Krispy Kreme Case Analysis Essay

Krispy Kreme does not have one particular target commercialize and are notcategorized as one business casing they have various tactics to appeal to various markets. They also target prepare, local organizations and businesses. He primary market, those ranging from the ages 20-30 years old, are Krispy Kremes main focus. This is where the legal age of their business comes from. These are your everyday commuters who desire a sweet treat, or coffee to help outlast a long day at work. Their purchases whitethorn be small or cheap, but business is usually consistent, as are sales. Krispy Kreme appeals to schools as a fundraising opportunity. Doughnuts are very inexpensive when purchased in bulk, and easygoing to sell. Krispy Kreme offers certificates, coffee, partnership cards, and doughnuts to schools to raise money. Gift certificates are less of a burden, and those selling them dont have to deal with ordering and delivering doughnuts after youve made the sale. This makes things easie r for both(prenominal) the customer and fundraiser. Offering fundraisers to schools increases cognisance of Krispy Kreme, serves as sales promotion, whilst building a relationship with schools and the community. The money earned from these fundraisers are usually used to improve the school or purchase uniforms as shown on Krispy Kremes Fundraising page on their site. Local organizations and businesses purchase Krispy Kremes overlaps for retailing.CompetitorsCompetitors CompetitorsStarbucksMcDonaldsNestlesDunkin DonutsEinstein BagelsPanera breadStarbucksBruegges EnterpriseDunkin DonutsYum BrandStarbucks supranational Dairy QueenStarbucks target Audience-Affluent customersWell educated customersWhite Collar PatternsThe age of the target market was between 25 and 44.Eventually, the company distinguishable to expand its target market to include young, less-educated and low-income consumers. A large portion of coffee drinkers is found in urban areas of the United States. It is becaus e most of educated and workings professionals live in the urban areas. It is because most of educated and working professionals live in the urban areas. With the rapid expansion, Starbucks targeted customers of every age group.Einstein BagelsThat target market is younger than other coffee shops and is aimed at people between age 25 and 50.Dunkin DonutsDunkin Donuts target market is the blue collar workers (18-60) of America who likes the quick suffice that Dunkin Donuts provides. Also within its target market are kids, highly due to its name. Recently Dunkin Donuts has been targeting the market of affluent women and professionalsKrispy Kreme Strengths1. Company brand image and reputation.2. Proprietary doughnut-making equipment, and susceptibility to supply tofranchises at profitable prices.Krispy Kreme Weakness1. Competitors are larger and well established in their markets, tougher to compete head to head once newness is over. 2. Core product does not incorporate health/weight c onscious consumers.Krispy Kreme Opportunities1. Add more stores in current target markets to make it convenient for all areas. 2. Attract a broader range of customers and sell more products to existing customers by enhancing present menu offerings, esp in coffee and coffee drinks.Krispy Kreme Threats1. Competitors concerned about KK rapid egress and market share gains and erosion of their own market positions, may well be compelled to rejuvenate their product menus, this would be costly battle for KK. 2. Consumer habits changing adept scheme alternative in each cell matrix would be maven schema in strengths/ Opportunity would be to increase marketing, incorporating social networksOne strategy in Weakness/Opportunity would be growing new markets or increase the product line to incorporate healthier choices.One strategy in Strength/Threats promoting healthier product lineOne strategy in Weaknesses/Threats would be to avoid developing existing markets by existing products strategica l issues with supporting data1. Krispy Kreme management should meet with franchisees and explore again theplans for opening new stores, it would seem to make sense to accelerate the pace of new stores openings at least in those areas where the enthusiasm for the products has been so great.2. Adapt to consumer desires. Increase product development, i.e., healthier choices.3. Lack of corporate governance.Matching the Strengths of franchise opportunities, Krispy Kreme is highly favorable. Its resource strengths and private-enterprise(a) assets easily outweigh its resource weaknesses and competitive liabilities. The company has plenty of opportunities it can pursue to continue to grow more rapidly, the company should have little bar opening several hundred more stores, Dunkin Donuts has 3,600 in the US alone versus just over 180 for KK. Their strategy is a solid one, with competitive advantages in product quality, product appeal, brand reputation, and ability to attract high caliber f ranchises because of vertical integration into doughnut making equipment, doughnut mixes and coffee. The threats are still in the foreground, the product excitement being created by Krispy Kreme could end up helping grow the market for doughnuts and help over come the relatively flat drive for doughnuts that has prevailed. A costly battle for market share can be avoided.4 Three of Krispy Kremes strategic issues using SMART format harmonize to Return on Assets, there has been an increase from 1998, with a slight decrease due to further investment of assets in 2002. The company is converting money into net income, therefore, quick enough to add more stores in the mix.Return on Equity offers a profit generating efficiency for investors. The decrease in 2002 is because of improvements in companys operations. Intangible assets are also excluded like the brand name.SMART goalSpecific To create shareholder wealth through an ambitious growth strategy meanwhile, using a thorough marketing strategyMeasurement increasing brand awareness through strong positioning and optimizing distribution channels, therefore, creating brand loyaltyAggressive maintain a healthy increase in net sales, 10-20%, while optimizing efficiency.Realistic Increase the number of franchise stores to bring brand awareness and loyaltyTime-bound capitalizing on the growth of the market, increase storefranchises over the next three years