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Product Mix and New Product Development Strategy General Information Krispy Kreme Doughnuts, Inc. was found in 1937 when its creator, Vernon Rudolph purchased a secret recipe of a doughnut from a famous French chief cook. Nowadays Krispy Kreme Doughnuts, Inc. has a chain of coffee-shops aimed to consistently providing high customer satisfaction by rendering quality doughnuts, coffee roasting, etc.
As of January 29, 2006, there were 402 Krispy Kreme stores operated systemwide in 43 United States, Australia, Canada, Mexico, South Korea and the United Kingdom (MSN Website, web) Product Mix and Support Services Krispy Kreme's market offering includes a wide range of tangible products and services, such as: Doughnuts: Original Glazed Doughnuts Doughnuts Varieties: Hot Original Glazed doughnut (Krispy Kreme's signature, a yeast-raised doughnut made in accordance with a secret recipe originally bought from a French chief in 1937 (Doughnut Varieties n. p. ) Glazed Cinnamon (glazed, yeast-raised doughnut made from cinnamon dough and finished off with a dusting of powdered cinnamon sugar) Chocolate Iced Glazed; Chocolate Iced with Sprinkles (Chocolate Iced doughnut with colorful candy sprinkles); Chocolate Iced Creme Filled; Dulce de Leche (A delicious Latin American taste treat); Chocolate Iced Custard Filled (Chocolate Iced doughnut shell hand filled by Bavarian custard); Glazed Raspberry Filled (Original Glazed Doughnut with raspberry filling); Glazed Lemon Filled; Glazed Cruller; Maple Iced Glazed; Sugar (Original Glazed Doughnut granulated sugar coated); Cinnamon Bun; Cinnamon Twist; Cinnamon Apple Filled (Cinnamon apple filled doughnut reminding of home-made mums pie); Powdered Blueberry Filled (Blueberry Classic Cake Doughnut); Glazed Creme Filled; Powdered Strawberry Filled; Traditional Cake; Chocolate Iced Cake; Powdered Cake; Glazed Chocolate Cake; Glazed Blueberry; Glazed Sour Cream; Chocolate Iced Glazed Cruller; New York Cheese Cake; Caramel Creme Crunch; Key Lime Pie; Apple Fritter Doughnut Holes Coffee: Coffee Roasts (Four Unique Signature Roasts: Smooth coffee, rich coffee, bold coffee, robust decaf coffee) Coffee For Business Espresso Drinks Frozen Blends (raspberry, latte, original creme, and double chocolate) Milk: Original Kreme (cold milk + unique kreme flavor); Original Kreme Steamer (hot milk plus original kreme flavor); Chocolate milk (cold milk + chocolate flavor); Hot chocolate (hot milk + chocolate flavor); Raspberry milk (cold milk + raspberry flavor); Hazelnut milk; Caramel milk; Almond milk; Vanilla milk; Cinnamon milk In addition to traditional services, such as consulting, packaging, etc. Krispy Kreme sells snack foods, real fruit pies, cinnamon buns and mini-doughnuts to wholesale outlets, such as convenience stores and supermarkets (Krispy Kreme 2004 press kit 4) Krispy Kreme offers a number of collectibles such as shirts, sweatshirts, hats, boxers, mugs, coffees, and toys. Krispy Kreme competes with other specialty eateries such as Starbucks Corp. , Tim Hortons Inc, Panera Bread Co. , Caribou Coffee Company, Inc. , Flanigan's Enterprises Inc. , Diedrich Coffee Inc. and focuses attention on two main attributes: price and quality. The company realizes that fast food industry will always be in demand.
For that reason, the company is introducing changes in its marketing and business strategy already, one of which includes the slogan excellent quality for reasonable price. Such approach demonstrates that Krispy Kreme strives to reduce industry competitiveness through introducing innovations to its already existing profitable products. Krispy Kreme plans to introduce a new way to experience quality through reasonable prices by serving the customers with mid- and low income. Target market major customer groups and key customers: due to their reasonable prices Krispy Kreme serves customers with mid and annual low income (approx. 60 % of the customers). The customers base is insistently growing. Krispy Kreme sells franchises and opens new company-owned stores in order to increase revenues.
Product/Market Grid (Doughnuts): Market Development: Krispy Kreme targets various geographical markets (both local and foreign), sells franchises and opens new company-owned stores. The company uses direct and online sales channels and targets different groups of people (mainly customers with mid and annual low income)
Diversification:
Market Penetration: Krispy Kreme launches special promotions and increases sales activities. The company created a loyalty scheme aimed to increase quantity of customers.
Product Development: Krispy Kreme is constantly increasing its product mix and develops related products and services. It increases quality and customer service level. Krispy Kreme believes that by conducting fair business it will not only maximize the companys profitability, responsiveness and innovation, but also improve supply chain management and possible acquire new partnerships.
Krispy Kreme builds its internal chain infrastructure around its services and products by handling numerous marketing promotions. Krispy Kreme's desire is to research and invent new doughnut recipes is driven by an incentive to take over the customers by winning their loyalty. The company also realizes that the customer becomes more demanding, generating more reasons for new products to enter a competitive industry of specialty restaurants. Krispy Kreme tries to reduce input costs, constantly improving technology of baking and serving, and providing exceptional customer service.
The company focuses attention on its performance, excellent service, quality, delivery, technology, availability, and goals. Such approach to business portrays Krispy Kreme's understanding of Michael Porters five forces of industry attractiveness and proves that the company has competitive advantage relative to its product mix. No wonder that Krispy Kreme remains a master of sales and satisfying an intensely loyal base of customers. Bibliography: 1.
MSN Website, Krispy Kreme. Retrieved August 17, 2006. web 2. Krispy Kreme 2004 Press Kit...
Retrieved August 17, 2006. web
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Research essay sample on Product Mix And New Development Strategy
