edf40wrjww2CF_PaperMaster:Desc
Focus of the Proposal
Krispy Kreme, a leading, well-established brand of high quality doughnuts, is still in a stage of astonishing growth potential. According to Dain Rauscher Wessels equity analyst David Geraty, "Krispy Kreme has established itself as the quality leader in the doughnut industry and is positioned to become the dominant industry player, with 145 retail locations in 27 states, Krispy Kreme is expected to capitalize on the brand conscious consumer's demand for a consistent, high quality specialty food product" (Minneapolis 2000). Krispy Kreme has quickly risen to the top of the doughnut business in a short amount of time. The company's goal since its infancy has been to satisfy customers by providing a unique experience when visiting a Krispy Kreme outlet. This bold strategy has differentiated them from their competition and created a competitive advantage. Customers are allowed to see how the doughnuts are made, and then served the newly baked treats hot and fresh. The bright neon light that shines from every Krispy Kreme location reads "Hot Doughnuts Now," is one of Krispy Kreme's key marketing strategies. When this sign is lit up, customers know that they will get fresh doughnuts that have just been made.
Since going public in 2000, Krispy Kreme Doughnuts has posted strong growth in same-store sales each quarter, with a consistency that would make most competitors envious. According to the Krispy Kreme's most recent quarter, which ended August 3, 2003, it posted an 11.3 percents rise in system wide same-store sales, including 15.6 percents growth at company operated units (Peters, 2003). From the financial report of second quarter in 2003, it ...