KRISPY KREME DOUGHNUT CASE ANALYSIS
KKD was founded in 1937 and it became a publicly traded company in 2000. It is an international retailer of sweet treats and also sells great tasting coffee and iced drinks. Based in the United States it currently has operations in 21 countries. KKB has over 25 different varieties of doughnuts. Its main competitors are Dunkin Donuts, Starbucks and Tim Horton. Currently KKB’s share price stands at $ 6.59.
KKD is a well loved and popular brand not only in U.S but also in other countries like Australia, Canada and Europe. Its trade mark ‘original glazed’ is famous worldwide. KKD has its own well developed supply chain system which provides all supplies to its franchise and company stores. KK supply chain carefully buys and processes all ingredients used in the doughnut mixes and coffee. It also manufactures the doughnut making equipment for all its stores. Having its own supply chain unit ensures high quality ingredients resulting in premium quality and great tasting doughnuts.
Although KKD introduced itself as ‘trans fat free doughnut seller’ in 2008 most of its doughnuts still contain about 0.5 grams of trans fat. It needs to introduce more products which are low fat and could also introduce first of its kind doughnuts by developing and introducing sugar free or diabetic versions.
KKD’s main competitor Dunkin Donuts serve breakfast menu too other than doughnuts. KKD can look into the possibility of starting not only breakfast menu but also light lunch menu as lunch time is a very fierce and big market in the West.
Although KKD has a strong presence in Asian market it still has no store in India which is a huge and growing consumer market. Dunkin Donuts has recently (feb 2011) announced to open 500 franchise stores in India. KKD needs to expand into India soon if it wants to keep ahead of its competitors in international market. Even in China, Dunkin Donuts has double the...
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