Krispy Kreme
Krispy Kreme has been in the doughnut business for over 64 years and has been a specialty retailer for doughnuts from the very beginning. Krispy Kreme implements a differentiation strategy, attempting to distinguish their donuts based on taste, quality and simplicity. The company 's goal since its infancy has been to satisfy customers by providing a unique experience. This bold strategy has differentiated them from their competition and created a competitive advantage. Customers are allowed to see how the doughnuts are made through the Doughnut Theatre then served the newly baked treats hot and fresh. The bright neon light that shines from every Krispy Kreme location reads "Hot Doughnuts Now," is one of Krispy Kreme 's key marketing strategies. When this sign is lit up, customers know that they will get fresh doughnuts that have just been made.
Krispy Kreme provides Code of Ethics which covers a wide range of business practices and procedures. It focuses on recognizing, dealing and reporting any ethical issues. Krispy Kreme 's commitment to social responsibility shines through their fundraising program, which offers three different ways of raising profit for your school or organization. Krispy Kreme has assisted non-profit organizations raise over 46 million through fundraising.
Although Krispy Kreme has many competitive advantages, it has its disadvantages as well. The first is the extremely unhealthy nature of its products. By the time a person takes the first bite of their second Krispy Kreme donut, they have already exceeded the USDA 's recommended fat intake for the entire day. This is sure to turn off all consumers who have health concerns or are watching their weight.
The second disadvantage is the single product concept and the lack of variety of Krispy Kreme products. Historical success for quick service type products revenue growth is slowest among any restaurant type. The product is not a necessity in hard times and external environmental conditions
Krispy Kreme provides Code of Ethics which covers a wide range of business practices and procedures. It focuses on recognizing, dealing and reporting any ethical issues. Krispy Kreme 's commitment to social responsibility shines through their fundraising program, which offers three different ways of raising profit for your school or organization. Krispy Kreme has assisted non-profit organizations raise over 46 million through fundraising.
Although Krispy Kreme has many competitive advantages, it has its disadvantages as well. The first is the extremely unhealthy nature of its products. By the time a person takes the first bite of their second Krispy Kreme donut, they have already exceeded the USDA 's recommended fat intake for the entire day. This is sure to turn off all consumers who have health concerns or are watching their weight.
The second disadvantage is the single product concept and the lack of variety of Krispy Kreme products. Historical success for quick service type products revenue growth is slowest among any restaurant type. The product is not a necessity in hard times and external environmental conditions
References: 1. Lamars Donuts News. October 25, 2002. http://www.lamars.com (05/20/04) 2. Krispy Kreme Homepage. http://www.krispykreme.com (05/21/04) 3. "Case Study: Krispy Kreme Doughnuts". Corechange. (05/20/04) 4. "Krispy Kreme Announces store..." October 31, 2002. PR News Wire. http://www.prnewswire.com (05/20/04) 5. "Krispy Kreme word-of-mouth tactics..." October 21, 2002 Brandweek. V43.p9 (05/20/04) 6. www.moneycentral.com (05/21/04) 7. Miller, Beth. "The New Doughnut Dynamic". St. Louis Business Journal (05/20/04)