1. Krispy Kreme Doughnuts grew aggressively from the 1950s-2000s but began declining in 2005. 2. An internal and external analysis found opportunities in consumer trends but also threats from health campaigns and increased competition. 3. Recommendations included corrective financial measures, hiring qualified managers, focusing on successful stores, and adapting products to consumer desires for a turnaround.

1. Krispy kreme Doughnuts
Antoine Marion
Bayou Julie
Hazet Charles
Héberlé Camille
Helson Yohann

2. Summary
1. Krispy kreme Doughnuts presentation
1. Internal and external analysis
1. Decline
2. Recommendations

3. 1. Firm presentation
1933 creation (Vernon Rudolph)
1950s 29 shops, 12 states
1960 Standardization
1982 bought by Joseph McAleer (develops franchise)
1990s agressive expansion strategy
2001 Digital java acquisition (coffee/beverages)
2000-2004 Growth
2005 Decline
A quick and effective Growth

4. Problem Statement
2006,
Is a turnaround possible?

5. 2. Internal and external
analysis
• PEST
• PORTER
• MAPPING
• SWOT
• STRATEGY
• FINANCIAL ANALYSIS

6. Pest
Opportunities Threats
• Health campaign
Politic
• Foreign politic
• Consumer’s will to save • Crisis
Economic money • purchasing power
• Competition
• Leisure time • Loyalty decrease
Social • Change in consumption
habits
• Innovation in the
Technologi
production
c
• New ways of selling
Main factor of change: consumption habit

7. Porter Analysis
Threaten
new entrants :
High
+
Customers :
Suppliers : Competitors
High
Low High
++
--- +++
Substitutable
Product:
High
++
High Competitive market

8. Mapping Quality
+
Diversification
+
Focus on the brand key product

9. SWOT Analysis
Strengths Weaknesses
• Quality • Communication
• Loyalty • Monitoring & Control
Opportunities
Social network Event
• New ways of selling
• Leisure time
Threats
Comsumption
• Health campaign
Bad results
• Competition
Experience
• Change in consumer’s
habits

10. Key Success Factors
• Historical basic product with
many variations + coffee
• Vertical Integration principle
• Customer’s experience
• Diversify the sales locations
• Franchise

11. Strategy (until 2005)
BUSINESS STRATEGY 1 Market 1 Product
DIFFERENTIATION A unique experience
• Atmosphere
• Emotional link

12. Financial observations
• Revenue: 2000 to 2004: + 202%
• Stores: 1998 to 2004: + 237
2005
• Revenue Q4 2005 to Q3 2006: -15%
• 88% of the share
• Stores: - 30
DECLINE

13. 3. Decline (End 2005)
WHY? • Lack of control in the accounting results
• Unqualified managers
• Campaign against obesity
• Inappropriate products

14. 4. Recommendations
A new strategy
RECOVERY STRATEGY
• corrective measures (Financial monitoring)
• long term vision (repositioning)

15. 4. Recommendations
Strategy Implementation
• Establish a regular BP to control accounting
• Hire qualified people
• Focus on the successful stores
• Communication campaign

16. 4. Recommendations
• Adaptation to consumers desires
• Healthy products diversification
• Franchise in harmony with the brand philosophy
A Turnaround is possible!
Control & Monitor the success

17. Thank you for your attention!