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Krispy Kreme’s Strategic and Operational Plans

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    Krispy Kreme primarily plans to grow through building 200 new stores locations within the United States between the years 2003 and 2006 and selecting varieties of donuts to be carried in many supermarkets, convenience stores and other retail outlets throughout the country. Krispy Kreme also moved to expand beyond its brand name on April 7, 2003 when the company acquired the Montana Mills Bread Co. in Rochester, New York. The company is also following the acquisition strategy when acquired Digital Java Inc. a small coffee company in 2002 in order to expand into coffee business . Those attainments has helped Krispy Kreme to met many strategic goals including the company’s increased forward integration and sales through those complementary products such as bread, coffee and a variety of other drinks offerings besides donuts. Along with this, Krispy Kreme also attches special importance to improve its coffee program in order to provide more customer value in coffee experience.

    Franchises are a large part of Krispy Kreme’s operation. Nearly two-thirds of Krispy Kreme’s in the United States and Canadian stores are franchises and the company gained benefit from the steady expansion from the franchisees . Adding more satellite stores plays an integral role as well since they are stocked daily with fresh donuts that can provide growth after the factory stores have filled out. Furthermore, marketing strategy is actually a huge part of Krispy Kreme’s domestic as well as international growth strategy.

    Marketing strategy mentions the “donut theatre” from which customers can watch the donuts being made through the glass from a viewing area and enjoy hot fresh donuts. Increasing advertisements is also a part of marketing strategy . They have made the company’s read, white and green logo rapidly become part of American culture and they will contribute to bring the brand outside the country when the company look to overseas markets for growth. As the matter of fact, Krispy Kreme had just opened 12 international stores during the first quarter of 2007.

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