Presented by: Celeste DiFerdinando, Etana Kenter, Stephen Thai, and Avi Weinstein

1
Our Sweet Idea

• Presented by Celeste DiFerdinando, Etana Kenter,
  Stephen Thai, and Avi Weinstein

2
Mission Target Market

• Mission To touch and enhance lives through the
  joy that is Krispy Kreme.
• Broad mission has led to poorly defined target
  market

3
History

• Founded in 1937 in North Carolina
• Only started experiencing growth in 1960s
• New York in 1996 First store outside of the
  Southeast
• IPO in 2000
• Expanded internationally since

4
The Decline

• Value of stock has declined since 2004
• Starting in 2008, KK has experienced a net loss
• Americans became more health-conscious
• Lack of promotion
• No clear target market

5
The Marketing Mix
6
Product

• Strongest aspect of KKs marketing mix
• Narrow but deep product mix
• Doughnuts
• Hot, original glazed
• Known for being hot and fresh
• Consistent across all stores
• 20 varieties
• Aesthetically pleasing
• Coffee
• 8 varieties
• Only 10 of sales
• Ice Drinks Ice Cream Products
• Kool Kremes

7
Place

• 582 stores only 83 are operated by the company
• Distribution Warehouses
• Enterprise Resource Planning
• Brick and Mortar sites
• Factory Stores
• Satellite Stores/Kiosks
• Grocery Stores
• Selective Distribution

8
Price

• Doughnuts KK is marginally cheaper
• Krispy Kreme Approx. 55
• Dunkin Dounts Approx. 60
• Coffee KK is significantly cheaper
• 12oz. Bags of Coffee Grounds
• KK 6.99
• DD 9.49
• Starbucks 25.47
• But the quality

9
Promotion

• Word-of-Mouth Marketing
• Promotional Fundraising
• Funding Large Organizations
• Social Media
• Seasonal Product Promotion
• Lack of Standard Commercial Marketing

10
SWOT Analysis
11
Competition

• Krispy Kreme must catch up with early-morning
  rivals Dunkin' Donuts and Starbucks when it comes
  to caffeine. Marc Hogan, Business Week
• KK vs. DD
• KK doughnuts are fresher and last longer
• DD makes most of its profits from coffee
• DD has 8 times as many stores
• DD is expanding in the southeast
• KK vs. Starbucks
• KK is cheaper
• Starbucks has many more stores and has a higher
  quality product

12
Health

• Generally considered to be unhealthy
• Original glazed 200 cal, 12g fat
• Vs. DD 240 cal, 14g fat
• In 2006, started selling the whole wheat
  doughnuts
• Reduced in 2008 to .5g trans fat
• Mini-doughnuts

13
Recommendations
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1. Define Target Market

• Working person in their 30s and 40s who wants to
  satisfy their caffeine fix, grab a bite to eat,
  bring in something for the office, and
  occasionally indulge

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2. Expand Product Mix

• Introduce breakfast foods, like bagels and basic
  spreads
• Improve coffee by doing consumer research

16
3. Optimizing Location

• Eliminate grocery and convenience store sales
• Store Cannibalization
• Boost satellite store and kiosk presence at
  transportation terminals and in commercial areas
• Increase drive-thrus

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4. Advertising Campaign

• Promote mini-doughnuts for health reasons
• Promotional bundles in the form of combo meals
• Coffee, bagel, mini-doughnut
• TV Spots
• Social media
• Twitter
• Facebook

18
Conclusion

• Without changes, Krispy Kreme is destined to fail
• Our recommendations deliver the needed spark for
  a comeback

19
References

• Adams, Stephen. "Middle Aged Are Driving
  Twitter's Success - Telegraph." Telegraph.co.uk -
  Telegraph Online, Daily Telegraph and Sunday
  Telegraph - Telegraph. 13 Apr. 2009. Web. 30 Nov.
  2010. lthttp//www.telegraph.co.uk/technology/twitt
  er/5147827/Middle-aged-are-driving-Twitters-succes
  s.htmlgt.
• Clark, Amy S. "Doughnut Wars Krispy Kreme Vs.
  Dunkin' - CBS News." Breaking News Headlines
  Business, Entertainment World News - CBS News.
  20 Oct. 2006. Web. 30 Nov. 2010.
  lthttp//www.cbsnews.com/stories/2006/10/20/busines
  s/main2112599.shtmlgt.
• "Dunkin Donuts - Food and Drink." Shopping.com.
  30 Nov. 2010. Web. 30 Nov. 2010.
  lthttp//www3.shopping.com/dunkin-donuts/productsgt.
  
• Hoover's Company Records. "Krispy Kreme
  Doughnuts, Inc." LexisNexis Academic. LexisNexis,
  30 Nov. 2010. Web. 30 Nov. 2010.
  lthttp//www.lexisnexis.com/hottopics/lnacademic/?gt
  .
• Integrated Visual Systems. "Krispy Kreme Doughnut
  Case Study." Rev. of Krispy Kreme Macola
  Progression Series ERP System. Web. 30 Nov. 2010.
  lthttp//www.ivsi.com/pdffiles/KrispyKremeCaseRev1.
  pdfgt.
• Krispy Kreme. "About Us." Krispy Kreme Doughnuts
  and Coffee. Web. 30 Nov. 2010. lthttp//www.krispyk
  reme.com/homegt.
• Krispy Kreme Doughnuts, Inc. 2010 Annual Report.
  Rep. EDGAR Online, Inc., 15 Apr. 2010. Web. 30
  Nov. 2010. lthttp//investor.krispykreme.com/annual
  s.cfmgt.
• Luna, Nancy. "Krispy Kreme Launches First-ever
  Mini-doughnut." The Orange County Register. 17
  Oct. 2008. Web. 30 Nov. 2010. lthttp//fastfood.ocr
  egister.com/2008/10/17/krispy-kreme-launches-first
  -ever-mini-doughnut/4329/gt.
• "Marketing Mix and Brand Analysis of Krispy
  Kreme." HubPages. Web. 30 Nov. 2010.
  lthttp//hubpages.com/hub/Brand-Analysis-Krispy-Kre
  megt.
• Munarriz, Rick A. "Saving Krispy's Kreme." The
  Motley Fool. 21 Mar. 2004. Web. 30 Nov. 2010.
  lthttp//www.fool.com/investing/general/2004/05/21/
  saving-krispys-kreme.aspxgt.

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Thank You!

• Questions? Comments?