Krispy Kreme - Maintaining Consumer Loyalty*

            


Details


Case Code : CLCB020
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Krispy Kreme, Doughnut retailer, Consumer loyalty, Dunkin' Donuts, Customer evangelism, Internal brand loyalty, High quality product offering, Publicity, Internal Brand Loyalty and Vernon Rudolph

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract:
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The caselet, Krispy Kreme: Maintaining Consumer Loyalty, gives an overview of what made customers loyal to Krispy Kreme, a doughnut retailer. The caselet examines the ways in which Krispy Kreme attracted new consumers and how it maintained its existing consumers. It also takes a look at how Krispy Kreme differentiated itself from other doughnut retailers like Dunkin' Donuts.

Issues:

Attracting and retaining customers
How buzz marketing can be used as an effective promotion tool
The importance of developing internal brand loyalty in an organization

Introduction

Krispy Kreme (KK), a leading doughnut retailer, had revenues of US$ 6.6 billion and net income of US$ 0.57 billion in 2004.

KK was started in 1937 when Vernon Rudolph (Rudolph), founder of KK, began making doughnuts from a recipe he bought from a French chef.


Though local grocery stores were the initial customers, individual customers soon started buying doughnut from Rudolph because of their quality and freshness. The company tried to maintain the same high quality standards even after six decades of its existence...

Questions for Discussion:

1. "The company tried to maintain the same high quality standards even after six decades of its existence." How did KK use the age-old values that it held, to build on its brand name?

2. Both KK and DD were known for producing and selling doughnuts. In which ways were the marketing strategies of KK different from DD?


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