Krispy Kreme
Transcript: Founded 1937 Winston-Salem, NC Products: Krispy Kreme Vision & Mission Vison: To be the worldwide leader in sharing delicious tastes and creating joyful memories. Mission: To touch and enhance lives through the joy that is Krispy Kreme. What sets this company aside from the rest? 669 Stores in 21 Countries "The brand is so much bigger than who we are from a business standpoint. We need to make sure we manage that well, and that we don't try to grow too fast, that we have the right pace" CMO Dwayne Chambers, 2011 Krispy Kreme has a very Americana image that people grasp onto like they do Coke and Disney Krispy Kreme today enjoys a respectable place in the fast-food landscape as an occasional treat "Krispy Kreme's goal is not to be flashy. What it lacks in flash it makes up in business complexity" "For example, in Thailand we have one store, and the waits are generally at least 30 minutes to an hour. We had to limit people to two dozen doughnuts each." CMO Dwayne Chambers, 2011 Consumer Portrayals... Starbucks: sophisticated, higher class, mature, professional, more-expensive, urbanism DD: diligent worker, grab-n-go, fast-paced consumers (on the go), blue and white collared people, everyday people However, for Krispy Kreme... Krispy Kreme Symbolism & Identity less sophisticated, more simplistic rich history more laid back, more surburban/small-neighborhood geared toward social responsiblity (charity events, fundraisers, education) providing high-quality products, made-from-scratch doughnuts (same-day Freshness) However, this company is not as successful as its' competitors... Why is that? let's take a look at their marketing strategy... What is doing now for advertising? KK went public at the turn of the millenium, it was driven by word-of-mouth Word-of-mouth? passing of information from person-to-person it adds a level of credibility makes a strong impact on product judgments What else... fundraiser campaigns neighborhood events school sports Last year, nonprofit organizations, including schools, raised over $30 million dollars with the help of Krispy Kreme Fundraising! There is no massive commercial advertising campaign... Billboards, TV commercials (rare) Today, company leveraging word-of-mouth via Social Media predominantly plans to spend even less on marketing Why is this company not as progressive in expanding in comparison to other franchises? $1.2 million on measured media in 2010 has ran commerical ads in the past with little efforts put into it Compare and Contrast ads between Starbucks and KK.... Using regret aversion tactics to work from a different angle... Regret aversion... Anticipation of regret can promote action. The extent to which action is promoted is contingent upon the presence or absence of feedback. Expanding Krispy Kreme Coffee Products through regret aversion Goal is to "manipulate" consumers to antipicate regretting inaction. via the coffee, and the doughnuts are inevitable Imagine... OR... car crash from fatigue, if only they had bought the coffee to be alert driving... Scenario 2: To avoid the "morning crash" More productivity and motivation in the workplace Scenario 3: so fatigued driving in the morning, that they ran the red light and got pulled over on the way to work Aside from using WOM advertising, applying regret aversion ideologies would attract more consumers via the coffee products... Manipulates consumers to think they NEED Krispy Kreme Coffee and products.. to stay alive (scenario 1) productivity at work (scenario 2) avoid getting in trouble with the police (scenario 3) If Krispy Kreme applies regret aversion to their market campaign they would have a better marketing strategy.. to promote the brand! Would applying regret aversion ads for Krispy Kreme coffee increase their main product line, which are doughnuts? CMO Chambers mentioned the vast diversity of stores already in existence (some are coffee bars)... Some stores can focus mainly on coffee products and naturally provide the delicious doughnuts. "Satellite" stores without the inclusive on-site factory is WOM strong enough to continue KK image? WOM has a strong impact on product judgments, bc info received in a face-to-face manner is more accessible. Is Social Media a true medium for WOM? References: Morrison, M. (2011, March 21). Krispy kreme's new cmo to spend less, lean on social media. Retrieved from http://adage.com/article/cmo-interviews/krispy-kreme-s-cmo-spend-lean-social-media/149451/ www.krispykreme.com
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