Essay on Krispy Kreme

This essay has a total of 1742 words and 9 pages.

Krispy Kreme

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 Californians and New Yorkers. Race is definitely not an issue. Only three types
of people claim that they do not like Krispy Kreme: nutritionists, Dunkin' Donuts
franchisees, and compulsive liars.

Stan Parker, senior VP-marketing, says "no one looks at Krispy Kreme as a replacement for
lunch or dinner. It's a complement" (MacArthur, 2003). Krispy Kreme wishes not to be a
fast food business or another doughnut store.

President and Chief Executive of KremeKo, insures the public that they think long and hard
before the considering expansion. He said, "Krispy Kreme doughnuts won't suddenly become
available everywhere because we don't think that's appropriate for the brand at this
juncture in its evolution in the marketplace" (Krispy Kreme Steps up Wholesale Business in
Canada, 2003,)

Reflection 2
KKD openly shows it audit procedure online in a PDF. Form which shows great ethical poise.
No company is void of legal woes whether casualty or accused. According to a Forbes
Magazine article, KKD has been cleared in any wrong doings in regards to engaging in
intentional misconduct related to the company's acquisition of a Michigan franchise.
Krispy Kreme did not wait to get independent legal parties involved with the issue and
allowed the SEC to review any sought impropriety. According to the Forbes report, KKB
halted turning in its Q10 statement until all is settled but had to close a $4.6 million
doughnut plant in northeast Ohio due to oversupply problems.

Socially, KKB has done its part to open a store or fill a convenience store with its
product which appeals to all who seek a tasty pastry. They have offered free donuts to
masses of people including EMS, police personnel, military troops overseas which I would
bet boosts morale. On there website, they support the Children's Miracle Network which is
a great benefit to society.

Reflection 3
Taking into consideration all KKD's publics, it is no shocker that Krispy Kreme continues
to grow. For the first time, it successfully expanded nationally during the late 1990s in
California (Saltzman). A main point of Krispy Kreme's continued financial success has been
their expansion into international markets. Markets such as Mexico, Canada, the United
Kingdom, Australia, New Zealand, Japan, South Korea, and Spain. Each time KKD expands,
they are met with much eagerness.

Growth for Krispy Kreme comes after careful consideration of location and timing. The
company will spend countless hours investigating international markets (Krispy Kreme
Awards Development Rights to Australia and New Zealand, 2003). For example, when Krispy
Kreme decided to expand into the UK, the company decided the best location would be a
Harrods store in London. Research showed that Brits eat about 1/25th of Europe's sugar
products and almost 1/3rd of its chocolate (Krispy Kreme doughnuts to open branch in
Harrods, 2003). Dunkin' Donuts decidedly pulled out of the UK recently, but Krispy Kreme
is confident they will not fail. (Emling, 2003) KKD said that they have a different model
than Dunkin' Donuts, focusing only on doughnuts.

Krispy Kreme considers the same factors when looking to expand either domestically or
internationally. Fundamental to the company's expansion strategy is aligning itself with
highly competent, well-capitalized and experienced food vendors (Krispy Kreme Continues
Expansion through New Area Developer Agreements and New Store Openings, 2002). After their
initial success outside of North America, Krispy Kreme became confident that its doughnuts
would be well received throughout the globe.

In regards to long-term future growth, executives say that they are confident foreign
taste-buds will acquire a craving for the sugary pastries when the company expands into
Australia, New Zealand, Britain, Japan, and South Korea (Shook, 2002).

Krispy Kreme has taken its time finding the right corporate partner in each of those
markets and CEO Livengood agrees. "We decided to target those countries based on the
popularity of American products in those markets—as well as the ease of doing business."
(Shook 2002) After Krispy Kreme determines where to expand, they choose the type store.

Reflection 4
3 Major Competitors of KKD
• Starbucks
• Dunkin' Donuts
• Panera Bread
Stated in Krispy Kreme's 10-K Report from 2003, Krispy Kreme competes with various
well-established food services. At the retail level, the company competes with other
doughnut vendors and bakeries, specialty coffee retailers, bagel shops, fast-food
restaurants, delicatessens, take-out food service companies, supermarkets, and convenience
stores. At the wholesale echelon, KKD competes mostly with grocery store bakeries,
packaged snack foods, and vending machine dispensers of snack foods.

Many Krispy Kreme's competitors offer customers a broader range of products. They have
greater financial clout and other resources that allow them to respond to changes in
pricing, marketing and the quick service restaurant better than Krispy Kreme can (Krispy
Kreme Doughnuts, Inc.)

Continues for 5 more pages >>




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