource strengths and free-enterprise(a) assets easily outweigh its resource weaknesses and competitive liabilities. The company has plenty of opportunities it kitty pursue to continue to grow more rapidly, the company should have light difficulty opening several hundred more stores, Dunkin Donuts has 3,600 in the US alone versus just over 180 for KK. Their strategy is a solid state one, with competitive advantages in product q uality, product appeal, brand reputation, and ability to gain high caliber franchises because of vertical integration into doughnut making equipment, doughnut mixes and coffee. The threats are still in the foreground, the product excitement being created by Krispy Kreme could end up helping grow the market for doughnuts and help over come the relatively flat demand for doughnuts that has prevailed. A costly competitiveness for market share can be avoided.4 Three of Krispy Kremes strategic issues using SMART format According to Return on Assets, there has been an increase from 1998, with a slight decrease due to except investment of assets in 2002. The company is converting money into net income, therefore, quickly complete to add more stores in the mix.Return on Equity offers a profit generating efficiency for investors. The decrease in 2002 is because of improvements in companys operations. Intangible assets are also excluded like the brand name.SMART final stageSpecific To cr eate shareholder wealth through an ambitious growth strategy meanwhile, using a thorough marketing strategy standard increasing brand awareness through strong positioning and optimizing diffusion channels, therefore, creating brand loyaltyAggressive maintain a healthy increase in net sales, 10-20%, while optimizing efficiency.Realistic Increase the number of franchise stores to bring brand awareness and loyaltyTime-bound capitalizing on the growth of the market, increase store franchises over the next three years