Table of Contents
Definition of problems and discussion.
Conclusion and recommendations.
The current study has focused upon the case organization Krispy Kreme and its problems in market research attempts. Considering contemporary theories and concepts, market research activities have been suggested to the organization. Based on the findings of the study, recommendations have been made to Krispy Kreme to perform well internationally.
Krispy Kreme can be considered as a global retailer of high quality sweet treats and it originally deals with selling originally glazed doughnut. The business has expanded through 31 different countries and has 1300 retail shops in total. This organization is also involved in fundraising which has exceeded $27 million dollars in the year 2019. This is developed for serving the community and the selling point of the organization is the lower price. It has partnered with many schools and invests in regular charity. In addition to this 400 employees working worldwide within diversified workplace (Annualreports.com, 2020). This company has effectively handled diversity issues and provided opportunity to the minority groups, women and disabled individuals.
Market research can be considered as the process of gathering market data such as choice of the customers, current trends, feedback and others. It is the process through which the viability of a new product within a specific market can be understood, Krispy Kreme can identify the target customers and can get knowledge of their performance. The aim of the current study is to identify the problems this organization is facing and suggesting market research activities that may help Krispy Kreme succeed in global market.
Definition of the problems to be solved
It has been identified from the video that that the authorities of Krispy Kreme are facing uncertainty regarding the survival of the product in different international site such as UK, Sweden, Japan and others. Therefore, the uncertainty about the international market is a problem that the current organization facing. Market research is also required in the area of how the product is influencing the customer behaviors and if those are appropriate to the needs of the customers. It has also been identified that this company is criticized by the low card diet practitioners and this has impacted largely on sales volume (Karp, 2020).
Market research is also required to be taken under consideration by this organization to identify the needs of the customers that prefer especially the low-carb diet. As mentioned in the video, the product developers always are at pace for making their product or adjust their product as per the needs of the customers. The market research will help the organization to know how the market, to which the company wishes to expand, will react to the product. For instance, it has been identified that this organization is facing issues in selling their products in under developed countries. As suggested by Cateora et al. (2020), it can be considered that the lower education and health related issues are the reason due to which overseas business face uncertainty in international market. It can also be stated that, in these countries the focus of the organization is required to be shifted towards the educated and mature market so that it becomes beneficial where the product can be modified and converted into a health conscious one.
It is also required for the company to understand the rapid changes in global position of the product such as appropriateness of the product to the contemporary customers and other aspects. In order to successfully penetrate and become successful in global market, the organization is required to conduct a research upon market culture as it is likely that the product might not be culturally appropriate in international market (De Mooij, 2018). In addition to this, the organization is also required to conduct a research through which it can identify the availability and suitability of the distribution channels in the market they have targeted. The time effectiveness and cost effectiveness of the product are required to be judged also.
It can be stated that the organization is continuously trying to enhance the product appropriateness with international culture though the main issue with implementation of the same is weak marketing research efforts that includes overall market information helping the business to grow out of the uncertainties.
Critical analysis and discussions
A search about market competitors and the contribution of rigorous competition upon sales of the company is also required to be identified. As mentioned by Katsikeas et al. (2019), there are a range of factors that are important to consider while expanding into international market including, range of product, pricing of the product, market share and strategies and others. Apart from considering these factors Krispy Kreme is required to look for the barriers that are making it difficult to conduct the business overseas. For instance, country’s international business policies, regulation, trading provisions and others are also required to be searched for. In order to develop pricing strategy effectively, the economic condition of the country is also to be studied well as it will impact upon the affordability of the potential customers of Krispy Kreme (Nagle and Muller, 2018).
As per the Network approach theory, it is the best solution for the comoanies looking for international expansion is to create international relationships and creating a network so that resource commitment can be increased. In Markets like UK, Japan and others the company requires to develop international relationships where it can utilize its fund raising activities to perform well and can associate will local charitable bodies. Uppsala model of internationalization is another important consideration for the current study as the company can learn about the people and the market they target and simultaneously can develop relationship of trust and commitment. This will also be helpful in identifying the communities that will take active part in raising funds (Grayson and Hodges, 2017). The activities market researchers can take under consideration is interaction and development of a base for communication with the potential international customers which has become easy with the use of technological devices. For instance, Krispy Kreme can focus upon the social media page data such as its reach through Facebook, Instagram and others. This will help understanding the international values and cultural differences that are needed to be incorporated while changing for modifying the product for the international market appropriateness.
As mentioned by Ferreira and Ferreira (2018), the changing societal needs, dependence upon technology, personal needs are the factors that are required to be incorporated into the market research for the growing company like Krispy Kreme. Dunking' Donuts is a major competitor of Krispy Kreme. It has been observed that with the shift of the customer attention towards healthy food consumption, Dunking' Donuts started offering health food menus which could not be combated by Krispy Kreme. This can also be considered as a reason behind which the organization is facing issues with sales. As argued by Hopkinson et al (2018), the cultural appropriateness of a product is crucial to avoid issues with sales in international market. Therefore, it can be stated that though the needs and habits are changing, cultural identity of the product is needed to be valued and incorporated into product development idea.
This is the major point to consider where Krispy Kreme may see a slowdown in the profit generation if it remains unable to modify the product o make it culturally effective. Applying Porter’s fie forces model it can be stated that the threat of substitutes therefore, it extremely high. Additionally, the business ideas and operation of Krispy Kreme has grown from the fund raising activities along with high appreciation of the community engagement, investment on technology and relationship building, tying up with suppliers which are difficult to be performed for a novice business conductor. Creating the network is difficult for the new entrant which is the reason is moderately threatening for Krispy Kreme.
The major competitors of the organization are Cataracts Coffee, Hostess and Dunking’ Donuts. However, each of these organizations offers similar products to a similar kind of customer segment. Cost competition and strategies are highly effective in the context of international performance. Product diversification will provide additional help to grab the attention of different customer segments which will reduce the probability of being failed to survive in international market (Bae, 2019).
In conclusion, it can be stated that the organization in Focus, Krispy Kreme is a highly social, community supportive company that indulge in fund raising and investing in charity. The main issue it is facing with international expansion is cultural inappropriateness of the product, though the company has full potential to modify the product as per the different needs and preference of the customers overseas. Therefore, market research in the area of understanding international market, its customers, cultural values and preferences and others are required to be understood before penetrating into new market.
It can be recommended to the organization to conduct market research incorporating a search for the labor cost, labor availability, taxation, cultural values, food habits and others so that product development/modifications can be performed successfully. Another recommendation to the organization Krispy Kreme is to develop products that are health conscious to support the customers with changing health needs/or modify the product depending on the country specific factors such as demographic, choice of food, life style and others.
Annualreports.com, 2020. KRISPY KREME DOUGHNUTS INC. Available at: https://www.annualreports.com/HostedData/AnnualReportArchive/k/NYSE_KKD_2010.pdf [Accessed 6 September 2020]
Bae, M., 2019. Attention-Grabbing Power of Branded vs. Unbranded Packaging. Journal of Promotion Management, 25(7), pp.1059-1086.
Cateora, P.R., Meyer, R.B.M.F., Gilly, M.C. and Graham, J.L., 2020. International marketing. McGraw-Hill Education.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.
Ferreira, J. and Ferreira, C., 2018. Challenges and opportunities of new retail horizons in emerging markets: The case of a rising coffee culture in China. Business Horizons, 61(5), pp.783-796.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make corporate social responsibility work for your business. Routledge.
Hopkinson, P., Zils, M., Hawkins, P. and Roper, S., 2018. Managing a complex global circular economy business model: opportunities and challenges. California Management Review, 60(3), pp.71-94.
Karp, C., 2020, Why Krispy Kreme hasn't conquered Australia: Aussies refusing to eat doughnuts for BREAKFAST contributed to 35 stores closing. Available at: https://www.dailymail.co.uk/news/article-7156609/Why-Krispy-Kreme-failed-Australia-Low-carb-diets-refusing-eat-doughnuts-BREAKFAST.html [Accessed 6 September 2020]
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a digital era. International Marketing Review. Pp.90-98
Nagle, T.T. and Muller, G., 2018. The strategy and tactics of pricing. Abingdon: Routledge.
Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Marketing Research Assignment Help
Proofreading and Editing$9.00Per Page
Consultation with Expert$35.00Per Hour
Live Session 1-on-1$40.00Per 30 min.
Doing your Assignment with our resources is simple, take Expert assistance to ensure HD Grades. Here you Go....
My Assignment Services acknowledges the academic integrity guidelines prescribed as per Australian Universities to ensure that the services, sample material, and study resources available on our website, in no way are utilised to commit academic misconduct of any type. All users of our services must adhere to and affirm acceptance of all conditions elucidated in our policy document on academic integrity.