Krispy Kreme Case Analysis Essay

Krispy Kreme does not have one particular maneuver mart and argon notcategorized as one line of descent type they have discordant tactics to appeal to various markets. They likewise station school, local organizations and businesses. He primary market, those ranging from the get along withs 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 java to help outlast a long day at work. Their purchases may be small or cheap, but business is usually consistent, as are gross 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 bean, partnership cards, and doughnuts to schools to raise money. Gift certificates are less of a burden, and those selling them dont have to deal with ordering and de travelring doughnuts later on youve made the sa le. This fetchs things easier for both the customer and fundraiser. Offering fundraisers to schools increases cognisance 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 intersection points for retailing.CompetitorsCompetitors CompetitorsStarbucksMcDonaldsNestlesDunkin Donuts whizz BagelsPanera breadStarbucksBruegges EnterpriseDunkin DonutsYum BrandStarbucksInternational Dairy QueenStarbucks design Audience-Affluent customersWell educated customersWhite Collar PatternsThe age of the target market was between 25 and 44.Eventually, the companionship decided to expand its target market to include young, less-educated and low-income consumers. A large portion of coffee drinkers is undercoat in urban areas of the United States. It is because most of 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 rapid 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 blue collar workers (18-60) of America who likes the libertine service that Dunkin Donuts provides. Also within its target market are kids, passing due to its name. Recently Dunkin Donuts has been targeting the market of affluent women and professionalsKrispy Kreme Strengths1. Company brand externalise and reputation.2. Proprietary doughnut-making equipment, and capability to supply tofranchises at profitable prices.Krispy Kreme Weakness1. Competitors are larger and well established in their markets, tougher to compete walk to head once refreshfulness is everyplace. 2. Core product does not incorporate health/ mountaint conscious consumers.Krispy Kreme Opportunities1. Add much 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 menu offerings, esp in coffee and coffee drinks.Krispy Kreme Threats1. Competitors concerned about KK rapid germinateth and market appropriate gains and erosion of their own market positions, may well be compelled to reform their product menus, this would be costly battle for KK. 2. Consumer habits changing cardinal schema alternative in each cell matrix would be wiz strategy in strengths/ Opportunity would be to increase marketing, incorporating social networks champion strategy in Weakness/Opportunity would be growing new markets or increase the product line to incorporate healthier choices. superstar strategy in Strength/Threats promoting healthier product lineOne strategy in Weaknesses/Threa ts would be to avoid developing existing markets by existing productsStrategic issues with supporting data1. Krispy Kreme management should meet with franchisees and seek again theplans for opening new stores, it would seem to make sense to step on it the pace of new stores openings at least 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. coordinated the Strengths of franchise opportunities, Krispy Kreme is highly favorable. Its vision strengths and competitive assets easily outweigh its resource weaknesses and competitive liabilities. The company has plenty of opportunities it can pursue to continue to grow more rapidly, the company should have little difficulty opening some(prenominal) hundred more stores, Dunkin Donuts has 3,600 in the US alone versus just over 180 for KK. Their strategy is a solid one, with competitive advantages in produ ct quality, product appeal, brand reputation, and ability to attract 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 circumstances grow the market for doughnuts and help over come the relatively flavorless demand for doughnuts that has prevailed. A costly battle for market share can be avoided.4 Three of Krispy Kremes strategic issues using extraneous format According to Return on Assets, there has been an increase from 1998, with a slight falling off due to further investment of assets in 2002. The company is converting money into net income, therefore, quickly enough 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 goalSpec ific To create shareowner wealth through an ambitious growth strategy mean trance, using a thorough marketing strategyMeasurement increasing brand consciousness through strong positioning and optimizing distribution channels, therefore, creating brand loyalty vulturous 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 storefranchises over the bordering three years