Market Research for Krispy Kreme
Marketing research Is the process of systematic research of collecting, analyzing, and reporting marketing Information that can be used to solve problems, so as to improve a company’s bottom line. Here I agree with Nathan that it helps the organization to decide whether the product has a potential to survive in the market or not. This research will help Crispy Creak to Identify the need of their specific low- crab diet consumer. As In the video, Crispy Creme specified that they can adjust their product to suit the specific needs of the consumer.
It helps them to determined how racket will respond to their product. For example, in under developed countries, as a whole people are not much educated about health related issues as compared to the developed countries. So Jumping In to the mature and educated market will be beneficial for them where they can easily introduce health conscious product. By modifying product according to the markets, segments, and geographical location, they can attain their long term objectives. To promote such kind of products, they must educate the people and answer the health craze Issues In upcoming years.
To succeed in the global market, what market research should Crispy Creme undertake?
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They also need to carry out research on the available distribution channels in the targeted market, and to see whether they are cost efficient and time effective or not. They also need to conduct detail research on the existing market competitors in the target market, which are directly or Indirectly competing in the same industry. They need to study their pricing, product range, distribution channels, strategies and their market share before entering in to the global market. They also need to study the market barriers to entry, e. . Country government support foreign products and rand’s. Country economic condition is another Important factor which should be taken In to consideration by Crispy Cream, which gives them an Idea whether consumer in that specific market can afford their product or not. Market demographics, economic conditions, political stability are another factors which should be researched before crossing borders. Because country stability, geographic location, and demographics has direct relationship with the profitability of their success.
To understand the research needs of the 21st century it is important to consider how hey have changed over the past four decades. In this Initial phase of International market entry, firms were mostly concerned with collecting Information to Identify and assess market opportunities in other countries to determine which markets to enter, how to position products in these markets and how far to adapt different elements of I OFF and cultural barriers, the country was the focal point of entry decisions Conclusion Change is occurring in virtually all aspects of business and personal life.
These changes are being played out at different rates in different parts of the world. Against this backdrop, marketing researchers are being challenged to conduct research that is of the highest possible quality, as quickly as possible, in multiple diverse settings. The issues marketing researchers face are multifaceted and relate to where and how research will be conducted, who the respondents will be, and the tools and techniques that will be used. Marketing researchers must find creative ways to harness the new technologies to facilitate the conduct of research and enhance its value to clients.
At the same time research organizations must begin to evolve the capability to conduct marketing research simultaneously in the developed and the developing world. Increasingly multi-national marketers are designing and selling global brands and need research to guide their decision making across an increasingly diverse and disparate world. Sound and timely marketing research becomes even more critical for firms as they compete in the 21st century Uncertainty Avoidance: Uncertainty avoidance refers to the level of anxiety about the future (Hefted 1980, 2001).
Societies that are high in uncertainty avoidance continuously feel the inherent uncertainty in life as a threat that must be fought, while societies low in uncertainty avoidance more easily accept uncertainty and take “each day as it comes” Education: Education involves the exposure of people to a constant of new ideas, which makes them more receptive to innovations. Education also sensitizes people to the importance of technology in human progress. That again makes them more receptive to innovations. Indeed, a general finding in diffusion research is that educated people tend to adopt new products earlier than none educated people
A shift in consumer demand to want healthier fast-food options has hit the industry hard. Dunking’ Donuts and Cataracts have combated this shift by offering healthier menu items, something Crispy Creme has failed to do. Dunking’ Donuts offers healthy breakfast sandwiches and a variety of flattered sandwiches that are based on both morning and lunch styles Cataracts is even more impressive when it comes to variety on its menu as they offer pastries, muffins, fruit plates, salads, oatmeal, yogurt, and breakfast sandwiches to complement their main product, coffee. Even with a forecasted profit for 2010, how Crispy Creme addresses and answers the health craze in the upcoming years will define the company’s future Industry Environment Threat of substitutes is at an extreme high Especially in today’s society where consumers are becoming more aware and conscientious of what they eat, substitutes are readily available and on the rise. Healthy alternatives to traditional bakery items yogurt or fruit bars, nuts, and even fruit. 28 The threat of new entrants into the bread production industry is moderate.
Barriers to entry are low because the capital squired to successfully start a profitable business is fairly significant. What new entrants have to face is the entrenchment of strong players within the industry who have the resources to maintain contracts with their suppliers for stable raw input prices, the capital to invest in technologically advanced manufacturing equipment, and customer brand loyalty Competitive Environment The top three competitors that Crispy Creme faces are Dunking’ Donuts, Cataracts Coffee, Inc. , and Hostess.
Each has similar product offerings, however, are quite fractionated at the same time – both in their focus as well as strategies. Risks Facing Crispy Creme Competition Costs Expansion Recommendation The first recommendation for Crispy Creme is to begin a accompanied analysis of all corporately owned stores to determine which ones are generating the greatest amount of sales and more importantly the highest return on investment The second recommendation is to simply implement a new store model based on smaller factory stores in all new business locations.
Smaller stores require less real estate and lower axed costs while providing the ability to serve a wider customer base with more locations The third recommendation involves changing Crispy Seeker’s menu a little bit to better meet the changing needs of consumers; in today’s market more and more consumers are focusing on health conscious products. Despite the company’s previous attempt to alter products to be more health conscious by removing all trans fats, doughnuts are still not very healthy and are generally considered a snack food.