Tarik Rihab Essalmi Applied Business Concepts Miss Nawal El Afari 18.05.

2013

Outline

Introduction History Of Krispy Kreme Market Environment Customers needs & wants Competitors profiles Conclusion Reference list Appendix

Introduction

Franchising can be very beneficial for both the franchisee and the franchiser, especially in our case. We are the marketing managers for the new franchise Krispy Kreme soon to open in Agdal, Rabat, Morocco. You might be thinking why Krispy Kreme? Well, why not? Donuts are already in the Moroccan culture, for generations the Moroccan people have enjoyed a delicious breakfast or evening snack containing a delightful sfenj (aka donut) with a warm cup of atay (Moroccan tea). Krispy Kreme wont be any different, just an upgraded version in a tad more modern surrounding with endless choices of donuts and an exquisite beverage of your choice. American brands are highly perceived by the Moroccan consumer, especially in the Food service. 18.05.2013, Morocco Franchise Market Information, The USCS, http://www.franchise.org/uploadedFiles/Franchise_Industry/International_Development/Resources/US CS%20Morocco%20Franchise%20Rpt%200609.pdf Our research has provided us with great confidence to say that the opening of our new Krispy Kreme shop would fill in the current gap in the Moroccan market. Did you know that Krispy Kreme is often said to be Americas most loved donut?

History of Krispy Kreme

When speaking of Krispy Kremes keep in mind that the only thing more delicious than its donu ts is its rich history. Founded by Vernon Rudolph Krispy Kreme opened its first store in a rented building on South Main Street in Winston-Salem (what is now called historic Old Salem) in 1937. In the 1940s & 1950s by this time there a was a small chain of stores all family owned, they were of course all using the flawless Krispy Kreme recipe, but each store made its donut from scratch so it was time to develop a distribution system that delivered the perfect dry donut already mixed to each store. Due to its past steady growth rate in the 60s Krispy Kreme also developed a reputation for having the best quality! Thats when the organization decided to expand their business beyond its traditonal boundaries in the 1970s. Unfortunately Vernon Rudolph Died in 1973, but on the bright side Krispy Kreme stayed on the right track and kept making Vernon proud. By the 1990s Krispy Kreme donuts had expanded all over the United States of America. In 2001 the first international store opened in Canada just outside of Toronto, and in 2003 the first store to be outside of North America opened in Sydney, Australia. But it didnt stop there now there are stores open all over the world, in Europe, Asia, the middle east, etc. Today Krispy Kreme franchisees operate almost two-thirds of the chains locations. Krispy Kreme expanded internationally, its distribution is done by selling to retail grocery outlets and convenience stores, it has reached an aggressive growth, , customer service is amazing with friendly employees, free donuts & hats, apologies for long lines, frequently passing out free coupons, and upgrading their menu often to keep their customers satisfied. The mission of Krispy Kreme is obvious to touch and enhance lives through the joy that is Kripy Kreme 18/05/2013, www.krispykreme.com/about-us/mission-and-vision .

Market environment

According to Wikipedia the market environment is a marketing term that refers to factors and forces that affect a firms ability to build and maintain successful relationships with customers. That being said weve decided it would be appropriate to divide this

section into three parts; 1. Micro (internal) environment- the small forces within the company that have an affect on its ability to serve its customers. 2. Macro (national)environment- the larger societal forces that have on the mirco environment. 3. Meso environment- the industry in which the company operates and the industys market. Micro refers to employees, suppliers, and Krispy Kreme itself. Our employees will be trained by our franchiser to be very friendly and helpful, they also need to always smile. Our supplier will also be our franchiser, which is very beneficial because they are know for being reliable. Krispy Kreme being a franchise that has already set up a good name for itself so all we need to do is make sure we keep our customer service up to its original standards. Macro refers to demography, economy, technology, politics, natural forces and culture. The population of Morocco consists of about 32,922,062 19/05/2013, http://countrymeters.info/fr/Morocco/ most of the population is from ages 25-54 and the growth rate is 1.054%, the ethnic groups in Morocco are Arab-Berber 99. 1 %, other 0.7%, Jewish 0.2%. Religions are Muslims 99%, Christian 1%, Jewish 6000 people. 19/05/2013 http://www.indexmundi.com/morocco/demographics_profile.html. The Moroccan currency is Dirham (Dhs). Arabic is the official language, French is used in business, government, and diplomacy, English and Spanish follow. The economy of Morocco has been improving The
Kingdom outstripped all other North African economies in 2011, notching up yearly growth of 4.9%.While Moroccos economic gro wth eased in 2012, it is expected to post an accelerated growth in 2013 19/05/2013 http://www.moroccoworldnews.com/2013/01/73012/moroccos-

economic-growth-projected-to-speed-up-in-2013-think-tank-2/. Morocco has a lot of natural resources such as freshwater, salt, phosphates, iron ore,lead, zinc, and fish. The Kingdom of Morocco is ran by our beloved King Mohammed 6, our current prime minister is Mr. Benkirane. Morocco is a country that loves and appreciates the use of technology, and is home to a lot of technology gurus. Meso refers to the marketing intermediaries that help to sell, promote, and distribute goods. Krispy Kreme is completely relying on public relations to establish long term relationships with customers, unlike many other companies that use advertising to get customer awareness Krispy Kremes philosophy is no advertising! This is an intelligent promotion strategy. And over the years, the companys most valuable marketing has been through fund-raising programs, sponsoring schools. Krispy Kreme also believes as long as it is providing and satisfying the consumers needs, customers will evangelize its products, and the no advertising strategy, will lead to consumers telling other people.

Competition

As marketing managers, weve done a lot of primary and secondary research which brought to our attention that most Moroccan people prefer franchises rather than other types of businesss, Although f ranchising in Morocco first started in the 60s, it has only

flourished during the last 15 years to become a real investment 18.05.2013, US commercial Service http://www.franchise.org/uploadedFiles/Franchise_Industry/International_Development/Resources/USCS%20Morocco%20Franc hise%20Rpt%200609.pdf Not only do our potential customers prefer franchises, but theyre absolute favorite are American franchises. American franchise has the lion's share in the Food business (McDonalds, Pizza Hut, Domino's, KFC, TGI Fridays, etc ) 18.05.2013, USCS,http://www.franchise.org/uploadedFiles/Franchise_Industry/International_Development/Resources/USCS%20Morocco%20 Franchise%20Rpt%200609.pdf This will make it hard for our two competitors Foody Fruity and Sfenj Shops to stay on the market. Especially since Foody Fruity, is known for cheap prices and cheap quality, their menu ranges from couscous, panini, to donuts. Which is very unprofessional considering they dont speci alize in anything in particular, in other words nothing on their menu is actually special. The only thing worse than Foody Fruitys donuts is its customer service, when we asked people about the restaurant we were very surprised to find customers complaining about almost everything. The layout of their shop is in pink (see appendix) not only is pink a girly color but it is also a color for the young this gives the perception of FF as a restaurant for young girls. Krispy Kreme has never targeted a certain youth, sex, or status so it has made it easy for it to be loved by everyone everywhere, managing to keep the recipe a secret for 76 years has definitely paid off and made the donuts more exclusive and different from every other donut. Our unique selling point is the display of the manufacturing process (see appendix) and the high quality control. Our strengths would be our strong brand name and maintaining a premium status. Sfenj shops are what introduced donuts to the Moroccan market, which also makes them a strong competitor. According to our research, sfenj is usually near rural areas, or places by the beach. And customers complain that sfenj is too oily, or they dont trust that its sanitary considering they dont know the p erson that cooked it, and theyd be much comfturble seeing where it was cooked. This is the advantage we have over them, we also offer a relaxing place to sit and enjoy your order. Sfenj shops also fail to provide choices and beverages, while we have a long menu to choose from that varies from coffee, to hot & cold beverages. And a donut menu consisting of more than 30 types of donuts!

Customers need and want In order to know what our customers want, we need to know who our customers are. So we decided the only way to get reliable information is to hold interviews right where we plan on opening the Krispy Kreme shop, we also used questionnaires and public opinion surveys. We were happy to hear that mostly all of the people we dealt with are aware of Krispy Kreme and told us theyve

been waiting awhile for it to come to Morocco. Those that hadnt heard of Krispy Kreme were very eager to taste it after we s howed them a picture of our delicious donuts. (see appendix) A lot of future customers were really excited to hear about our drive thru, since a lot of them are usually in a hurry on weekdays, it would be very convenient for them. The others really liked the way the shop looked, and said theyd like to sit and enjoy their order. Customers need of wi -fi, and plugs all around the shop, they also want the place to not be so noisy. Most students prefer to study together in Cafes, even people with jobs like to sit and work at cafes so we are going to provide such an atmosphere while still sticking it to being a donut shop the whole family can enjoy. Customers want alot of choices, to avoid getting the same thing over and over again, we assured them they wouldnt. Our menu offers endless choices