Krispy Kreme is enjoying 21 straight quarters of growth, a feat few in the crowded $50-billion breakfast market segment can rival. Its secret ingredient to sweet success: taking solid actions to improve product quality and respond to customer purchasing actions.
In 2005, sales topped $1.07 billion, but the aggressive expansion plan that followed wasn’t the icing on the donut Krispy Kreme expected. The company introduced a boxed product for grocery and convenience stores that didn’t provide the same experience to customers as its retail stores. The expansion actually reduced product quality, increased costs, and diluted the brand. Revenues hit a low of $468 million in 2010.
A sales drop of this magnitude usually signals the demise of a brand, but not this time. Instead of spending millions on advertising to convince people they had a good product, Krispy Kreme focused on developing the operational excellence that could guarantee customers a quality product across a slimed down distribution channel. With their product back on track and a strong social media presence, their cult like customers were more than happy to promote the brand they love.
Think of marketing as the sprinkles that enhance a great product. It’s not meant to fix the taste of a bad product.
Quote of the week:
“Between an optimist and pessimist, the difference is droll. The optimist sees the doughnut, the pessimist the hole!” ~Oscar Wilde, writer
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