Krispy Kreme Case Analysis
Strategic Management
Krispy Kreme
1 Growth rate
27%
2001
2002
Sales
394.354
491.549
NI
26.378
33.478
Profit Margin 24.6%
Roe =
6.69%
6.81%
2
Target Market
Krispy Kreme does not have one particular target market and are not categorized as one business type; they have various tactics to appeal to various markets. They also target school, local organizations and businesses. He primary market, those ranging from the ages 20-30 years old, are Krispy Kreme’s main focus. This is where the majority of their business comes from. These are your everyday commuters who desire a sweet treat, or coffee to help outlast a long day at work. Their purchases may be small or cheap, but business is usually consistent, as are sales.
Krispy Kreme appeals to schools as a fundraising opportunity. Doughnuts are very inexpensive when purchased in bulk, and easy to sell. Krispy Kreme offers certificates, coffee, partnership cards, and doughnuts to schools to raise money. Gift certificates are less of a burden, and those selling them don’t have to deal with ordering and delivering doughnuts after you’ve made the sale. This makes things easier for both the customer and fundraiser. Offering fundraisers to schools increases awareness of Krispy Kreme, serves as sales promotion, whilst building a relationship with schools and the community. The money earned from these fundraisers are usually used to improve the school or purchase uniforms as shown on Krispy Kreme’s “Fundraising” page on their site. Local organizations and businesses purchase Krispy Kreme’s products for retailing.
Competitors
Competitors Competitors
Starbucks
McDonalds
Nestles
Dunkin Donuts Einstein Bagels
Panera bread
Starbucks
Bruegges Enterprise Dunkin Donuts
Yum! Brand
Starbucks
International
Krispy Kreme
1 Growth rate
27%
2001
2002
Sales
394.354
491.549
NI
26.378
33.478
Profit Margin 24.6%
Roe =
6.69%
6.81%
2
Target Market
Krispy Kreme does not have one particular target market and are not categorized as one business type; they have various tactics to appeal to various markets. They also target school, local organizations and businesses. He primary market, those ranging from the ages 20-30 years old, are Krispy Kreme’s main focus. This is where the majority of their business comes from. These are your everyday commuters who desire a sweet treat, or coffee to help outlast a long day at work. Their purchases may be small or cheap, but business is usually consistent, as are sales.
Krispy Kreme appeals to schools as a fundraising opportunity. Doughnuts are very inexpensive when purchased in bulk, and easy to sell. Krispy Kreme offers certificates, coffee, partnership cards, and doughnuts to schools to raise money. Gift certificates are less of a burden, and those selling them don’t have to deal with ordering and delivering doughnuts after you’ve made the sale. This makes things easier for both the customer and fundraiser. Offering fundraisers to schools increases awareness of Krispy Kreme, serves as sales promotion, whilst building a relationship with schools and the community. The money earned from these fundraisers are usually used to improve the school or purchase uniforms as shown on Krispy Kreme’s “Fundraising” page on their site. Local organizations and businesses purchase Krispy Kreme’s products for retailing.
Competitors
Competitors Competitors
Starbucks
McDonalds
Nestles
Dunkin Donuts Einstein Bagels
Panera bread
Starbucks
Bruegges Enterprise Dunkin Donuts
Yum! Brand
Starbucks
International