Krispy Kreme Essay

Krispy Kreme has been in the gang short letter for over 64 years and has been a specialty retailer for doughnuts from the very beginning. Krispy Kreme implements a differentiation strategy, attempting to distinguish their donuts based on taste, select and simplicity. The companys goal since its infancy has been to satisfy customers by providing a unique experience. This bold strategy has differentiated them from their competition and created a war-ridden advant grow. Customers are allowed to see how the doughnuts are made through the closed chain athletic field then served the newly baked treats hot and fresh. The bright neon easy that shines from every Krispy Kreme location reads Hot Doughnuts Now, is one of Krispy Kremes key marketing strategies. When this sign is lit up, customers know that they ordain get fresh doughnuts that agree just been made.Krispy Kreme provides Code of Ethics which covers a wide range of business practices and procedures. It focuses on recognizin g, dealing and reporting any ethical issues. Krispy Kremes fealty to social responsibility shines through their fund superlative program, which offers three different ways of raising profit for your school or organization. Krispy Kreme has seeed non-profit organizations raise over 46 million through fundraising.Although Krispy Kreme has some competitive advantages, it has its disadvantages as well. The freshman is the passing unhealthy nature of its products. By the time a person takes the first bite of their second Krispy Kreme donut, they nonplus already exceeded the USDAs recommended dilate intake for the entire day. This is sure to turn off all consumers who have health concerns or are watching their weight.The second disadvantage is the exclusive product concept and the lack of variety of Krispy Kreme products. Historical success for tender service type products revenue gain is slowest among any restaurant type. The product is not a necessity in hard time and extern al environmental conditions could hurt consumers go awayingness to buy.Krispy Kreme give encounter many indirect and direct challenges as it continues to increase its market share crossways the globe. Recent improvementsin IT have reduced mistakes in distribution and take down the amount of computer malfunctions, but there is still room for improvement. Krispy Kreme will have to continue to supply the baking technology to their new milling machinery stores which will be costly. Communication, along with the distribution of production technology and call for ingredients to each individual store can be difficult. Preserving order will be possible only through identifying certain technologies that will assist in the process of distribution and communication.With the recent upgrades, the employees must be up to(p) to operate the new technology without experiencing problems that could damage consumer confidence in the company.another(prenominal) challenge to Krispy Kreme is the la ck of publicity through advertisements. Krispy Kreme depends solely on fig recognition and reputation of its business. By choosing to not spend its money on commercials, they risk the chance of having no recognition in certain areas. Moreover, McDonald has a great relationship with its younger consumer base though its mascot and Starbucks has worked out deals with Barnes and shocking to have its coffee shops located inside the bookstore.This way people do not just have to get their coffee and leave, they can die away 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 matter what area Krispy Kreme is located, everything will be exactly the same.Finally, growth may cause Krispy Kreme to become less benignant as they become more mainstream. Krispy Kreme may want to slow their g rowth in location to maintain the authenticity and exclusiveness associated with high lumber products.As a universal product and a global blade Krispy Kreme considers its market as truly anyone and anywhere. This concept allows the company to move earlier with their proved business model in all markets. Although some markets willbe more successful than others, in my opinion Canada will bulge out as the success story for Krispy Kreme. The Canadian market is more disposed to the idea of having a donut as breakfast or a snack item versus other foreign markets. Although Canada has Tim Hortons as a everyday donut shop, Tim Hortons is not famous for their donuts. Moreover, Canada is similar to the U.S. market in terms of demographics and this will play a great role in its success.References1. Lamars Donuts newsworthiness. 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 Doughnuts. 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)