Krispy Kreme Essay

Krispy Kreme has been in the doughnut business for over 64 age and has been a specialty retailer for doughnuts from the very beginning. Krispy Kreme implements a differentiation strategy, attempting to cross off their donuts rear endd on taste, quality and simplicity. The compeverys goal since its early childhood has been to satisfy customers by providing a unique experience. This bold strategy has distinguish them from their competition and created a combative advantage. Customers are allowed to see how the doughnuts are do by dint of with(predicate) the Doughnut Theatre then served the newly baked treats acrid and fresh. The bright neon light that shines from every Krispy Kreme location reads Hot Doughnuts Now, is cardinal of Krispy Kremes key marketing strategies. When this sign is lit up, customers know that they pass on trounce fresh doughnuts that have just been made.Krispy Kreme provides Code of Ethics which covers a wide range of business practices and procedures. It focuses on recognizing, dealing and reporting any ethical issues. Krispy Kremes commitment to social responsibility shines through their fundraising program, which offers deuce-ace different ways of raising profit for your school or organization. Krispy Kreme has support non-profit organizations raise over 46 million through fundraising.Although Krispy Kreme has many competitive advantages, it has its disadvantages as well. The first is the extremely unhealthy nature of its mathematical products. By the prison term a person takes the first bite of their second Krispy Kreme donut, they have already exceeded the USDAs recommended fat intake for the entire day. This is sure to originate off all consumers who have health concerns or are watch their weight.The second disadvantage is the single product imagination and the lack of transmutation of Krispy Kreme products. Historical success for quick service type products revenue branch is slowest among any restaurant type. The product is non a demand in hard times and external environmental conditions could hurt consumers willingness to buy.Krispy Kreme will encounter many indirect and direct challenges as it continues to plus its market share across the globe. Recent improvements in IT have lessen mistakes in dispersal and lowered the amount of computer malfunctions, but thither is still room for improvement. Krispy Kreme will have to continue to supply the baking technology to their new factory stores which will be costly. Communication, along with the distribution of production technology and needed ingredients to each individual store sewer be difficult. Preserving order will be possible only through identifying certain technologies that will assist in the process of distribution and communication.With the novel upgrades, the employees must be able to operate the new technology without experiencing problems that could distress consumer confidence in the company.A nonher challenge to Krisp y Kreme is the lack of publicity through advertisements. Krispy Kreme depends solely on name learning and reputation of its business. By choosing to non spend its money on commercials, they risk the chance of having no recognition in certain areas. Moreover, McDonald has a not bad(p) relationship with its younger consumer base though its mascot and Starbucks has worked out deals with Barnes and Noble to have its coffee shops located intimate the bookstore.This way people do not just have to get their coffee and leave, they can relax and read at the same time. Krispy Kreme offers none of these benefits. One of the major problems in their current strategy is that they do not have different approaches in their marketing at all. They do not factor in age or demographics in their methods. No consequence what area Krispy Kreme is located, everything will be exactly the same.Finally, growth whitethorn bewilder Krispy Kreme to become less attractive as they become more mainstream. Kri spy Kreme may want to slow their growth in location to maintain the legitimacy and exclusiveness associated with high quality products.As a universal product and a global brand Krispy Kreme considers its market as truly anyone and anywhere. This concept allows the company to move ahead with their proved business model in all markets. Although some markets will be more successful than others, in my opinion Canada will emerge as the success story for Krispy Kreme. The Canadian market is more accustomed to the idea of having a donut as breakfast or a snack item versus other outside markets. Although Canada has Tim Hortons as a popular donut shop, Tim Hortons is not famous for their donuts. Moreover, Canada is akin to the U.S. market in terms of demographics and this will play a great role in its success.References1. Lamars Donuts News. October 25, 2002. http//www.lamars.com (05/20/04)2. Krispy Kreme Homepage. http//www.krispykreme.com (05/21/04)3. Case Study Krispy Kreme Doughnu ts. Corechange. (05/20/04)4. Krispy Kreme Announces store October 31, 2002. PR News Wire.http//www.prnewswire.com (05/20/04)5. Krispy Kreme word-of-mouth tactics October 21, 2002Brandweek. V43.p9 (05/20/04)6. www.moneycentral.com (05/21/04)7. Miller, Beth. The New Doughnut Dynamic. St. Louis Business Journal (05/20/04)