Krispykreme

Group members
Safeer Ahmad
Rana amanat
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12bba01018
Waqar zafar
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Muhammad wasim
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Muhammad haseeb
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Junaid farrukh
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Muhammad Abdullah 12bba01056
Waqar Zafar
1937: Vernon Carver Rudolph, the founder of Krispy

Kreme opens his own doughnut shop at WinstonSalem, North Carolina
1950s 1960s : doughnut process steps such as

Proofing, cooking, glazing, screen loading, and
cutting became entirely automatic.
1939: Rudolph registered the trademark Krispy

Kreme with the United States Patent and
Trademark Office. The business grew
rapidly and the number of shops also grew.
1976: After Vernon Rudolphs death, Krispy Kreme

became a wholly-owned subsidiary of Beatrice
Foods Company of Chicago, Illinois.
1982: a group of Krispy Kreme franchisees
purchased Krispy Kreme back from Beatrice Foods.
1999, the Company opened its first store in
California and began its national expansion
April 2000, Krispy Kreme held an initial public
offering of common stock
The Company reacquires several franchise markets

in the United States in 2003 and early 2004, often
at substantial premiums
In 2007 company total revenue is $461195 which

is decrease to $31876 in 2008 . And also In 2009 the
company revenue decrease to 45335
December 2001, the Company opened its first

international
store, in Canada, and began its international
expansion.
Late 2003, average unit volumes began to fall
leading to a period of retrenchment characterized
by over 240 domestic store closings from 2004
through 2009.
In fiscal 2008 seen bad news with all quarterly
earning negative. Last three fiscal years, KKD has
posted an operating loss. Mostly franchise was
close.
Introduction (cont)
In 2009 yahoo finance published a list of 15 firms that
have a high probability of going bankrupt during the

year. kkd was on the list.
650 stores worldwide in 18 countries
93 company owned and 430 franchisees
4500 full time employees
Muhammad Abdullah Khan
Vision and Mission

Our Vision
To be the global leader in doughnuts and
complementary products, while creating magic

moments worldwide.
Mission statement
We create the tastes for good times and warm memories
for everyone, everywhere. With our Original Glazed

doughnut as our signature and standard, we will
continually improve our customer's experience through:
Innovative ideas
Highest quality, and
Caring service
Our Values
Our Values
(with acknowledgement to Founder, Vernon Rudolph)
we believe...
Consumers are our lifeblood, the center of the doughnut
There is no substitute for quality in our service to
consumers
We must produce a collaborative team effort that is
unexcelled
We must cast the best possible image in all that we do
We must never settle for "second best"; we deliver on
our commitments
Key Factors
Customers
Supplies
Whole seller
Rana Amanat
Business Operations
We generate revenues from three distinct sources.
Company Stores.
On-premises sales.
Off-premises sales.
Franchise.
KK Supply Chain.
Mix manufacturing.
Equipment.
Distribution.
3 WAYS TO RAISE FUNDS

Company store
Franchise fee and royalties from ranchies
KK Supply Chain
Krispy Kreme Worldwide
Junaid Farrukh
Store Layout/Design
Freestanding: Most free-standing Krispy Kreme stores are constructed

with a long window between the customer area and the kitchen,
allowing customers to watch the operation of the doughnut-making
machines.
Smaller Stores: Most of the smaller stores get their donuts from other
locations rather than producing them on-site.
Atmosphere: Very welcoming,

with bright lighting. Seating is
limited but available. Factory
tends to pull curious customers
inside.
Advertisement / Marketing
Free doughnut strategy Hot Now; free doughnut while waiting in
line.
TV ad campaign
Gifts/Accessories shirts, sweatshirts, hats, boxers, coffee, mugs, toys.
Fundraising helped schools raise over $30 million last year (selling
doughnuts, coffee, certificates, and partnership cards).
Distinguishing Aspects
Store Layout: Factory inside the store where you can
watch how the donuts are made.

Reputation: Krispy Kreme has always been known as and
has had a reputation of being the best.
Hot Now: When the Hot Now sign outside the store is lit you
can get hot and fresh original glazed donuts.
Competitors
Dunkin Donuts- Privately owned
Starbucks- coffee shop with 8,800
worldwide locations
Over expanded- downsizing and
consolidating
Current products are too expensive for
consumers
Dunkin Donuts
to be
themarketingguy.wordpress.com
Claims to be the worlds largest
coffee and baked goods chain.

Serving 2.7 million customers per
day
5,769 U.S. locations
20 countries
Wholly owned private
subsidiary
dunkindonuts.com
Starbucks
World premier roaster and
retailer of specialty coffee

8812 own stores
7852 license stores in more than 50
countries
Annual sale $10 million in 2010
Muhammad wasim
Situational Analysis
Environment
The Organization
The Marketing Strategy
Environmental
Internal factors
Strong brand recognition
and recall
Wide appeal of signature
glazed doughnuts
Vertical integration
Development in
international markets
Strong channel of
distribution
Quality of product
Expanded assortment of
offerings at KKD stores
including beverages
anaysis
External factors
Increasing popularity of
coffee shops and bakery

cafs
Popularity of American
foods and fashion in
overseas markets
Channel expansion
possibilities (i.e., Internet
pre-ordering)
Competitors like Dunkin
Donuts and Starbucks
Low-carb trend in eating
preferences
Organization Analysis
Strategy is focused on revenue
organizational structure
In 2001, cash flow return on equity investment for
franchises was at 91%,

In 2003, the companys business strategy was to add
enough new stores
strategies do not appear to be capable of maintaining a
competitive advantage
July 2004 launching an inquiry into the
companys accounting practices.
December 2004, they announced still more
accounting errors
Marketing Strategies
little evidence of market research.
Company spent very little on advertising.
This strategy seems to still work well but would not be
sufficient to generate continuing business

New stores are opening, close to the older stores within
the same market.
Their training, facilities management and franchise
management is good strength of kk.
Marketing Strategies
(cont)
Vertical integration supply chain.
Short-shelf life products.
Failure to do appropriate and effective market research
Muhammd haseeb
IFE
I.F.E
EFE
E.F.E
C.P.M
BCG Matrix
Safeer Ahmad
Problems Found in Situational,

Environmental Analysis
the lack of a interrelated marketing structure within or a
strategic marketing plan for the organization.

Flawed or absent marketing research has
resulted in store closings and or expansions
that were not backed up by market data or
evidence that this investment would be
feasible.
The company spent very little on advertising
depending largely on word of mouth, and
local publicity.
The second problem is using a vertically integrated supply
chain
Conclusion
The food industry has been affected by a recent trend
toward quick eating habits. Krispy Kreme has

capitalized on this trend by positioning doughnuts as a
popular, on-the-go food.
Krispy Kremes success has depend on consistency
throughout its locations and by delivering a high quality
product. Future growth opportunities include
expanding franchises as well as penetrating
alternate distribution channels.
As Krispy Kreme analyzes potential growth
opportunities within alternate distribution
channels such as convenience stores and
grocery chains, it must determine whether
doing so will sacrifice brand equity and
product quality.
It is believe that Krispy Kreme can be successful in
launching its product in new markets without establishing

physical locations. Alternative channel distribution will
help bring the Krispy Kreme product to millions of
potential customers who have yet to experience the taste
of Americas best doughnut.
Implement Marketing Strategies

Advertising national television and radio advertising
campaign based on hot doughnuts now.
Marketing research periodic research to stay abreast of
trends.
R&D product development
Strengthen Competitive Advantage
Strengthen Competitive Advantage through
differentiation in products and services.
Continue to utilize hot doughnuts now
Expand product line

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What are some of the major events in Krispy Kreme's history?

What are some of the major events in Krispy Kreme's history?

What problems did Krispy Kreme face according to the situational analysis?

What problems did Krispy Kreme face according to the situational analysis?

Group members

1937: Vernon Carver Rudolph, the founder of Krispy

1950s 1960s : doughnut process steps such as

1939: Rudolph registered the trademark Krispy

1976: After Vernon Rudolphs death, Krispy Kreme

The Company reacquires several franchise markets

In 2007 company total revenue is $461195 which

December 2001, the Company opened its first

have a high probability of going bankrupt during the

Muhammad Abdullah Khan

Vision and Mission

complementary products, while creating magic

for everyone, everywhere. With our Original Glazed

3 WAYS TO RAISE FUNDS

Krispy Kreme Worldwide

Freestanding: Most free-standing Krispy Kreme stores are constructed

Atmosphere: Very welcoming,

doughnuts, coffee, certificates, and partnership cards).

watch how the donuts are made.

Claims to be the worlds largest

coffee and baked goods chain.

Wholly owned private

retailer of specialty coffee

coffee shops and bakery

franchises was at 91%,

sufficient to generate continuing business

Problems Found in Situational,

strategic marketing plan for the organization.

The second problem is using a vertically integrated supply

toward quick eating habits. Krispy Kreme has

It is believe that Krispy Kreme can be successful in

launching its product in new markets without establishing

Implement Marketing Strategies

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