anjalicutek
Anjali Khurana
Marketing Strategy 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 their own branded stores throughout the world, supermarkets, grocery stores, convenience stores, gas stations, Wal-Mart and Target stores in the US; Loblaws supermarkets and Petro-Canada gas stations in Canada; BP Service Stations and BP Travel Centres in Australia, and Tesco supermarkets, Tesco Extra and Moto service stations in the UK. They are also famous for their fresh espresso coffee varieties and ice drinks.
The company's growth was steady prior to its initial public offering but profits have decreased in recent quarters.[2]
The founder, Vernon Rudolph, worked for his uncle, Ishmael Armstrong, who purchased a secret recipe for yeast-raised doughnuts and a shop on Broad Street in Paducah, Kentucky, from Joseph LeBeouf of Lake Charles, Louisiana. Rudolph began selling the yeast doughnuts in Paducah and delivered them on his bicycle. The operation was moved to Nashville, Tennessee, and other family members joined to meet the customer demand. The first store in the nation with the Krispy-Kreme name opened on Charlotte Pike in 1933.[3] Rudolph sold his interest in the Nashville store and in 1938 opened a doughnut shop in Winston-Salem, and began selling to groceries and then directly to individual customers. The first store in North Carolina was located in a rented building on South Main Street in Winston-Salem in what is now called historic Old Salem. The Krispy Kreme logo was designed by Benny Dinkins, a local architect.
By the 1960s, Krispy Kreme was known throughout the southeastern United States, and it began to expand into other areas.
Background Information
Founded in 1937 – Winston-Salem, NC.
217 Franchise Locations.
Growth exceeds 20% per year since IPO.
Products:
23 varieties of doughnuts
Four varieties of coffee
Supplies and equipment to franchisees
Novelty items
Mission and Vision
Mission
To be the consumers’ doughnut of choice by offering an affordable product with universal appeal.
Vision
A full-service store in every U.S. market that exceeds 100,000 households.
Expand the doughnut market by utilizing profitable horizontal sales channels.
Krispy Kreme at the NYSE
May 17, 2000
Set up Equipment on Wall Street
Made Fresh Krispy Kremes
43,000 Hot Original Glazed Doughnuts were given to the investment community
The Krispy Kreme Catering Service
A catering service for corporate meetings
Offer the full line of Krispy Kreme products
Full service catering service
Online registration
Situational Analysis
Market Research
Competition
Large Doughnut Chain Restaurants
Target Market(Dallas, TX)
Marketing Objectives and Strategies
Product
Catering Service
Different from competition because…
Ease of menu choices
Geared toward regular, everyday meetings
Beginning phase of product cycle
Product is currently in gas stations and supermarkets
Krispy Kreme branding (boxes, hats, shirts)
Standard food regulations
Samples
Potential for new technology that produces hot-donuts on-site
Marketing Objectives and Strategies
Place
Distribution
Three Krispy Kreme locations strategically placed in Metroplex (Grapevine, Arlington, and Frisco)
Service Availability within Metroplex
Strategic locations create an ease of transportation
Pricing
Premium Krispy Kreme name
High demand for quality products
Testing phase in metroplex, potential rollout for US
Production costs are low
Marketing Objectives and Strategies
Pricing cont’d
Break-even point when Kreme Team salaries are paid.
High markup for doughnuts, but service costs vary
$10.00 per person, adjusted for promotions or supply costs
15%-20% discounts for first-time customers, 10% discount for second-time customers if used within one month
Krispy Kreme is well-regarded in public’s eye
Marketing Objectives and Strategies
Promotion
Selling will begin with established relationships
Starting with three salespeople
Relationship selling
Hourly Rate
Advertising
Commercials (television and radio), websites, flyers
“Let the Kreme Team Serve You”
New customer discounts
Storyboard
Budget
Control
Analysis of Profits
Number of Inquiries and hits on website
Analysis of Quality and Pricing strategies
These control points will be a benchmark for the future of Krispy Kreme Catering
Krispy Kreme sells doughnuts, among them glazed doughnuts, served warm. Krispy Kreme doughnuts are sold in their own branded stores throughout the world, supermarkets, grocery stores, convenience stores, gas stations, Wal-Mart and Target stores in the US; Loblaws supermarkets and Petro-Canada gas stations in Canada; BP Service Stations and BP Travel Centres in Australia, and Tesco supermarkets, Tesco Extra and Moto service stations in the UK. They are also famous for their fresh espresso coffee varieties and ice drinks.
The company's growth was steady prior to its initial public offering but profits have decreased in recent quarters.[2]
The founder, Vernon Rudolph, worked for his uncle, Ishmael Armstrong, who purchased a secret recipe for yeast-raised doughnuts and a shop on Broad Street in Paducah, Kentucky, from Joseph LeBeouf of Lake Charles, Louisiana. Rudolph began selling the yeast doughnuts in Paducah and delivered them on his bicycle. The operation was moved to Nashville, Tennessee, and other family members joined to meet the customer demand. The first store in the nation with the Krispy-Kreme name opened on Charlotte Pike in 1933.[3] Rudolph sold his interest in the Nashville store and in 1938 opened a doughnut shop in Winston-Salem, and began selling to groceries and then directly to individual customers. The first store in North Carolina was located in a rented building on South Main Street in Winston-Salem in what is now called historic Old Salem. The Krispy Kreme logo was designed by Benny Dinkins, a local architect.
By the 1960s, Krispy Kreme was known throughout the southeastern United States, and it began to expand into other areas.
Background Information
Founded in 1937 – Winston-Salem, NC.
217 Franchise Locations.
Growth exceeds 20% per year since IPO.
Products:
23 varieties of doughnuts
Four varieties of coffee
Supplies and equipment to franchisees
Novelty items
Mission and Vision
Mission
To be the consumers’ doughnut of choice by offering an affordable product with universal appeal.
Vision
A full-service store in every U.S. market that exceeds 100,000 households.
Expand the doughnut market by utilizing profitable horizontal sales channels.
Krispy Kreme at the NYSE
May 17, 2000
Set up Equipment on Wall Street
Made Fresh Krispy Kremes
43,000 Hot Original Glazed Doughnuts were given to the investment community
The Krispy Kreme Catering Service
A catering service for corporate meetings
Offer the full line of Krispy Kreme products
Full service catering service
Online registration
Situational Analysis
Market Research
Competition
Large Doughnut Chain Restaurants
Target Market(Dallas, TX)
Marketing Objectives and Strategies
Product
Catering Service
Different from competition because…
Ease of menu choices
Geared toward regular, everyday meetings
Beginning phase of product cycle
Product is currently in gas stations and supermarkets
Krispy Kreme branding (boxes, hats, shirts)
Standard food regulations
Samples
Potential for new technology that produces hot-donuts on-site
Marketing Objectives and Strategies
Place
Distribution
Three Krispy Kreme locations strategically placed in Metroplex (Grapevine, Arlington, and Frisco)
Service Availability within Metroplex
Strategic locations create an ease of transportation
Pricing
Premium Krispy Kreme name
High demand for quality products
Testing phase in metroplex, potential rollout for US
Production costs are low
Marketing Objectives and Strategies
Pricing cont’d
Break-even point when Kreme Team salaries are paid.
High markup for doughnuts, but service costs vary
$10.00 per person, adjusted for promotions or supply costs
15%-20% discounts for first-time customers, 10% discount for second-time customers if used within one month
Krispy Kreme is well-regarded in public’s eye
Marketing Objectives and Strategies
Promotion
Selling will begin with established relationships
Starting with three salespeople
Relationship selling
Hourly Rate
Advertising
Commercials (television and radio), websites, flyers
“Let the Kreme Team Serve You”
New customer discounts
Storyboard
Budget
Control
Analysis of Profits
Number of Inquiries and hits on website
Analysis of Quality and Pricing strategies
These control points will be a benchmark for the future of Krispy Kreme Catering
Last edited by a moderator: