Krispy Kreme Case Study

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Krispy Kreme over the years have faced various problems. Included in these problems slow market growth due to shifts in consumer preference and the concern of Krispy Kreme’s fast growth which may result in market destruction of Krispy Kreme’s own position in the marketplace.
Consumers on a continuous basis are choosing more healthy and nutritious options that align with their well-being. Due to this shift, many are evading doughnuts which has contributed to stagnant general progression in the doughnut industry. As a result there has been horizontal sales market-wide which poses an adverse impact on Krispy Kreme’s market growth. Krispy Kreme while facing stationary sales in order to gain market share would have to implement strategies to increase
An example of this was represented when a store front opened in Denver and there were over three thousand customers by the door awaiting the Hot Doughnut experience. Based on strategies that Krispy Kreme previously implemented to install a neon light that illuminates. This light advises customers that donuts are ready and they are able to view the donuts as they are actually being removed from the conveyer belt. The concept of Krispy Kreme leads customers to indulge, although for Krispy Kreme lovers the name by itself brings joy to them. Krispy Kreme has managed to infuse both their brand worth and their central traditional values. By doing so their brand provides a platform which supports development of strategies that protects their
Competitively Krispy Kreme have remained successful in maintaining their strategy. On an ongoing basis strategies are implemented to be ahead of competing firms. In the event Krispy Kreme is able to reach their targeted progress in their earnings, the continuous demand for their donuts will increase. During 1998 and 2002 there was an increase in donut sale, company wide by 23.5% with an increase in revenue during this same time averaging 20%. Krispy Kreme effort to maintain effective marketing have propelled their customers experience and the word of mouth promotion strategy which also lends itself well to increase returning customers. With word of mouth promotion plus aggressive advertising measures through the media and the internet the potential of penetrating the market effectively and Krispy Kreme will continue to maintain their competitive

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