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Submitted by angelline85 on May 19, 2008
Category: Business
Words: 4433 | Pages: 18
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Krispy Kreme Doughnuts Case Study
Part 1- Situational Analysis
(a) External Analysis
Case Timing 1st Quarter 2005 (Period of January - April 2005)
Level of Analysis SBU
Market Definition U.S. Doughnut market – retail and wholesale
Market size
• In 2003, the consumers in America spent an estimation of US$5 - US$6 Billion on doughnuts.
• Americans were consuming as much as 10 to 12 billion doughnuts.
• In 2002 sales at doughnuts outlets grew by 9% to US$3.6 Billion.
Market Growth Phase
Based on the time the product has been around, the product is at the late growth or near to maturity stage in the product life cycle. This is caused by the increasing competition in the market.
Macroeconomic Trends Analysis
Trends Implications Actions
Social –
People are more health conscious than before • Consumers will be looking for fewer amounts of calories and carbohydrates in their meals.
• Doughnut companies will lose grasp of the market, as doughnuts will soon be seen as only a treat, which consumers will buy only in a particular time. • Create a healthy alternative to doughnuts
Social –
People prefer to purchase at convenient locations (eg. Supermarkets) • A threat to Doughnut Outlets. • Expand market distribution channels.
• Implement new communication strategies
• Explore new channel opportunities
Economic –
Economic Downturn
• People are conscious about their own spending.
• People would be buying cheaper treats when they do not have enough money on hand. • Create product that serves economical segment in the market
Industry Key Trends Analysis
Trends...
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