Opening a Krispy Kreme Doughnut in Spain - Essay Example

Operational Concerns ENGAGING IN Local Sales Efforts Krispy Kreme Doughnuts are popular throughout theworld and it would not be that much of a problem in selling those in Spain. But there might be a real tough challenge from indigenous suppliers on the price front. That has to be effectively tackled by continuously publicizing about the better quality and taste of Krispy Kreme Doughnuts and of course the unparalleled clean and crisp ambience of a Krispy Kreme outlet. However, keeping in mind that taste is essentially a private issue and varies widely from one individual to another, the emphasis on the glamour and hype attached to the brand needs to be highlighted to steal a march over local competitors.

The target group should be adolescents and children from affluent households who would not mind spending more for being a part of hip and happening brigade (ICMR, 2003). Undertaking local manufacturing operations This is perhaps the trickiest part of all since Krispy Kreme Doughnuts are advertised as tasting best when they are served hot off the frying pan. Hence, it is imperative that some sort of heating arrangement must be available at the outlet but the crucial question is whether local manufacturing operations should, rather, could be undertaken.

Considering the distance between Spain and USA and also taking into account the freshness of these doughnuts which happens to be one of their USPs; even if the first few consignments are air freighted from US it would not be economically feasible to get them on a regular basis from United States. So, with some initial help from the parent company and under the sharp eyes of their quality controllers, local production must have to be undertaken after imparting sufficient training to local recruits.

The quality of the basic inputs should not pose to be much of a concern but the parent company must provide concentrates for special flavors and necessary kitchen hardware for carrying out some of their trademark operations as glazing the doughnut (Krispy Kreme Doughnut Corporation, 2010). Management by personnel from home or from the host nation Management must have to be undertaken by local recruits as they would be in a far better position to connect with local clientele. As the product is essentially a confectionary, good connect with targeted consumer group, which is mainly children and adolescents, is absolutely necessary for success of this venture.

However, to retain the glamour of being one of the most favorite brands in US, one or at the most two personnel might come from US. But this would be only a temporary measure, just as long as it is necessary for Krispy Kreme to create its own identity in Spanish market. Once that is achieved there would be no need for any overseas managers (indiacatalog.com, 2010). Works Cited ICMR. (2003). Krispy Kreme Doughnuts - America's Most Loved Doughnut Brand. Retrieved February 20, 2011, from ICMR: IBS Center for Management Research: http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG068.

htm indiacatalog.com. (2010). Krispy Kreme Doughnuts, Inc. Retrieved February 20, 2011, from indiacatalog.com: http://www.indiacatalog.com/gwd/detail.php?id=17410 Krispy Kreme Doughnut Corporation. (2010). Products. Retrieved February 20, 2011, from Krispy Kreme Doughnuts: http://www.krispykreme.com/doughnuts