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 is to have control over each step of the doughnut-making process and be able to deliver hot doughnuts to customers as soon as they emerge from the frying and sugar-glazing process." Krispy Kreme has done so well because they follow their beliefs that you must make the customers happy. Its commitment to quality, affordability, customer service and local community involvement has created a faithful enthusiastic customer base. Its doughnut theaters and quality ingredients differentiate the company from others. They use their marketing skills by stressing the "hot doughnut experience" that customers know them by. Another one of Krispy Kremes' successful strategies is their doughnut theater, which sets them apart from their competitors. Customers enjoy being able to see how and where their doughnuts are being made. They get the feel of freshness and enjoy the atmosphere. The company uses a vertical supply-chain, which means that manufacturing and mixing for the doughnuts are done by Krispy Kreme. Thereby reducing costs and improving efficiency.
Another key to the company's success is their reputation of serving high quality doughnuts and beverages; their current marketing practices through word of mouth advertising; the company's goal to become the local hometown doughnut shop (Boone & Kurtz p.151); and their strict franchise selection process. Their reputation begins the process to make Krispy Kreme stand out from other doughnut shops. Without the highest of reputations in the commercial bakery business and without Krispy Kremes high quality process, Krispy Kreme would become just another doughnut shop.
Where is Krispy Kreme vulnerable? What should it watch out for? Consuming food is an essential part of everyday life; there are therefore many substitute products to Krispy Kremes doughnuts. Since the food industry does not have high profit margins, the competition is in a constant price war. If substitutes can find a way to lower their prices without...