Our sweet idea
Sponsored Links
This presentation is the property of its rightful owner.
1 / 20

Our Sweet Idea PowerPoint PPT Presentation


  • 48 Views
  • Uploaded on
  • Presentation posted in: General

Our Sweet Idea. Presented by: Celeste DiFerdinando, Etana Kenter, Stephen Thai, and Avi Weinstein. Mission & Target Market. Mission: “ To touch and enhance lives through the joy that is Krispy Kreme. ” Broad mission has led to poorly defined target market. History.

Download Presentation

Our Sweet Idea

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Our Sweet Idea

Presented by: Celeste DiFerdinando, Etana Kenter, Stephen Thai, and Avi Weinstein


Mission & Target Market

Mission: “To touch and enhance lives through the joy that is Krispy Kreme.”

Broad mission has led to poorly defined target market


History

  • Founded in 1937 in North Carolina

  • Only started experiencing growth in 1960s

  • New York in 1996: First store outside of the Southeast

  • IPO in 2000

  • Expanded internationally since


The Decline

Value of stock has declined since 2004

Starting in 2008, KK has experienced a net loss

Americans became more health-conscious

Lack of promotion

No clear target market


The Marketing Mix


Product

  • Strongest aspect of KK’s marketing mix

  • Narrow but deep product mix

  • Doughnuts

    • Hot, original glazed

    • Known for being hot and fresh

    • Consistent across all stores

    • 20 varieties

    • Aesthetically pleasing

  • Coffee

    • 8 varieties

    • Only 10% of sales

  • Ice Drinks & Ice Cream Products

    • Kool Kremes


Place

  • 582 stores; only 83 are operated by the company

  • Distribution Warehouses

    • Enterprise Resource Planning

  • Brick and Mortar sites

    • Factory Stores

    • Satellite Stores/Kiosks

    • Grocery Stores

  • Selective Distribution


Price

  • Doughnuts – KK is marginally cheaper

    • Krispy Kreme – Approx. 55¢

    • Dunkin’ Dounts – Approx. 60¢

  • Coffee – KK is significantly cheaper

    • 12oz. Bags of Coffee Grounds

      • KK – $6.99

      • DD – $9.49

      • Starbucks – $25.47

    • But the quality…


Promotion

Word-of-Mouth Marketing

Promotional Fundraising

Funding Large Organizations

Social Media

Seasonal Product Promotion

Lack of Standard Commercial Marketing


SWOT Analysis


Competition

  • “Krispy Kreme… must catch up with early-morning rivals Dunkin' Donuts and Starbucks when it comes to caffeine.” –Marc Hogan, Business Week

  • KK vs. DD

    • KK doughnuts are fresher and last longer

    • DD makes most of its profits from coffee

    • DD has 8 times as many stores

    • DD is expanding in the southeast

  • KK vs. Starbucks

    • KK is cheaper

    • Starbucks has many more stores and has a higher quality product


Health

  • Generally considered to be unhealthy

    • Original glazed: 200 cal, 12g fat

    • Vs. DD: 240 cal, 14g fat

  • In 2006, started selling the whole wheat doughnuts

  • Reduced in 2008 to .5g trans fat

  • Mini-doughnuts


Recommendations


1. Define Target Market

  • Working person in their 30s and 40s who wants to satisfy their caffeine fix, grab a bite to eat, bring in something for the office, and occasionally indulge


2. Expand Product Mix

Introduce breakfast foods, like bagels and basic spreads

Improve coffee by doing consumer research


3. Optimizing Location

  • Eliminate grocery and convenience store sales

    • Store Cannibalization

  • Boost satellite store and kiosk presence at transportation terminals and in commercial areas

  • Increase drive-thrus


4. Advertising Campaign

  • Promote mini-doughnuts for health reasons

  • Promotional bundles in the form of combo meals

    • Coffee, bagel, mini-doughnut

  • TV Spots

  • Social media

    • Twitter

    • Facebook


Conclusion

Without changes, Krispy Kreme is destined to fail

Our recommendations deliver the needed spark for a comeback


References

  • Adams, Stephen. "Middle Aged Are Driving Twitter's Success - Telegraph." Telegraph.co.uk - Telegraph Online, Daily Telegraph and Sunday Telegraph - Telegraph. 13 Apr. 2009. Web. 30 Nov. 2010. <http://www.telegraph.co.uk/technology/twitter/5147827/Middle-aged-are-driving-Twitters-success.html>.

  • Clark, Amy S. "Doughnut Wars: Krispy Kreme Vs. Dunkin' - CBS News." Breaking News Headlines: Business, Entertainment & World News - CBS News. 20 Oct. 2006. Web. 30 Nov. 2010. <http://www.cbsnews.com/stories/2006/10/20/business/main2112599.shtml>.

  • "Dunkin Donuts - Food and Drink." Shopping.com. 30 Nov. 2010. Web. 30 Nov. 2010. <http://www3.shopping.com/dunkin-donuts/products>.

  • Hoover's Company Records. "Krispy Kreme Doughnuts, Inc." LexisNexis Academic. LexisNexis, 30 Nov. 2010. Web. 30 Nov. 2010. <http://www.lexisnexis.com/hottopics/lnacademic/?>.

  • Integrated Visual Systems. "Krispy Kreme Doughnut Case Study." Rev. of Krispy Kreme Macola Progression Series ERP System. Web. 30 Nov. 2010. <http://www.ivsi.com/pdffiles/KrispyKremeCaseRev1.pdf>.

  • Krispy Kreme. "About Us." Krispy Kreme Doughnuts and Coffee. Web. 30 Nov. 2010. <http://www.krispykreme.com/home>.

  • Krispy Kreme Doughnuts, Inc. 2010 Annual Report. Rep. EDGAR Online, Inc., 15 Apr. 2010. Web. 30 Nov. 2010. <http://investor.krispykreme.com/annuals.cfm>.

  • Luna, Nancy. "Krispy Kreme Launches First-ever Mini-doughnut." The Orange County Register. 17 Oct. 2008. Web. 30 Nov. 2010. <http://fastfood.ocregister.com/2008/10/17/krispy-kreme-launches-first-ever-mini-doughnut/4329/>.

  • "Marketing Mix and Brand Analysis of Krispy Kreme." HubPages. Web. 30 Nov. 2010. <http://hubpages.com/hub/Brand-Analysis-Krispy-Kreme>.

  • Munarriz, Rick A. "Saving Krispy's Kreme." The Motley Fool. 21 Mar. 2004. Web. 30 Nov. 2010. <http://www.fool.com/investing/general/2004/05/21/saving-krispys-kreme.aspx>.


Thank You!

Questions? Comments?


  • Login