Case Study Of Krispy Kreme

Case Study Of Krispy Kreme
Shubu Deb
234851
Business Policy MGT4950
Case study of Krispy Kreme Doughnuts (KKD)
Krispy Kreme Doughnut
Krispy Kreme is a worldwide selling doughnut chain store which was established in 1937 in North
Carolina, U.S.A. The main store of Krispy Kreme Doughnuts, Inc is located in Winston–Salem.
Krispy kreme has many varieties of doughnuts, but its most famous item is the glazed doughnut.
Doughnuts of Krispy Kreme are available in many places such as Malls, Airports, Parks, grocery
stores, gas stations e.t.c. worldwide. Krispy Kreme had well balanced growth during its initial stages
but its profit margin has been declining recently while having a strong competition against
Starbucks, Tim Horton's, Dunkin Donuts, and now also McDonalds.
History
Vernon Rudolph the founder of Krispy Kreme along with his uncle bought a donut shop from Joseph
LeBeouf in Broad Street, Paducah, Kentucky with a secret recipe for doughnuts in Lake Charles,
Louisiana. Rudolph then moved with his ... Show more content on Helpwriting.net ...
In 1982 an unsatisfied franchisees bought Krispy Kreme back from Beatrice Foods.
Growth
In 1990's Krispy Kreme started spreading now outside Southeastern United States. Krispy Kreme
then started establishing outside the U.S. the first being in Mississauga, Ontario, Canada in 2001.By
2004, Krispy Kreme started establishing itself internationally. As of 2015, Krispy Kreme now has
more than 1000 stores world wide.
Vision Statement
We want to be the universal leader in sharing tasty doughnuts, while creating blissful and euphoric
memories for everyone.

Mission Statement
We make delicious doughnuts for beautiful and ever–lasting moments for everyone in the world. We
want to be the everyday life and joy of our customers. We strive to be the best by keeping the
customers in mind and giving them our most sincere service.
SWOT
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Marketing Research Krispy Kreme
GROUP MEMBER
[pic]
Usarat Rungruangrattanawadee 1531007027 Chavivuth Soonthornsima 1511001933 Tirapitch
Pichitnorakarn 1511007096 Arnuphap Chaiyaraj 1531007209 Pavinee Pinijkijsopon 1531007530
Exclusive Summary
As you know Thailand has many brand of donut and last year have new brand come to Thailand it is
Krispy Kreme Doughnut. First time that they promote everyone interesting and exciting about that.
Now it not interesting like beginning period. So, our group would like to study about customer
preference and want to know about customer satisfaction with price, place, taste and location of
Krispy Kreme Doughnut.
We try to know all customer think with Krispy Kreme Doughnut ... Show more content on
Helpwriting.net ...
The last objective that we want to know is about competitor.
Define problem and opportunity identification
Problem is Thai people interest with Krispy Kreme lower than the beginning period, so male Krispy
Kreme no more long queues although Krispy Kreme launch more favors, but not attraction customer
like beginning period. Now Krispy Kreme has not yet opens a new branch although I think Krispy
Kreme must to open new branch.
Limitation of the study
Our main target is student, so we divide into two groups for research. The first group is BU Student
at City Campus and Second group is Student around Siam Paragon and BTS (Siam station).
First limitation that we met we can't do the research inside Siam Paragon, so we must to go outside
it and stand at BTS. We go to research about 5 pm; this time is the times for student go for tutor. We
have some problem about student don't have more time for do our questionnaire. And we stay at
BTS, we will met student who also hurry to back home. Until we meet one group in front of Siam
Paragon, we go for research them but security guard is not allowing to research front of Siam
Paragon. Second limitation that we met is some people they don't understand some question and
some people who say no with the question that we ask about last one month you ever consume
Krispy Kreme or not, so it make that questionnaire fail. I must to do more questionnaires because
we need 30

Krispy Kreme Essay examples
Focus of the Proposal
Krispy Kreme, a leading, well–established brand of high quality doughnuts, is still in a stage of
astonishing growth potential. According to Dain Rauscher Wessels equity analyst David Geraty,
"Krispy Kreme has established itself as the quality leader in the doughnut industry and is positioned
to become the dominant industry player, with 145 retail locations in 27 states, Krispy Kreme is
expected to capitalize on the brand conscious consumer's demand for a consistent, high quality
specialty food product" (Minneapolis 2000). Krispy Kreme has quickly risen to the top of the
doughnut business in a short amount of time. The company's goal since its infancy has been to
satisfy customers by providing a unique experience ... Show more content on Helpwriting.net ...
In addition, "Starbucks reported net income of $68.4 million, or 17 cents a share, compared with
$55.7 million, or 14 cents a share, in the previous year's third quarter. Revenues of one– billion
dollars reflected the opening of new units and an 8–percent rise in same–store sales" (National
Restaurant News, 2003). With its same store sales increasing twice as much as Krispy Kreme in the
same year, Starbucks has the proof that it will not yield to Krispy Kreme. In order to surpass
Starbucks, and the many other potent competitors, Krispy Kreme must devise new business tactics
that rely on information technologies, because that is an aspect of business which Krispy Kreme has
utilized very effectively in the past.
As stated previously, Krispy Kreme's sales are very admirable, but are still, despite excellent growth,
much lower then Starbucks Coffee. With such a powerful rival, Krispy Kreme will need to devise
strategies that fully utilize the potential that a well organized and operated IT infrastructure has.
Several options exist that will be able to assist Krispy Kreme. Partnerships, for example, can take
much of the pressure off certain sections of the company and allow the top tear managers to focus
on more pressing concerns. With the recent upgrades in technology and computers, employees must
be able to operate the new technology without experiencing problems that could

Essay about Krispy Kreme
3–17. How many times has the company been sold? When and by whom to whom? The company
has been sold several times. First, in 1935 Ishmael Armstrong sold Krispy Kreme to Vernon
Rudolph's father Plumie Rudolph. Second, in 1976 due to Vernon Rudolph's death, the company was
then sold to Beatrice Foods of Chicago. Third, in 1982 Joseph A McAleer Sr. who led a group of
Krispy Kreme franchisee bought back Krispy Kreme from Beatrice Foods. Finally, Krispy Kreme
Inc. became a publicly traded company in 2000 by joining the NASDAQ as well as joining NYSE in
2001.
3–18. What mistakes did Beatrice Foods make after purchasing Krispy Kreme? Why wasn't Krispy
Kreme a good fit for Beatrice Foods? Krispy Kreme was a family oriented business where on ...
Show more content on Helpwriting.net ...
Right there was the opportunity to negotiate which would have helped Mr. McAleer from putting the
company in a huge debt that kept the company from growing for the following ten years. On the
other hand, buying an existing business is another business lesson that I noticed. Krispy Kreme was
bought and sold several times, however it's the history of the company that helped the company
prosper and gain popularity.
3–21. Krispy Kreme started as a family business. How has that influenced the operation of the
company? Krispy Kreme executives no longer rush to implement new plans before the time is right.
They carefully study each geographical location to make sure its market will support a full–scale
doughnut operation. Also, management spends time checking out sites for individual stores.
Potential franchisee and employees are required to maintain certain standards and are thoroughly
screened.
3–22. Identify three questions you would have asked Ishmael Armstrong while performing due
diligence for the potential purchase of Krispy Kreme Doughnuts. List three questions you would ask
today if you were considering becoming a Krispy Kreme franchisee,
1. How profitable has this company been since opening?
2. How long has this location been opened? How many locations have you had?
3. Are there any investors in this company or anyone that shares financial responsibility besides
you?
1. May I have copies of the last 3–5 years financial statements?
2.

Krispy Kreme Doughnuts, Inc. Essay
This case involves the improperly represented earnings by Krispy Kreme Doughnuts, Inc. during the
fourth quarter of fiscal year (FY) 2003 and each quarter of FY 2004. The company used improper
accounting methods to avoid lowering its earnings during that period. Krispy Kreme also
fraudulently reported its earnings per share (EPS) throughout that time, which exceeded the
previously stated EPS by 1 percent. An agreement to settle the charges against Krispy Kreme was
reached on March 4, 2009 when the Securities and Exchange Commission (SEC) issued a cease–
and–desist order.
The SEC cited Krispy Kreme for three round–trip transactions, which involved the company paying
money to a franchise with an understanding that the franchise would later repay the money in a
planned method. This would allow Krispy Kreme to record extra pretax income in an amount that
was nearly equal to the money that was initially paid to the franchisee. The first transaction resulted
in additional net income of $365,000 after taxes. The second resulted in overstatement of $310,000
after taxes, while the third resulted in an overstatement of $361,000 after taxes.
Further accounting anomalies were discovered during the testimony of a former sales manager at a
store in Ohio. A regional sales manager instructed that double orders would be sent out on the last
Friday and Saturday of FY 2004 to increase the sales of Krispy Kreme in the fiscal year to meet the
projections of Wall Street. The unneeded doughnuts

Krispy Kreme Swot Analysis
Type of business organization
Based in Winston–Salem, North Carolina, Krispy Kreme Doughnuts is a leading branded specialty
retailer of premium quality doughnuts. In 2001, it was estimated that it sold five million donuts a
day and more than two billion a year.
Founded in 1937, Krispy Kreme operates a chain of 218 shops in 33 states and Canada that offer its
signature doughnuts, including its best–known offering, the Hot Original Glazed. Each shop has the
capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily. Shop sites are located
worldwide
Besides serving its sweet offerings to customers, Krispy Kreme also sells its food products to
supermarkets and convenience stores. In 2001, approximately 123 of the company's stores sold to
major grocery store chains like Food Lion and Acme Markets, as well as to local and national
convenience stores and select co–branding customers. Krispy Kreme also sells its ingredients and
equipment to its franchisees. ... Show more content on Helpwriting.net ...
Company store operations include company stores and consolidated joint venture stores that make
and sell doughnuts and complementary products through on–premise and off–premise sales
channels. Franchise operations include the associate program and the area developer program.
KKM&D involves the buying and processing of ingredients to produce doughnut mixes. Also, this
unit manufactures doughnut–making equipment that all of Krispy Kreme's stores are required to
purchase, and it makes and sells all supplies necessary to operate a Krispy Kreme store, including all
food ingredients, juices, Krispy Kreme coffee, signage, display cases, uniforms and other

Krispy Kreme
CASE 8: KRISPY KREME DOUGHNUTS Krispy Kreme is a doughnut manufacturer and retailer
that were founded in July of 1937. Within its seventy year life time KK went from a small rented out
building in Winston–Salem, North Carolina to a global recognizable firm. Through that time KK has
become a franchising company that has made changes within its life time. Most of the changes came
in the late 1990s and early 2000s. A few years after those changes were made KK management
realized that they had made a series of mistakes that gravely hurt the company. This paper will
explain what caused the down fall of KK and how they should go about restoring their company.
General Information After the company's IPO KK announced to aggressively expand ... Show more
content on Helpwriting.net ...
For KK franchisees they find the required KK product mix and machinery as a burden for they do
not have the opportunity to try and find the items for cheaper from other vendor which would lower
their fixed costs and help reduce the struggle to stay afloat from 2000 to 2004. The combination of
these two goal conflicts caused many of KK franchisees to become unsuccessful and thus be closed
down by KK parent company. When the closing of franchisees started KK parent company has to
start reacquiring all the franchise rights, goodwill and other intangibles of the failed franchisee.
Doing this it increased those (LIABILITIES) significantly (FIGURE 4). KK was inefficient on how
it used its money on its expansion. This is seen by how the KK's return on asset of the company
went from its peak 10.33 % in 2002 to 8.16% in 2003. These issues from above can be seen when
KK parent company overstimulates the market by having local media run a story about upcoming
store openings and offering free samples before the stores were officially open. In addition to the
seven unsuccessful franchises in Michigan that were forced to closed down within a few months of
each other. Why Change in Preference is a Problem Along with KK management packing
Franchisees

The Kreme Of Krispy Kreme
Vernon Carver Rudolph established Krispy Kreme Doughnuts in 1937 in Winston–Salem, North
Carolina. Krispy Kreme produced doughnuts on a much larger scale by the 1950's via an automated
system. They introduced their "Doughnut Theater" in the 1980's, which allowed its customers to
watch the production process, giving them a multi–sensory experience. They were able to expand to
California by 1999 because of their one of a kind atmosphere (Krispy Kreme 2011 Annual Report).
They opened their first international store in Canada two years later and experienced rapid growth
through 2004. Their success slowed over the next five years because they could not sustain their
growth. They closed 240 domestic stores, which cost $300 million. International growth boomed,
and 396 new stores opened around the world. In 2011, domestic markets began to look up for the
first time since 2005. Krispy Kreme is divided between its domestic and international business and
subdivided by its on–site and off–site sales with 229 domestic stores and 317 international ones
(Krispy Kreme 2011 Annual Report).
Krispy Kreme plans to remain primarily a doughnut shop since 88 percent of their sales result from
its doughnuts. In 2011, Krispy Kreme had total revenues of $362 million, a 4.5 percent increase.
Doughnut sales in grocery stores have had a steady one percent annual increase while convenience
stores are expanding at a slightly faster pace of two %. As competition increased and the turn of the

krispy kreme research Essay
Drive, will– power, creativity, independent, self confident, dedication, perseverance, and goal
oriented. These words are some of the characteristics that describe a successful business. A business
needs drive to continue to strive and focus on the business even during the hardest of times. A good
business needs will–power to do what is in the best interest of the business even if running the
business is not enjoyable anymore. Creativity is definitely a key factor because with creativity to
make the business unique, the business is just like any other corner shop, and will not get the desired
attention from the consumer. Creativity is also very important for marketing strategies. For example,
America is on a low carb craze which has the ... Show more content on Helpwriting.net ...
The company would benefit because being able to place orders online at a near by store allows the
orders to be ready prior to pick up. This entails less traffic in and out of the doughnut shop at the
same time, as well as creates less wait times for customers. Viewing the doughnuts online allows the
consumer to know what they want before hand this also creates less of a wait time for other
consumers. The store may also choose to set up e–commerce for the international market. By
choosing to utilize the international market Krispy Kreme would definitely benefit though use of an
untapped market.
Krispy Kreme Stores seem to have somewhat of a gimmick. They provide live entertainment while
you wait for your doughnuts. Inside the store you can see all the doughnuts are being made. You can
see the doughnuts being fried glazed on the hot doughnut machine. Now, Krispy Kreme has
developed a smaller machine which allows Krispy Kreme shops to open inside the airports and
shopping malls. These machines easily attract customers to the shop. Who can resist the site of the
"hot doughnuts" sign flashing in the window luring you insider the shop. This is another way Krispy
Kreme used its resource to develop cliental. The smell of the fresh baked bread also lures the
customer to the Krispy Kreme counter.
A support system can assist the managers through online support with problems. Online

Marketing Analysis
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 ... Show more content on
Helpwriting.net ...
Perhaps the greatest threat to Krispy Kreme is the health–conscious consumer. With around 240
calories in each donut, Krispy Kreme doughnuts are by far one of the unhealthiest treats you can eat.
As a result, the once–sweet Krispy Kreme is going sour in the mouths of those who care about their
personal health. Failure to be proactive in addressing consumer health concerns, such as obesity,
high cholesterol, and diabetes; could result in a significant loss of it's 24.6% of the market share in
the doughnut industry. One thing Krispy Kreme needs to work on is diversifying their product.
Competitors, such as Dunkin' Donuts', offer bagels, low–fat products, premium coffees, and newly
cinnamon sticks. They offer these products to go with the changing times of the market. They
remain to be the top competitor in the market because they are constantly changing their product
line to suit their customers.
Overall, we can say that Krispy Kreme has still a strong position in the market. Although it is a
smaller company with less financial backing, it remains competitive as its breadth of products
appeals across all major demographic groups (including age and income). Its doughnuts have also
stirred a cult–like following. Yet its recent problems in strategies (over expansion, unethical
accounting procedures) and management could

Krispy Kreme For New Stores
Krispy Kreme was founded in 1937 by Vernon Rudolph of Winston– Salem, North Carolina. He
purchased a secret yeast raised doughnut recipe from a French chef in New Orleans. He started by
delivering doughnuts to local grocery stores. When Rudolph died in 1976 Beatrice Foods took over.
Due to the change in recipe and management problems the company was bought again in 1982 by a
group of Franchisees. From this point Krispy Kreme target was to grow.
Krispy Kreme has a unique Doughnut, it is so fresh and tasty. Krispy Kreme is a successful product
which brought loyal customers. Krispy Kreme has a signature "Hot Original Glazed Doughnuts"
product that is carried in a low amount of store makes it more profitable. They have built an original
brand ... Show more content on Helpwriting.net ...
Surprisingly they got this all done without any advertisement.
10 most important facts:
Expanding Krispy Kreme– Cost an average $2 million, $1.35 million is the cost of inventory,
equipment and anything that has to go in the store. This is not including the cost of the location. To
be able to have a Krispy Kreme Franchise you had to have the experience in the food business.
Growth of Krispy Kreme– Grew to Rapidly which potentially could have hurt them. They had
certain requirements for anyone that was coming on board with their product.
Distribution– Involved selling to Walmart, grocery stores, gas stations and convenient stores. Tried
to expand the big way by breaking there limited distribution history.
Strategy – expanding created enormous opportunity which built a manufacturing and distribution
sites for product. This could make it a risk of controlling their brand and quality.
Donuts where unique and had limited stores and product compare to Dunking Donuts when trying to
expand to New England.
Stock fluctuations increased by the years and had sudden decrease all regarding their high time store
market. At the same time which they had almost over 375 stores was when the sales percentage
comparable store change went negative.
Compared to Dunkin' Donuts their annual stores where nowhere compare to Krispy Kreme. Krispy
Kreme had not fully expanded internationally.
New strategies needed to be created uniqueness was great

Krispy Kreme
Written Assignment
Krispy Kreme Doughnuts, Inc
I. Brief History
Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933
and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme.
Rudolph moved to Winston–Salem, North Carolina, where he opened his first Krispy Kreme shop.
The business prospered and in the 1950¡¦s over ten other locations were opened. The business was
able to produce 500 dozen doughnuts an hour. ¡§Revenues grew from less than a million in 1954 to
$58 millions in 1974.¡¨(C–280) The company was bought out in 1976 by Beatrice Foods. This hurt
the name and image of Krispy Kreme. Revenues began to fall and customers were not satisfied with
the ... Show more content on Helpwriting.net ...
The market is concentrated. This is due to Dunkin¡¦ Donuts controlling most of the market. Krispy
Kreme controls 24.6% of the market share in the doughnut industry.
Porter¡¦s 5 Forces The Rivalry among competing sellers in the industry is medium to high. KK
highest competitor is Dunkin¡¦ Donuts who controls most of the doughnut making market. KK must
do everything in their power to remain in the position they are in or to move up. New competitors
can enter the market at any time. Mom and Pop shops open all the time that sell doughnuts and
breakfast products. The barriers to entry in the doughnut market are small. Doughnuts are simple to
make and anyone could make them if they wanted to. However, mass production of doughnuts takes
a little more effort and money. KK is able to compete in a market that has many large competitors as
well as Mom and Pop shops. When analyzing the affect of substitute products you must take into
effect the lifestyle of Americans. We live in a world that is on–the–go and fast pasted. People eat in
fast food constantly. The fast food industry is constantly being threatened from substitute products.
There is little bargaining power of sellers in the doughnut industry. If one company is selling their
product at a higher price than another one there is no way to know if the customers will buy the
cheaper product. There are also substitute products that can be eaten instead of doughnuts. The
ingredients in doughnuts are simple.

Essay on Krispy Kreme
Krispy Kreme Doughnuts, Inc.
FIN
Professor XXX XXXX
Month xx, xxxx
History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe
of yeast–raised doughnuts in 1937 from a French chef in New Orleans. Rudolph began to sell these
doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a
hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores
was born. The retail concept for Krispy Kreme doughnuts allowed Rudolph to grow his factory
stores to 29 shops in 12 states by the late 1950's. When Rudolph died in 973 Beatrice Foods bought
his company and expanded it to more than 100 locations and expanded the menu to ... Show more
"Testimony by a former sales manager at a Krispy Kreme outlet in Ohio, said a regional manager
ordered that retail store customers be sent double orders on the last Friday and Saturday of the 2004
fiscal year, explaining "that Krispy Kreme wanted to boost the sales for the fiscal year in order to
meet Wall Street projections." The witness said the manager explained that the doughnuts would be
returned for credit the following week – once fiscal 2005 was under way" (Chin, 2005). It seems
pretty clear that Krispy Kreme was using questionable methods to inflate profits.
Investors also later found out that Scott Livengood (CEO), the former COO John W. Tate, and the
former CFO Randy Casstevens, "unloaded more than 475,000 shares of Krispy Kreme stock for
proceeds of $19.8 Million", (Chin, 2005) while they were fully aware sales were declining since
January of 2003. During this investigation, Scott Livengood, Krispy Kreme's CEO announced his
retirement.
It would seem to me that there may be some deeper issues with Krispy Kreme and if I were a
shareholder I would want out, or to be certain that Krispy Kreme's accounting mess was cleaned up.
The chart below shows Krispy Kreme's performance during the years

Krispy Kreme Is The Best Donuts
I. Introduction
Can you picture "riding down the street then you look over to see the big red" "hot and ready "sign
on for those delicious little glazed donuts, and you just have to stop in for a dozen but when you get
in there you end up buying two dozen. Trust me, I always do. Krispy Kreme is the best donuts in the
world to me and they just melt in your mouth. Before you know it you will have ate a whole entire
box by yourself. Krispy Kreme Doughnuts, is one of the world 's driving retailers and wholesalers of
doughnuts and bundled desserts. They were very successful when they first started up but like any
other company they also had downfalls. The Krispy Kreme grow so reckless that they almost had to
file bankrupt and close some of their profitable stores.
II. Case Profile
Krispy Kreme is an organization that regardless of its history which going back to 1937, recently
encounter quickly expanding of company–owned and franchises, Krispy Kreme has also been
affected by the recent trend of customers' health habits. Customers demand a low–carb doughnuts,
which this has affected their sales, and management control to find different that worked for the
company to stay ahead on the competition.
The organization also has gotten into money related–problems and legitimate inconvenience and is
attempting to survive the changes in the market. Krispy Kreme's destructive desire for growth in
opening more company–owned and franchises became a problem for the company's finance.Krispy

Krispy Kreme Swot Analysis
I. INTRODUCTION Krispy Kreme Doughnuts, Inc. (KKD) is an international retailer of high–
quality sweet treats, including its signature hot Original Glazed® doughnut. It began as a small
bakery in Winston Salem, NC on July 13, 1937. Since then, the company has built a global
reputation for serving the highest–quality doughnuts and great tasting coffee. Krispy Kreme
Doughnuts is part of the Quick Service Restaurant (QSR) Industry, which includes almost all
companies in the "fast food" industry. Our goal in this report is to use various tools to analyze KKD
and recommend strategies for them to gain more competitive advantage in the market. First, we will
observe the operational characteristics of KKD. These factors will show ... Show more content on
Helpwriting.net ...
* Lack of knowledge of what the customer wants (demographics, psychographics, behavioral
segmentation). OPPORTUNITIES Opportunities are elements that the company can exploit to its
advantage. Most internationally located stores purchase their ingredients from local merchants rather
than the Krispy Kreme Supply Chain. If KKD can find a cost effective way to provide these
ingredients, they can capitalize on supply chain efficiencies to make a profit. Some opportunities for
Krispy Kreme to leverage for growth would include: * Emerging markets and expansion abroad:
International expansion has proven to bring better returns than expanding domestically. Asia and the
Middle East both offer KKD a good market because of high levels of consumer sweet goods
consumption and the popularity of Western brands in these International markets. * Partnerships
with sports teams and convenience stores. * Development of new menu items. * Add
breakfast/healthier options to compete more directly with Dunkin Doughnuts, etc. * Innovation. *
Product and services expansion. * Local open kiosks and in–store locations in airports, bookstores,
and other retail outlets. * Product Diversification. New Markets. * Significant co–branding
opportunities with local sports teams and movie theaters. * Increased snack consumption: During
the past 20 years, more Americans are going out to eat. In today's busy world, there is less time to

Krispy Kreme Essay
Krispy Kreme
1. The accuracy Glass and Farmer forecast through years 2003 and 2004 compared with actual
results. In comparing the results we look at several key factors which include ratios and year over
percent changes in two forms or methods. The first form is to compare the forecast to actual results.
By applying these two methods we can determine the accuracy of the forecast between the results
and forecast itself. Analysts forecast are based on a set of assumptions and information they perceive
to be good or bad, the level of accuracy of the assumptions and perception of information will
determine the accuracy of the forecast.
The first ratio we looked at was the Sales ratio which included net income, ... Show more content on
Helpwriting.net ...
The growth at the time was credited by the massive new store openings. The sales for new stores for
the first week where huge in between $400,000 and $480,000 however over time they expected the
sales to drop around $75,000–$100,000 a week because that is the average at the time of older
stores. Finally the last section of Krispy Kreme manufacturing and distribution, was expected to
grow. KKM&D had just opened a large distribution center on the west coast and had plans to open
another one in Illinois. Since sales at the time for KKM&D were about 16.6% of total sales, they
were expected to keep up with the franchises in growth. For the year of 2003 their assumptions were
correct. The stock price grew (see chart) and Krispy Kreme expanded just as they planned. Then in
2004 the stock dropped, due to allegations of Krispy Kreme padding their shipping earnings for the
two prior years. This event skewed the outcome of the forecast. KK is still doing well however, and
has slowed down its growth but is still expanding.
3. Krispy Kreme's area developers had to pay a one–time franchise fee which would be between
$20,000 and $40,000. Krispy Kreme also collected a 4.5% royalty fee on all sales. A 1%
contribution fee would also be collected for company advertising. This would take effect for 15
years or more depending on if Krispy Kreme wanted to renew. In addition, Krispy Kreme did not
provide

Krispy Kreme
Marketing Audit
MKT 551/Marketing Management
Jason Lamar Floyd
Professor Tonya Boddie
January 30, 2006
I. EXECUTIVE SUMMARY
Krispy Kreme 's recent success has left many individuals in awe. This study attempts to de–mystify
how Krispy Kreme has come to dominate the doughnut world and what problems lie ahead in the
future. The tools used in this examination will begin with the history of Krispy Kreme. Then an
external and internal analysis will dissect Krispy Kreme 's current market and what steps Krispy
Kreme is taking to compete in that market, including a look into competitors. Krispy Kreme
provides equipment, services, and supplies to franchisees and doughnuts to consumers in a fashion
similar to those of ... Show more content on Helpwriting.net ...
Customers do not pose a significant threat to Krispy Kreme because they are numerous and widely
dispersed. Krispy Kreme franchises must buy from the franchising corporation, which guarantees
some level of sales. As purchasers, franchisees still have only limited bargaining power because they
are locked in through a large investment. Another significant factor is the value of the product to the
customer. While food is essential for living, the products offered by Krispy Kreme are dispensable,
and for leisure consumption only. However, increased profitability in the industry suggests that
people are becoming more dependent on fast food and specialty restaurants than they have ever
been.
Large and small companies compete fiercely for market share in the industry. Therefore, the prices
and perceived value of products are crucial to company performance. There are no significant exit
barriers for firms in the industry. However, exiting the primary arena of competition is not feasible
for most companies because of the large franchising base and the futility of abandoning core
competencies derived from years of experience.
Economic
The US economy is currently recovering from a recession. Despite the poor economic conditions,

Krispy Kreme managed to grow 15% in 2001 with $394 million in revenues ending the fiscal year
(2/3/02). 10 Krispy Kreme however is in a low cost industry therefore the rise and

Krispy Kreme Financial Analysis
Financial Analysis:
Krispy Kreme Doughnuts, Inc. operates as a branded retailer and wholesaler of doughnuts and
coffee. It engages in the ownership and franchising of Krispy Kreme doughnut stores, which make
and sell approximately 20 varieties of doughnuts. These stores also offer a wide variety of coffees
and other beverages. As of January 31, 2010, there were 224 Krispy Kreme stores operated
domestically in 37 U.S. states and in the District of Columbia and 358 shops in other countries
internationally. Of the 582 total stores, 268 were factory stores and 314 were satellites stores.
Krispy Kreme stores are classified as either a factory store or a satellite store. The traditional factory
store has the capacity to produce from 4,000 ... Show more content on Helpwriting.net ...
Adding to this, Krispy Kreme sells other ingredients, packaging and supplies primarily to company–
owned and domestic franchise stores. According to a study by Market Force Information, there is
still considerable room for growth in the coffee house and snack chain industries. In a recent survey,
data shows most consumers visit a coffee shop around once a week, with 70% reporting that they go
to coffeehouses or snack restaurants less than five times a month. Many reported that they use time
at a coffee or snack restaurant to reflect, or as an escape. That, paired with the fact that just 4% of
consumers reported trying a new coffeehouse or snack restaurant in the last 30 days, indicates big
room for growth for chains.
When asked which coffeehouse or snack restaurants were their favorites, Starbucks was cited by
36%, Dunkin' Donuts by 28%, and Krispy Kreme by 16%. However, when the number of locations
is factored into the results, Krispy Kreme wins 35% of the vote. Krispy Kreme also outscored
competing coffee shops and snack chains on eight of 10 attributes. These attributes included Quality
of Food, Taste of Food/Coffee, Speed of Service, Friendly Service, Cleanliness, Atmosphere,
Accommodating, Overall Value, Healthy Choices, and Green/Sustainability. All other competitors
were clustered together with very little differentiation. Moving forward, Krispy Kreme operates
within the quick service restaurant

Krispy Kreme Case Analysis
Running head: KRISPY KREME DOUGHNUTS, INC.: A CASE ANALYSIS
Krispy Kreme Doughnuts, Inc.: A Case Analysis
Presented to
By
October 09, 2009
Table of Contents
II. Table of Contents 2
III. Executive Summary 3
IV. Situational Analysis 5 A. Environment 5 B. Industry Analysis 5 C. The Organization 7 D. The
Marketing Strategy 9
V. Problems Found in Situational Analysis 10 A. Statement of primary problem. 10 B. Statement of
secondary problem 12 C. Statement of tertiary problem. 13
VI. Formulate, evaluate, and record alternative course(s) of action 14 A. Strategic Alternative 1 14 1.
Benefits 14 2. Costs 15 B. Strategic Alternative 2 16 1. Benefits 16 2. Costs 19 C. ... Show more
These strategies are still considered by Krispy Kreme to be "Brand Elements" as reported in current,
annual financial reports. By keeping control of the recipe and the doughnut–making process, they
also maintained product standards and reduced, while not completely eliminating, the competition
through the uniqueness of their product. In fact, attempts to change the recipe, or even the look of
the shops, in later years met with negative reactions from customers and the company quickly
returned to the original taste and feel of the "original" Krispy Kreme.
The company and its doughnut became synonymous with a particular look, taste and feeling. This
emotion that became associated with Krispy Kreme, described as "a feel–good business" and one
that "created an experience" as opposed to just selling doughnuts (Peter and Donnelly, 2007),
became the core of the company's marketing strategy, and just maybe, one of the prime reasons for
its subsequent struggles in the early 2000's. Selling a "feeling" or "experience" can be a successful
marketing tool. But that's just one of the tools that a successful marketing plan must encompass. The

company must also be prepared to grow with the times and change with that growth. That is, the
marketing strategy of one time and

Krispy Kreme
Krispy Kreme Strategic Analysis:
Introduction
In 2003 Krispy Kreme was named by Fortune Magazine as "America's Hottest Brand" and in 2004
they reported net income of $50 million. However over–expansion, an expensive store network,
revelations of falsified financial reports and changing trends in diet have meant that Krispy Kreme
revenues have declined by 50% between 2005 and 2010
The strategic problem considered is to analyse Krispy Kreme's current operations and suggest
recommendations for how this may be tailored for the UK market for long–term profitability given
cultural and retail differences.
Current strategy
Krispy Kreme operates 582 stores (including franchised) in 18 countries worldwide. Stores range
from 4,000 to 8,000 ... Show more content on Helpwriting.net ...
Krispy Kreme train their staff who usually have little experience or education; consequently, they
pay employees minimum wage or similar and are therefore affected by minimum wage increases.
Other political factors are government actions to reduce obesity; however it is very unlikely that
government will legislate against high fat and unhealthy foods
Economic
The continued economic downturn has meant tightened consumer spending, as Krispy Kreme is a
non–essential food item this may pressure sales. Inflation is above the Bank of England target and
there is upward pressure on long–term interest rates as shown by the UK treasury yield curve. An
increase in interest rates will increase the cost of capital and mean more expensive borrowing at a
time that they could need to expand to compete with rivals.
Social
UK consumers are becoming more aware about the ingredients in food, e.g. boycotting trans–fats,
battery farmed poultry and mass farmed tuna. In 2008 this motivated

Krispy Kreme
Krispy Kreme Doughnuts, Inc. (KKD) is an exclusive brand that offers doughnuts, beverages,
collectibles, and franchise opportunities. It started as a small bakery in Winston Salem, North
Carolina on July 13, 1937; and has evolved into a publicly traded firm boasting 395 retail stores and
over three million dollars in sales (second quarter 2010). This was not always the case however, by
the end of 2004, the economy began to slow. This caused businesses in competition with Krispy
Kreme to flood their market hindering plans that Krispy Kreme had of expansion. Eventually they
would have to scale back due to declining sales. Consumer interest in low carbohydrate diets such as
the "Atkins" and "South Beach" diet plans are somewhat to blamed for ... Show more content on
Helpwriting.net ...
Porter's Five Forces model looks into an industry and allows for deeper analysis of business strategy
that is involved with each company. It strives to identify the justifying factors that are related to five
forces that determine the competitive environment and overall attractiveness of an industry. In the
case of KKD's their competitive position is put against fast food industry. Potential entrants of this
industry depend on what stage of the industry life cycle it is in at the time, however most of the time
the threat of potential entrants is low. This is because the majority of the firms currently in the
industry have developed economies of scale that provides them with a cost advantage over new
entrants. KKD has cost advantages due to its supply chain and since they manufacture their own
doughnut–making equipment and produce doughnut mixes their economies of scale is entirely
internal thus making the doughnut making process very efficient. Their access to distribution sells
directly to the customer by means of their stores with counters and drive–through windows. They
also sell out of the stores in grocery and convenience stores. Their brand is known for their
doughnut signs as well as doughnut–making theaters where customers can come watch the doughnut
making process through glass windows.
The bargaining power of suppliers is low. This is because franchise stores and company stores

Krispy Kreme Case Study
KRISPY KREME DOUGHNUTS IN 2005
ARE THE GLORY DAYS OVER?
CORPORATE BACKGROUND
Company History
First getting its corporate bearings on July 13, 1937 in Winston–Salem, North Carolina, Krispy
Kreme Doughnuts have seen the many stages of financial gain and loss. Through the 1930's and
1940's the company saw regional growth and by the late 1950's Krispy Kreme had opened 29 shops
in 12 states. 1960 marked an era where management Vernon Rudolph and Mike Harding began to
emphasize corporate standardization through its brand image. All Krispy Kreme shops were made
with a green roof, a red–glazed brick exterior, a viewing window inside, an overhead conveyer for
doughnut production, and bar stools. Original owner Vernon Rudolph in 1973, so ... Show more
In 2003, 18 employees attended the Krispy Kreme Leadership Institute to increase their capacities in
senior management areas. In 2003, the company acquired Montana Mills Bread Company for 1.2
million shares of Krispy Kreme stock (worth roughly $50 million). In 2004, Krispy Kreme
management expressed confidence in their company's potential. However, the management failed to
foresee the future.
The Yeast Fails to Rise (Weaknesses)
The second half of 2004 failed to meet the managements expectations made earlier in the year. The
company estimated diluted earnings per share of $1.16 for fiscal 2005; actual diluted earnings were
$0.93. The company expected sales would increase 25% in fiscal 2005; actual systemwide sales
increased 14.8%. The company divested the recently acquired Montana Mills operation. It also
closed six underperforming factory stores. In the hours following the announcement of the financial
loss, the company's stock dropped 20%. On May 25, 2004, Krispy Kreme reported a $24.4 million
loss for the first quarter of fiscal 2005. According to the company, the poor performance was
because of trendy low–carb diets, and a $34 million write–off of its investment in Montana Mills.
The stock was now down 37%. To make matters worse, the company announced that the SEC was
investigated shady accounting practices due to franchise buybacks.
COMPETITIVE ANALYSIS
Porter's Five Forces Model (Appendix 1)
INDUSTRY

Krispy Kreme
QUESTION 6: GIVEN YOUR ASSESSMENT OF KRISPY KREME 'S HEALTH, WHY DID IT 'S
STOCK PRICE DROP BY 80% BETWEEN 2003 AND 2004?
The question is what they do wrong for the business that is nearly more than 70 years, what makes
them fall so quickly especially in year 2003 and 2004, there are at least 2,300 franchised businesses
in Unites States, many that are successful, but there are difficulties in the franchise model, and
Krispy Kreme with the combination of ambitions, greed, and inexperience in managed to stumble
into most of them.
As Krispy Kreme pursued its ambitious growth strategy, it was making mistakes in its finance
department as well, except for the company 's plan to finance a $35 million mixing plant in Illinois
... Show more content on Helpwriting.net ...
Krispy Kreme also rolled into the price the costs of closing stores and compensating the operating
manager and principal owner of the Michigan franchise to stay on as a consultant. Both of these
expenses became part of the intangible reacquired franchise rights asset on the company 's balance
sheet, rather than costs that would have reduced the company 's reported earnings. Krispy Kreme
announced in a December 2004 8–K filing that it will need to make an adjustment of between $3.4
million and $4.8 million to properly record the compensation as an expense. A second adjustment of
some $500,000 will reverse the improper recording of interest income.
In its December 2004 8–K, Krispy Kreme revealed that there would need to be adjustments made to
the accounting for the Golden Gate Doughnuts purchase as well a total of $3.5 million to correct
improperly recorded compensation expenses and management fees that had been included in the
purchase price. The company will also make a similar correction to fix errors made in the
acquisition of a franchise in Charlottesville, Virginia.
The following month, the company announced that the United States Attorney 's Office of the
Southern District of New York was also joining the fray a move indicating concern about possible
criminal misconduct. In April, Cooper shored up the business by securing $225

Krispy Kreme Essay
Written Assignment
Krispy Kreme Doughnuts, Inc
I. Brief History
Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933
and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme.
Rudolph moved to Winston–Salem, North Carolina, where he opened his first Krispy Kreme shop.
The business prospered and in the 1950¡¦s over ten other locations were opened. The business was
able to produce 500 dozen doughnuts an hour. ¡§Revenues grew from less than a million in 1954 to
$58 millions in 1974.¡¨(C–280) The company was bought out in 1976 by Beatrice Foods. This hurt
the name and image of Krispy Kreme. Revenues began to fall and customers ... Show more content
on Helpwriting.net ...
Krispy Kreme went from being a wholesale baker to a specialty retailer. They used their marketing
skills by stressing the ¡§hot doughnut experience¡¨ that customers knew them by. It was known that
by changing the company¡¦s traditions and style as was done when Beatrice Foods took over in the
1970¡¦s that customers do not take a liking to change. Krispy Kreme knows that they always have to
look to see what the customers want and appeal to them. Krispy Kreme spends very little on
advertising. They rely on word of mouth of their customers, local media publicity, and product
giveaways.
Technology speaking the company made the size of the doughnuts bigger. They also looked at the
size of the stores and realized that it was not cost efficient to have the large stores so they began to
make smaller ones.
Krispy Kreme has built–in supply chain where it manufactures the mixes for the doughnuts at
company plants located in North Carolina and Illinois. They also manufacture proprietary
doughnut–making equipment for use in both company–owned and franchised stores. The company
receives a substantial amount of their revenues and earnings, which are attributable to ¡§KK
manufacturing and distribution¡¨, which is the sale of mixes and equipment.
II.

Krispy Kreme Analysis
EXECUTIVE SUMMARY
We begin our report by touching on the history of Krispy Kreme. Vernon Rudolph started Krispy
Kreme in 1933 when he bought a doughnut shop from Joe LeBeau. He later established the first
Krispy Kreme in Salem, North Carolina. After Scott Livengood became CEO, the company
repositioned itself and focused on being a specialty retailer, rather than a wholesale bakery. They
soon began expanding rapidly throughout the United States. This particular case took place in 2004
Krispy Kreme was beginning to run into some serious problems.
Next we discuss the situation analysis beginning with the market summary. Here we explain the
demographics, psychographics, and behavioral attributes along with the market needs, trends, and ...
Show more content on Helpwriting.net ...
The newly appointed CEO, Scott Livengood, realized the problem with the sluggish sales was
because of the company's current strategy.
After becoming CEO, president, and chairman of the board in 1999, the company repositioned and
focused on being a specialty retailer rather than a wholesale bakery. Krispy Kreme wanted to give
their customers the "hot doughnut experience" they all knew and loved (Peter & Donnelly, 2011).
The second part of their plan was to increase the number of stores both franchises, and company
owned nationally. The company began to move into other regions. For example, in 1996 the first
store in NY City was opened, and in 1999 the first store in California opened. In early 2000, the
company went public and merged into a new company called Krispy Kreme Doughnuts, Inc.,
instead of Krispy Kreme Doughnut Corporation. From 2000–2004, the number of stores has
proliferated from 144 to 357 and Krispy Kreme is now beginning to open in international locations,
opening the first factory in London. They now also have locations in Canada, Mexico, and Australia.
SITUATION ANALYSIS
MARKET SUMMARY:
Krispy Kreme focuses on opening their stores in large, populated cities in the United States such as
Denver, Colorado, Rochester, New York, Medford, and Massachusetts. In 2000–2004 the company
has focused on opening numerous locations, and expanding into Europe with plans of

Krispy Kreme Doughnuts, Inc.
Industry Size
Krispy Kreme Doughnuts, Inc. (KKD) is an American global doughnut company and coffeehouse
chain based in Winston–Salem, North Carolina. Krispy Kreme was founded on July 13, 1937, and
its parent organizations are JAB Holding Company, Cotton Parent, Inc. Krispy Kreme is leading the
market with the following products, hot regular/decaf/flavored coffee, iced coffee, donuts, bagels,
and muffins. The company produces 7.5 million doughnuts a day, 2.7 billion a year. Also, the
company operates 390 stores in 45 states, as well as selling the product in supermarkets, convenient
stores. Since 2005, Krispy Kreme has expanded to other countries; it has a presence in Mexico,
Canada, UK, Australia, South Korea and Spain. The company has ... Show more content on
Helpwriting.net ...
Soluble. This segment is also known as instant or freeze–dried coffee. There are three main
competitors in this segment, these three companies sell instant coffee worldwide, and they produced
their own coffee, which makes it difficult for smaller companies to compete with them.
Ready–to–Drink. This segment consists of package coffee that requires no preparation, other than
reheating. This type of coffee is mostly found in vending machines, and lately canned coffee is
becoming more popular in Europe.
Specialty Coffee. This segment consists of more than just traditional coffee items, this segment
includes cappuccinos, lattes and espressos along with the popular organic coffees, these specialty
coffees demand premium prices. Today, more than forty percent of all coffee premium–price,
according to Iowa State University.
Economic Climate
The economic outlook for Dunkin Donuts Brand (DNKN) which it governs Dunkin Donuts and
Baskin–Robins has consistently led the industry in operating margin. Which, operates by reducing
costs of goods sold by neutralizing to store managers and it will be able to leverage economies of
scale via its consolidated manufacturing locations. Dunkin Donuts can keep up pace with its high
margins parallel to the industry.
________________________________________
Forecast Earnings Growth There are multiple factors that will affect the fast–food industry.
Consumer is

Krispy Kreme Inc.
FROM: JMSB Students
TO: Shareholders and potential investors of Krispy Kreme Doughnuts Inc.
DATE: Tuesday, January 19 2010
SUBJECT: Krispy Kreme Doughnuts Inc. Analysis
1) Identification of issues:
* Is Krispy Kreme's a healthy company? * What had happened to the company? * Why were so
many investors fleeing the popular doughnut maker? * Were the revelations about the company's
franchise accounting practices sufficient to drive that much value out of the stock? * Were there
deeper issues that deserved scrutiny?
2) Recommendations
3) Quantitative Analysis
As we begin to analyze Krispy Kreme Doughnuts from a quantitative perspective, we will address
our first issue; Was the company healthy? When ... Show more content on Helpwriting.net ...
This diet tries to promote weight loss and healthy living by cutting out the carbohydrates (sugars, for
the most part) from their foods. Unfortunately for Krispy Kreme, their product offering is mostly
doughnuts, all of which are high in carbohydrates, and therefore on the blacklist of many Americans.
In fact, as Americans become smarter about their health and their food choices, we can expect
doughnut sales across America to drop with time.
Loss of the niche aspect of the product
As Krispy Kreme rapidly expands by opening up new stores and franchises, the supply of their
doughnuts has increased dramatically. Krispy Kreme's doughnuts used to be in very high demand, in
our opinion because of the scarcity of the product: knowing that you can't have the product any
time, any where, made it more desirable. Now that Krispy Kreme locations are more accessible, as
well as the doughnuts being sold across grocery and convenience stores nation wide, the product has
become more of a commodity rather than the niche product it once was.
Product mix
Krispy Kreme's product mix constitutes of two things: doughnuts and coffee. This leaves the
company very exposed to changes in market demand that can be caused for example, by new and
existing diets. The competition on the other hand,

Krispy Kreme Srategic Plan
Table of Contents
Executive Summary........................................................................... 4
Company Background........................................................................ 4
Mission Statement............................................................................. 4
Vision Statement............................................................................... 5
Value Statement............................................................................... 5
Environmental Analysis...................................................................... 5
Internal Analysis............................................................................... 6
External Analysis............................................................................... 7
Differentiation Opportunity.................................................................... 8
Innovation Opportunity........................................................................ 8
Value Chain..................................................................................... 9
Low Cost Opportunity............................................................................ 9
Grand Strategy.................................................................................. 10
Key Success Factors............................................................................. 11
Risk ... Show more content on Helpwriting.net ...
Then Krispy Kreme will analyze the external market, identifying threats and opportunities of other
firms in order to manage around that and gain an advantage
Internal Analysis Conducting an internal analysis on Krispy Kreme Doughnuts will identify some
strengths within the firm that can be used for competitive advantage. Krispy Kreme can also grow
and expand on these strengths to keep that advantage in far reach of other firms. Krispy Kreme has
produced a very favorable and high quality doughnut with an excellent visual appeal not found
elsewhere. This is in part from great technology that allows quick finishing of cooking of partially
cooked doughnuts. Doughnuts are prepared in advance and cooked to a certain point (Krispy Kreme,
2001). They are kept stored properly and are then finished cooking by the technology of the "Hot
Doughnuts Now" machine. This process helps prepare for large orders and big rushes, while still
giving the customer quality and freshness. One big attraction of Krispy Kreme is there neon sign
displayed at all stores which signals "Hot Now" when the doughnuts are fresh out the oven.
Customers want freshness, so Krispy Kreme tells them when that is, without customers having to
take chances on whether they will receive fresh, hot products. The innovation of this technology and
idea is a major strength of Krispy Kreme and has been used for great advantage in the doughnut
industry. Along with identifying strengths

Krispy Kreme Doughnuts Inc.
In March of 2009, the SEC filed a cease–and–desist order to Krispy Kreme Doughnuts Inc., for their
actions in prior years. The corporation had purposely inflated their earnings throughout 2003 and
2004 in an attempt to meet Wall Street expectations and retain their investors. With the over
inflation of their actual earnings, Krispy Kreme was able to present a higher earnings per share
(EPS) to the public and therefore become more favorable among investors. In this case there are
three primary transactions known as "round–trip" transactions that occur. This meaning that the
company was paying set amounts to franchisee's and then expecting them to return the payments in
a prearranged manner. In doing so, this would allow Krispy Kreme to record extra pretax income
and therefore inflate their profits. There were also reports of channel stuffing that surfaced from
former employees once the SEC began investigating Krispy Kreme. According to the reports Krispy
Kreme would send double orders at the end of the year in order to boost their sales and meet
expectations. Those orders would then be returned and credited at the beginning of the next fiscal
year. Price–Waterhouse–Coopers were the auditors at the time and would then face serious
questioning as to why they never noticed the increased shipments at the end of each year followed
by the credits when the orders were returned the next year. Looking at the three incidents that
occurred each had their own unique distinctions while

The Marketing Environment Of Krispy Kreme
Question 1
The marketing environment of any company plays an integral role in determining its capability to
develop long–lasting customer relationships. It is important to note that businesses do not function
in a vacuum. Hence, every step that an organization takes is either caused by or has repercussions on
forces in its marketing environment (Tischler, 2013). The business milieu is continually mutating
and every organization, in turn, must be equipped to deal with these changes. The smartphone
industry is a good case in point with regards to constantly changing business environments. The
Apple– Samsung War is in the vanguard of the industry.
Apple had long been spearheading the industry with repeated successes of the iPhone model.
Samsung ... Show more content on Helpwriting.net ...
I believe that Krispy Kreme can challenge this axiom and introduce doughnuts of different shapes
and sizes. This strategy shall attract customers, especially children, which constitute a large market
for Krispy Kreme. It might just become the latest fad and work wonders for Krispy Kreme.
(d) Diversification– Although Krispy Kreme has started selling coffee and other beverages, its
product mix remains limited. As a diversification strategy, I believe Krispy Kreme can venture into
something completely new– selling equipment. Its own manufacturing unit, KKM&D, can be used
to sell machinery to other companies. Since it already has the setup in place, this diversification plan
does not need additional capital and can be easily

Krispy Kreme
KRISPY KREME
Marketing Problem/Executive Summary
This presentation will analyze the current market situation, identify possible opportunities and
threats and recommend strategic actions for Krispy Kreme Australia.
Methods of analysis include SWOT analysis, product life cycle curve, porters five forces and
environmental, competitor and consumer analysis. For these we have used information from text
books, websites and online news websites.
From our analysis we have found Krispy Kreme Australia to be in a late maturity/ declining stage of
product life cycle with the company going into Voluntary administration in 2010 due to declining
sales and profits.
We have concluded that these declining sales and profits are effects of Krispy ... Show more content
on Helpwriting.net ...
This was their main focus, especially in the new markets where people might not understand that
when the light is on, it's actually signalling something and not just a decoration. Not only this but
they also focused on sampling, whereby many giveaways were done through their stores where
customers could 'try before they buy' which proved a success.
Product Portfolio
Krispy Kreme's product portfolio consists of a range of doughnuts including the original glazed
doughnuts to chocolate doughnuts to filled doughnuts to cinnamon doughnuts. They also have a
range of cold and hot drinks with milkshakes, hot chocolate and coffee to name a few. Not only this
but they have also expanded into ice cream and baked goods, with 9 flavours of ice cream varying
from vanilla to choc honey nougat, and baked goods consisting of pastries like croissants, gourmet
rolls, and egg and bacon rolls.
Marketing Mix Product
Krispy Kreme's marketing mix focuses on their product more than any of the other 4P's. Australia
was the first country outside of America to produce the iconic Original Glazed doughnuts. All
Krispy Kreme doughnuts are made fresh daily at the factories in each state. When making the
doughnuts in these stores, the "Hot Now" neon light is lit up so customers know that they will get
fresh doughnuts that have just been made.
Krispy Kreme also offer a range of quality treats including 15 signature doughnut varieties,

Krispy Kreme Doughnuts
KRISPY KREME DOUGHNUTS
Krispy Kreme Doughnuts, Inc. is a specialty retailer of doughnuts. The company 's business owns
and franchises Krispy Kreme doughnut stores, where it makes and sells over 20 varieties of
doughnuts, including its signature Hot Original Glazed and nine other varieties. Each of its stores is
a doughnut factory with the capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts
daily. The Company also sells in its stores drip coffee, other beverages, other bakery items and
collectible memorabilia such as tee shirts, sweatshirts and hats. As of February 2, 2003, there were
276 Krispy Kreme stores, of which 270 were located in 37 states in the continental U.S., five were
located in eastern Canada and one was ... Show more content on Helpwriting.net ...
An example would be bagel or muffin chains offering a healthier alternative to donuts. Krispy
Kreme must be aware of these alternatives and be prepared to adjust their product line to
accommodate or lure potential customers.
Rivalry– There has been and may always be a large amount of rivalry between competing donut
producers. The range of producers is vast, from small private bakeries to larger chains such as
Dunkin¡¦ Donuts. Donuts are easily produced from relatively inexpensive ingredients. This creates
competition and rivalry and Krispy Kreme should be look at expanding its product lines into new
markets.
Core Competencies
Krispy Kreme has an excellent Marketing Department. They have kept a good reputation and
established good rapport in the domestic market. Having excellent and swift customer service is a
good business strategy that led to the development of their doughnut–making machine. The original
glazed is the doughnut that most people are familiar with and is the most popular. At Krispy Kreme
the glazed doughnuts are served hot off the doughnut–making machine. A main attraction for Krispy
Kreme is the ability to create your doughnuts fresh to order. If you happen to be passing by the store
and wondering whether or not the doughnuts are being served hot and fresh, just watch the sign on
the outside of the store. If the "HOT" light is on, that means that the

Financial Analysis : Krispy Kreme
Financial Summary
Krispy Kreme uses a fiscal year, which ends on the Sunday closest to January 31st. For fiscal year
2015, the year ended on February 1, 2015 and the year had 52 weeks. It is important to note that the
2013 tax year had 53 weeks and should be taken into account when comparing financial data from
2013 fiscal year. The following company information is from the 2015 Krispy Kreme annual report.
Krispy Kreme has 111 domestic company stores. They have a total of 876 franchise stores both
domestic and international. Of the 876 total franchise stores, 709 are international. The top three
international countries with the most franchises are Mexico, Saudi Arabia and South Korea. Mexico
has 136 total stores of the 709. ... Show more content on Helpwriting.net ...
However, simply looking at a decrease or increase in liabilities is not enough information to assess
the financial health of a company. An important ratio to analyze is the current ratio. The current ratio
is important because it will give an investor an idea of a company's ability to pay short–term debt.
The current ratio for 2014 is 2.75. The current ratio for 2015 is 2.56. Although the current ratio has
decreased in 2015, overall the company has a strong liquidity position and will be able to meet
current obligations. It is also good to compare a company with their competitors in the same
industry. Dunkin' Brands is a good company to compare with Krispy Kreme as they are both in the
same industry and both sell doughnuts. The current ratio for Dunkin' Brands was 1.25 based on their
2014 annual report. This shows that Krispy Kreme has a stronger liquidity ratio than that of Dunkin'
Brands and is more likely to pay their short–term liabilities.
Now, let's look at another ratio which is key to investors, the Return on Equity Ratio. The return on
equity ratio gives an idea of profitability of owner investment and the performance of a company's
management team. Net Income for 2015 fiscal year was $30,060,000. The average common
stockholder's equity in 2015 is $266,439,500. The Return on Equity or ROE for 2015 is 11.28%. Net
income in 2014 was $34,256,000. Average common stockholder's equity in 2014 was $255,762,500.
The ROE for 2014 was

Krispy Kreme Research Paper
CLA
Krispy Kreme
Road to Success
Tara Dugan
Leadership
Mr. Groff
1/11/17
Vernon Carver Rudolph was born in Marshall County, Kentucky. He was the oldest of four children
born from his parents Plumie and Rethie Rudolph. His siblings included Lewis
Rudolph, who would help found Krispy Kreme.
When he graduated high school, he went to Paducah, Kentucky with his uncle. In 1933,
Rudolph's uncle bought a doughnut shop and recipe for yeast–raised donuts from a federal employee
named Joe LeBeau. This all occurred during the middle of the Great Depression, so they moved to
Nashville, Tennessee to see if they could get better business there and secure their financial future.
Things did not work out for them in Nashville, so they moved back to Kentucky ... Show more
On April 5, 2000, they went public on the NASDAQ at $21 using the ticker symbol
KREM. In February 2004, the company had sales of $665.6 million and profits of $94.7 million
from almost 400 stores.
On February 19, 2007, Krispy Kreme started selling the Whole Wheat Glazed doughnut to appeal to
the health conscious. The doughnut has 20 Calories in the US fewer than the original glazed and
contains more fiber (2 grams vs. 0.5 grams). In January 2008, the trans fat content of all Krispy
Kreme doughnuts was reduced to 0.5 of a gram or less. The U.S. Food and Drug
Administration, allows companies to round down to 0 g in its nutrition facts label even if the food
contains as much as 0.5 of a gram per serving. Krispy Kreme benefited from this regulatory rule in
its advertising campaign, touting its doughnuts as trans fat free and having 0 grams trans fat. The
first Krispy Kreme store to open outside North America was in Penrith, Australia, in
Sydney. Since it was successful they opened 53 other stores around the country. There are also
locations in the United Kingdom, Australia, Lebanon, Turkey, India, Dominican Republic,
Iceland, Kuwait, Mexico, Puerto Rico, Taiwan, South Korea, Malaysia, Thailand, Indonesia,

Dunkin Donuts And Krispy Kreme
When it comes to the consumption of coffee and donuts, I wonder to myself who does the best job at
doing so at a reasonable price and who has the most benefits. That is when I decided that I was to
put Dunkin' Donuts and Krispy Kreme side–by–side to see who would be the best in the modern
marketing world. In order to do this, I will be discussing the four P's to differentiate the companies
and use other material that was discussed in class. When I started to write this report; my original
plan was to use Dunkin' Donuts and Starbucks to determine which would be better, however these
companies are far from comparison and I chose a company that would be more similar in products
and service, with that company being Krispy Kreme Doughnuts. The first order of business in
choosing which company comes on top, is to figure out the marketing mix of the two. According to
oxforddictionaires.com, the marketing mix is defined as "a combination of factors that can be
controlled by a company to influence consumers to purchase its products". This is then broken down
into "product, price, promotion, and place" (Grewal, 33). Using this, we will be able to break down
what each company does differently and who is more effective. The first p we will be using is
product, which is defined as "an article or substance that is manufactured or refined for sale"
(oxforddictionaries.com). According to the Krispy Kreme menu on its website; they offer a wide
variety of doughnuts and coffee

Krispy Kreme in Brazil
Founded in 1937 in Winston–Salem, North Carolina, Krispy Kreme is a chief branded retailer and
wholesaler of high–quality doughnuts, including its innovative Hot Original Glazed. Vernon
Rudolph bought a secret yeast–raised doughnut recipe from a French chef from New Orleans,
borrowed a building in Winston–Salem to bake in, and began selling Krispy Kreme doughnuts to the
local grocery stores. Krispy Kreme has sustained its intensification and lengthened the design of the
reliable Krispy Kreme store throughout the Southeast. They now have about 300 Krispy Kreme
factory stores and 90 satellites, and have continued growth. The speedy development fashioned
challenges in making sure products were always fresh and obtainable. With this ... Show more
This gives them a dissimilar nationwide civilization separate from its Spanish–speaking neighbors.
Even though Portuguese is the main language between the Brazilian culture there are other
languages such as English, French, German, Italian, etc., which are spoken by the people.
Market Entry Strategy The unsurpassed approach to enter into a Brazilian market would be to do
franchising. Franchising is a marketing–oriented technique of selling a business service, often to
diminutive self–governing investors who have operational capital but small or no previous business
experience. Krispy Kreme has franchised Korea, Japan, China, the Philippines, Indonesia, Kuwait,
Dubai, Mexico, Australia, Canada, the United Kingdom, and the United States where the business
originated. They have seemed to be victorious with aperture franchises in all of these countries and
plan to keep increasing in the upcoming. Krispy Kreme has the same franchising necessities for any
person who requests to procure into the Krispy Kreme franchise. Krispy Kreme has three
franchising requirements. These requirements are:
1. Applicants are obliged to have current tenure and working experience or previous ownership and
operating experience of multi–unit food service operations in the market that you wish to expand.
2. Their franchisees ought to possess the principal adequate to fund the expansion of the market.
They currently grant franchises

Fast Food : Krispy Kreme
Ever since I was about four years old I have had an obsession with one type of fast food: Krispy
Kreme. This obsession goes back to before I can even remember everything growing up. According
to my grandmother, whenever we drove by a Krispy Kreme when I was about four, I would yell the
word "doughnut" after seeing the big red circle sign with the words saying hot Krispy Kreme
doughnuts now. And that is where it all started for me and my favorite type of sweet junk food.
Krispy Kreme, in particular, has had a large influence on my growing up. I am also, however, very
passionate about American doughnuts. Most kids were passionate about hot dogs, pizza, popcorn, or
ice cream; but I was never interested in those type of goodies. There has always been something that
is completely irresistible to me about a good ole sweet glazed or fill doughnut and some hot
chocolate .I am not sure if it is the way the chocolate iced glazed with sprinkles doughnut that
caught my eye and attention or the way the original glazed doughnut smelted in my little mouth.
Whatever it is, I have been hooked from what seems like birth.
When I was young my reward for doing something good in my grandmothers ' eyes was a trip to
Krispy Kreme. I find this funny looking back since I went all the time anyway, either on weekends
or with my sister after school for a sweet little snack. It is a wonder I never blew up and gained
about thirty pounds with the amount of Doughnuts and cupcakes I ate. On the other

Decline Of Krispy Kreme
Upon review, Krispy Kreme Doughnuts, Inc. is a struggle company continuing towards decline. In
reviewing the information collected, two questions were presented. The two questions included: the
health of Krispy Kreme and the reasons for their decline. To follow will be the justification for the
decline in Krispy Kreme, alternative issues, and risks Krispy Kreme is facing. Upon reviewing the
information, there are variety of issues that Krispy Kreme. These issues including the restatement of
financial statements for the fiscal year ending February 1, 2004, and the first two quarters of 2005,
their growth and saturation in outside outlets, and high reliance on profit from new franchisees. The
first issuing plaguing Krispy Kreme is the announcement ... Show more content on Helpwriting.net
...
Due to its own internal investigation and the Securities Exchange Commission, Krispy Kreme
announced it would be delayed in filing their financial reports due to their financial restatement the
noted risks occur. Having to delay their financial reports, Krispy Kreme faces the risk facing to
default on a $150 million credit facility. If they default, Krispy Kreme's credit facility would be
ended and they would be forced by their various banks to repay any and all outstanding balances.
With their stocks trading at under $10 a share, the issue of financial restatement, and the risk of
default has caused Krispy Kreme's stock to be on the verge being eliminated from the New York
Stock

Krispy Kreme Is The Best Donuts
Can you picture "riding down the street then you look over to see the big red" "hot and ready "sign
on for those delicious little glazed donuts, and you just have to stop in for a dozen but when you get
in there you end up buying two dozen. Trust me, I always do. Krispy Kreme is the best donuts in the
world to me and they just melt in your mouth. Before you know it you will have ate a whole entire
box by yourself. I bet you're thinking how can I invest in something I don't know anything about this
company. Well I can help you with that with a brief summary of history.
Krispy Kreme started in Winston–Salem, NC on July 13, 1937 by a man named Vernon Rudolph.
Vernon received amazing recipe from a New Orleans French chef. Vernon Rudolph started selling
his delicious, remarkable donuts in a neighborhood grocery store. Rudolph and his partners jump in
full swing in business with limited resources and equipment. In the 1940's a display case was
designed to show case the doughnuts. The top counter of the display served as the countertop. Cake
doughnuts as well as doughnuts on a stick were being made at the time. Vernon thought what better
way to show a variety of doughnuts by using a very attractive display. This display is something that
you can't miss and will see in all Krispy Kreme stores forever.
By 1945 a lot of company's doughnuts still stayed the same but Vernon was an outside of the box
thinker. He implemented 8 different and wonderful varieties; there was the jelly

Case Study Of Krispy Kreme

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