Preview

Marketing 551 – Marketing Management

Powerful Essays
Open Document
Open Document
3001 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marketing 551 – Marketing Management
Krispy Kreme Service Launch

Jennifer Crymes
Manit Chanthavong
Michael Lamp
John Pena
Benjamin McGreer

Murray Hilibrand
May 29, 2002
Marketing 551 – Marketing Management
Krispy Kreme Service Launch Krispy Kreme is the premier doughnut provider. Their product is second to none and their service is more of an experience than simply purchasing junk food. Our learning team will review Krispy Kreme as a company. This paper will focus on current products and services, sales, costs, profits, market, competitors, distribution, and the macroenvironment and will conclude by suggesting a new service for Krispy Kreme.

Current Products and Services/Sales/Costs/Profits

Krispy Kreme Doughnuts, Inc. founded in 1937 in Winston-Salem, North Caroline owns, operates, and franchises retail stores that sell doughnuts and related items. Krispy Kreme stores specializes in making doughnuts, including their signature Hot Original Glazed. Krispy Kreme offers a unique retailing experience by fully displaying the production process, also known as the doughnut making theater. “An estimated 5 million Krispy Kreme doughnuts are sold every day and more than 2 billion are sold each year” (Moore, 2002). In addition to doughnut sales, the company earns revenues from franchise and development fees and the collection of royalties from franchises. Furthermore, the company sells doughnut-making equipment and mix and other ingredients to company-owned and franchised stores. The company’s fiscal year ends on the Sunday closest to the last day in January. The current fiscal year (53-weeks) ended on February 3, 2002. Krispy Kreme’s gross revenues for 2002 were $394,354,000 with a net income of $26,378,000. The trend of gross revenues and net income has been positive since 1999. The 5-year growth rate for sales has been 24%, and increased by 31% from 2001 to 2002. Meanwhile, operating expenses only increased by 26% from 2001 to 2002. In terms of


References: American Institute of Baking (2001). Doughnut Statistics and Trends. Retrieved May 28, 2002 from the World Wide Web: http://www.aibonline.org/resources/statistics/doughnut.html Bank of Canada raises key interest rate Buffa, Lisa (2001). The speed of breakfast . Milling & Baking News. Retrieved May 28, 2002 from the World Wide Web: http://www.bakingbusiness.com/co_article.asp?ArticleID=39390 Canada: News in brief Canada: Population growth rate slows to record low. (2002, March 14). World News Digest. Retrieved May 26, 2002 on the World Wide Web: http://www.facts.com Census 2000: Resident population and apportionment counts Economy: Jobless rates soared in April; Other developments. (2002, May 9). World News Digest. Retrieved May 26, 2002 on the World Wide Web: http://www.facts.com Hispanic population in the United States Krispy Kreme Doughnuts. (2002). Website. Retrieved May 26, 2002 on the World Wide Web: http://www.krispykreme.com McLaughlin, L Moore, R. E. (May 6, 2002). Krispy Kreme Announces Expansion Into Five New Markets and Increases Store Opening Guidance for FY03 World Wide Web on May 27, 2002 at : http://www.prnewswire.com/cgi-bin/micro_stories.pl Milling & Baking News (2000). Corporate Profiles: Krispy Kreme Doughnuts, Inc. Retrieved May 28, 2002 from the World Wide Web: http://www.bakingbusiness.com/archive_article.asp?ArticleID=35368 Phinney, S. (2001, December 15). Gifts that give back; The wave of retail patriotism has an altruistic side. Seattle Post, E1. Retrieved May 27, 2002 from EBSCOhost database on the World Wide Web: http://www.ebscohost.com Profile – Krispy Kreme Doughnuts U.S. population trends. (1999, September). U.S. Census Bureau Website. Retrieved May 26, 2002 on the World Wide Web: http://www.census.gov/mso/www/pres_lib/index2.html
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Week 1 Favorite Brand Paper
    • 1183 Words
    • 4 Pages

    Week 1 Favorite Brand Paper

    The Kroger Company. (2014). The Kroger Co. - History of Kroger. Retrieved from Kroger: http://www.thekrogerco.com/about-kroger/history-of-kroger…

    • 1183 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    Panera Bread Business Strategy
    • 1371 Words
    • 6 Pages

    Panera Bread Business Strategy

    This paper is about Panera Bread Company and the strategy it employs to become the best brand name of fresh bread in the United States. Panera Bread specializes in providing fresh goods, made-to-order sandwiches, salads, soups, custom roasted coffees and other cafe beverages. The company generates revenues through three business segments: company bakery-café operations, franchise operations and fresh dough operations. The company’s bakery-café operations segment is comprised of the operating activities of the bakery-cafes, owned directly and indirectly by Panera. Their franchise operations segment is comprised of the operating activities of its franchise business unit, which licenses qualified operators to conduct business under the Panera Bread and Paradise Bakery & Café names while the fresh dough operations segment supplies fresh dough items and indirectly supplies proprietary sweet goods items through a contract manufacturing arrangement to both company-owned and franchise-operated bakery-cafes. Panera’s vision is to create a specialty café anchored by an authentic, fresh-dough artisan bakery and upscale quick service selections. With its goals and objectives of becoming one of the leading fast-casual restaurant chains and becoming a dominant restaurant operator across the nation, Panera Bread’s use of a broad differentiation strategy has helped their profitability and growth and rivals have found it hard to compete with the competitiveness of Panera Bread. This strategy has also being helping the company attain its goals and objectives.…

    • 1371 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Krispy Kreme Doughnuts, Inc.
    • 2204 Words
    • 9 Pages

    Krispy Kreme Doughnuts, Inc.

    Close review of the income statement leads to some noteworthy conclusions. The first quarterly column of the 2004 income statement shows that the company gained thirty-four million dollars in discontinued operations from the sale of the Montana Mills venture. In the same quarter the firm lost approximately twenty-four million dollars. It is likely that this maneuver was made to deflect attention from or make up for the company’s poor performance and mounting losses. Generally, this is not a sign of a healthy company but rather signals an alarm since the loss in that quarter was closer to fifty-eight million dollars when not considering the sale. Krispy Kreme may have been struggling to make ends meet through its operations, and perhaps the company hoped to make up lost income through the sale of a venture.…

    • 2204 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Krispy Kream
    • 2088 Words
    • 9 Pages

    Krispy Kream

    Krispy Kreme (KKD) has achieved spectacular growth in the last few years using an area developer model to expand geographically. This case examines the factors that have driven its growth and their sustainability in the coming two years. Students are provided with forecasts made by financial analysts at CIBC. They are then asked to identify and evaluate the assumptions underlying these earnings forecasts. Since the CIBC report does not provide a forecasted balance sheet for KKD, the case can be used to let students learn how to build a forecasted balance sheet. Finally, the case can be used to discuss potential conflicts of interest between analysts and investors that might lead analysts to over-sell a growth firm such as KKD.…

    • 2088 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Krispy Kreme
    • 4063 Words
    • 17 Pages

    Krispy Kreme

    This case considers the sudden and very large drop in the market value of equity for Krispy Kreme Doughnuts, Inc., associated with a series of announcements made in 2004. Those announcements caused investors to revise their expectations about the future growth of Krispy Kreme, which had been one of the most rapidly growing American corporations in the new millennium. The task for the student is to evaluate the implications of those announcements and to assess the financial health of the company. This case is intended to be introductory as it can provide a first exercise in financial statement analysis and lay the foundation for two important financial themes: the concept of financial health, and the financial-economic definition of value and its determinants.…

    • 4063 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    Financial Analysis Starbucks Corp. Fin 540
    • 2316 Words
    • 10 Pages

    Financial Analysis Starbucks Corp. Fin 540

    (Starbucks Corporation 2010)Starbucks Corporation. (2010). Retrieved September 17, 2011, from Starbucks Coffee Company Web site: http://assetts.starbucks.com/assetts/company-profile-feb10.pdf…

    • 2316 Words
    • 10 Pages
    Good Essays
    Read More
  • Good Essays

    Krispy Kreme
    • 457 Words
    • 2 Pages

    Krispy Kreme

    KrispyKreme is a doughnut company founded on July 13, 1937. Krispy Kreme's founder Vernon Rudolph and his uncle purchased Joseph LeBeouf's donut shop on Broad Street in Paducah Kentucky along with a secret recipe for yeast-raised doughnuts in 1933 acquired from a New Orleans French Chef. Rudolph began selling the yeast doughnuts in Paducah and delivered them on his bicycle. The Krispy Kreme logo was designed by Benny Dinkins, a local architect.…

    • 457 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Krispy Kreme Inc.
    • 1013 Words
    • 5 Pages

    Krispy Kreme Inc.

    As we begin to analyze Krispy Kreme Doughnuts from a quantitative perspective, we will address our first issue; Was the company healthy? When assessing liquidity and profitability ratio performance compared to their competition, KKD seems to be doing well. The company showed a current ratio of 3.25, as opposed to their industry average of 1.17 at END of FY2003. (See Appendix attached) They show a net profit margin of 8.58%, being above the average by 2.38%. Although these ratios may seem strong, we believe them to have been calculated based on inflated figures. When reviewing the Krispy Kreme Doughnut Company’s financial statements, we can see that the statements are overstated. Firstly, as the article in the Journal pointed out, interest paid by their franchise agreements was recorded as interest income, translating into pure profit rather than having it shown as interest owed.…

    • 1013 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    Diversity Final Eth/125
    • 1650 Words
    • 7 Pages

    Diversity Final Eth/125

    References: Source: Jeffery S. Passel and D 'Vera Cohn, U.S. Population Projections: 2005-2050 (Washington, DC: Pew Research Center, 2008), accessed online at www.pewhispanic.org/files/reports/85.pdf, on Feb. 14, 2008.…

    • 1650 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Dunkin Donuts Research Paper
    • 5238 Words
    • 21 Pages

    Dunkin Donuts Research Paper

    After my frustration grew with my most conveniently located Dunkin Donuts location I decided to try out a Krispy Kremes that is located right down the street at 32130 US Highway 19 N Palm Harbor, FL 34684. My plan was two make three trips over a three week period to the Krispy Kremes and avoid stopping at Dunkin Donuts for even coffee at this point. Even with the news that numerous Krispy Kremes are closing I still wanted to give it a shot and…

    • 5238 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Increase Profit Margin for Krispy Kreme
    • 1699 Words
    • 7 Pages

    Increase Profit Margin for Krispy Kreme

    This report provides an analysis and evaluation of the current and potential growth of Krispy Kreme Doughnut Corporation’s quarterly profit margin, financial mistakes, and company vision. It discusses critical decisions that they made and suggests some ideas that could solve the problem.…

    • 1699 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Better Essays

    Dunkin' Donuts Hypothetical Marketing Strategy Case
    • 1339 Words
    • 6 Pages

    Dunkin' Donuts Hypothetical Marketing Strategy Case

    Dunkin’ Donuts are famous for their many varieties of doughnuts and their wide range of bakery products - muffins, bagels and munchkins® donut hole treats. Their products are represented by more than 6,590 worldwide points of distribution, including approximately 4,815 units in the United States alone.…

    • 1339 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    mak itam cantik
    • 1065 Words
    • 5 Pages

    mak itam cantik

    2. Krispy Kreme is most popular in grocery and convenience stores which gives customers easy access to the product.…

    • 1065 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Us Population
    • 1100 Words
    • 5 Pages

    Us Population

    The United States is the third most populated country in the world. This country holds about 4.5% of the world’s population. The U.S. population is currently estimated to have 308.7 million persons. This number is more than double of the population from 1950. Besides the fact of the population has doubled its size, the population has also become qualitatively different from the one from 1950. As noted by the Population Reference Bureau, “The U.S. is getting bigger, older, and more diverse.” The growth of the population is the result of the trends over time in the relationship of increased births, decreased deaths, and increased net immigration.…

    • 1100 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Krispy Kreme Doughnuts During The Great Depression
    • 562 Words
    • 3 Pages

    Krispy Kreme Doughnuts During The Great Depression

    During the Great Depression, there was little to no food for soldiers. Krispy Kreme Doughnuts were invented in the 1930s and it was a smashing hit. Krispy Kreme Doughnuts to this day is still a smashing hit. On July 13, 1937, the first Krispy Kreme store opened for business in Winston-Salem, North Carolina. The company’s success and quick rise to popularity were due both to the personal history of Vernon Rudolph, its owner, and the larger cultural history of doughnuts in America (and more specifically, the American South). There were very few doughnuts shops in the South prior to the 1930s, and doughnut recipes that found their way into Southern kitchens were often thought of as “Yankee treats,” coming from places like Pennsylvania. However, several Southern food traditions and preferences helped pave the way for successful doughnut…

    • 562 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics