Krispy Kreme Doughnuts - America's Most Loved Doughnut Brand

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Case Details:

Case Code : MKTG068
Case Length : 13 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Available
Organization : Krispy Kreme
Industry : Food, Beverage and Tobacco
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Another Krispy Kreme Store Opens Contd...

Their enthusiasm was matched by the company, which gave away hundreds of doughnuts free. This was not a stray event. The opening of a Krispy Kreme store was always accompanied by great public excitement, which might seem surprising, given the generic nature of the product -- a doughnut.

Krispy Kreme was a branded specialty retailer of premium quality doughnuts. Krispy Kreme doughnuts had been made and consumed in the southern states of the US since the 1930s. Extremely popular in the south, the company made its first foray into the northern market in the mid-1990s.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Before retailing in the north, company officials had admitted to being filled with doubts over the decision to expand. There was no clear way the product could capture a market in the north, where chains like Dunkin' Donuts were already well established.

Business analysts felt that a product like a doughnut could not have any significant brand equity. However, Krispy Kreme quickly captured one market after another, to emerge as 'America's most loved doughnut'.

With one of the highest price-earnings ratios in the restaurant sector, Krispy Kreme was considered one of the most successful food companies in the US. Krispy Kreme's signature product, the Hot Original Glazed Doughnut, made from a secret recipe, was once described by a fan as akin to 'eating a cloud'. An analyst remarked that Krispy Kreme was the only company which could get people addicted to doughnuts...

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