Abstract
Now a day, in the era of globalization, it can be recommended that any company may enter into any market of the world according to their capability and fair conditions of the new market where they want to enter. Krispy Kreme Doughnuts takes their business area over the world transcending its national boundaries. So at present this company is getting committed to many other countries. Like other global corporation, Krispy Kreme, now deserves the acceptability to the indigenous and local people Krispy Kreme sells doughnuts in most states of America. ‘Krispy Kreme doughnuts’ brings its reputation from America to every part of world. In the populated area, Krispy Kreme has been organizing itself during the last decades.
Introduction
A company going global refers the entries in the global market. Krispy Kreme is one, which is a multinational Corporation, going to enter into the global market. Like McDonald; Pizza Hut; Dominos- ‘Krispy Kreme doughnuts’ is favourite restaurant in worldwide. Those acquire their popularity through their special products. McDonald is renounced for their fast food especially burger. Pizza Hut and Dominos are popular for their special pizza. These restaurants operate functions and serve people globally. At the same time, ‘Krispy Kreme doughnuts’ is popular for specially doughnuts. It has already covered United States, Canada, Mexico, Australia, Korea and the United Kingdom (Krispy Kreme Doughnuts, 2006-2008). Asian is important sector of market economy and India is a well populated and economically important Asian country as well where Krispy Kreme can take next operational steps.
Literature Review
- Interaction Media Group, N.D.: From the article of the case study it can be seen that krispy kreme doughnuts leads itself with an autocratic style. This trend of leadership may not be favorable for aggressive business growth of krispy kreme doughnuts. On the other hand it can be recommended about its franchising strategy as a successful strategy of growth of business according to this article.
- Barnes, 11 December 2004: The author states that Krispy Kreme didn’t still determine a specific vision and mission for itself. Krispy Kreme has to do it as early as possible for expanding its business worldwide. He also adds that Krispy Kreme didn’t choose its location for retail business, but now days it expends its business at the appropriate location in U.K., Canada, Mexico, Philippine, etc.
- Thompson, 2004: The author describes that Krispy Kreme is able to expand its sales by 40% through product offering and product quality. It is an appreciating recommendation about Krispy Kreme’s marketing policy.
- ABCNews: President and chief executive officer Scott Livengood recommended about the Krispy Kreme’s expansion outside the U.S. But Krispy Kreme doesn’t expand its business in asia earlier, though there are huge scope of capturing market such as China, Malaysia, Thailand, Singapore, India, etc.
Opportunities
India is high populated area and an attractive location for business on perspective of geopolitical factors and infrastructure. This figure shows the importance of this zone ‘India’ for international business and high feasibility of market concerning with the availability of its resources.
India deserves the economic and cultural environment in growing business. Rollyson (22 February 2008) provides the following information as:
“India is a significant net importer of U.S. goods and services (has a trade deficit with the U.S.). …. India’s GDP grew 3.8% in 2002 and 9.2% in 2006 and is projected to grow between 7 and 8% from 2008-2012. …. India’s exchanges ranked fifth in the world for numbers of IPOs in 2007”.
Culturally, India is developed and more flexible now. India is a multicultural country which enlarges the scope of multi dimensional business. The people’s beliefs, symbols and values are more liberal and flexible according to the global change of world. “The people of India deeply respect pluralism and diversity“ (Rollyson, 22 February 2008). Now, it can be seen in some state in India, English is as first language. Though most of the criteria of culture match to the globalization, in the same way Indians keep their own cultural distinction through their activities. Pizza Hut captures its market and popularity very quick to the Indians through their marketing strategy with a view to reflect of Indian culture. To enter into a market there are strategy such as licensing like franchising (Pizza Hut spreads its business through franchising.), strategic alliance like joint venture, direct investment etc. (Griffin, 2002, p. 138). Political stability and govt. policy of India are favorable for spreading any business. Govt. keeps some incentives for foreign companies such as low interest rate, construction subsidies, and tax incentives. Economic communities of India are strong. In India, free market economic system and its infrastructure both are supportable for doughnuts business. Infrastructure includes here schools, hospitals, power plants, railroads, highways, ports, communication systems, air fields, and commercial distribution systems etc. (Griffin, 2002, p.145). Organization size of Krispy Kreme is large enough to enlarge its market size through a high growth economy. India, now days deserves a high growth economy, where krispy kreme doughnuts have to take challenges of Managerial functions as planning, organizing, staffing, coordinating, and controlling to start business in India.
Risks
In entering to Indian market as a new place there are some generic economic risks when Krispy Kreme moves to enter Indian market. For example licensing may helps the competitors. If it enters with joint venture, there is limited control and profit. In case of direct investment, it may face the complexity, economic and political risk, and uncertainty. (Griffin, 2002, p. 138). Besides these, there may remain various risks as political environment and govt. rules and regulation and cultural effects. Mainly, the important thing is to sustain the existence with a successive operation growth through competition with various global corporations.
Marketing Mix
Krispy Kreme makes their products popularity with keeping speedy service, ready to sell, hot doughnuts, etc. (Interaction Media Group, N.D.). Though Krispy Kreme is not too interested in personal selling, it has succeeded already in Sales Promotion, Advertising, Public Relations, etc. in regards to continue its marketing which will be helpful in the promotion of its products in India. Marketing mix of Krispy Kreme includes product, price and place. Actually this corporation emphasizes on its products as a component of marketing mix. Krispy Kreme’ hot product is doughnut. However, A doughnut is a kind of fried cake with a liquid mixture of flower and flavoured sweet. “These doughnuts were sweeter, bigger and at a slightly lower price than most of its competitors, depending on the variety of doughnut.” (Interaction Media Group, n.d.). Krispy Kreme distinctly provides about 25 categories of doughnuts to the consumer. Besides doughnuts, Kispy Kreme provides various types of products; nevertheless, doughnut is the master product here and Krispy Kreme’s whole fascination is about doughnuts too. The British use to like doughnuts most than coffee and beverage. Price of products of Krispy Kreme is competitive in the global market.
Besides, location choosing of Krispy Kreme is an important marketing mix element. Though Krispy Kreme didn’t focuse on the good location earlier, but at present it takes its business every corner of the world. Krispy Kreme has already entered into the market of Asia as Korea and Philippine. India is as a south Asian country; Krispy Kreme also thinks to move its intension on it according to its market feasibility.
Marketing strategy is a strategy of competing of a new venture. Krispy Kreme needs to enter into Indian market to do a new venture of their business. However, as far it is known that strategic objectives is to maintain the growth, profitability, human resources, customer services, innovation, match to new place and life-style, etc. there are various marketing policy has to maintain a company to capture any market. For example, Concentration is a strategy which considers the growth that means growing way. New market development is a strategy which concerned with the development the new market, that means hold a new market. New product development is a strategy of marketing which means the diversification of products. (Holt, 1991, pp. 300-301).
Recommendations
Krispy Kreme, now a days is a corporation though it worked as like as partnership business at the beginning. Krispy Kreme was originally a partnership, but now it is a corporation. However, it is mentionable that after being corporation Krispy Kreme is acquiring the capability of having financial power for extension of its business. Therefore, Krispy Kreme performs its function in worldwide. The franchising capability really indicates the decentralization of its business.
According to the estimated current data of 2008 of Securities and Exchange Commission of Washington, revenues of Krispy Kreme are decreased at $429.3 million from $461.2 million of 2007 where, franchise revenues are increased by 6.8% to $22.5 million than the previous year. “Our goal is to successfully address the challenges without sacrificing any of the opportunities, while at the same time becoming a leaner, stronger, more profitable organization” (Morgan, 17 April 2008). Lastly, it is clear that this company maintains a business ideology which helps it to be capable in entering in to global level as its financial, economic, marketing capabilities. “U.S. and India stand at a significant turning point: India’s impressive economic growth is a significant element of the ongoing redistribution of global economic power—which holds excellent opportunities for U.S. businesses and workers that are looking for it” (Rollyson, 22 February 2008).
According to the measurement of International Monetary Fund, the Purchasing Power Parity (PPP) of India is growing at $4.2 trillion where United States is ranked at the top with $13 trillion (Knowledge@Emory, 14 February 2008). According to the estimated current data of 2008 of Securities and Exchange Commission of Washington, revenues of Krispy Kreme are decreased at $429.3 million from $461.2 million of 2007 where, franchise revenues are increased by 6.8% to $22.5 million than the previous year. “Our goal is to successfully address the challenges without sacrificing any of the opportunities, while at the same time becoming a leaner, stronger, more profitable organization” (Morgan, 17 April 2008). Lastly, it is clear that this company maintains a business ideology which helps it to be capable in entering in to global level as its financial, economic, marketing capabilities.
From the SWOT analysis it can recommended that Krispy Kreme doughnuts can enter into the Indian market if it can pursue the managerial challenges and competitive strategy through organizational structure and strength.
Conclusions
In the light of the discussion we have concerned about the global follow up of Krispy Kreme. Doughnuts are delicious fast food and Krispy Kreme is one of the best producers of doughnuts in the world. Not only to the American but also doughnuts, now a day, having popularity spread through overseas of U.S. Aside doughnuts, Krispy Kreme provide special coffee and beverage. Most of the food and beverage items are different than other which distinguish itself and makes it popular. “Krispy Kreme has come a long way since Vernon Carter Rudolph first cut a hole in his kitchen wall, but it is still finding innovative ways to deliver hot, fresh products to its customers” (Velcitorsolution, n.d.). However, to be a global organization, one has to be competing with more than fifty countries. Krispy Kreme is competing through America, Europe, Australia, and lastly in Asia now. Indian as an Asian economic icon, it has important market and it is also expectable to Krispy Kreme to enter into the Indian market. So it can say during the last decades, krispy kreme has been an international company, but now a day, Krispy Kreme as a multinational corporation, is going more than multinational, that means going global.
References
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