Marketing Problem/Executive Summary
This presentation will analyze the current market situation, identify possible opportunities and threats and recommend strategic actions for Krispy Kreme Australia.
Methods of analysis include SWOT analysis, product life cycle curve, porters five forces and environmental, competitor and consumer analysis. For these we have used information from text books, websites and online news websites.
From our analysis we have found Krispy Kreme Australia to be in a late maturity/ declining stage of product life cycle with the company going into Voluntary administration in 2010 due to declining sales and profits.
We have concluded that these declining sales and profits are effects of Krispy Kreme Australia’s attempts to expand too rapidly and a failure to understand, define and communicate to an appropriate target market. Krispy Kreme will need to reevaluate their marketing strategy in order to combat changing trends and current threats. The recommendations we made for Krispy Kreme are as follows:
Increase in advertising and promotions
Product development and diversification into healthier options
Focus on a low cost strategy
Focus and on build more profitable locations in Australia
Krispy Kreme is an American company that provides customers with freshly cooked doughnuts, baked goods and a selection of beverages. Vernon Rudolph founded Krispy Kreme in Winston – Salem, North Carolina in 1937. Australia became the first destination outside of North America to produce the iconic Original Glazed doughnuts with Krispy Kreme expanding onto Australian shores in June 2003. The First Store was opened in Penrith, Sydney to great success and today there are 50 retail stores across the country. Krispy Kreme’s product range consists of their signature Original Glazed Doughnut, an assortment of flavoured and filled doughnuts, hot and cold beverages such as coffee and milkshakes as well as