This website uses cookies to ensure you have the best experience. Learn more

Krispy Kreme Case Analysis

5602 words - 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 ...view middle of the document...

The idea of making all of the shops look the same, so that they would be recognized by patrons wherever they traveled, as well as the viewing windows for watching the doughnuts being made, were good examples of marketing promotional strategies. 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 place may not necessarily translate and/or work in another. Financial systems of one era will not suffice for another and in this age of advanced access to information, inaccuracies can be extremely damaging to investor confidence.

This analysis of the Krispy Kreme Doughnut, Inc. case study will attempt to uncover some of the reasons for the company’s challenges, suggest some potential strategies and possible solutions as well the steps for implementing those strategies.

Situational Analysis

1 Environment

Krispy Kreme Doughnuts, Inc. was founded in 1937 and is headquartered in Winston-Salem, North Carolina. Krispy Kreme is a major competitor in the restaurant industry, known primarily for its donuts. Near the end of 2004 and the beginning of 2005, the economy began to slow. Other business in competition with Krispy Kreme began to crowd into its market and expansion plans that Krispy Kreme had projected had to be scaled back due to falling sales. Consumer interest in reduced carbohydrate consumption, including ,but not limited to, the interest in and popularity of low carbohydrate diets, such as the “Atkins” and “South Beach” diet plans have been blamed for declining sales in pre-packaged (grocery store) donuts.

2 Industry Analysis

Their leading competitors are “Dunkin Donuts”, with worldwide sales of $2.7 billion (2002) 5200 outlets worldwide and a 45% market share based on dollar sales volume,...

Other Papers Like Krispy Kreme Case Analysis

Krispy Kreme Essay

928 words - 4 pages Hortons as a popular 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 News. October 25, 2002. (05/20/04)2. Krispy Kreme Homepage. (05/21/04)3. "Case Study: Krispy Kreme Doughnuts". Corechange. (05/20/04)4. "Krispy Kreme Announces store..." October 31

Krispy Kreme Essay

1070 words - 5 pages KRISPY KREME DOUGHNUT INC ~CASE ANALYSIS~ PROBLEM STATEMENT Krispy Kreme Doughnut Inc, which is one of the largest doughnut manufacturing companies in the world, has experience historical success since the conception of the firm in 1932 by Vernon Randolph. More so recently the firm continued to experience these historical results until 2004 when questionable accounting practices as well as a fundamental breakdown in management lead the firm

Krispy Kreme

921 words - 4 pages shop, where doughnuts are made fresh on site. Even after introducing Macola, further automation became necessary when subsequent growth made it increasingly difficult to manage day-to-day operations. Krispy Kreme partnered with J.S. Walker & Co. to evaluate the company’s order, product delivery and inventory management life cycle. Analysis revealed that concentrating on process and supply chain communication would deliver the most significant

Krispy Kreme - 543 words

543 words - 3 pages CASE STUDY OF KRISPY KREME Just like their Donoughts the Krispy Kreme stock seemed irresistible when they went public in 2000. It was even named as IPO of the year and the Forbes named it as the company to look out for. But now it is just a firm with a market capitalization over 300 million. So what did Krispy Kreme did wrong to be in a situation like this. The decline of Krispy Kreme Donoughts Inc. with a market capitalization of over 3

Krispy Kreme - 548 words

548 words - 3 pages Suggested Questions for Case 7 1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.? * Looking at the financial statements for Krispy Kreme the firm’s financial health is not good, and the current condition is troubling. * The large amount of growth of the company in the years 2003 and 2004

Krispy Kreme Doughnut

1906 words - 8 pages Krispy Kreme Case Study: Adapting to the Changing Needs of Consumers By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson Table of Contents Executive Summary............................................................................................................................ 1 Introduction

Krispy Kreme Scandal

1015 words - 5 pages KRISPY KREME SCANDAL LaVeta Reed Brandman University ACCU 620 November 15, 2015 Introduction Krispy Kreme is a leading international branded specialty retailer of premium quality doughnuts. Headquartered in Winston-Salem, NC, the company has offered the highest-quality doughnuts and great-tasting coffee since it was founded in 1937. Today, Krispy Kreme and its one-of-a-kind Hot Light can be found in over 1000 shops around the world

Krispy Kreme Douchnuts Financial

3123 words - 13 pages Krispy Kreme Doughnuts Inc. Balance Sheet Fiscal year is February-January. All values USD. | 2010 | 2011 | 2012 | ASSETS | Cash & Short Term Investments | 20,220,000,000 | 21,970,000,000 | 44,340,000,000 | Cash Only | 20,220,000,000 | 21,970,000,000 | 44,320,000,000 | Short-Term Investments | - | - | 21,000 | Total Accounts Receivable | 18,360,000,000 | 20,990,000,000 | 22,270,000,000 | Accounts Receivables, Net

Analisa Forecast Krispy Kreme Doughnuts, Inc

854 words - 4 pages Analisa Forecast Krispy Kreme Doughnuts, Inc periode 2003-2004 oleh CIBC World Markets Krispy Kreme Doughnuts, Inc adalah perusahaan donat dan kedai kopi global Amerika yang berbasis di Winston-Salem, North Carolina. Pendiri Krispy Kreme, Vernon Rudolph dan pamannya membeli toko donat Joseph LeBeouf di Broad Street di Paducah, Kentucky bersama dengan resep rahasia untuk donat ragi diperoleh dari Chef Perancis di New Orleans. Rudolph mulai

Krispy Kreme Doughnut

1321 words - 6 pages Companies today are combining in record numbers. Executives pursue mergers, acquisitions, and joint ventures as a means to create value by (1) acquiring technologies, products, and market access, (2) creating economies of scale, and (3) establishing global brand presence. There is an underlying belief that most markets can provide revenues to three large suppliers; when more than three exist the urge to merge is irresistible. That said, the

Case Study

2343 words - 10 pages . This case is an evaluation of Krispy Kreme’s past and present business performance, internally and with regard to the external environment it is operating within. The study will conclude with both insights and recommendations Krispy Kreme should implement based on these evaluations and our SWOT Analysis. Mission & Vision One of Krispy Kreme’s main weaknesses is that it lacks a clear mission and vision statement. The only stated objective was

Related Essays

Krispy Kreme Financial Analysis

1826 words - 8 pages drinks they offer. Krispy Kreme has kept a strong presence in the market by being strategically placed in grocery stores and convenience stores. The company also adds to the economy by creating jobs, and stimulating investments through franchising. S.W.O.T. Analysis For continued success, Krispy Kreme needs to conduct an analysis of all aspects of the business. Some of the company’s strengths are: one of a kind taste and signature original

Krispy Kreme: Case Study & Financial Analysis

2477 words - 10 pages Krispy Kreme was a successful manufacturer of Doughnuts that was established in 1937 by a young entrepreneur named Vernon Rudolph. Rudolph was an industrious man who found clever ways to market and sell his unique confections to the American public. By the 1950’s Rudolph’s business had expanded to twenty-nine shops within twelve different states. Each shop featured pick-up windows (early versions of drive thrus) and possessed the capability of

Krispy Kreme Essay 2737 Words

2737 words - 11 pages IX.Appendices  A.Financial Analysis and Selected Tables [pic][pic]  KRISPY KREME DOUGHNUTS, INC.: A CASE ANALYSIS27According to a financial statement filed by Krispy Kreme Doughnuts, Inc. filed 10/31/06for the Period Ending 01/29/06, lower average weekly sales had a disproportionatelyadverse impact on company store profitability due to the significant fixed or semi-fixed, asa result, the Company closed 14 stores in fiscal 2005 and 47 stores

Krispy Kreme Essay 1607 Words

1607 words - 7 pages account receivable, notes receivable as well as inventory are the main part of current asset. What’s more, intangibles have become the major long-term asset. The...[continues] ------------------------------------------------- Krispy Kreme Doughnuts, Inc. Case 6   I. POINT OF VIEW: Consultant for Krispy Kreme Doughnuts, Inc   II. STATEMENT OF THE PROBLEM: How will Krispy Kreme Doughnuts, Inc. be able to bounce back after the decline of the