Krispy Kreme

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Krispy Kreme Marketing Plan
Table of Contents

1.0 Executive Summary
2.0 Situation Analysis
2.1 Market Situation
2.1.1 Market Demographics
2.1.3 Macroenvironment Situation
2.1.4 Market Growth
2.2 SWOT Analysis
2.2.1 Strengths
2.2.2 Weaknesses
2.2.3 Opportunities
2.2.4 Threats
2.3 Product Situation
2.4 Competition Situation
2.5 Distribution Situation
2.6 Critical Issues
3.0 Marketing Strategy
3.1 Mission
3.2 Marketing Objectives
3.3 Financial Objectives
3.4 Target Marketing
3.5 Positioning
3.6 Marketing Mix
3.6.1 Distribution
3.6.2 Product Mix
3.6.3 Promotions
3.6.4 Facilities
3.6.5 Service
3.6.6 Pricing
3.7 Marketing Research
4.0 Action Programs
4.0.1 Aggressive Growth Action Plan
4.0.2 Promotion Action Plan
4.0.3 Brand Loyalty Action Plan
5.0 Financials, Budgets, and Forecasts
5.1 Sales Forecast
5.2 Expense Forecast
5.3 Contribution Margin Expectations
6.0 Controls
6.1 Implementation Milestones
6.2 Marketing Organization
6.3 Contingency Planning

1.0 Executive Summary

Krispy Kreme Doughnuts owns and franchises stores that produce and sell over 20 different types of specialty doughnuts. Since the company's founding in 1937, Krispy Kreme has grown into a leading specialty retailer producing over 1.8 billion doughnuts a year. With the acquisition of Digital Java in 2002, Krispy Kreme expanded its product line to include gourmet coffee. Retail stores now brew and sell our own line of coffee, which puts us in direct competition with many food and beverage establishments. In the recent years, Krispy Kreme has been expanding rapidly in both the United States and abroad. Our most important source of marketing has been our loyal customer base and "word of mouth". Our market is everyone, everywhere. Krispy Kreme has become a universal product and a global brand. This has all been accomplished without the expensive costs of brand building and product awareness. As we move into the future and continue to grow domestically and internationally, our original stores will serve as a blueprint for all other markets. We have significant growth opportunities domestically and internationally.

2.0 Situation Analysis

Krispy Kreme has had a strong presence in the southeastern United States for over forty years. Eight years ago, a business model was put into place and the company began expanding throughout the nation. Last year, we entered into 27 new U.S markets. In December 2001, we opened our first international store in Ontario, Canada. Since that time, our business operations have expanded into three additional international markets: Australia, the United Kingdom and Mexico. In recent years, our target market has been cities with a population of 100,000+. As we continue to grow in the future, we will begin to expand our operations into smaller communities. In 2003, Krispy Kreme opened 86 new factory stores and 13 satellite stores. There are currently 360 retail stores operating in the U.S. and abroad. Last year, sales increased 26.5%. Total revenues were $665.6 million, a 35.4% increase over the previous year. The net income of Krispy Kreme for 2003 was $56.8 million. This is a 45% increase over the previous year. Our store opening in Medford, MA had a record first week sales of $506,917. In the next fiscal year, Krispy Kreme plans to open an additional 120 stores and to further expand in international markets.

2.1 Market Situation

The food and beverage industry as a whole is growing rapidly. Increasingly, Americans are "on-the-go" and eating meals away from home. In 2003, Krispy Kreme doughnut sales increased at twice the industry average. Doughnuts are fast and affordable treats, and Americans are not just eating doughnuts for breakfast. Half of Krispy Kreme sales occur in the late afternoon and early evening....
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