The current business market and competitors

Running head: MANAGEMENT 1
Management
Name:
Institution:
Date:

MANAGEMENT 2
Assessment Task 2- Q1
Clinton Doughnuts
Report for Directors
Name of the Author:
Date of the Report:
Analysis of the current business market and competitors
a) List of the major business competitors in this industry
Clinton Doughnuts has some of the industries oldest Doughnut companies which have
created names and market share in the industry. They include;
1. Krispy Kreme- this is one of America’s oldest doughnut companies and coffeehouse
chain established in 1937. It is owned by JAB Holdings Company which has ensured
that there is steady growth for the company especially in years 2000- 2016 which led
to its listing as a public company (Aaker, & Adler, 2011).
2. Donut King- the chain of donut stores is among the world largest donut chains. It has
more than 350 stores in Australia in almost every major mall in Australia. It was
established in 1981 in Sydney and is one of the best in the industry.
3. Grumpy donuts- although not as big as the first two, it is endeared by many due to its
hand crafted donuts in the market. They have delivery systems that makes it more
accessible in the market.
4. Mac Café- is a donut and coffee chain owned by McDonalds. It was launched and
conceptualized in Melbourne in 1993 and introduced to the general public by licensee
Ann Brown.
b) Outline of information on investigated business markets
The following are business information on Clinton Donuts and the current business market;
1) Franchise- most of the donut companies are franchise based. This is a marketing
concept that is based on the strategy of business expansion. The use of this business
model in this industry is to ensure rapid expansion of the chains.
2) Delivery/ Uber eats/ Deliverroo- the business markets uses different delivery
strategies including Uber eats and Deliverroo to enable easy access of their products.
3) Pop-up store- it is a trend of opening sales spaces in short-term that lasts for several
days or weeks before they are closed down. They are mostly done in events and
outdoor activities where the donut companies make sales (Cândido, & Santos, 2015)..

MANAGEMENT 3
4) Distributors- they are the most common people in the supply chain. Companies in the
donut industry have an elaborate distribution network to ensure that donuts reach the
market.
5) Food vans and trucks- they are used in the distribution process in the supply chain
network. Clinton donuts have a truck for delivery of donuts to retailers.
6) Frozen donut sales- in a world that is donut-crazed, the customers have different
cravings for different donuts flavors. From the trendy creations to classics, the frozen
donuts are the best in the market. (Chang, 2016)
Source of information:
Zhu, H. (2016). Factors Influencing Customer Doughnut Brand Choice Decision in Thailand,
Focusing on Mister Donut, Dunkin'Donuts and Krispy Kreme Doughnuts.
Comparison of current business market and new investigated markets identified above
c) Comparison of current business market and new investigated markets identified above
Greater Revenue- the current business market has greater market revenues due to an increase
in customer base. The new investigated markets above have lower revenues compared to the
current business market (Cassidy, 2016).
d) Outline of information on investigated potential customers
The investigated potential customers include;
1. Children- the love for snacks like donuts by children makes them potential customers.
2. Adults- many adult population have a high affinity for donuts unlike cakes.
3. Regular consumer
4. Occasional consumer
5. Gluten free/ lactose free and halal
Source of information:
Zhu, H. (2016). Factors Influencing Customer Doughnut Brand Choice Decision in Thailand,
Focusing on Mister Donut, Dunkin'Donuts and Krispy Kreme Doughnuts.
e) Comparison of current customer base and new investigated markets identified above
Larger customer base- the current business market has a larger market customer base due to
an increase in customer base. The new investigated markets above have lower revenues
compared to the current business market.
f) Outline of information on investigated potential methods of doing business
1. Physical site
2. Retail
3. Delivery

MANAGEMENT 4
g) Comparison of business relationships, business processes and methods of doing
businesses with other innovative business / major competitors identified above.
Business Relationships
1. Larger number of business relationships
A larger number of customers is to increase business relationships and networks.
Business Processes
Larger resources in businesses leads to increased business processes.
Methods of doing businesses
Franchise- most of the donut companies are franchise based. This is a marketing concept that
is based on the strategy of business expansion. The use of this business model in this industry
is to ensure rapid expansion of the chains (Dayan, Heisig, & Matos, 2017).
SECTION 2
Identify business opportunities for innovation and reform
A) Investigate and identify innovative business strategies that could be adopted by
Clinton Doughnuts to encourage its financial success
Innovative Business Strategies To
1. Distribution of brochures and
introduction letters
Targeted customer group
2. Placement of advertisement In local newspaper
3. Social media advertisement
incorporation
Facebook and Instagram
4. Exciting discount offers to customers
B) Cost- Benefit Analysis
On current contract/agreements to determine compatibility with business goals and
objectives
Revenues/ Income
Description
(based on contract/
agreement value)
Daily Income
(based on 5 operational days
per week)
Annual Income
(based on 52 weeks per year)
20 donuts @ $3.50 each
x 45 Location
$3,150.00 $819,000.00
Total $3,150.00 $819,000.00
Expenses Description Daily Expenses Annual Expenses