Krispy Kreme Doughnuts Essay

2342 Words May 25th, 2011 10 Pages
UNIVERSITY OF NORTHERN VIRGNIA

STRATEGIC MANAGEMENT

BMGT 522

ANNA MMASSY

ASSINGMENT 1: KRISPY KREME DOUGHNUTS

PROF: ROGER L.POWELL.

Case Study Krispy Krème
A Case Study on Krispy Krème Doughnuts, Inc
Company Overview
Krispy Krème is a company that despite its history dating back to 1937 has only started to experience rapidly increasing sales, expansion, and customer awareness in the last few years. Recently, however, the company has gotten into financial and legal trouble and is struggling to survive. This case is an evaluation of Krispy Krème’s past and present business performance, internally and with regard to the external environment it is operating within. The study will conclude with both insights and
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An autocratic leadership style is used. Two-thirds of Krispy Krème stores are franchises. The franchisees pay up to a $40,000 fee for each store they open and pay royalty fees.

Marketing
Its actions indicate its strategy is to differentiate them in the retail doughnut/coffee industry based on its experience in selling quality coffee and doughnuts. In the beginning, Krispy Krème Doughnuts had the total product offer. The value package consists of delicious, hot doughnuts that are ready to buy. Krispy Krème prides themselves in having speedy service, and ready to sell, hot doughnuts right off of the oven rack. The image created by all of the free publicity caused many people to come and experience the “Krispy Krème Phenomenon.” Stores have a custom design appeal and some are open twenty-four hours a day making efficient use of all available time.

• Product Differentiation & Product Line
Krispy Krème differentiates themselves with signature stores that have a green roof and open glass windows, which allow customers to see doughnuts being made (Thompson et al, 2004). The facility layout of the stores allows for a unique customer experience, separating Krispy Krème from such competitors as Dunkin’ Donuts, Tim Horton’s and Winchell’s Donut House. Krispy Krème’s product line already consists of over twenty-five different varieties of doughnuts.
A major push to sell coffee was made in hopes of

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