Krispy Kreme Corporation

Krispy Kreme Corporation is primarily known for the quality of its donuts. Since the company's inception in 1937, it has grown to be for many customers the best amongst its competitors. The company thus has many strengths, not least of which is its sustained popularity among customers, and the effectiveness of word of mouth advertising. Below is a "SWOT" analysis, identifying strengths, weaknesses, opportunities and threats to Krispy Kreme. This is followed by comments to analyze and identify the company's position and future in the donut market.

Obviously, Krispy Kreme's strengths have propelled the company to become the giant it is today. Some of these strengths include the sheer magnitude of its status on a national basis. Krispy Kreme has become the biggest name associated with their product. This is coupled with an honest, old-fashioned and friendly customer-based approach. In fact, this approach has remained constant throughout Krispy Kreme's existence since 1937. In terms of product, strengths include the fact that doughnuts are made fresh every day, and served almost as they emerge from the oven.

Coupled with this is the fact that doughnut making is displayed to visitors as the product is created. This adds an element of entertainment to the doughnut shopping experience. The product is also of a notably high quality, with a unique taste associated only with Krispy Kreme. Market evidence supports the assessment that Krispy Kreme's strengths exceed its weaknesses. However, there are weaknesses that need to be addressed.

These include the fact that in an increasingly health conscious market, Krispy Kreme is offering no healthy alternatives to their high calorie product. In terms of advertising, the company relies solely on word of mouth and name recognition, and spends none of its revenue on formal advertising in any media. Furthermore Krispy Kreme does not include delivery service, thus failing to capitalize on a vast potential market and also the opportunity to gain new customers.

In terms of opportunity, Krispy Kreme's superior product quality and unique approach to customer relations provides a solid basis from which to expand. This opportunity could be used in growth and expansion both nationally and internationally. Krispy Kreme can also use their advantageous position in the market to expand to other products in order to compete in and increasingly health conscious market. Delivery service is also an opportunity featuring great earning potential for the company.

While threats are perceived from various other doughnut vendors such as Dunkin Doughnuts, Krispy Kreme should be more aware of potential threats from other fast food providers such as bagel shops. This awareness can then culminate in better marketing and production strategies. Grocery stores do not pose an excessive threat, as the freshness of Krispy Kreme doughnuts, as well as the community and entertainment value of the venues provide customers with more value for their money. Marketing Strategies and Business Opportunities Krispy Kreme is currently doing well in the market.

Having gone public in 2000, the company's stock is also proving to be viable in terms of competition. Furthermore, their word of mouth advertising strategy instead of formal marketing strategies appears effective, since store openings are very popular. Television, radio and print coverage is provided when such store openings occur. Further strategies include giving away free samples prior to opening new stores, opening only one store in a community to create demand, and supporting their community of supporters.

The above is coupled with the already mentioned strategies of providing a theater where customers can see the process of Krispy Kreme doughnut manufacturing and extremely fresh and tasty products (Limbach). There is however an awareness within the company that more focused marketing strategies should be implemented. Problems however occur when expansion includes supermarkets. The problem with providing doughnuts for sale in supermarkets is that one.