Case Study

Group Members

• Zeeshan Rafique 994

• Sayed Hassaan Mehmood 1014

• Sajid Hamayon 1031

• Waseem Akhtar 1049

• Umer Irfan 1050

Introduction and History

• Ishmael Armstrong bought a doughnut shop from a New Orleans chef named Joe Lebeau

• Ishmael Armstrong passed the recipe down to his nephew

• Krispy Kreme at first sold its doughnuts only to grocery stores, and began selling directly to customers.

Cont..

• New Owners changed the recipe to cut costs but then had to restore it for place of honor.

• With more than three hundred stores in the United States and Canada, Krispy Kreme is now an American icon.

• It’s name is still a mystery because it doesn’t sell crispy and cremy doughnuts.

Environmental Analysis

• Brand recognition

• Supply chain

• Wide demand

• Vertical integration

• Quality of product

• Machine technology

• Limited product line

Environmental Analysis

• Popularity of coffee shops

• Popularity of American foods in foreign markets

• Entertaining opportunities

• Technological advancements

• Channel expansion possibilities

• Competitors

• All-natural, organic, healthy eating trends

S.W.O.T Analysis

• Affordable, high-quality doughnuts with strong visual appeal and kind taste

• "Hot Doughnuts Now" encourages people outside the store to purchase

• Market research shows demand increases to all group of people of different age and income

• Vertical integration helps to ensure high quality product• expanded in 16 countries• Product sold at thousands of supermarkets, convenience

stores, and retail outlets through U.S

S.W.O.T Analysis

• Advertising and promotion is not much attractive to attract people out side US

• Shareholders have not received dividends and don’t expect in near future due to share price

• Closing stores are giving chance to competitors to open new stores

• Return on equity, investment and assets are all in negative through out 12 months due to lack of skilled management

• Revenues decreasing, and continuous net losses in past three years

• continued disputes with franchisees hurt future business

S.W.O.T Analysis

• Asians love sweets and are open to trying foreign foods

• Dunkin' Donuts does not have hot doughnuts to sell

• Many children love sweet treats

• South America, Africa, and Southern Asia are markets to target

• Tim Horton has yet to expand beyond the U.S. and Canada, and its product line does not appear to be competitive

• Families crave convenience because of busy lifestyles

S.W.O.T Analysis

• Starbucks has much greater in amount, stores worldwide than Krispy Kreme Donut

• People are much health conscious , and much care about high sugar and high fat

• European mostly prefer their local brands• Dunkin' Donuts presently dominates the doughnut market,

particularly in north-eastern U.S• Shareholders can sell their share due to lack of return or

dividend compared to their competitors• Briton’s tend not to have cars, which discourage the drive-

thru and their eating habits are different from Americans

S.W.O.T Analysis

• KKD has to introduce or expand their product in Asian countries because of their love to sweets and willingness to purchase foreign product (S1, O1)

• Super markets and stores in US have pictures of children eating KKD to attract the children (S6, O3)

• KKD have to expand their business in highly populated countries like south America, South Asia, Africa .(S5,O4)

S.W.O.T Analysis

• KKD have to introduce new pastries and juices with low sugar and fat to take care of people conscious about health and look for low fat.(S1,T2)

• Take part in weekly market in European countries to introduce their product in European people of all age.(S3,T3)

• Compare HOT DOUGNUTS with COLD DOUGHNUTS of DUNKIN DONUTs.(S2,T4)

S.W.O.T Analysis

• Give dividend to share holders on time otherwise they can sell their shares and buy competitors shares (W2,T5)

• Expand product line with low-calorie foods • Recruit top executive talent from other fast-food

firms (W4, T5)• Survey franchisees to discover ways to repair

business relationships and retain growth of franchise model (W6, T1, T3)

S.W.O.T Analysis

• Advertise and promotes hot doughnuts on the internet to demonstrate people. (W1,O2)

• Open small but profitable HOT SHOPS in South America, Asia to expand and compete globally.(W3,O4)

• Keep the relation good with franchisees to keep the US Canada market retain. (W6,O5)