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Krispy Kreme Case Essay

584 words - 3 pages

Despite the corporation’s relatively small size in relation to industry giants such as Dunkin Donuts and Starbucks, Krispy Kreme’s brand recognition and equity remains powerful. Because Krispy Kreme is hesitant to invest in national advertising, the corporation’s strategy is based strongly around brand equity and the customer’s experience. However, Krispy Kreme ultimately brings in money three ways. A majority of the revenues are produced through the selling of doughnuts directly to consumers by its company owned stores. Another significant portion of revenues are produced by selling raw materials and equipment such as flour and machinery. Finally, a very small share of the company’s sales is derived from franchisee licenses and fees. In summation, because the industry is quite saturated, Krispy Kreme’s strategy and value creation was centered on creating a unique doughnut experience for consumers of every age and ethnicity.
Although the corporation has been affected by some rough times in the past, which include inopportune investments, governance issues, and the economic recession, Krispy Kreme remains one of the most recognizable brands within the doughnut industry. This success and appreciation can ultimately be attributed to Krispy Kreme’s successful strategic management. By carefully interrelating financing, investing and operational strategies, Krispy Kreme was able to steadily increase both sales and net profits from 1998 – 2002. Although more recently profits and growth outlooks have been in a downturn, the corporation’s adherence to corporate social responsibility and to a company mission focused on providing the best customer experience have allowed Krispy Kreme to become the essential model for aspiring doughnut shop owners around the world.
Though Krispy Kreme’s brand recognition and equity is unparalleled within the doughnut industry, some strategic...

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