– Advertising campaign
The company is currently running a valentines campaign to advertise its products. The company has designed its products to suit the valentines’ campaign by shaping the doughnuts inn a heart shape, using bright colors and giving offers for clients. This is an effective approach of marketing for the company. This is because the products are designed to fit an occasion. Valentines’ is a time when many people are likely to spend on products like cakes, coffee, doughnuts and others sold by the company. Therefore, the company has simply taken advantage of the occasion to increase its sales by giving offers to its clients.
– Target demographic
The company has no specific target demographic. The company targets couples, corporate individuals and community individuals who are interested in the products. The company’s target market is not specified; it is a mixture of different groups of people with different characteristics.
The company has diversified its doughnuts and coffee in order to increase its sales and attract a large number of consumers. The company sells three kinds of coffee; the house blend coffee, dark roast and the house Decaf coffee. The company also produces different kinds of doughnuts. They include the chocolate iced heart, Valentines’ sprinkles and the sprinkled heart. These doughnuts are different from the original doughnuts because they are sprinkled with chocolate and they also have a variety of shapes. The original doughnuts have no sprinkles and are round with a hole in the middle.
– Impact of the internet
The internet has been instrumental in shaping the manner in which products are purchased from Krispy Kreme. Through the internet, clients are able to check on the company’s website and identify the nearest Krispy Kreme store. This has improved the convenience of purchasing because people such as tourists can buy products even in a town they are not so conversant with every place. The internet has also influenced purchased because clients can buy products online and have them sent to wherever they live or work.
Big doughnut companies face stiff competition from small companies because small companies enjoy proximity to their clients. Mostly, the small companies are community based. They can easily market their products to the community and offer cheaper prices than the big companies.
The company may become generic because of the high level of diversification. At some point, it may have to deviate from its main products to while concentrating on the different diversified products. This will lose the company’s identity.
– Barriers of entry
The company should create barriers of entry by reducing product prices. This will hinder a new firm from entering the market because with huge start-up costs, the low prices will lead to heavy losses for the new competitors. The company should also get into long term contracts with raw material suppliers. In that case, competitor firms would have to import raw materials hence; they will have very high operational costs.
– Exurbia and penturbia population
The shift of the population to the exurbia has benefitted the company because most of the inhabitants of these areas are wealthy or middle class. Such communities prefer reputable products from known companies. Since Krispy Kreme is a big reputable company, it would benefit largely from selling its products to the people living in the penturbia and exurbia regions.
– The future of the company
The company’s future will be affected by trends and factors such as; online marketing, corporate social responsibility activities and product diversification. These factors are influential in determining the company’s sales, reputation and competitiveness.
– Promotional and distribution strategies
The company should extend its promotion to target a large group of individuals such as couples, corporate workers and community based individuals. The promotions in community based cafes will attract all people interested in the company’s products. The company should enhance its distribution ability by starting deliveries to homes, work places and creating community cafes so that many people can access the products.
– Quality of product
Krispy Kreme products are without a doubt of top quality compared to competitor products. They doughnuts and coffee are tasty and attractive. The environment is also ideal because the cafes are strategically located. The products are also enjoyable compared to their competitor products because of the good service offered by employees.
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Krispy Kreme Doughnut Corporation. Krispy Kreme. n. d. 2013 February 01