Starbucks Marketing Analysis

Essay by meeewong March 2004

download word file, 2 pages 3.8 1 reviews


Since the market for doughnuts is quite extensive, Krispy Kreme Doughnuts, Inc. has set new standards for the business as a whole. By targeting certain segments of the market, as opposed to mass targeting, Krispy Kreme is able to capitalize on those specific segments. By practicing this strategy, Krispy Kreme has quickly risen to the top of the "doughnut business." Ted Levitt would of course correct that statement by saying that Krispy Kreme is not at all in the doughnut business. We agree. Krispy Kreme is actually in the customer satisfaction business. Krispy Kreme just happens to satisfy customers by providing a unique experience when visiting a Krispy Kreme shop, which differentiates us from the competition. Customers are allowed to see how the doughnuts are made, and then served hot and fresh. Their bright neon light that reads "Hot Doughnuts Now" is one of Krispy Kreme's key marketing strategies.

When this sign is lit up, customers know that they will get fresh doughnuts that have just been made.


Within the market, Krispy Kreme has identified five segments. These segments have obvious differences from each other, and they are as follows:





5.Hot and Ready's

The first segment is called the "socialites." These people go to Krispy Kreme not necessarily for the products, but for the atmosphere. Krispy Kreme is a place to relax, hang out, and meet up with friends. This group requires plenty of seating, so that they can sit and relax and carry on conversations.

The second segment is composed of people who have an occasional craving. They are not regular customers, but they do visit Krispy Kreme repetitively. They are product-focused because that is the only reason they visit our shops. The "cravers" treat Krispy Kreme...