Krispy Kreme Market Analysis Peter Janczewski Capella University

Krispy Kreme Market Analysis Peter Janczewski Capella University MBA 6118

Overview • • Current State International Growth Market Research Strategic Opportunity Analysis Market Entry Analysis Marketing Plan Recommendation

Current State • Krispy Kreme Locations • Domestic • 229 Locations • 85 Company Stores • 144 Franchise Stores • International • 417 Stores • ZERO Company Stores • 417 Franchise Stores • Factory • 171 Domestically • 106 Internationally • Satellite • 58 Domestically • 311 Internationally • Employees • Over 3700 • Revenue • $361 Million • Net Income • $7. 5 Million • Krispy Kreme Brand Elements – One of a kind taste – Doughnut Theater – The HOT NOW sign – Sharing – Community Relationships

International Growth • Continue with Internatonal Strategy • Research – Developed Countries • Poland – Undeveloped Countries • Saint Lucia

Market Research Poland Saint Lucia • Population – Over 38 Million • Economy – Unemployment Rate • 13 Percent – Building 2, 000 Km of new roads – Events • 2012 European Soccer Championship • Culture – 97 Percent Poles – 90 Roman Catholics • Politics – Airplane Tragedy • Lost President, April 2010 – 161, 000 • Economy – Growth Increase 3. 5% in 2011 according to Oxford Economics – Tourism • Accounts for 75 percent of exports • Culture – Official Languate(English) – 87 Percent African American • Politics – Multi party democracy

Market Research Poland Strong Economy Soccer Championship New Roads Large Population Franchise Presence

Market Research Quick Facts 1. 2. 3. 4. 5. 6. Most Populated Country in EU 62 Percent of Population live in Urban Areas Foreign Interest in their Gas Reserves 99 Percent Literacy Rate Media Industry worth 5. 8 Billion in 2010 No Franchise Regulations

Strategic Opportunity Analysis Strengths Weaknesses • Product • Menu – Coffee and Donuts • Marketing – Word Of Mouth • Gathering Area • Flexibility of Product • Low Prices – Limited Options • Marketing – Media

Strategic Opportunity Analysis Poland Opportunities Threats • New Roads • 90 Percent Roman Catholic – Over 2000 KM • Possible Factory Store • 2012 European Soccer Championships – Bring in Millions of Visitors • Employment Opportunities – Tradition • Local Bakeries – Competition • Unemployment Rate – Tight on spending

Strategic Opportunity Analysis So Why Now? Strengths Weaknesses and Threats Opportunities • • Positive Outcomes Great Opportunity Few Regulations Stable

Market Entry Analysis • Franchising – All International Stores – Work with Local Market • Joint Ventures – Return Potential – Government Restrictions • Wholly Owned Subsidiaries – Complete Control – Allocate Resources

Market Entry Analysis F r a n c h i s e • Organizational Culture – Growing • 10 Years, Over 400 International Franchises • Resources – Company International Franchise Resources • Poland – No Franchising Laws or Regulations • Factory Store – Strong Infrastructure • Satellite Store – Little Investment – Open Market

Market Entry Analysis Most Populated Cities City Population Warsaw 1, 632, 500 Lodz 812, 300 Krakow 740, 500 Wroclaw 639, 400 Poznan 580, 000 Gdansk 461, 300 Szczecin 419, 000 Bydgoszcz 386, 300 Lublin 356, 000 MACRO-ACCESSIBILITY IN POLAND: 4. 4. MARKETING STRATEGIES. (2003). ICT & E -Commerce Duties & Customs Information in Poland: A Strategic Reference, 2003, 158 -168. Retrieved from EBSCOhost.

Marketing Plan Four Main Drivers • • Consumer Behavior Distribution Pricing Promotion Strategies

Marketing Plan • Consumer Behavior – Sharing • Over 70% of sales for sharing occasions – 2010 Annual Report – Group Occations – Close Knit Families • Tradition • Distribution – Factory Stores • Grocery Stores • Gas Stations • Convenience Stores – Satellite Stores • Kiosk – Pre Mix • Winston-Salem, NC • UK

Marketing Plan • Pricing – Forward Purchase Contracts • Lock in prices – 3 Main Ingredients • Flour, Shortening, Sugar – Competitive • Unemployed • Employed • High Class • Promotion Strategies – Local Products • Expend Menu to fit local culture – Doughnut Day • Free Donut – Best Experience • Doughnut Theater • They will tell others

Recommendation 1. Contact Business Development 2. Gain Franchisee Leads 3. Set Goal for Winter 2011 4. Move into Country

Questions Peter Janczewski pjanczewski@capellauniversity. edu

References • • Brown, S. A. , & Harris, M. E. (2008). POLAND POISED TO DRIVE ADVANCEMENT IN THE GLOBAL ECONOMY. International Journal of Business Research, 8(5), 96 -100. Retrieved from EBSCOhost. • Kotabe, M. , & Helsen, K. (2010). Global marketing management (5 th ed. ). Hoboken, NJ: Wiley MACRO-ACCESSIBILITY IN POLAND: 4. 4. MARKETING STRATEGIES. (2003). ICT & E-Commerce Duties & Customs Information in Poland: A Strategic Reference, 2003, 158 -168. Retrieved from EBSCOhost. Marchese, M. C. (2001). Matching Management Practices to National Culture in India, Mexico, Poland, and the U. S. Academy of Management Executive, 15(2), 130 -132. Retrieved from EBSCOhost. Poland. (2008). In Philip's Encyclopedia 2008. Retrieved from http: //www. credoreference. com. library. capella. edu/entry/philipency/poland Poland. (2011). Political Risk Yearbook: Poland Country Report, PRI-1 -17. Retrieved from EBSCOhost. • • •