Assignment Specifications
Purpose:
The objective of this case is to demonstrate how marketing research has contributed to making a small business into a successful national chain.
Krispy Kreme has become the American household icon for great-tasting hot doughnuts and coffee. Since its beginning in 1937, the company has grown and spread over the United States. Company executives and store managers credit their success to a limited, consistent-tasting product line and clean and inviting stores that attract consumers across all socioeconomic categories. The company also prides itself on its involvement in charitable and service activities in the communities in which the stores are located. Special Instructions:
1. Must watch the video (uploaded on Blackboard under Assignment 1).
2. Answer the following three questions in reference to the video:
a. To succeed in the Global Market, what market research should Krispy Kreme undertake?
b. What market research activities does Krispy Kreme engage in to determine where to build a
site?
c. Krispy Kreme is currently facing criticism from low-carb diet practitioners which have lowered sales. How can market research help them deal with this problem? Provide at least examples of approaches that can be applied.
3. Provide some recommendations with evidence support.
Executive Summary
Crispy Crème, a famous doughnut and coffee chain, earned success and advantage due to charity considerations and internal developments. Nevertheless, with time, the needs for new market activities, primarily when operating in new sites or countries, are in the spotlight. Several problems have been identified in terms of lack of brand appeal and criticism by practitioners. Subsequently, in the discussion section, some possibilities regarding market research are optimized, setting the foundation for new market journey in-home and operating countries. Strategic recommendations are highlighted, as the firm got the capacity to implement these recommendations along with some improvisations and modifications.
Introduction
Crispy Crème grew with time due to perfect integration with internal and external business factors. It is a fact that this company evolved to be consistent and profitable in the competitive market. Marketing research has become a prominent component of the business process, as it has helped to engage external stakeholders, especially customers, incredibly. Crispy Crème is one of the protuberant American doughnut and coffee chain. The organization was founded in 1937. The firm’s main products are Baked goods, Soft drinks, Hot beverages, Frozen beverages, Iced beverages. According to the 2016 financial reports, the revenue of the firm is US$ 518.714 million. This particular study will show how this organization can improve the business or operational process by aligning with marketing initiatives. Based on the marketing initiatives, the company can be better positioned to meet the specific needs and expectations of customers.
The main theme of this analysis is associated with the problem and discussion section. After identifying problems or issues, valid strategies in terms of market research are to be suggested along with the impact in an internal and external setting.
Problems and Discussions
· Research should Krispy Kreme Undertake
Gaining success in the global market is a big issue or problem due to increasing competition. It has been revealed that marketing research is the only option for the company management to stem valuable insights and get things in favor. For instance, the company’s management has to realize that it cannot implement the same strategies in the new operating country. The best thing that company management can do is conduct comprehensive marketing research in the new operating state. It seems a significant consideration because the company management will be better positioned to navigate customer and marketing trends. In competitive coffee marketing, the company’s main intention is to meet the specific needs of customers, and of course, it is to be done by understanding customer trends and particular needs. The best marketing research that can be undertaken by the company is the market and customer analysis, as the culture and specific needs of people are to be identified to be relevant and competitive in the market. Apart from this marketing research, this organization can integrate with localization or internalization strategy, as it is a crucial marketing component, which can facilitate coming up with a specific project. Hence, with the same marketing objective, the company can carry on this market research. Another critical dimension of marketing research is that company management can create awareness regarding health and organic products. The company plans to enter underdeveloped countries where people are not educated, the market research regarding geographic, demographic, and millennial with the education-level can by handy (Birn & Birn, 2002).
· Activities to Determine where to Build a site
Building a new site in the new operating or the same market is a big problem or challenge. People’s response is always critical, as it is the only factor that can make the new site successful. The appropriate activity regarding the market for this organization is to conduct an event at that location. The most important thing is to gather the community members and create urgency regarding the healthy food and needs for a new site. When initiating the campaign regarding a charity or new location, the firm has to gain the target audience directly associated with sales. It can be said that the event should be conducted to target people, as the company wants to increase the target customer traffic on the new site. The best marketing activity is to send out a podcast to the surrounding areas, as people, notably target customers, should be aware of what will happen. It is all about creating urgency, awareness, and developing desire among people, which will favor the organization, especially when designing or building the new site. On the other hand, when it comes to modern marketing activities, there is a need to integrate with social media channels, such as Facebook, Twitter, and Instagram. The new site’s campaign can be run on these channels, as a virtual event can also be conducted on these channels to let customers contain awareness. Another option when developing the site is to outsource marketing. It can be done when the company intends to entre in a new marketing or new geographical location. For instance, the firm has to align with the lock marketing consultants or firms carrying out significant research. Of course, it can be a cheap, affordable, and efficient way to enhance the visibility of attraction and positioning. One of the most pre-eminent marketing activities, which can be carried, is to conduct charity events. Of course, the organization has to gather or collect funds to build a new site at a particular location (Hague et al., 2004).
· Dealing with Low-Carb Diet Practitioners
The company is facing criticism from low-carb diet practitioners, and it is hitting the profitability and sales quite hard in the competitive market. As mentioned in the video case, the customer behavior shift is a significant change in the market or society. People have more health awareness, as they want to get rid of increasing obesity and many other products with higher calories. So far, the company has carried conventional products for customers, as it did not integrate with the new health and food trends. It is the prominent reason regarding criticism from low-carb diet practitioner s(Karp, 2019). To deal with this criticism, the company can do the best thing to run health awareness campaigns in both internal and external business environments. Internally, it has to develop employees through training, incentives, and personal growth to build something new and unique. In short, the foundation for an innovative culture is to be set to develop a sustainable and creative menu for customers. Externally, the Company has to integrate with both traditional and modern media channels. Instead of just relying on the world where the company is developing its employees and changing their lives, an actual campaign regarding healthy food is being driven. The dependency on charities must be eliminated, as an adequate marketing budget is to be set by the company to create awareness on media channels. The focus on charities and internal development seems outdated, and it is also one of the main reasons for criticism. Due to these considerations, things can get back on track in terms of sales, profitability, customer response, and competitive advantage. The best example of the market research approach is to conduct in-person surveys. The company’s marketing team will go to the public to navigate the health consciousness, shift in the behavior, and procure the specific needs. The second example in terms of market research is to concentrate on focus groups. The company management can grab a particular group and ask particular questions to get relevant insights. Other examples regarding the approaches are personal interviews, field trials, and observations. For this specific case, observations, surveys, and focused groups are three relevant approaches, helping the company get rid of this problem or criticism (Allbusiness.com, 2019).
Recommendations
In this contemporary era, all these problems or issues are to be identified by company management. After identifying the problems, there is a need to use multiple data analytics techniques. Big data analysis is highly recommended to the company, as it must have visitor information or knowledge regarding customers and the market (Arthur, 2013). Accordingly, the company can retrieve the data and make effective business and marketing decisions. Another recommendation for the company is to contain mergers or acquisitions, as it will reduce charities’ dependency. This strategic consideration will help to share people, technologies, financial, and marketing resources. Through mergers or acquisitions, the market research scale can be increased (Anderson et al., 2013).
Conclusion
In the end, it is to presume that Crispy Crème got the potential to get things in favor of through extensive and adequate marketing research. In this meticulous analysis, the firm identified issues or loopholes in the marketing process and its impact on business outcomes. In the discussion, some possibilities or options for company management have been embellished. Eventually, based on identified problems and solutions, some strategic recommendations such as data analysis and mergers and acquisitions are streamlined. These strategic recommendations can be replaced over time due to changing or evolving trends.
References
Allbusiness.com, 2019. The Five Basic Methods of Market Research. [Online] Available at: https://www.allbusiness.com/the-five-basic-methods-of-market-research-1287-1.html [Accessed 29 August 2020].
Anderson, H., Havila, V. & Nilsson, F., 2013. Mergers and Acquisitions: The Critical Role of Stakeholders. Routledge.
Arthur, L., 2013. Big Data Marketing: Engage Your Customers More Effectively and Drive Value. John Wiley & Sons.
Birn, R.J. & Birn, R., 2002. The International Handbook of Market Research Techniques. Kogan Page Publishers.
Hague, P.N., Hague, N. & Morgan, C.-A., 2004. Market Research in Practice: A Guide to the Basics. Kogan Page Publishers.
Karp, C., 2019. Why Krispy Kreme hasn’t conquered Australia: Aussies refusing to eat doughnuts for BREAKFAST contributed to 35 stores closing. [Online] Available at: https://www.dailymail.co.uk/news/article-7156609/Why-Krispy-Kreme-failed-Australia-Low-carb-diets-refusing-eat-doughnuts-BREAKFAST.html [Accessed 29 August 2020].
