Marketing Analysis - Krispy Kreme
Krispy Kreme Doughnuts Incorporates principal activity is to produce and market doughnuts and related items. The operations are carried out through three segments, company stores operations, franchise operations and Krispy Kreme Manufacturing and Distribution. The stores are both retail outlets and highly automated producers of over twenty varieties of doughnuts. The company is a branded specialty retailer, and produces more than three million doughnuts a day. In addition to its Krispy Kreme stores, the company sells its doughnuts in supermarkets, convenience stores and other retail outlets throughout the country. The Krispy Kreme Manufacturing and Distribution segment sells doughnut-making equipment, mix, other ingredients and supplies and also operates three distribution centers.
Krispy Kreme has a competitive advantage over other bakeries because the self-rising yeast doughnut has an excellent reputation representing freshness at its finest and because of the innovative doughnut making process. This process appeals to its customers through anticipation and the sensory response. The first indication is the large red "hot Krispy Kreme now" neon sign that's displayed while the doughnuts are being made. When the customer enters the Krispy Kreme doughnut shop, the aroma of the fresh doughnut hits their nose, and the anticipation from watching the fresh doughnuts roll off the line four feet away overtakes them. When the customer gets to the cashier, their mouth is watering and they always order too many. This highly refined presentation through the senses has made Krispy Kreme a cult favorite. (New York Times January 18, 2005) It's been said, "It's not how you prepare your food but how you prepare your guest." (Source Unknown) And Krispy Kreme has prepared both with its doughnut making process.
What have been the key success factors for Krispy Kreme?
Krispy Kreme is as efficient as they are in the business because they go by the motto that "the key to expansion
Krispy Kreme has a competitive advantage over other bakeries because the self-rising yeast doughnut has an excellent reputation representing freshness at its finest and because of the innovative doughnut making process. This process appeals to its customers through anticipation and the sensory response. The first indication is the large red "hot Krispy Kreme now" neon sign that's displayed while the doughnuts are being made. When the customer enters the Krispy Kreme doughnut shop, the aroma of the fresh doughnut hits their nose, and the anticipation from watching the fresh doughnuts roll off the line four feet away overtakes them. When the customer gets to the cashier, their mouth is watering and they always order too many. This highly refined presentation through the senses has made Krispy Kreme a cult favorite. (New York Times January 18, 2005) It's been said, "It's not how you prepare your food but how you prepare your guest." (Source Unknown) And Krispy Kreme has prepared both with its doughnut making process.
What have been the key success factors for Krispy Kreme?
Krispy Kreme is as efficient as they are in the business because they go by the motto that "the key to expansion
Cited: Boone, Louis E and David L. Kurtz. Contemporary Business, Ed., 11, Mason: South-Western, 2005 Breed, Allen G. "Sweet Dreams." The Capital Times. 10 Feb 2005.Web Ed. Business Sec. http://www.krispykreme.com/history.html. Retrieved on February 16, 2006 http://www.newsweek.com/ article by: Barker, Robert Retrieved on February 17,2006 http://www.msnbc.com/ article by: Catherine Skipp Retrieved on February 17, 2006 Norris, Floyd. "Krispy Kreme Picks Turnaround Specialist." The New York Times 18 Jan. 2005: Business Sec.