Krispy Kreme Case Analysis 06

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Company Name: Krispy Kreme Fiscal Year: 2006 Problem Statement “In this case, the organization is found to be struggling to reverse their income from losing. Krispy Kreme businesses are often affected by changes in consumer tastes. Krispy Kreme sales have been and may continue to be affected by consumer tastes, such as health or dietary preferences, including the reduction of the consumption food products containing high levels of carbohydrates that cause the consumers to avoid doughnuts in favor of substitute foods that are perceived as healthier. Moreover, due to the fact that Krispy Kreme is dependent in a single product, if consumer demands for doughnuts should decrease due to the stated factor (changes in consumer taste); the company will suffer further loss as compared to the present situation if not subjected into an immediate repositioning of its strategies. “ Alternative Solutions Consider developing healthier snack-food alternatives – “healthier choices” or “low calorie” doughnut selection, and find new ways to eliminate trans-fat in their products. To consider this alternative solution, the company can penetrate new market and retain previous consumers who de-patronized its products for healthier substitute goods. In addition, the company can cope into the growing trend, in which, connoisseurs or expert in the industry predicts will still dramatically increase in the near future. Thus, with this practice, Krispy Kreme could evaluate its flexibility to ever-changing trends occurring in the industry. Although this solution could impose benefiting results, it also has its disadvantage such as: additional budgets for Research and Development, and Marketing Department. Given that it will require additional capital, penetration for new market are usually too risky and if done improperly by the management

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