abhishreshthaa
Abhijeet S
Marketing Mix of Krispy Kreme : Krispy Kreme is a chain of doughnut stores. Its parent company is Krispy Kreme Doughnuts, Inc. (NYSE: KKD), based in Winston-Salem, North Carolina, United States.
Krispy Kreme sells doughnuts, among them glazed doughnuts, served warm. Krispy Kreme doughnuts are sold in supermarkets, grocery stores, convenience stores, gas stations, Wal-Mart and Target stores in the US; Loblaws supermarkets and Petro-Canada gas stations in Canada; Woolworths supermarkets in Australia, and Tesco supermarkets, Tesco Extra and Moto service stations in the UK.
The company's growth was steady prior to its initial public offering but profits have decreased in recent quarters.
Krispy Kreme is a company that despite its history dating back to 1937, has only started to experience rapidly increasing sales, expansion, and customer awareness in the last few years. Recently, however, the company has gotten into financial and legal trouble and is struggling to survive. This case is an evaluation of Krispy Kreme’s past and present business performance, internally and with regard to the external environment it is operating within.
What is marketing mix; it’s classified as product, price, place, and promotion, also known as the 4P’s. As for Krispy Kreme’s marketing mix they concentrate on there product. The “Hot Doughnut Now” concept invites customers. “All the doughnut mix and equipment used in Krispy Kreme stores was manufactured and supplied by the company” in order to ensure “consistent recipe quality and doughnut making throughout the chain” during the production process (Thompson et al, 2004). These doughnuts were sweeter, bigger and at a slightly lower price than most of its competitors, depending on the variety of doughnut. Second ingredient in the marketing mix is place. The company’s choice of locations has been highly debated. A marketing rep stated that Krispy Kreme expanded too rapidly and never altered its product line to differentiate themselves from their competitors. Also, the same rep argues that the places where the older buildings where placed are bad locations for retail sales .Lastly, in the marketing mix is promotion. The promotion mix was great going into the 21st century. There is not much personal selling in Krispy Kreme. Instead, customers come in with the brand awareness of the doughnuts. The store emphasizes its original glazed doughnuts but other than that not much personal selling goes on. Product giveaways are held at grand openings to improve knowledge of Krispy Kreme products. On certain occasions Krispy Kreme sells a special flavored doughnut for a limited period of time. Currently, Krispy Kreme is offering a strawberry shortcake doughnut.
Advertisement is one to promote. Promotion was highly done by the word of mouth advertising of past customers. The media also contributed to this type of promotion. Krispy Kreme spends very little, if anything, on advertising . Krispy Kreme strongly believes that the buzz created from public relations, at a store opening, is enough to bring the customers to its doughnut shops. This hurts them in the long run because as soon as a store’s grand opening is over, Krispy Kreme is old news. Customers lose the hype over the doughnuts and do not come back. Also, grand openings of Krispy Kreme’s have promoted doughnut awareness through media relations. This has helped increase sales of competitors. Something must be done to keep those customers from going to competitors.
Another way Krispy Kreme promoted was public relations. obtains excellent public relations when a store opens. “An Austin, Texas store opening was covered live by five TV crews and four radio stations, and at a San Diego opening, five more TV crews and radio stations covering the lines outside the stores waiting for the store to open. Sales were at a peak during those openings. Gradually, without advertising to keep Krispy Kreme fresh and new in the public eye, sales declined.
Krispy Kreme has a very diverse marketing environment such as. Sociocultural factors in 2003, Krispy Kreme was quoted as saying they do not believe the growing awareness of nutrition and health was affecting its sales. Now, in 2005, major marketers are suggesting that health awareness is affecting Krispy Kreme’s sales and Krispy Kreme has blamed its financial problems on it .
As for social responsibility Krispy Kreme recently ran a promotion where customers could buy a paper balloon for $1. The money for the balloons was donated to the Children’s Miracle Network
There Technological & Global Factors have its own website where customers can get all of the information they need regarding the company’s background, nutritious values, and special promotions. Globally, the company has entered the international atmosphere. Krispy Kreme’s can be found in the United States, Canada, Mexico, Australia, Korea and the United Kingdom
Lastly, there economic factors, according to company research, Krispy Kreme targeted all demographics, including age and income. This proved to be a significant weakness. They did not know specifically who its customers where and what they wanted. Stores were opened in high traffic areas, but not much other research was done to determine the best locations. Customers in America were consuming ten to twelve billion doughnuts annually. Individuals’ willingness to buy doughnuts allowed for Krispy Kreme’s success early on.
In conclusion, One of Krispy Kreme’s main weaknesses are that it lacks a clear mission and vision statement. The only stated objective was to have a successful Krispy Kreme in every town in the United States. As a result, Krispy Kreme has suffered financial difficulties. Krispy Kreme tried to expand too rapidly and is now paying for it financially. Krispy Kreme made a good decision to shift its focus back to retail business rather than selling solely to wholesalers.
Krispy Kreme sells doughnuts, among them glazed doughnuts, served warm. Krispy Kreme doughnuts are sold in supermarkets, grocery stores, convenience stores, gas stations, Wal-Mart and Target stores in the US; Loblaws supermarkets and Petro-Canada gas stations in Canada; Woolworths supermarkets in Australia, and Tesco supermarkets, Tesco Extra and Moto service stations in the UK.
The company's growth was steady prior to its initial public offering but profits have decreased in recent quarters.
Krispy Kreme is a company that despite its history dating back to 1937, has only started to experience rapidly increasing sales, expansion, and customer awareness in the last few years. Recently, however, the company has gotten into financial and legal trouble and is struggling to survive. This case is an evaluation of Krispy Kreme’s past and present business performance, internally and with regard to the external environment it is operating within.
What is marketing mix; it’s classified as product, price, place, and promotion, also known as the 4P’s. As for Krispy Kreme’s marketing mix they concentrate on there product. The “Hot Doughnut Now” concept invites customers. “All the doughnut mix and equipment used in Krispy Kreme stores was manufactured and supplied by the company” in order to ensure “consistent recipe quality and doughnut making throughout the chain” during the production process (Thompson et al, 2004). These doughnuts were sweeter, bigger and at a slightly lower price than most of its competitors, depending on the variety of doughnut. Second ingredient in the marketing mix is place. The company’s choice of locations has been highly debated. A marketing rep stated that Krispy Kreme expanded too rapidly and never altered its product line to differentiate themselves from their competitors. Also, the same rep argues that the places where the older buildings where placed are bad locations for retail sales .Lastly, in the marketing mix is promotion. The promotion mix was great going into the 21st century. There is not much personal selling in Krispy Kreme. Instead, customers come in with the brand awareness of the doughnuts. The store emphasizes its original glazed doughnuts but other than that not much personal selling goes on. Product giveaways are held at grand openings to improve knowledge of Krispy Kreme products. On certain occasions Krispy Kreme sells a special flavored doughnut for a limited period of time. Currently, Krispy Kreme is offering a strawberry shortcake doughnut.
Advertisement is one to promote. Promotion was highly done by the word of mouth advertising of past customers. The media also contributed to this type of promotion. Krispy Kreme spends very little, if anything, on advertising . Krispy Kreme strongly believes that the buzz created from public relations, at a store opening, is enough to bring the customers to its doughnut shops. This hurts them in the long run because as soon as a store’s grand opening is over, Krispy Kreme is old news. Customers lose the hype over the doughnuts and do not come back. Also, grand openings of Krispy Kreme’s have promoted doughnut awareness through media relations. This has helped increase sales of competitors. Something must be done to keep those customers from going to competitors.
Another way Krispy Kreme promoted was public relations. obtains excellent public relations when a store opens. “An Austin, Texas store opening was covered live by five TV crews and four radio stations, and at a San Diego opening, five more TV crews and radio stations covering the lines outside the stores waiting for the store to open. Sales were at a peak during those openings. Gradually, without advertising to keep Krispy Kreme fresh and new in the public eye, sales declined.
Krispy Kreme has a very diverse marketing environment such as. Sociocultural factors in 2003, Krispy Kreme was quoted as saying they do not believe the growing awareness of nutrition and health was affecting its sales. Now, in 2005, major marketers are suggesting that health awareness is affecting Krispy Kreme’s sales and Krispy Kreme has blamed its financial problems on it .
As for social responsibility Krispy Kreme recently ran a promotion where customers could buy a paper balloon for $1. The money for the balloons was donated to the Children’s Miracle Network
There Technological & Global Factors have its own website where customers can get all of the information they need regarding the company’s background, nutritious values, and special promotions. Globally, the company has entered the international atmosphere. Krispy Kreme’s can be found in the United States, Canada, Mexico, Australia, Korea and the United Kingdom
Lastly, there economic factors, according to company research, Krispy Kreme targeted all demographics, including age and income. This proved to be a significant weakness. They did not know specifically who its customers where and what they wanted. Stores were opened in high traffic areas, but not much other research was done to determine the best locations. Customers in America were consuming ten to twelve billion doughnuts annually. Individuals’ willingness to buy doughnuts allowed for Krispy Kreme’s success early on.
In conclusion, One of Krispy Kreme’s main weaknesses are that it lacks a clear mission and vision statement. The only stated objective was to have a successful Krispy Kreme in every town in the United States. As a result, Krispy Kreme has suffered financial difficulties. Krispy Kreme tried to expand too rapidly and is now paying for it financially. Krispy Kreme made a good decision to shift its focus back to retail business rather than selling solely to wholesalers.
Last edited by a moderator: