1. INTRODUCTION
Krispy Kreme Doughnuts, Inc. (KKD) is a doughnut company founded on July 13, 1937 by Vernon Rudolph. Vernon Rudolph began selling Krispy Kreme doughnuts to local grocery stores in 1937. He soon started selling the original glazed donuts to public on the sidewalk. The first retail-only store is opened in 1989. In 2001 the first international store opened in Canada. The Krispy Kreme can now be found in more than 20 countries with over 800 stores worldwide. Krispy Kreme now sells hot drinks, bagels and other grocery items.
2. SWOT ANALYSIS
STRENGTHS WEAKNESSES
• Produces more than 5 Million doughnuts daily.
• There are stores all over the USA and worldwide and are available in supermarkets and gas stations as well.
• The doughnuts are affordable and are of high quality. • The losses exceed the profits from over development. Numerous stores must be shut down.
• The amount of trans fat is a lot for the size of the doughnut
• There have been a fall of revenue since 2008
• Stock prices are dropping since 2005
OPPORTUNITIES THREATS
• With more people being health conscious, the company should find a way to reduce calories in their product.
• Reaching out to the market to know what customers want. • Krispy Kreme faces major competition from Dunkin Donuts and Starbucks.
• The customer base is more health conscious.
• Development of organic markets.
3. EXTERNAL ANALYSIS – GENERAL ENVIRONMENT
3.1 POLITICAL
Setting up KKD in Singapore would not be very hard as the government is open to businesses starting up in the country as it would boost the country’s economy as well. The Inland Revenue Authority of Singapore (IRAS) has schemes to assist startup companies in Singapore, such as partial tax exemption scheme. (IRAS: T...
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... the best in the industry. By focusing on one industry, KKD will not have to risk any resources to do research and development on a new industry and have a possibility of failing at that as they have no experience in other industries.
Business Level – Differentiation Strategy
Krispy Kreme Doughnuts should use the differentiation strategy as it will help them to sell products that are unique compared to their competitors. As the company has already been in this business for more than seventy five years, they have an advantage to how thing are done. They know what customers want and they can satisfy them with their unique products. Using this technique to invest in new products that their competitors do not have will give them an edge in the market. At the same time KKD must also sell their product at a reasonable price which the consumers are willing to pay for.
Keebler and products are sold in more than 75,000 retail outlets nationwide, including Puerto Rico and selected international markets. The Keebler company seems to have more than one target market. With variety of products they offer, the company appears to be targeting just about every segment of the population:
WinCo Foods is a supermarket chain with headquarters in Boise, Idaho. It started in 1967 and has since expanded to include over 100 locations throughout the United States. Until 1999, all of its stores operated as Cub Foods or Waremart Food Centers, but the company now has its own branded locations. It also has five distribution centers. The stores and distribution locations employ more than 15,000 staff members in a variety of positions.
Founded by S. Truett Cathy in the Atlanta suburb Hapeville, Chick-fil-A is a Southern restaurant by all means as its origin is in the South. But to qualify the eatery as authentically Southern, one has to examine more than just origin or where the founder was from. The late Truett Cathy, founder of Chick-fil-A, said “We should be about more than just selling chicken. We should be a part of our customers’ lives and the communities in which we serve.” This ideal, and those like it, is what illustrates Chick-fil-A’s Southern identity. This particular restaurant presents itself as authentically Southern in how it never compromises family, provides a certain “Southern hospitality” not many other places do, and holds onto Bible Belt values in trying
Part 1- Practical growth leaders always assesses competitive strengths, weaknesses, threats and opportunities. Additionally, there is a need of bird eye for industry interruption to become a leader (Welch & Althaus, 2007).One of the pioneer of restaurant industry is Panera Bread. Factors contributing to its unique position in the restaurant industry are:
Adopting a strategy of differentiation makes firms provide products and services what are distinct in some way valued by customers.
Many Americans assume that junk food company giants, like Coca Cola and General Mills, only care about making a profit off the obesity epidemic that is plaguing the United States. These companies are earning millions of dollars in profit from the mostly unhealthy products they sell in stores. In recent years, these same companies have been reducing the amount of fat, salt, and sugar in their products in order to make them ‘healthier’ and appeal to the more health-conscious crowd.
Bareburger’s brand concept is actually evolving around health conscious eating. And because younger people are increasingly embracing healthier eating options, Bareburger needs to innovate in this regard and introduce more healthy options to keep its existing customers and attract new ones.
Differentiation through marketing strategies, this is a form of innovation driven by the need to create a superior brand (Sadler, 2003).
The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
The main competition for Panera Bread in the Food Service Industry is not necessarily restricted to coffee shops as I originally thought. Instead I consider Panera’s direct competition as including Bakery-Cafe restaurants such as Starbucks and Einstein Bros. but also Fast Casual such as Chipotle Mexican Grill, Panda Express, Baja Fresh, Q’Doba, and McCallister’s Deli. Panera and all of these restaurants are also in competition with Quick Service Restaurants such as McDonald’s and Jack-In-The-Box, and Casual Dining Restaurants like Applebee’s and Olive Garden. Panera’s competition is effected by buyer power, rivalry among competitive sellers, and substitutions by companies in other segments. There could also
Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).
The first Dunkin Donuts was opened in 1950 by founder Mr. Bill Rosenburg in Quincy, MA. Five years later the very first franchised branch was licensed. Sixty years later, under “Dunkin Brands Inc.”, there are now over 10,000 stores including more than 7,000 franchised locations, all in 36 of the United States. There are over 3,000 Dunkin stores internationally in 32 countries other than the United States. Dunkin' Brands Group, Inc. is one of the world's leading franchisors of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Dunkin Brands is head quartered in Canton, MA (Company Snapshot).
KKD openly shows it audit procedure online in a PDF. Form which shows great ethical poise. No company is void of legal woes whether casualty or accused. According to a Forbes Magazine article, KKD has been cleared in any wrong doings in regards to engaging in intentional misconduct related to the company's acquisition of a Michigan franchise. Krispy Kreme did not wait to get independent legal parties involved with the issue and allowed the SEC to review any sought impropriety. According to the Forbes report, KKB halted turning in its Q10 statement until all is settled but had to close a $4.6 million doughnut plant in northeast Ohio due to oversupply problems.
In this assignment, I chose to conduct a SWOT (strengths, weaknesses, opportunities and threats) analysis on a bakery company in Kedah called Kek Sayang. Kek Sayang is a family based business. It is also the oldest bakery in Alor Setar. It started with a really small vendor established on 1st January 1980. On 2002, it has transformed to a boutique bakery. On 2006, the shop has been renovated to include a small portion of cafe-sort to cater all kind of customer. It sells varieties of handmade cakes, buns, pastries and cookies. Later on, the menu extended to drinks which include coffee, smoothies and milkshakes. Its vision is to be the best Bakery in Kedah. Thus, only the finest ingredients are used and artisan techniques are applied
If and when Krispy Kreme decides to go global they will enter a whole new world of adaptation to different markets. They will no longer be able to offer their staple hot fresh plain glazed doughnuts and expect them to sell in every market. France for instance has built a world reputation on fresh baked goods; therefore their key branding technique would not be as effective in such a culture. However the hot fresh plain doughnuts strategy works very effectively across the United States with two exceptions. First is the growing number of obese Americans. With growing media attention turned towards sliming up American quick service restaurants, Krispy Kreme has come into the crosshairs of mainstream media. The other hindrance on Krispy Kreme's complete success is the all in one convenience attitude. Demonstrated by Wal-Marts success, giving