Marketing Mix Of Krispy Kreme and 7Ps (Updated 2024)

The Marketing mix of Krispy Kreme analyses the 7Ps of Krispy Kreme, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Krispy Kreme. Krispy Kreme Doughnuts, Inc. is popularly known as Krispy Kreme. It is a private company of American origins. Krispy Kreme is associated with the food and beverage industry and is a fast-food eating joint. It was founded in 1937 by its founder, Vernon Rudolph. Some of the marketing mix of Krispy Kreme and its competitors are as follows-

• Dunkin Donuts
• Mad Over Donuts
• McDonald’s
• Starbucks

About Krispy Kreme

• Type: Multinational doughnut company and coffeehouse chain
• Industry: Foodservice
• Founded: July 13, 1937
• Founders: Vernon Rudolph
• Headquarters: Charlotte, North Carolina, United States
• Area served: Worldwide
• Current CEO: Michael Tattersfield
• Number of employees: Over 21,000
• Major products: Doughnuts, coffee, and other baked goods

Krispy Kreme Product Strategy

“Krispy Kreme doughnuts company is a globally recognized brand known for its tasty and quality products. Krispy Kreme, a company known for its delicious doughnuts, offers a variety of products in its mix.

The product mix of Krispy Kreme in 2024 is as follows (Source)

1. Doughnuts: This is Krispy Kreme’s primary product. They offer a wide range of doughnut flavors, including the Original Glazed, their signature product. Other flavors include chocolate iced, cream-filled cream-filled, vanilla ice cream, and seasonal varieties.
2. Beverages: Krispy Kreme serves a range of beverages, including coffee (hot, iced, and frozen), milk, soft drinks, and juices. Their coffee products are often designed to complement their doughnuts.
3. Limited Time Offers and Seasonal Specials: They often introduce limited-time doughnut flavors and themed products to celebrate seasons or holidays, like Halloween, Christmas, or Valentine’s Day.
4. Krispy Kreme Merchandise: Some locations sell branded merchandise like mugs, t-shirts, and hats.
5. Packaged Sweets: In some markets, Krispy Kreme offers pre-packaged doughnuts, thick shakes, and other sweets that can be purchased in grocery stores and other retail outlets.
6. Krispy Kreme Fundraising: This includes selling doughnuts in bulk for various fundraising campaigns and events, often at a discount.

The specific product offerings can vary by location and season. Krispy Kreme occasionally collaborates with other brands for unique edition flavors or products.

Krispy Kreme Pricing Strategy

Krispy Kreme faces severe competition from several rival companies in terms of prices. The brand has adopted a competitive pricing strategy and kept its prices quite similar to that of its competitors. It serves fresh and qualitative products at affordable prices and pocket-friendly rates, so customers find it reasonable and economical. Krispy Kreme realizes it must adopt something new and better to attract and retain customer loyalty. Hence, it offers periodic incentives like discounts and offers on special days. It also offers gifts and accessories, especially to children, to bring families to its joint.

Krispy Kreme’s pricing and advertising strategy is an astute blend of market-oriented and value-based approaches to balance affordability with brand value perception. Here’s a breakdown of their price strategy:

1. Premium yet Accessible Pricing: Krispy Kreme positions its products at a premium compared to general market doughnuts, reflecting its brand quality and unique value proposition. However, the pricing remains accessible to a broad customer base, balancing exclusivity and mass appeal.
2. Geographic Pricing Variations: Understanding global market dynamics, Krispy Kreme adapts its pricing strategy to local economic conditions and consumer spending power. This geographical pricing ensures competitiveness and market penetration in diverse regions.
3. Promotional Pricing Tactics: The company frequently employs pricing strategies, such as limited-time offers, discounts on bulk purchases, and special deals on new product launches. These tactics drive sales volume and customer loyalty, attracting new and repeat customers.
4. Dynamic and Seasonal Pricing: Leveraging dynamic pricing, Krispy Kreme adjusts prices for seasonal specialties and limited edition products. This creates a sense of exclusivity and capitalizes on consumer willingness to pay a premium for unique or time-limited items.
5. Psychological Pricing: Utilizing psychological pricing strategies, such as slightly pricing below a round number (e.g., $0.99 instead of $1.00), Krispy Kreme subtly encourages consumer purchases by creating a perception of value or discount.

In summary, Krispy Kreme’s pricing strategy is a carefully calibrated tool that reinforces its brand positioning as a premium, affordable prices, and high-quality doughnut provider and ensures market competitiveness and broad consumer appeal.

Krispy Kreme Place Strategy

Krispy Kreme has an international presence that has spread to thousand and four locations in countries like the United Kingdom, United States, UAE, Turkey, Canada, Thailand, Taiwan, South Korea, South Africa, Singapore, Russia, Mexico, Malaysia, Japan, Indonesia, India, Bangladesh and Australia. Its headquarters and international presence are in Winston-Salem, North Carolina. In the United States, its distribution network includes products to consumers via supermarkets, convenience stores, temples, grocery stores, and their outlets.

Other countries have different distribution and marketing channels, including opening via franchisee agreements. For instance, in India, one can find its products in Krispy Kreme outlets operated by Citymax Hotels in places like Bangalore and Chennai. In the United Kingdom, products are available via Tesco Service Stations, Supermarkets, and Tesco Extra. The company has also opened an online delivery system at most of its locations in other countries.

Overview of Krispy Kreme’s place strategy:

1. Global Presence: Krispy Kreme operates in numerous countries worldwide, with stores in the Americas, Europe, Asia, the Middle East, and Africa, adapting its offerings to cater to local tastes and preferences.
2. Strategic Store Locations: Their stores are strategically located in high-traffic areas such as shopping malls and city centers and near universities to maximize customer reach and convenience.
3. Factory Stores: Krispy Kreme’s iconic factory stores sell doughnuts and allow customers to view the doughnut-making process, enhancing the customer experience and brand appeal.
4. Partnerships for Distribution: They partner with supermarkets, convenience stores, and other retail outlets to sell their products, increasing their market reach beyond their stores.
5. Online and Mobile Ordering: Embracing digital technology, Krispy Kreme offers online and mobile ordering options in many locations, catering to the convenience needs of modern consumers and facilitating home delivery and pick-up services.

Krispy Kreme Promotion Strategy

Krispy Kreme has adopted innovative ways to attract customers by advertising, issuing coupons, and offering incentives. In California, it started selling its products via sunroofs and car windows at busy intersections. The company has relied heavily on word-of-mouth publicity and has garnered most of its customers via this route.

In 2006, it started using electronic media for its advertisements and launched campaigns on radio and television with the tagline, Share the Love. It launched informative and eye-catching ads, and some of its campaigns had descriptive taglines like 0 grams trans-fat-free full-fat and Trans-Fat free. Krispy Kreme is aware of its social responsibility and offers its products to non-profit organizations at a considerably lower rate. It has also helped several schools raise nearly 30 million dollars in fundraising campaigns.

Krispy Kreme offers gifts to its customers at certain times, like hats, toys, mugs, and sweatshirts, as part of its promotional plans.

Krispy Kreme’s promotion strategy is multifaceted, focusing on:

1. Engaging Social Media Campaigns: Utilizing platforms like Instagram and Facebook, Krispy Kreme creates visually appealing and shareable content to engage customers and promote new products and deals.
2. Interactive Customer Experiences: The brand leverages its unique “Hot Light” signal and in-store doughnut-making displays to create memorable, sensory experiences encouraging customer visits and word-of-mouth promotion.
3. Strategic Partnerships and Collaborations: Krispy Kreme often collaborates with other brands and engages in community events to broaden its reach and appeal to diverse customer segments.

Some Recent Video ads and Print ads of Krispy Kreme are:

Krispy Kreme TV Spot, ‘This Holiday Season’ – iSpot.tv

Krispy Kreme People Strategy

Krispy Kreme’s success in the service industry can be significantly attributed to its focus on the “People” aspect of the service marketing mix. Here are some key points regarding the “People” element of Krispy Kreme:

1. Employee Training and Development: Krispy Kreme invests in comprehensive training programs for its employees to ensure they have the necessary skills and knowledge to provide exceptional service. This includes customer service training, operational efficiency training, and product knowledge workshops.
2. Customer-Centric Staff: The staff at Krispy Kreme are selected and trained to be customer-centric. This means they are skilled at performing their duties and excel in customer interaction, creating a friendly and welcoming environment for customers.
3. Employee Engagement and Satisfaction: Krispy Kreme focuses on employee engagement and satisfaction to reduce turnover and improve service quality. The company recognizes and rewards employees for their contributions, fostering a positive work environment and encouraging loyalty and dedication.
4. Brand Ambassadors: Employees are considered brand ambassadors who embody the company’s values and culture. They are crucial in conveying Krispy Kreme’s brand message and ensuring a consistent brand experience across all touchpoints.
5. Community Involvement: Krispy Kreme’s people strategy extends beyond its stores. The company and its employees actively participate in community events and charitable activities, reinforcing the brand’s commitment to social responsibility and building strong community relationships.
6. Diverse Workforce: Krispy Kreme values diversity and inclusiveness in its workforce. By employing people from various backgrounds and cultures, Krispy Kreme benefits from multiple perspectives and ideas, enhancing creativity and innovation in service delivery.
7. Feedback Mechanisms: The company has mechanisms for collecting feedback from employees and customers. This feedback improves service delivery, employee training programs, and customer satisfaction.
8. Leadership and Management Style: Krispy Kreme’s leadership and management practices emphasize transparency, communication, and support. Managers are approachable and guide and support their teams, ensuring employees feel valued and motivated.

Krispy Kreme Process Strategy

The “Process” element of the service marketing mix refers to the mechanisms, procedures, and flow of activities by which services are consumed. For Krispy Kreme, this involves the steps taken to deliver their products and services to customers efficiently and effectively. Here are some key points regarding Krispy Kreme’s process:

1. Streamlined Ordering System: Krispy Kreme has implemented a simplified in-store and online ordering system, allowing customers to place orders quickly. This includes clear menus, efficient point-of-sale systems, and user-friendly online ordering platforms.
2. Production Transparency: A unique feature of Krispy Kreme’s process is the transparent doughnut-making process visible to customers in many stores. This serves as entertainment and reassures customers about the freshness and quality of the products.
3. Speed and Efficiency in Service: Krispy Kreme focuses on speed and efficiency in its service delivery, ensuring that customers receive their orders promptly without compromising quality. This is achieved through well-organized workstations and practical employee training.
4. Quality Control: Krispy Kreme has strict quality control procedures to ensure all products meet high standards. This includes regular checks at various stages of the doughnut-making process, from ingredient selection to the final product presentation.
5. Customer Feedback Loop: Krispy Kreme has established a feedback loop that allows customers to provide feedback on their experience. This information is used to improve service processes and customer satisfaction continuously.
6. Inventory Management: Efficient inventory management ensures that Krispy Kreme stores are always stocked with the necessary ingredients without overstocking, which helps maintain the freshness of their doughnuts.
7. Employee Roles and Responsibilities: Clearly defined employee roles and responsibilities ensure that each aspect of the service process is handled efficiently. Employees, from doughnut makers to cashiers, understand their part in delivering excellent customer service.
8. Technology Integration: Krispy Kreme integrates technology into its processes, including digital displays for menus, online ordering systems, and a mobile app for customer loyalty and convenience. These technological tools help streamline operations and enhance the customer experience.
9. Delivery and Catering Services: Krispy Kreme offers delivery and catering services, extending their reach beyond the physical stores. This process includes careful packaging and timing to ensure products are delivered fresh and in perfect condition.
10. Health and Safety Standards: Krispy Kreme adheres to high health and safety standards in all its processes. This includes store cleanliness, proper food handling techniques, and adherence to local health regulations, ensuring a safe environment for customers and employees.

Krispy Kreme Physical Evidence Strategy

Physical evidence in the service marketing mix refers to the environment in which the service is delivered, including the physical facilities, equipment, and appearance of personnel, which can all influence customers’ perceptions of the service quality. For Krispy Kreme, physical evidence in the marketing mix is crucial in shaping customer experiences and perceptions. Here are some key points regarding Krispy Kreme’s physical proof in the marketing mix:

1. Distinctive Store Design: Krispy Kreme stores often feature a distinctive, recognizable design with a welcoming and warm atmosphere. Bright colors, mainly the iconic Krispy Kreme green and red and the doughnut-themed decor, contribute to a unique brand experience.
2. Visible Doughnut Production Line: One of the hallmark features of Krispy Kreme is the visible doughnut production line available in many stores, where customers can watch doughnuts being made fresh. This not only serves as an attraction but also as a form of assurance of the freshness and quality of their products.
3. Cleanliness and Hygiene: Krispy Kreme prioritizes the cleanliness and hygiene of its stores and facilities. Clean dining areas, counters, and visible kitchen spaces reassure customers about the upheld health and safety standards.
4. Branding and Packaging: Krispy Kreme’s packaging is instantly recognizable with its logo and branding. Using branded boxes, cups, and bags is a marketing tool and enhances the customer’s purchase experience.
5. Consistent Employee Uniforms: Employees at Krispy Kreme wear branded uniforms, contributing to their staff’s professional and cohesive appearance. This helps reinforce the brand’s image and ensures a uniform service experience across different locations.
6. Signage and Promotional Materials: Clear and attractive signage inside and outside the stores and promotional materials help guide customers and promote the latest offers or products. This visual communication is part of the physical evidence that supports the brand’s promotional efforts.
7. Seating and Comfort: Comfortable seating arrangements and a cozy environment invite customers to stay longer. The layout of the seating area is designed to accommodate individuals, families, and groups, enhancing the overall customer experience.
8. Ambiance and Atmosphere: The overall ambiance of Krispy Kreme stores, including lighting, music, and temperature, is carefully managed to create a pleasant and inviting atmosphere for customers.
9. Digital Presence and Technology: In-store digital displays, free Wi-Fi, and technology integration for ordering and payment processes are modern physical evidence. These elements contribute to a seamless and convenient customer experience.
10. Accessibility and Convenience: The location and accessibility of Krispy Kreme stores are part of its physical evidence strategy. Easy access, ample parking, and the convenience of drive-thru services enhance the customer’s ease of purchase.

Liked this post? Check out the complete series on Marketing Mix