Krispy Kreme Case Analysis

5576 Words Mar 17th, 2010 23 Pages

Krispy Kreme Doughnuts, Inc.: A Case Analysis

Presented to

October 09, 2009

Table of Contents

II. Table of Contents 2
III. Executive Summary 3
IV. Situational Analysis 5 A. Environment 5 B. Industry Analysis 5 C. The Organization 7 D. The Marketing Strategy 9

V. Problems Found in Situational Analysis 10 A. Statement of primary problem. 10 B. Statement of secondary problem 12 C. Statement of tertiary problem. 13

VI. Formulate, evaluate, and record alternative course(s) of action 14 A. Strategic Alternative 1 14 1. Benefits 14 2. Costs 15 B. Strategic Alternative 2 16 1. Benefits 16 2. Costs 19 C.
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These strategies are still considered by Krispy Kreme to be “Brand Elements” as reported in current, annual financial reports. By keeping control of the recipe and the doughnut-making process, they also maintained product standards and reduced, while not completely eliminating, the competition through the uniqueness of their product. In fact, attempts to change the recipe, or even the look of the shops, in later years met with negative reactions from customers and the company quickly returned to the original taste and feel of the “original” Krispy Kreme.
The company and its doughnut became synonymous with a particular look, taste and feeling. This emotion that became associated with Krispy Kreme, described as “a feel-good business” and one that “created an experience” as opposed to just selling doughnuts (Peter and Donnelly, 2007), became the core of the company’s marketing strategy, and just maybe, one of the prime reasons for its subsequent struggles in the early 2000’s. Selling a “feeling” or “experience” can be a successful marketing tool. But that’s just one of the tools that a successful marketing plan must encompass. The company must also be prepared to grow with the times and change with that growth. That is, the marketing strategy of one time and

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