Our sweet idea
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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.

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Our Sweet Idea

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Our sweet idea

Our Sweet Idea

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


Mission target market

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

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

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

The Marketing Mix


Product

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

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

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

Promotion

Word-of-Mouth Marketing

Promotional Fundraising

Funding Large Organizations

Social Media

Seasonal Product Promotion

Lack of Standard Commercial Marketing


Swot analysis

SWOT Analysis


Competition

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

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

Recommendations


1 define target market

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

2. Expand Product Mix

Introduce breakfast foods, like bagels and basic spreads

Improve coffee by doing consumer research


3 optimizing location

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

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

Conclusion

Without changes, Krispy Kreme is destined to fail

Our recommendations deliver the needed spark for a comeback


References

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

Thank You!

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