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Marketing 551 – Marketing Management

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Marketing 551 – Marketing Management
Krispy Kreme Service Launch

Jennifer Crymes
Manit Chanthavong
Michael Lamp
John Pena
Benjamin McGreer

Murray Hilibrand
May 29, 2002
Marketing 551 – Marketing Management
Krispy Kreme Service Launch Krispy Kreme is the premier doughnut provider. Their product is second to none and their service is more of an experience than simply purchasing junk food. Our learning team will review Krispy Kreme as a company. This paper will focus on current products and services, sales, costs, profits, market, competitors, distribution, and the macroenvironment and will conclude by suggesting a new service for Krispy Kreme.

Current Products and Services/Sales/Costs/Profits

Krispy Kreme Doughnuts, Inc. founded in 1937 in Winston-Salem, North Caroline owns, operates, and franchises retail stores that sell doughnuts and related items. Krispy Kreme stores specializes in making doughnuts, including their signature Hot Original Glazed. Krispy Kreme offers a unique retailing experience by fully displaying the production process, also known as the doughnut making theater. “An estimated 5 million Krispy Kreme doughnuts are sold every day and more than 2 billion are sold each year” (Moore, 2002). In addition to doughnut sales, the company earns revenues from franchise and development fees and the collection of royalties from franchises. Furthermore, the company sells doughnut-making equipment and mix and other ingredients to company-owned and franchised stores. The company’s fiscal year ends on the Sunday closest to the last day in January. The current fiscal year (53-weeks) ended on February 3, 2002. Krispy Kreme’s gross revenues for 2002 were $394,354,000 with a net income of $26,378,000. The trend of gross revenues and net income has been positive since 1999. The 5-year growth rate for sales has been 24%, and increased by 31% from 2001 to 2002. Meanwhile, operating expenses only increased by 26% from 2001 to 2002. In terms of


References: American Institute of Baking (2001). Doughnut Statistics and Trends. Retrieved May 28, 2002 from the World Wide Web: http://www.aibonline.org/resources/statistics/doughnut.html Bank of Canada raises key interest rate Buffa, Lisa (2001). The speed of breakfast . Milling & Baking News. Retrieved May 28, 2002 from the World Wide Web: http://www.bakingbusiness.com/co_article.asp?ArticleID=39390 Canada: News in brief Canada: Population growth rate slows to record low. (2002, March 14). World News Digest. Retrieved May 26, 2002 on the World Wide Web: http://www.facts.com Census 2000: Resident population and apportionment counts Economy: Jobless rates soared in April; Other developments. (2002, May 9). World News Digest. Retrieved May 26, 2002 on the World Wide Web: http://www.facts.com Hispanic population in the United States Krispy Kreme Doughnuts. (2002). Website. Retrieved May 26, 2002 on the World Wide Web: http://www.krispykreme.com McLaughlin, L Moore, R. E. (May 6, 2002). Krispy Kreme Announces Expansion Into Five New Markets and Increases Store Opening Guidance for FY03 World Wide Web on May 27, 2002 at : http://www.prnewswire.com/cgi-bin/micro_stories.pl Milling & Baking News (2000). Corporate Profiles: Krispy Kreme Doughnuts, Inc. Retrieved May 28, 2002 from the World Wide Web: http://www.bakingbusiness.com/archive_article.asp?ArticleID=35368 Phinney, S. (2001, December 15). Gifts that give back; The wave of retail patriotism has an altruistic side. Seattle Post, E1. Retrieved May 27, 2002 from EBSCOhost database on the World Wide Web: http://www.ebscohost.com Profile – Krispy Kreme Doughnuts U.S. population trends. (1999, September). U.S. Census Bureau Website. Retrieved May 26, 2002 on the World Wide Web: http://www.census.gov/mso/www/pres_lib/index2.html
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