Krispy Kreme Ads Company Overview

Krispy Kreme Ads Company Overview Krispy Kreme's doughnut products belong in the bread and roll market of the retail food industry. This market has shown about a 4% annual growth since 2002, and, in the United States alone, reached a value of over $21 billion by 2008, and is expected to continue to grow, despite the recession. Krispy Kreme's focus is on a hyper-loyal, niche market that has resulted in its products having a cult status in many areas.

Krispy Kreme differentiates its product through a unique taste and their "hot light" -- letting consumers know that there are fresh glazed donuts available. Krispy Kreme has been in business since 1937, with its headquarters in Winston-Salem, North Carolina (krispykreme.com). Marketing and Advertising Strategy Largely because of the huge cost of media advertising in the 21st century, and the low-margin of product, combined with heavy competitive pressures, Krispy Kreme has revamp its advertising strategy and base.

The organization has decided to reduce a great deal of its traditional advertising in favor of fan-driven social media and a few TV spots (MDG Marketing; Morrison). THE THINK INSIDE the BOX CAMPAIGN The Think Inside the Box Promotion -- Despite literally hundreds of advertising examples in the past few years, though, one campaign that has stood the test of time, various cultures, and chronology is the idea of thinking about Krispy Kreme as a way to socialize in the workplace, with friends, and in any community environment.

To do this, of course, one cannot purchase just one or two donuts, instead, "take home a dozen." There are several permutations involved in this campaign, all which focus on the magic "12" or dozen number.

Not only does this ask consumers to purchase more -- thus allowing for a greater inventory turn, it also increases the chance of finding new customers through a low or no-cost trial: While there are at least four or more permutations of this advertising template, the campaign is set for print, television (in limited global markets) and social media with the tagline "Think Inside the Box." Overall, the ad is based on the strategy that encourages consumers to purchase a dozen donuts for whatever occasion they might have -- but primarily the business environment.

The campaign is global in scope, will run in the French, British and German subway systems, as well as featured on many of the Euro local news stations. As a social media campaign, the company encourages Facebook and Twitter users to post their favorite work disasters or triumphs, with the 12 best each day winning a dozen donuts for their office (the Drum -- Modern Marketing and Media) Emotional Analysis In general, the ad is trying to be professional, but generic enough to be non-offensive.

When used on Television and Social media it uses an upbeat music that is not hip-hop or dance, but active enough suggesting movement. Voices used are alternatively masculine and feminine, depending on the permutation. In each case, however, the tone is conversational -- suggesting that it is possible to do something great for the office -- almost a personal Jiminy Cricket that is giving ideas. Purposefully, there are no people in the ads; perhaps so that they can be global in scope and not focused on ethnicity or country.

They are, however, translated into other languages, although the Asian ads have yet to roll out. The groups that the ads engender are busy business folks, office folks, government workers, and commuters that are a bit more upscale than the norm, and yet still have a whimsical side. The idea is the combination of practicality and whimsicalness so that the "idea" of taking a whole box back to the office seems perfect.

In addition, the intellectual and emotional tug of "Think INSIDE the box" gives validation for the decision to purchase a higher priced snack. Consciously, then, the message is that it is better to "give than receive," certainly a positive morality play. Subconsciously, the idea is that these fresh and wonderful pastries simply await your decision to whisk back to the workplace.

Analysis -- Who The Think Inside the Box (TISB) campaign is focused on consumers who are busy, work in social settings, do not like presumption, prefer to know that the product they purchase is consistent, and in their busy lifestyle, can be a lifestyle reward. We know that the modern consumer in the developed world is assaulted with advertising messages 24/7 in almost every location.

The demographics of the campaign are wide in range: males and females from their 20s to 50s who work in a group environment and have sufficient income to allow for the purchase of snacks for themselves or their office mates. This, of course, was purposeful and brilliant -- most workers in the developed world work in areas in which there are groups of people -- be it a school, an office, or a store.

Combined with social media, this strategy allows the "who" to really define themselves through their purchases of a consumable product -- and even in the healthy food and diet stage, a product nearly everyone loves (Thorson & Duffy).

Additionally, the beauty of the campaign is that it targets all economic segments -- the office manager or executive who wants to thank staff; a staff member in charge of a luncheon or party, or anyone who does not want to "snack alone." Analysis -- What The brand, of course, is Krispy Kreme, but more importantly, the what varies from day-to-day, season to season, and person to person. The idea is not to just focus on glazed donuts, but to expand into a dozen mixed flavors to sample.

TITB asks the consumer to choose more of the what -- to experiment, to be spontaneous in choice, and to try new things that one might not always choose if only purchasing for themselves. Krispy Kreme adds different flavors and even shapes depending on the season (hearts during Valentine or Mother's Day; Candy Cane or Eggnog flavor during Christmas, etc.).

The other power of "thinking" inside the box plays on the concept of "thinking outside the box" (Macintosh, etc.) and focusing on the wonderful things that can be inside the box -- being creative in choices, flavors, and even colors or textures. Analysis -- When The "when" idea is easy -- 24 hours a day, 7 days a week, and at least 363 days a year.

Anytime is the time to purchase a dozen donuts -- and that is the beauty of the TITB -- there are no rules of when one should or should not snack or bring snacks to co-workers. In addition, many major cities now operate on numerous organizations with three shifts, dividing the 24-hour day into 7-3, 3-11, and 11-7; not just the 8-5 or 9-6 workday. In this respect, the TITB campaign has no real restrictions -- covert or overt.

Analysis -- Where The "where" has dual meanings for the TITB campaign. One aspect is everywhere -- regardless of the location (school, church, home, office, picnic, etc.) a dozen Krispy Kreme donuts are appropriate. There is no "perfect" where or occasion, the answer is that every location and every occasion are appropriate. The second aspect of the where, though, is dependent upon a Krispy Kreme location or outlet.

This is really the only limitation of the campaign and the product -- not everyone will have 100% access to Krispy Kreme, regardless of their own motivations. Analysis -- Why Krispy Kreme donuts use eggs and dairy but do not use unhealthy fats and lecithin that is soy based. While there are processed sugars, the nutritional value of the product is better than many other snack foods.

The "why" for the purchase of the product is also multidimensional, though: 1) taste -- Krispy Kreme donuts are some of the best tasting donuts ever; 2) variety -- Krispy Kreme ensures seasonal variety and unique flavors (e.g.

gingerbread and Christmas, etc.); 3) Krispy Kreme products bring joy into the community -- who can be unhappy when someone brings back a dozen donuts to the office? 4) Food has always been a way to share love and emotion in human culture -- going out for a snack and coming back with a dozen boxed fresh Krispy Kreme donuts does more than bringing back a bag of potato chips or something with less branding potential.

Krispy Kreme donuts are purchased as a planned gift or event food, on a whim (I should take something back to the secretarial pool), or at the stage of finding something different, something unique, that tastes good. Thinking about the way consumers make decisions and applying that thought process to Krispy Kreme, we find: Stage Consumer Marketing Example Problem Recognition Consumer wants to snack, or wants comfort food or something that tastes good. Advertising shows tasty donuts in a non-invasive manner. Open the KK box and see a dozen donuts.

Information Search Where can the consumer find something to alleviate the need? Information in campaign on where to find the nearest KK shop. Advertising for TITB is placed in high traffic, high consumer areas (subways, bus stops, etc.) Evaluation Why KK? Taste, freshness, and thinking of the office? KK looks better than competitors. Choice Something special as treat for oneself or office mates Don't just purchase one. Alleviates guilt and adds emotion to purchase Evaluation What do people think? Encourages multiple purchases. Allows for multiple opinions and feedback loop.

Critique and Recommendations Krispy Kreme's advertising campaign of a combination of making it a dozen and thinking inside the box is in its early stages of roll out. However, in combination with the focus on low-cost social media and the play on two of the most successful advertising campaigns ever, one can rarely doubt that the new campaign will be successful. The two campaigns that are precursors to the TISB are Lays, Taco Bell and Apple Computer.

One of the most successful advertising campaigns ever has been a concept from Frito Lay. The concept is "No one can eat just one," and took a commodity product and branded it to sell at a premium price. The idea of "Betcha can't eat just one" began in the early 1960s and had various permutations that have permeated popular culture for over five decades.

This idea has been branded in cartoons, clothing, movies, books, and is simply a staple of modern prose, even now used in addiction counseling materials (Frito-Lay Corp. - Bet You Can't Eat Just One!). For Krispy Kreme, the idea takes on a new meaning -- not only should you NOT eat one, there are people back at the office who need this product, and it is up to you to provide it to them.

Thinking Outside the Box is a phrase that asks one to think differently, to challenge conventions, and find new perspectives. For Apple computer, the idea of the Macintosh was to invent a new system that was graphically based that would change the way users worked. Thinking outside the box described not only the user, but the engineers and people who worked for Apple (Emerson). Taco bell used the phrase, "Think outside the bun," a play on thinking outside the box. Still, it encouraged diners to think differently.

Now, Krispy Kreme is saying the opposite -- which resonates simply because consumers have been trained to hear "outside the box." This is effective marketing in that it.