This paper discusses the assumption of security analysts that the potential growth of Krispy Kreme is inherently limited because of its single-product concept.
Written in 2005; 1,925 words; 1 sources; APA; $ 61.95
Paper Summary:
This paper explains that Krispy Kreme doughnuts, a company with a rich history of on-the-go expansion and market growth, has a remarkable degree of customer loyalty, based on product quality and product differentiation, achieved primarily through grassroots marketing and word of mouth rather than glitzy advertising campaigns and cost-consuming marketing initiatives like television spots and corporate sponsorship efforts. The author points out that, whereas its competitor Dunkin' Donuts emphasizes coffee over food, Krispy Kreme's position is that the donut is warm fresh, and has just gone through a process, which, in many cases, the customer can actually view. The paper concludes that part of Krispy Kreme's success, which can be sustained, although not indefinitely, is its cult status in terms of marketing effectiveness.
Table of Contents
Introduction
Problem Statement
Summary of Facts
Analysis of Facts
Recommendations
From the Paper:
"As a consultant, I would also have recommendations to make about the
company's perception of future growth in relation to current financial performance. I would stress the need to maintain a dynamic outlook on the organizational aspects of finance in the future, but I would also tell managers and executives that one can still be confident while being realistic about possible plateaus and overall industry trends in quick-service restaurants. I would also bring up some of the securities analysts' statements mentioned in the case regarding financial predictions for feedback and brainstorming."
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