International Marketing 2MKT659
Individual Assessment and
IA Word Count: 2,405
RS Word Count: 494
Marketing Plan for Krispy Kreme Doughnuts
Krispy Kreme Doughnuts has been a successful company for many years. The company was able to start expanding internationally in 2001. It opened its first store in the United Kingdom in 2003 at Harrod’s Department Store in Knightsbridge. Krispy Kreme has been a success in the United Kingdom and should continue expanding into other countries as well as other parts of the world. The best candidate for a new overseas market at this time would be Brazil. This report will thoroughly examine the reasons why it would be a good business decision for Krispy Kreme to enter into the Brazilian market.
There were many qualified markets that would have been great for Krispy Kreme to enter, but the best option would be Brazil. Brazil is the fifth-most populated country and Latin America’s largest market. The country has the world's tenth-largest economy in terms of Gross Domestic Product. Much of the reason for this is because of the governmental development and liberalization of the economy over the last two decades. Military rule ended in 1985 which had been going on for over half a century. In 1988 a new constitution for Brazil was approved for the country. Since then, the country has seen much improvement and continues to mold and restructure Brazil’s economy to make it the best as possible. The variety of cultures throughout Brazil has been a positive attribute in helping the economy throughout the years. A unique aspect that made Brazil the best candidate for a new market was because of the diversity throughout the country. Most of the population descends from early European settlers who were chiefly Portuguese. There were also some Italian, French, Dutch, African slaves, and assimilated indigenous peoples. Starting in the late 19th century many people from several different countries immigrated to Brazil. Some of these countries are: Italy, Germany, Spain, Poland, Lebanon, Syria, Ukraine, Russia, Lithuania, Hungary, Armenia, Japan, China and Korea. Another unique characteristic Brazil has is that it is the only Portuguese-speaking nation in the Americas, giving it a distinct national culture separate from its Spanish-speaking neighbors Portuguese is the only language with full official status in Brazil; it is virtually the only language used in schools, newspapers, radio and TV, and for all business and administrative purposes. Even though Portuguese is the main language among the Brazilian culture there are other languages such as English, French, German, Italian, etc. which are spoken by some people.
One of the other possible candidates that were considered was New Zealand. The reason for this would be because the country is starting to become more internationalized and Krispy Kreme has been well established already in Australia. Although Australia and New Zealand are different countries they would be classified in similar markets. The one reason why New Zealand wasn’t the best candidate was because of the population of the country. The population of New Zealand is only a little over four million people, so even if Krispy Kreme was going to be a success in New Zealand it probably wouldn’t create as much business and profits as Brazil has the potential to do. Brazil has a population of over 190 million people.
Western Europe was another candidate for a market that Krispy Kreme could enter into. Krispy Kreme has already expanded into the United Kingdom, but they haven’t opened any stores in other European countries which could have a lot of potential. The reason why Europe wasn’t the best candidate for the new market choice was because of limitations dealing with the cultures in different...