Krispy Kreme in Hongkong

A well-known retailer of doughnuts is Krispy Kreme Doughnuts, or simply Krispy Kreme. The company owns and manages
Krispy Kreme doughnut shops where it produces and sells more than 20 different types of doughnuts, including the
brand's iconic Hot glazed variety. The company also sells bread products, tea, and coffee. A total of 523 Krispy Kreme
locations were in operation as of February 1, 2009, the end of the company's fiscal year, in the United States, Australia,
Bahrain, Canada, Hong Kong, Indonesia, Japan, Kuwait, Lebanon, Mexico, the Philippines, Puerto Rico, Qatar, Saudi
Arabia, South Korea, the United Arab Emirates, and the United Kingdom. There are two groups in which Krispy Kreme
establishments are categorized. There are 281 factory outlets globally as of February 1, 2009, with 185 of those being in
the United States. Factory stores frequently contain a doughnut production line in addition to a retail space. The amount
of doughnuts that can be produced each day is between 4,000 and 10,000 dozen. To increase market penetration, factory
stores supplement other sales channels, such as other merchants. Convenience stores, supermarkets, mass merchants,
and other clients in the food service and institutional sectors are additional distribution channels. Due to their focus on
providing other sales channels, some factory stores are referred to as commissaries. They have increased their
manufacturing capability to accomplish this. 19 commissaries existed around the world as of February 1, 2009, six of
which were run by Krispy Kreme. The second type of KKD business is the satellite shop, which sells drinks and
doughnuts. Some satellite sites have what is known as a hot shop, tunnel oven doughnut heating technology, which gives
the customer a doughnut experience. Even with a hot shop, satellite shops are significantly smaller than factory outlets.
The kiosk is a different style of satellite store.

A large number of competitors in the industry are all competing for the same customers. • High concentration of
rivals e.g. Starbucks and Dunkin Donuts

1.Static market growth High fixed costs Perishable products (food and drink )

2. System Development - Because of their simplicity of their organizational structure made their company weaker.
- The incorrect timing of the products they made. - They only focus on their revenue instead of product development -
They were very successful in the early years, which led them to assume that they were capable of building hundreds of
more shops as a result of their early success.

3. Sales Promotions - The firm spent relatively limited money on advertising, relying mostly on word of mouth and
local exposure to spread its message. - They began by offering too many options, and as sales began to decline, they
had no additional options to provide to clients, resulting in bland and ultimately identical items for their customers.

They could launch hundreds more branches. Krispy Kreme would have been wise to restrict their product
selection to 10 distinct doughnuts to assure future variation. When sales started to decrease, they had no additional
deals to present clients, making their items dull and unoriginal. Doughnuts can’t be promoted to one age group, but
they may be advertised to all other demographics. It's like trying to advertise ice cream to various age groups and
financial levels, which is impossible since everyone has different preferences
 Alternative Solutions Advantages Disadvantages

Krispy Kreme should make a Chance of building stronger Additional expense

greater effort to market their brand Increase sale Probability
goods in order to make up for the Attract wider range of mark Of unsuccessful advertising
lost revenue. Furthermore, a
creative advertisement will do.

They should limit the number of More and new various products to High risk of thievery on the said
doughnuts and after they make a offer Attracts new customers plan or proposal. Competitors
name for their company in the might steal or copy the new
industry they can introduce and products
release another set of products in
the next two years to increase
their uniqueness in the market
field.

They need to establish a system Well-defined system Threats and error may occur in
to keep track on the company’s Avoid financial record loss the system
franchise, financial records and Avoid discrepancy.
unified database in the
organization.

Update the content of company’s Align and focus the company

mission and vision into a more Help drive the company to
detailed strategy for the future as success Clear and precise path
well as how they are achieving for the company’s planning
their goals and serving the world process
A lack of transparency in the company's financial reporting has taken a massive toll on investor trust, which further
worsens the company's current financial difficulties. For the company's recovery and future growth, they have no
firm marketing plans because of a lack of investment and new ways. Customers' wants have been based on
assumptions that have not been supported by proper facts. While improvements to the marketing department and the
later development of a marketing plan are important components of the company's recovery and future
development, any marketing strategies would, for all practical purposes, be a "negative concept" if they were not based on
a clear picture of the company's financial situation and an analysis of operating processes and capabilities. The
assumptions mentioned above opposed to the study conducted.

1. Krispy Kreme has a good and well-defined planning process. Since Krispy Kreme has a chaotic system which
resulted to a messy and undefined plan that causes the company to shrink on ages.

2. Krispy Kreme is still on the roll of success. Many issues that come up that creates a risk of not maintaining their
image as one of the leading doughnut-making company.

3. Krispy Kreme tops the industry of doughnut-making. Dunkin’ Donuts and Starbucks own 89 percent of all
doughnut stores. Krispy Kreme and Tim Hortons only account for 5% of the market. This suggests that Krispy Kreme is
unable to compete with the big boys, although this might be due to their reliance on one product rather than growing and
diversifying their menu.

4. Krispy Kreme is still gaining a number of investors. Because of many issues arising in the company many investors
buzz off their commitment and engage to another rivals.

Based on the analysis on the table above, we recommend the last alternative solution- update the content of company’s
mission and vision into a more detailed strategy for the future as well as how they are achieving their goals and serving
the world- as no disadvantage/s is written. Krispy Kreme should reexamine its vision and mission after a period of great
success, it will be able to assess the intended goals and objectives that it set for the fulfilment of its organizational vision
and mission. It is the most important time to reexamine the firm’s mission and vision because the company may
successfully analyze and examine their strategies as well as their success, and reposition their brand message through
product, marketing, and strategic intent alterations.