Brand marketing

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Brand marketing

  1. 1. Made by: Gurbinder Singh Kahlon MBA(Marketting)
  2. 2. HISTORY <ul><li>July13,1937 – Founded by Vemon Rudolph in Winston-Salem, North Carolina. First donuts 25 cents per dozen. </li></ul><ul><li>1940s – Small chain of stores, family owned. Development of first distribution system. </li></ul><ul><li>1950s – Improving and automating the doughnut making equipment. </li></ul><ul><li>1960s – Steady growth throughout the Southeast. Consistent store designs. </li></ul><ul><li>1973 – Founder Vemon Rudolph dies. </li></ul><ul><li>1976 – Company sold to Beatrice Foods and growth slowed. </li></ul><ul><li>1982 – Franchisees bought company back. </li></ul>
  3. 3. <ul><li>1996 - Expands outside the </li></ul><ul><li>Southeast region, first store in New York. </li></ul><ul><li>1999 – First store in California, </li></ul><ul><li>national expansion underway. </li></ul><ul><li>April 2000 – Initial Public Offering (IPO) </li></ul><ul><li>of common stock. Registered to NYSE with KKD. </li></ul><ul><li>December 2001 – First international store in Canada. </li></ul><ul><li>October 2003 – First store in Europe at England (London). </li></ul><ul><li>Today – Operates in 44 states of U.S., Canada, England, Mexico, Australia, New Zealand. </li></ul>HISTORY(Cont.)
  4. 4. <ul><li>Krispy Kreme have stores located all over the US </li></ul><ul><li>Stores have not been limited to only the US ( Canada, United Kingdom, Mexico, and Australia ) </li></ul><ul><li>Krispy Kreme can be found in grocery stores ( Wal-Mart & Target ), convenience stores, and gas stations </li></ul>KRISPY KREME TODAY
  5. 5. KRISPY KREME WORLDWIDE
  6. 6. SPECIALITY OF KRISPY KREME <ul><li>Automatic doughnut cutting machine </li></ul><ul><li>Air-pressure doughnut pourer </li></ul><ul><li>Doughnut “hole” does not exist </li></ul><ul><li>Entire process is automated </li></ul><ul><li>“ Hot Original Glazed </li></ul>
  7. 8. STORE LAYOUT/DESIGN <ul><li>Freestanding: Most free-standing Krispy Kreme stores are constructed with a long window between the customer area and the kitchen, allowing customers to watch the operation of the doughnut-making machines. </li></ul><ul><li>Smaller Stores: Most of the smaller stores get their donuts from other locations rather than producing them on-site. </li></ul><ul><li>Atmosphere : Very welcoming, with bright lighting. Seating is limited but available. Factory tends to pull curious customers inside. </li></ul>
  8. 9. Below Stock price of KK on the NYSE (name KKD) from initial opening in April 2000 at $21 per share, to its high of $49.74/share in August 2003, to its lowest of less than $4/share in early 2005, to its current of $8.41/share. To The Right Graph of KK’s number of retail outets. As the number of stores nationwide increases, sales decreases.
  9. 10. FRANCHISING <ul><li>The minimum cost for franchising is too high. </li></ul><ul><li>Because when granted the franchise, </li></ul><ul><li>you are required to build a chain of </li></ul><ul><li>15 Krispy Kreme stores for the development </li></ul><ul><li>of the market which costs $ 30,000,000. </li></ul><ul><li>This is an important factor limiting the entrepreneurs. </li></ul><ul><li>2/3 of the stores are franchisees. </li></ul><ul><li>Looking for franchisees in Eastern Europe, Asia, Japan, South Korea, Spain (international) & New England (domestic). </li></ul>
  10. 11. STRENGTHS OF KRISPY KREME <ul><li>Signature hot Original Glazed </li></ul><ul><li>doughnut </li></ul><ul><li>People know Krispy Kreme </li></ul><ul><li>January 28,2007, 395 Store worldwide, </li></ul><ul><li>of which 113 were owned, 282 were owned by franchisees </li></ul>
  11. 12. WEAKNESSES OF KRISPY KREME <ul><li>Franchisees close stores </li></ul><ul><li>No other standout products </li></ul><ul><li>(weak menu) </li></ul><ul><li>Bad relations with franchisees (cost of equipment, packaging, ingredients, etc) </li></ul>
  12. 13. OPPORTUNITIES FOR KRISPY KREME <ul><li>Reputation –Fundraising program has helped non-profit organizations raise millions of dollars in needed funds </li></ul><ul><li>Worldwide sales </li></ul><ul><li>Untouched domestic locations </li></ul>
  13. 14. THREATS TO KRISPY KREME <ul><li>Dunkin’ Donuts, Tim Horton’s, Starbucks, and other National Chains/Specialty Eateries </li></ul><ul><li>KK stores went up too fast </li></ul><ul><li>Store locations too scattered </li></ul><ul><li>Increasing cost of ingredients </li></ul>
  14. 15. Advertisement / Marketing <ul><li>Free doughnut strategy – “Hot Now”; free doughnut while waiting in line. </li></ul><ul><li>TV ad campaign </li></ul><ul><li>Gifts/Accessories – shirts, sweatshirts, hats, boxers, coffee, mugs, toys. </li></ul><ul><li>Fundraising – helped schools raise over $30 million last year (selling doughnuts, coffee, certificates, and partnership cards). </li></ul>
  15. 16. Distinguishing Aspects <ul><li>Doughnut Theatre: Factory inside the store where you can watch how the donuts are made. </li></ul><ul><li>Reputation: Krispy Kreme has always been known as and has had a reputation of being the best. </li></ul><ul><li>Hot Now: When the Hot Now sign outside the store is lit you can get hot and fresh original glazed donuts. </li></ul>
  16. 19. <ul><li>THANK YOU </li></ul>

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