Krispy Kreme Study

Brief Historical Background

Krispy Kreme is the name of an international chain of doughnut stores that was founded by Vernon Rudolph in 1937 in Winston-Salem, North Carolina.

Expansion occurred in the 1950s, including an early store in Savannah, GA and elsewhere in the southern U.S. By the 1960s, Krispy Kreme was known throughout the southeastern United States, and it began to expand into other areas. In 1976, Krispy Kreme Doughnut Corporation became a wholly owned subsidiary of Beatrice Foods of Chicago, Illinois. The headquarters for Krispy Kreme remained in Winston-Salem.

In November 2006, Krispy Kreme opened the flagship store in the Philippines. These stores are franchise owned like many others. The development deal for the franchise is awarded to the Real American Donut Company, Inc., a company owned and operated by the principals of Max’s Resto.The original franchise agreement is for 30 stores over the next five years.

Recently, Krispy Kreme has opened two new branches in Cebu, that markedtheir 26th and 27th branch in the Philippines.

Krispy Kreme in Cebu

Ayala Center Cebu Asiatown I.T. Park

Marketing Strategies

Segmentation

* KKD segments its market in a number of ways. KKD's, customer segmentation is mainly by their market demographically based on age, income and family size. Behavioral segmentation has been a key to the company’s success.

* KKD also segment the market on the income basis by making little pack. They have an awesome price range to all class of people.

Targeting

* KKD takes every customer as target and potential customer who wants satisfaction. All age groups are being target but the most potential is the age group from 18-25 that covers around 40% of total age segments.

* KKD identified the purchasing power and the intense want of the market for such doughnuts.

Positioning

* The main theme of KKD is “Make Today Special”. KKD spends about a million of dollars in trying to...