Krispy Kreme Doughnuts Incorporates principal activity is to produce and market doughnuts and related items. The operations are carried out through three segments, company stores operations, franchise operations and Krispy Kreme Manufacturing and Distribution. The stores are both retail outlets and highly automated producers of over twenty varieties of doughnuts. The company is a branded specialty retailer, and produces more than three million doughnuts a day. In addition to its Krispy Kreme stores, the company sells its doughnuts in supermarkets, convenience stores and other retail outlets throughout the country. The Krispy Kreme Manufacturing and Distribution segment sells doughnut-making equipment, mix, other ingredients and supplies
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Krispy Kreme is as efficient as they are in the business because they go by the motto that "the key to expansion is to have control over each step of the doughnut-making process and be able to deliver hot doughnuts to customers as soon as they emerge from the frying and sugar-glazing process." Krispy Kreme has done so well because they follow their beliefs that you must make the customers happy. Its commitment to quality, affordability, customer service and local community involvement has created a faithful enthusiastic customer base. Its doughnut theaters and quality ingredients differentiate the company from others. They use their marketing skills by stressing the "hot doughnut experience" that customers know them by.
Another one of Krispy Kremes' successful strategies is their doughnut theater, which sets them apart from their competitors. Customers enjoy being able to see how and where their doughnuts are being made. They get the feel of freshness and enjoy the atmosphere.
The company uses a vertical supply-chain, which means that manufacturing and mixing for the doughnuts are done by Krispy Kreme. Thereby reducing costs and improving efficiency. Another key to the company's success is their reputation of serving high quality doughnuts and beverages; their current marketing practices through word of mouth advertising; the company's goal to become the local hometown doughnut shop (Boone & Kurtz p.151); and their strict franchise