Recommendations in krispy Kreme Case study PDF

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this is the recpmmendation part of Krispy Kreme doughnuts in making a case study for business...

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RECOMMENDATIONS:

1. Product Development in Asian Countries, introducing new flavors and creating a healthier doughnut line 2. Market Development in the International market focused on opening new stores that would be convenient to the customers 3. Sustaining Brand Reputation 4. Market Penetration focusing on increased market share through greater marketing effort

Defensive Strategy 1: Product Development in Asian Countries, introducing new flavors and creating a healthier doughnut line People nowadays always look for the new trends in the market. Especially when it comes to food because families, friends and couples are so much willing to buy and taste the new “talk” of the market. In the Asian countries, people loves to eat sweets. That is why, the doughnut industry has a great potential to grow their businesses in the said continent. For the Krispy Kreme Doughnut, we recommend that they should offer the market new variety/flavors of doughnuts that they can offer. The research and development team must conduct a research for them to know the best flavor of doughnut that they can give to their customers. In the Philippines, Filipino loves chocolates. Hence, KKD must provide their market (the Filipino people) the special chocolate flavor of doughnuts. And now that milktea is a trend in the Philippines, they can partner their special chocolate doughnut with a milktea. In Japan, they love matcha flavors. Hence, they should offer variations of matcha flavored doughnuts partnered with a hot tea. Koreans and Japanese people are also moving towards healthy food choices. The KKD should consider those kinds of customers as well. They need to reduce their calorie content to match the wants of the market. But having this kind of strategy needs a high cost in the research and testing of the appropriate mix and taste of the product. High costs will also be incurred in the changing of process of doughnut-making.

The strong position domestically and globally of KKD, it would be easier for them to introduce these new variety of doughnuts. With the vertically integrated structure of Krispy Kreme there need not be another supply chain for this new line.

Defensive Strategy 2: Market Development in the International market focused on opening new stores that would be convenient to the customers Over two thirds of Krispy Kreme’s product sales come from company and franchise stores. In the early 2000s, the company rapidly expanded and opened a number of these stores, only to close some of them years later. One of KKD’s strength is having a continuous growth of sale and having its strong position globally. Hence, they should continue to expand its business to those areas which are not reached by other doughnut businesses like South America, Africa, and Southern Asia. KKD should continue to open new stores that are convenient to the people and has a modern design for it to be enjoyed by families and other customers. The research and development team should look for the perfect location to build a new store of KKD wherein people can easily find its place and will surely love the ambiance inside of it. Make sure that the customers will love the place and ambiance of the store because this can be used as a marketing strategy to attract customers and to make them feel welcome and comfortable. This can serve as a go signal for them to conquer the doughnut and pastry line industry

Defensive Strategy 3: Sustaining Brand Reputation Krispy Kreme has been in business for 83 years. This has allowed the company to build up its image: a brand that exudes high quality and a one-of-a-kind experience. There are three crucial components of the company’s image: the logo and color scheme, the Hot Doughnuts, and the Original Hot Glazed doughnut. The company’s current marketing strategy is mostly based on grassroots campaigns: fundraising programs for schools, sponsorship of local events and organizations, and free doughnut giveaways on special occasions. KKD should continue these campaigns for them to sustain the reputation of their brand. They should continue to fund programs to schools

to help students and this could be an excellent way to build a good reputation for the company.

Defensive Strategy 4: Market Penetration focusing on increased market share through greater marketing effort Considering the financial status of Krispy Kreme, they are incurring net losses for the past years. Competitors are fast growing and becoming rapidly global in scope. Krispy Kreme might be left behind since greater opportunity for further growth and profitability are seen in the international market. Hence, stability would be an intensive strategy for the KKD. With this matter, KKD should invite more franchisees to increase its satellite stores in both domestic and international markets. In addition, the international market, especially Asia and the Middle East possess a great opportunity because they are fond of sweet snacks like what the KKD offers.

STRATEGY IMPLEMENTATION The company shall undertake the following actions to improve its over-all performance:

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Using e-commerce to increase brand popularity and possible increase Market Share

Krispy Kreme Doughnut can create their own application in the internet that advertises and sells their products online. They can use the power of e-commerce to promote their products in any part of the world. And since e-commerce is very accessible, geographical boundaries will never be a hindrance for the spread of popularity of this product. After making their own website online, they can offer discounts and promos such as “buy a dozen and get 2 additional doughnuts for free”. They can also provide gifts to those active customers who will like and share their page or website through the

internet. The chosen customers will be given a dozen of glazed doughnut and a freebie from KKD. They can also offer free deliveries to those who will have bulk orders who are located within an estimated kilometer radius. And for the convenience of the customers, they can just tap their orders through their phones and whenever they got in the nearest KKD shop, they will just pick up their orders so that there will be no hassle for them. With these kinds of offers and convenience, customers are being pulled to Krispy Kreme.

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Increase franchise stores in existing markets Increasing the number of franchise stores for both domestic and international

areas would mean an increase in revenues. Expanding in their existing market would have a lesser cost because they have already established they have already established their name and have already conducted a research in macro environment of that specific country. The more satellite stores that would be opened, the more convenient for the customers to buy Krispy Kreme Doughnuts which can increase customer satisfaction and revenues for KKD.

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Sponsorship of Events Krispy Kreme will co-sponsor events with businesses that are rapidly growing.

This will enhance the company’s exposure to reach a larger customer base and this way, they can share the costs of promoting their products. With this, they can use the partner company’s image and connections to increase its own image....