The paper is devoted to the research of the Krispy Kreme Doughnuts, Inc., its target markets and competitors with defining the characteristics of the target audience and the competitive advantages. It will be necessary to describe the major variables at work and the areas in which the company displays the highest competitive advantages. Market and Target Market The company to be analyzed in the paper will be Krispy Kreme Doughnuts, Inc. As http://www.hoovers.com/krispy-kreme/–ID__53559–/ free-co-factsheet.xhtml mentions, ‘this company doesn’t use any digging equipment, but it does make a lot of holes. Krispy Kreme Doughnuts operates a chain of more than 310 shops and more than 80 smaller format satellite locations throughout the US and in five other countries popular for their glazed doughnuts that are served fresh and hot out of the fryer.’ It is noticeable, that Krispy Kreme sells a great variety of doughnuts and coffee products, but the most famous product of this company is its original glazed doughnut. By offering a wide range of products, Krispy Kreme aims at scoping the broadest audience, satisfying various tastes and desires of its customers.
Simultaneously, one may notice that some Krispy Kreme products are not found in all of the stores. This phenomenon is explained by the fact, that the company constantly watches the changes in the consumer preferences, having chosen several featured items, which can be found in any Krispy Kreme Store, with slightly changes in menu from store to store, depending on the location and the popularity of other selected items in the specific place. Krispy Kreme does not have several brands as, for example, Dunkin has, which may be seen as an advantage, because the company is still aimed at the broadest audience, concentrating its efforts at the development and improvement of the two kinds of its products doughnuts and coffee of several varieties. The target markets of the company described may look in the following way: Children (5-14) fast, energetic, mobile, eating preferably sweet and pleasant food. Adolescents (15-21) always on the move, looking for something new, open to anything and prepared for any novelties. Adults busy, looking for fast and quality food, stable in their preferences and approving wide choice in anything.
Introduction Krispy Kreme Doughnuts was the dream of a great entrepreneur, Vernon Carver Rudloph. Although, Mr. Rudolph did not invent the doughnut, he definitely improved the process of making the doughnuts and the taste of the doughnuts, with his secret recipe for yeast-raised doughnuts. There are many values, within, this organization that are passed onto employees, and then to customers. The ...
Family looking for good leisure time, choosing restaurants as the best way to spend free time, choosing several kinds of food products. The primary products of the Krispy Kreme may be described as follows: Doughnuts glazed, of about 20 different varieties. Coffee coffee roasts, espresso drinks, frozen blends, milk. (http://www.krispykreme.com) Taking into account the definition of the target markets and primary products, it is now possible to create a product-market grid, which will become the base for our further discussion. Doughnuts Coffee roasts Espresso drinks Frozen blends Milk Children X X X Adolescents X X X Adults X X X Family X X X X The company does not make mass media advertising, which is rather widely spread among doughnut-making companies. One of the company’s advantages is that it concentrated on the middle and higher class of consumers. According to the earlier researches, Americans with the annual income of $50,000 and higher, are much more likely to make a break at Krispy Kreme.
Among the other advantages of the company in attracting the consumers, is that it has made the process of cooking doughnuts open to its clients, which is beneficial relative to the competitors, among which Dunkin and Tim Hortons. (Cone, 2006) Expenses and personnel are the main variables which are used by Krispy Kreme Doughnuts in taking the advantages of the doughnuts market. Controlling expenses and cost-effectiveness is the central issue of the competitive marketing strategy of the company; simultaneously it invests significant finances into its staff for its technical training, reducing the costs for hiring and servicing additional personnel. The competitor, described in this work, definitely has an advantage in comparison to its so called companions in the presented marketing segment. Its advantage is in using correct and well-developed marketing and promotion strategy. Its advantage is not in pricing, as the prices for the similar products appear to be relatively higher than these of competitors, its advantage is not in its resources, though if we suppose the personnel as one of the essential company’s resources, then it is definitely a resource advantage. Krispy Kreme uses high technologies as the main benefit in its promotion. The rolling system of orders has allowed significant number of workers devoting more time to the servicing of the consumers, the radio frequency system used by Krispy Kreme led to more exact and fast processing of orders.
Case Discussion Reflection 1 KKD seeks to appeal to everyone in their mission to slowly take on the fresh pastry market. Krispy Kreme is not one to limit a target of the public. According to Holland (2003), the company is equally loved by 5-year-olds and 75-year-olds alike. They are also enjoyed by whites, blacks, Asians, and Hispanics. New Englanders and Southerners love them as well as ...
This improvement became a considerable advantage in front of the company’s competitors. However, with the benefits and advantages which make Krispy Kreme Doughnuts ahead of everyone, they still need two things which will make the company unreachable for the rivals it needs the improved supply chain and improved franchising, as franchising is the core of the Krispy’s growing strategy. In order to finish the analysis if the enterprise, it should be said that Krispy Kreme Doughnuts Inc. has a strong position on the market of fast food products, though the market is already saturated and is very competitive. Thus, it is important for the company to keep its position and to look for the new means and solutions of its business strategy. Among the possible directions of the promotion and cost-effectiveness policies may appear the slight decreasing of prices and more effective work with franchisees.
References (1) Cone, Edward. (Retrieved on August 03, 2006).
‘Krispy Kreme’s essential ingredient’. Available at: http://www.baselinemag.com/print_article/0,3668,a= 33370,00.asp (2) Journal article. (2006, April) ‘Krispy Kreme Doughnuts, Inc.’ Snack Food & Wholesale Baker. Available at http://www.allbusiness.com/periodicals/article/509 511-1.html (3) http://www.krispykreme.com (4)http://www.business.com/directory/food_and_beve rage/baked_goods/krispy_kreme_doughnuts_inc/profil e.htm (5) http://www.hoovers.com/krispy-kreme/–ID__53559–/ free-co-factsheet.xhtml.
Krispy Kreme first traded its Shares in the NASDAQ market on April 5, 2000. Under the ticker symbol KID Krispy Kreme started trading on the NYSE on May 17, 2001. Krispy Kreme offers 3, 450, 000 shares for the public to grasp. Financial Outlook When reviewing the financial analysis of Krispy Kreme Doughnuts, Inc we have grown by leaps and bounds in the pass five years. Management has cut expenses ...