Krispy Kreme Doughnuts

Krispy Kreme DoughnutsTeam 4:

Overview of Krispy Kreme Krispy Kremeis an international chain ofdoughnutstores that was found in 1937,united states.15 Krispy Kreme franchise locations will be set up in Singapore over the next five years.Products are sold in Krispy Kreme stores, grocery stores, convenience stores, gas stations,Wal-MartandTargetstores in the United States.There are similar stores in the market There was a doughnut-craze few years agoAfter which, dunkin doughnuts came into the Singapore's market and created another crazeKrispy Kreme has a total of over 700 locations selling its doughnuts in 21 countries.Star360 Group, which represents a collection of brands in Asia, will be its licensed franchisee in Singapore.

FactorIn a Singaporean contextHow it affects Krispy KremePoliticalRegular call for foreign MNCs to set up shop here.Grants given to alleviate hiring and technology costs.FTAs with USA, Australia and other ASEAN countries.Stable and supportive governance with strong trade and industry laws.Welcomed into Singapore willingly.Able to make use of grants to ensure development and sustainability of franchise.Ease of shipment for import of supplies and materials.Sound trust in the laws to govern business trade.EconomicHigh and consistent GDP growth.Increased disposable income among population.Ranks 2nd on Global Competitiveness Report and 1st on Ease of Doing Business Index.Multitude of banks to provide business loans.Consistently stable currency exchange rate.Ensures the markets constant demand.Increased chance of sales.Strength of economy is endorsed by worldwide agencies and provides peace of mind.Banks ready to provide loans if needed.Little fears in the shifting of currency rate and thus the loss of profit.Socio-CulturalAn aging population.An increasingly open-minded youth body.Educated and affluent population with much exposure to the West.Multi-racial and religious.An increasing interest in CSR.Old folk are less inclined to buy donuts.Youth are more willing to try new things.Strong US-branding can be expounded here.Dietary concerns have to be addressed, in addition to sensitive social issues.Krispy Kreme must implement CSR schemes to fit into business norms.FactorIn a Singaporean contextHow it affects Krispy KremeTechnologyStrong base of technology R&D.Government-supported funding for technology breakthroughs.Increasingly affluent population in making digital purchases.Strict IP laws.Ease of communication from Singapore to the rest of the world.Continuous development of technology to improve efficiency for the company.A trust that technology advancements are constant.The possibility of population ordering donuts online.IP governs use of advertising materials.Easy correspondence with HQ in USA.LegalStable manpower laws.Union is on-par with the government and business employers.Trade and industry laws are governed strictly.Tax is stable and not arbitrarily increased.Many government agencies to report to for a food chain (eg. NEA, MOM, AVA)Ensures that employment is not volatile.Must be able to stand on the same ground as unionists.A trust in the stability and enforcement of laws prohibiting unethical business practices.GST is not a volatile factor.Troublesome to obtain permits and approval from all government agencies.EnvironmentalPollution is minimal in Singapore.Environmental health is strongly advocated.Well-received eco-friendly mindsets from the population.Safe environment for consumption of foods and production of foods.Production has to be properly carried out and supervised.Eco-friendly mindset of the population would reject a company if environmentally-irresponsible decisions were made.The CompanyKrispy Kreme Doughnuts.IncCustomersYoung adultsDoughnuts loverPeople with sweet tooth

SUPPLIERS

Sub180MarketingM I C R O environmentMarketing Intermediaries15 outlets all around Singapore, available in supermarkets

Publics

Halal certifiedCertified by Health Promotion Board for Healthier ChoiceCompetitors

J.COChewy juniorDunkin doughnutsEffectsMarketingMicroenvironmentEffectsCompany Krispy Kremeis an international chain ofdoughnutstores that was found in 1937,united states, making it a established brand for the past 75 years.SuppliersStar360 Group, which represents a collection of brands in Asia.Star360 Group's chief executive officer Andy Chaw said the company is pleased to finally introduce Krispy Kreme to Singapore.CustomersSingaporeans demand for sweet treats and have more budget for these food can help Krispy Kreme's demand.CompetitorsJ.CO have a wide product range and the brand have already establish in Singapore for a few years alreadyChewy junior is innovative in creating different kinds of doughnut.PublicsHalal certified means it can attract more groups of consumers. It is also certified as a Healthier Choice by the Health Promotion Board and suitable for vegetarians, allowing a bigger market.Marketing Intermediaries15 Krispy Kreme franchise locations will be set up in Singapore over the next five years. Furthermore, Krispy Kreme donuts will be available in supermarketsTherefore, with such a wide distribution, the coverage they have would be bigger and largely available around Singapore.Strengths (S)Its HalalSuitable for vegetarian700 over locations selling its doughnuts in 21 countriesSince 1937It offers doughnuts to non-profit groups at a reduced priceWeaknesses (W)Bad track record in franchise sustainabilityFalling stocksTheir diversification of specialty products created unnecessary competitionsOut sourced their manufactoryLack of advertisingOpportunities (O)Signed an agreement with Star360 group to bring its doughnut shops to SingaporeSingaporeans have been anticipating their products for 5 yearsDonuts are the second most profitable product food itemThreats (T)Other competitors such as J.Co, Dunkin Donuts, Chewy JuniorThe donut trend is over.StrategyRecommendationsSO Strategy: Make use of strengths to tap opportunitiesLocal Singaporeans will not be missing out on Krispy Kreme productsST Strategy: Make use of strengths to overcome threatsKrispy Kreme is a company that can be known for its volunteer work among other donut companies.WO Strategy: Overcome weakness to tap on opportunitiesStar360 can work with mediacorp will help to promote the new company which is Krispy KremeWT Strategy: Fight weakness to overcome threatsAdvertise its products to bring the trend backResourceshttp://www.zacks.com/stock/news/84341/krispy-kreme-forays-into-singaporehttp://sg.finance.yahoo.com/q?s=KKD&ql=1

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