VI.

Recommendation

The following recommendations are based on the Krispy Kreme Doughnut, advising that they
introduce new varieties/flavors of doughnuts to the market, as well as the company's growth, stability, and
retrenchment.

● Product development in Asian countries, including the introduction of new flavors and the
creation of a healthier doughnut line
People nowadays are constantly on the lookout for new industry trends. Especially when
it comes to food, because families, friends, and couples are eager to buy and try the latest "buzz"
on the market. People in Asian countries enjoy eating sweets, thus the doughnut sector has a
wonderful opportunity to expand its operations in the region. For the Krispy Kreme Doughnut,
we recommend that they provide the market with new varieties/flavors of doughnuts that they can
sell. The research and development team must perform study in order to choose the greatest
doughnut flavor to offer to their customers. Chocolate is very popular in the Philippines. As a
result, KKD must give its market (the Filipino people) the particular chocolate flavor of
doughnuts. And now that milk tea is popular in the Philippines, they can pair it with their
signature chocolate doughnut. Matcha varieties are popular in Japan. As a result, they should
provide a variety of matcha-flavored doughnuts paired with hot tea. Koreans and Japanese people
are increasingly becoming more health-conscious, and the KKD should consider these customers
as well.
To meet market demands, they must cut its calorie content. However, adopting this type
of strategy necessitates a significant investment in the study and testing of the optimal product
mix and flavor. The expense of modifying the doughnut-making process will also be high.
Because of KKD's strong domestic and global standing, it would be easier for them to promote
these new doughnut varieties. This new line does not require a separate supply chain due to
Krispy Kreme's vertically integrated structure.

● Market Development in the International market focused on opening new stores that would
be convenient to the customers
Over two thirds of Krispy Kreme’s product sales come from company and franchise
stores. In the early 2000s, the company rapidly expanded and opened a number of these stores,
only to close some of them years later. One of KKD’s strength is having a continuous growth of
sale and having its strong position globally. Hence, they should continue to expand its business to
 those areas which are not reached by other doughnut businesses like South America, Africa, and
Southern Asia. KKD should continue to open new stores that are convenient to the people and
have a modern design for it to be enjoyed by families and other customers. The research and
development team should look for the perfect location to build a new store of KKD wherein
people can easily find its place and will surely love the ambiance inside of it. Make sure that the
customers will love the place and ambiance of the store because this can be used as a marketing
strategy to attract customers and to make them feel welcome and comfortable. This can serve as a
go signal for them to conquer the doughnut and pastry line industry

● Sustaining Brand Reputation

Krispy Kreme has been in business for 83 years. This has allowed the company to build
up its image: a brand that exudes high quality and a one-of-a-kind experience. There are three
crucial components of the company’s image: the logo and color scheme, the Hot Doughnuts, and
the Original Hot Glazed doughnut. The company’s current marketing strategy is mostly based on
grassroots campaigns: fundraising programs for schools, sponsorship of local events and
organizations, and free doughnut giveaways on special occasions. KKD should continue these
campaigns for them to sustain the reputation of their brand. They should continue to fund
programs to schools to help students and this could be an excellent way to build a good reputation
for the company

● Market Penetration focusing on increased market share through greater marketing effort
Considering the financial status of Krispy Kreme, they are incurring net losses for the
past years. Competitors are fast growing and becoming rapidly global in scope. Krispy Kreme
might be left behind since greater opportunities for further growth and profitability are seen in the
international market. Hence, stability would be an intensive strategy for the KKD.
With this matter, KKD should invite more franchisees to increase its satellite stores in
both domestic and international markets. In addition, the international market, especially Asia and
the Middle East possess a great opportunity because they are fond of sweet snacks like what the
KKD offers.
VII. Implementation Program

The company shall undertake the following actions to improve its over-all performance:

● Using e-commerce to increase brand popularity and possible increase Market Share
Krispy Kreme Doughnut can create their own application on the internet that advertises
and sells their products online. They can use the power of e-commerce to promote their products
in any part of the world. And since e-commerce is very accessible, geographical boundaries will
never be a hindrance for the spread of popularity of this product

After making their own website online, they can offer discounts and promos such as “buy
a dozen and get 2 additional doughnuts for free”. They can also provide gifts to those active
customers who will like and share their page or website through the internet. The chosen
customers will be given a dozen glazed doughnuts and a freebie from KKD. They can also offer
free deliveries to those who will have bulk orders who are located within an estimated kilometer
radius. And for the convenience of the customers, they can just tap their orders through their
phones and whenever they get in the nearest KKD shop, they will just pick up their orders so that
there will be no hassle for them. With these kinds of offers and convenience, customers are being
pulled to Krispy

● Increase franchise stores in existing markets

Increasing the number of franchise stores for both domestic and international areas would
mean an increase in revenues. Expanding in their existing market would have a lesser cost
because they have already established they have already established their name and have already
conducted a research in macro environment of that specific country. The more satellite stores that
would be opened, the more convenient for the customers to buy Krispy Kreme Doughnuts which
can increase customer satisfaction and revenues for KKD

● Sponsorship of Events
Krispy Kreme will co-sponsor events with businesses that are rapidly growing. This will
enhance the company’s exposure to reach a larger customer base and this way, they can share the
costs of promoting their products. With this, they can use the partner company’s image and
connections to increase its own image.