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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: “ 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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  1. Our Sweet Idea Presented by: Celeste DiFerdinando, Etana Kenter, Stephen Thai, and Avi Weinstein

  2. 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

  3. 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

  4. 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

  5. The Marketing Mix

  6. 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

  7. 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

  8. 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…

  9. Promotion Word-of-Mouth Marketing Promotional Fundraising Funding Large Organizations Social Media Seasonal Product Promotion Lack of Standard Commercial Marketing

  10. SWOT Analysis

  11. 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

  12. 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

  13. Recommendations

  14. 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

  15. 2. Expand Product Mix Introduce breakfast foods, like bagels and basic spreads Improve coffee by doing consumer research

  16. 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

  17. 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

  18. Conclusion Without changes, Krispy Kreme is destined to fail Our recommendations deliver the needed spark for a comeback

  19. 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>.

  20. Thank You! Questions? Comments?

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