Foundation Business Essentials: Krispy Kreme Stall Setup at Campus

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Foundation Business Essentials
Setup of Krispy Kreme Stall at Campus

Table of Contents
TASK 1:.........................................................................................................................................3
TASK 2:.........................................................................................................................................4
TASK 3:.........................................................................................................................................5
TASK 4:.......................................................................................................................................10
TASK 5:.......................................................................................................................................12
Task 6:.........................................................................................................................................13
References..................................................................................................................................14

TASK 1:
Part A:
In order to complete this report, I have chosen setting up of doughnut and coffee shop within the
college campus of organization Krispy Kreme. The main reason of setting up this business in
college campus is to attract student to spend their recess time on Krispy Kreme stall which
helps to increase the business growth as in college there is high chance to gain profit for any
fast food stall. The selected location to set up the franchise stall is college campus and they
follow both online and offline medium to operate which easily increase their business growth.
As per my view point, opening of fast food stall at campus is a very good idea. As now days all
teenagers are very much attracted to fast food. In order to meet the customer’s need, it is
required to introduce both offline and online service of food, coffee, soda and other available
items within the whole college campus. Krispy Kreme is also required to implement the online
order taking option by creating a small popup application attached with college network. Another
innovative thing that Krispy Kreme can implement to increase their business growth is to open
mobile stall within the college campus along with a large outlet at canteen with proper seating
arrangement. The available competitors in college campus are shown in the below mentioned
table:
Competitors Reason for considering them in
competition
Existing KFC stall within campus KFC is a strong brand which is mostly
acceptable for teenagers to hangout with
friends
Existing CCD outlet within campus CCD is also a most popular outlet for
teenagers where every type of coffee and fast
food are available in reasonable price. In CCD,
people can spend as much as time he wants
even after finishing food.
Existing McDonald's outlet within campus MCDonald is always famous among teenagers
because of their various available options of

combo packs.
Part B:
The four important objective of setting up the business are listed below:
To setup a franchise stall of fast food company Krispy Kreme within the college campus
To increase business growth competition with other existing branded stall
To increase the Krispy Kreme’s share in the local market
To implement both online and offline service of food items within the campus
Among both sole traders and partner form of ownership, in order to setup the business of Krispy
Kreme in campus, sole trading is one of the most suitable forms of business. In college campus
the craving of fast food is always more. Therefore, any types of business related to food will
work in profitable way as every day the numbers of students are increasing gradually. For
example, Starbucks also implement their stall within the campus considering the sole trader
forms of ownership. Another example, is Mio Amore stall also setup their outlet stall by taking
partnership with Flurries.
TASK 2:
The PESTLE analysis of setting up of new franchise in Krispy Kreme is discussed below:
Political: The political factors in PESTLE analysis is mainly related with the intervention level
and nature occurred from both the local and national government related to the economic
environment and business (Liu et al. 2017). The political factors which create effects on Krispy
Kreme franchise set up are the taxation policies- Krispy Kreme implemented lower taxation
policies which results both increase in spending and high range in profit. Another is Student
Council system- To setup the stall within college campus, Krispy Kreme was required to create
strong bond with the student council of the college which helps to run a successful business.
Economic: The economic factor is mainly related with the increase in trade policy liberalization
which helps Krispy Franchise to invest more in other places of the hospital (Stead and Hastings
2018). The economical factors which cause impact on Krispy Kreme are: available skilled
workforce in campus- the skilled staffs available in the stall which can easily assist to students.

Another is the inflation rate- in comparison with other brand stall available in the campus
premises.
Social: Social factors help Krispy Franchise to get the better understanding of customer
preferences as per the market availability (Patil and Bach 2017). The considered social factors
are gender roles- most of the female students are inclined towards the fast food center available
at campus and leisure interests of the students- In the free time student always look for place
where they can gossip without any intervention Another social factors crates impact in Krispy
Kreme is education level of the students
Technological: The technological factors that causes impact in newly set up Krispy Kreme stall
are: including technology based change and access to have vital information related to campus.
The considered factor technology based change assists the franchise to implement new
technology which helps to increase the business growth in campus also. Another factor helps
Krispy Kreme of getting access of college available student and teacher data which helps to
increase the company’s business at high level.
Legal: To setup business in college campus there are no such impact of legal factors which
Krispy Kreme will face. The considered legal factors for Krispy Kreme franchise setup are:
copyright law- which mentioned that in case of launching new food items in the stall other band
available stall cannot launch any similar food items so that it helps to resist any chaos within the
campus. Another factor is property right- which discussed that the place that is given to setup
the Krispy franchised stall is not be taken by other stalls.
Environmental: The environmental factors which causes impact on doing setup of Krispy Kreme
franchise stall are climate change and pollution regulating law. In case of climate change, Krispy
Kreme needs to have proper setup so that the business profit percentage does not decrease.
Another is pollution regulating law which mentioned that Krispy Kreme needs to keep the
campus pollution free so that they do not face any political impact on their business.
TASK 3:
Part A Defining your Launch Event
In order to launch the Krispy Kreme stall at college campus, the used statement is:

“We are here to enhance your free time with some mouth littering doughnuts, crisped
chicken and coffee with all flavors”.
However, to launch the newly setup stall of Krispy Kreme, I have used the technique of
serving foods in free of cost which creates social gathering where they get to see the
business presentation of the newly opened stall. The launch event of Krispy Kreme stall
will happen at college campus only in the evening time where most of the students are
free from classes.
In order to justify the choices, based on the business description, the social gathering
and business presentation will help to show all students regarding their available
products at the stall. To launch the event, Krispy Kreme used their own concept rather
celebrity promotions for their stall opening (Gillespie and Riddle 2015).
For instance, in case I choose to spend lots of money on arranging food and
entertainment, it will be helpful for doing the setup of the business by introducing
complementary food for the first time visit customer and arranging various entertainment
events for the customer like arranging of singer, dancing competition and many more
(MVasudevan 2017).
Another instance, in case of choosing celebrity invitation, for teenager customers
celebrity is always more attractive to them (Zhu 2016). However, to achieve the objective
increase in business growth, the celebrity invitation is the right choice. As celebrity
presence will bring more customers to the stall and it will directly increase both the
business growth and market share.

Part B
Business Name: Krispy Kreme Franchise Stall
Setup
FUNDING Estimated Actual
Over/
(Under)
Investor Funding {42}
Owner 1 10,000 9,000
(1,00
0)
Owner 2 5,000 5,500
50
0
Other
Total Investment 15,000 14,500 (500)
Loans
Bank Loan 1 3,00,000
Bank Loan 2
Non Bank Loan 1
Total Loans 3,00,000 3,00,000 -
Total FUNDING 3,15,000 3,14,500 (500)
COSTS Estimated Actual
Under/
(Over)
Fixed Costs
Advertising for Opening 20,000 33,000
(13,00
0)
Brand Development 10,000 8,000
2,00
0

Cutlery 15,000 10,000
5,00
0
Decorating 20,000 23,000
(3,00
0)
Dishes/Glasses 10,000 8,000
2,00
0
Dishwasher 5,000 2,000
3,00
0
Employee Uniforms 5,000 2,000
3,00
0
Franchise Start Up Fees 40,000 48,000
(8,00
0)
Freezers/Refrigerators 10,000 8,000
2,00
0
Internet Setup Deposit 3,000 2,000
1,00
0
Kitchen Supplies & Equipment 5,000 5,000 -
Linens 2,000 2,000 -
Machines & Equipment 10,000 10,000 -
Menu Development 2,000 1,500
50
0
Tables/Chairs 5,000 5,000 -
Telephone 3,000 3,000 -
Truck & Vehicle 2,000 2,500
(50
0)
Ventilation Equipment 3,000 2,500
50
0
Total Fixed Costs 1,70,000 1,75,500 (5,500)
Average Monthly
Costs
Advertising (print, broadcast
and Internet) 2,000 1,800
20
0

Cleaning Services 2,000 1,500
50
0
Equipment Lease Payments 5,000 3,000
2,00
0
Inventory, raw materials, parts 4,000 3,500
50
0
Franchise Fee 8,000 8,000 -
Internet Connection 2,500 2,500 -
Loan and Credit Card Interest &
Principal 6,000 6,000 -
Postage/Shipping Costs 5,000 4,000
1,00
0
Security System Monthly
Payment 2,500 2,500 -
Supplies 15,000 5,000
10,00
0
Telephone 1,000 1,000 -
Website Hosting/Maintenance 500 500 -
Total Average Monthly Costs 53,500 39,300 14,200
x Number of Months 6
Total Monthly Costs 3,21,000 2,35,800 85,200
Total COSTS 4,91,000 4,11,300 79,700
SURPLUS/(DEFICIT) (1,76,000) (96,800) 79,200

TASK 4:
Marketing Objectives:
According to Patil and Bach (2017), product positioning is one of the key elements of a
complete marketing plan. It is a particular process which marketers used for determining the
best way to communicate regarding their products characteristics to the target customers
(students) considering the factors like customer needs, communication channels as well as
competitive pressures. In order to position the Krispy Kreme stall in campus market, I targeted
the audience by doing advertising, distributing pamphlets in campus common room and gate
and also offering food items in huge discounted rate. The developed product positioning which I
implemented in Krispy Kreme stall is a mass market offering technique. The key brand
messages for the setup of new franchise of Krispy Kreme, I want to convey is related to the low
cost, service and quality.
Target Market
In the concept of marketing, Jackson and Ahuja (2016) cited that target market is one of the
particular group of organizations or consumers which are almost certainly buy the company’s
services or products. Target market is mainly based on the marketing efforts of the franchise in
campus competitng with other existing brand franchises. For doing the setup of Krispy Kreme
franchise stall at campus, teenager students and teachers are the targeted markets. As the
category of food items offered in the stall is related to fast food items and the stall is set up in
college campus therefore student is most targeted person of this business. The complete
market targeting is not either gender based or wealth based.
Marketing strategies for each target market
Stead and Hastings (2018) discussed that marketing strategy is one of the complete business
game plan to reach people and converting them to customers of any specific services or
products which that particular business are offering. The marketing strategy of any company
includes the core marketing message, targeted customer information and many more. The
implemented marketing strategy for the Krsipy Kreme franchise stall at campus is creating a
small mobile application using which student can book pre-order also and remote delivery also
where the stall is not available within campus. In order to communicate with customer within
campus, Krispy Kreme need to organize small gathering and is required to make them

understand and attracted towards the stall. For the teenager student the implemented promotion
and advertising strategies are distributing coupon offers, advertising in campus closed network
and arranging mobile stall from one place to another within the college campus. No such
specific modifications of marketing mix are required for the customers in the marketing
segments.
Marketing Mix
Element Description Justification
Price In order to setup the new
business of Krispy Kreme
in campus, the price
factor of marketing mix
plays vital role to gain
competitive advantage.
Price is one of the key
factors for setup of new
business. Krispy Kreme
need to keep the price of
food items lower than
other brands stall and
also required to
implement various
existing offers to attract
customer towards them
Product Krispye Kreme needs to
bring various
diversifications among
their food items. They
need to introduce some
new products to attract
customer towards them.
To gain the competitive
advantage, Krsipy Kreme
is required to introduce
some of their special dish
which is uncommon in the
market. It will leads to
attract more customer
towards them.
Place The place factor in
marketing mix plays an
active role of new
business setup. The place
of stall is required to be a
popular place where the
Krispy Kreme needs to
open their franchise stall
before college common
room and college gate
which helps to attract

people gathering is more customers towards them.
Promotion Promotion is also another
important factor of
marketing mix. It also
plays cupid role in new
business set up.
Accordingly, promotion
helps Krispy Kreme to
gain customer attention
towards their business
Krispy Kreme launched
various promotional
activities which include
social media
advertisement,
introducing small mobile
application, arranging
cultural activities within
the stall.
TASK 5:
1. One operational business decision: Krispy Kreme needs to increase their stall
outlet within the campus in the operational business decision. This particular decision is
required for the Krispy Kreme to increase their business growth and to increase the
customer base to large extent. In order to implement the business decision, Krispy
Kreme is required use ‘manufacturing and production information system’ as business
information system. The selection of this particular system is appropriate because it
helps to launch a new business in proper manner.
2. One tactical business decision: Krispy Kreme is required to make decision for the
improvement for both quality and taste of the food items is the tactical business
decision. The sales and marketing information system is required to be implemented as
business information system in Krsipy kreme stall. The reason of choosing this strategy
is that it helps to maintain customer satisfaction which directly leads to the increase in
customer numbers.
3. One strategic business decision: Krispye Kreme launched new food items in the
campus stall to attract more customer is the strategic business decision. The decision
support information system helps Krispy Kreme to implement strategic business
decision. This particular strategy helps Krispy Kreme to create competitive advantage
for the stall within the college campus.