Detailed Business Plan for Krispy Kreme at Kingston University Campus

This report presents a comprehensive business plan for a Krispy Kreme franchise, specifically targeting the student market at Kingston University, UK. The plan begins with an introduction outlining the business's goals and objectives, followed by a detailed justification of the business idea, including location analysis, target market, and operational considerations. The report then delves into a PESTLE analysis to assess the external factors impacting the business. Further, the report covers a launch event plan, budget preparation, and a marketing strategy tailored to attract students. Strategic implementation, including the selection of an appropriate information system, is discussed, along with an identification of the supply chain for the franchise. The objectives of the Krispy Kreme, including providing healthy and hygienic meals, promoting culture, profitability, and productivity, are highlighted. Finally, the report concludes with a discussion of the sole proprietorship form of ownership and its suitability for the business. The plan covers all aspects of business planning, from market research and strategic planning to operational details and financial projections.

Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Part A: Justification of business idea......................................................................................1
Part B Objectives of Krispy Kreme........................................................................................4
TASK 2............................................................................................................................................5
a) PESTLE analysis of Krispy Kreme....................................................................................5
TASK 3............................................................................................................................................7
Part A: Defining a launch event.............................................................................................7
Part B: Preparing a budget......................................................................................................8
TASK 4............................................................................................................................................9
a) Marketing Plan of Krispy Kreme.......................................................................................9
TASK 5..........................................................................................................................................15
a) Strategic Implementation and choosing appropriate information system........................15
TASK 6..........................................................................................................................................16
a) Identification of supply chain for the Krispy Kreme.......................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Business plan includes a complete statement of goals, objectives, mission and vision of
an organisation in order to achieve its desire targets (Wentzensen and Wacholder, 2013). It
contains all the information such as background, objectives, informations, policies and procedure
by which a firm can implement or execute its work by an appropriate manner. This report
analysis the food habit and quality in Kingston University, UK. In which, there are large number
of students which have eating habit of junk food. It also presents that university does not arrange
quality food products for their students. In order to achieve this, Krispy Kreme is taken as a
franchise which provides quality of food products for their students.
This report describes a complete business plan of Krispy Kreme in which the whole
report is classified into six task. In the first task, described a complete justification of a business
such as ideas, location, operations etc. In the second task, it describes a PESTLE analysis which
make great impact on the chosen business. Third part determine the launch event of a business
and developing a budget for its effective growth. Fourth section describes the marketing function
such as objective, target markets etc. by which firm can promote its business. In the fifth section,
it presents the decision-making process and at last in sixth section supply chain or statement are
presented in this report.
TASK 1
Part A: Justification of business idea
Business Idea: In present time, it is essential for a business to make or develop
appropriate ideas by which firm can satisfy the customer's need. In order to this, a business can
set their goals and investment budgets while performing a particular business. The present
scenario describes the business idea of Krispy Kreme, in which they opens their new stall outside
the university campus for encouraging eating habit in students. Furthermore, firm also want to
take a franchise from Krispy Kreme and take a permission to establishes their stall in the campus
and near the university.
Sector: After taking franchise from Krispy Kreme, firm want to launch their store and
operate its activity in university campus. Owner of a firm focuses to provide quality food
products by an affordable price so that it can be easily purchased by the students. It can be said
1

that all the activities such as products or services are provided for educational food and beverage
sectors in order to encourage a healthy eating habit in student's mind (Thomas, 2014).
Location: It is an important factor which make great impact in their operational activity.
Location includes a complete planing of choosing the activity which attract the customers in a
large scale. Krispy Kreme launched it stall outside but near the Kingston University by which it
can attract the students and other people in a large number. Demographic analysis can be done
by the cited firm and determine the various facts such as preference, gender, locality etc. in order
to analysis the successful completion of work. Before opening it store, cited firm also analysis
the various challenges which make negative impact on their planned growth. For example:
Krispy Kreme check the competitors in a locality which they want to operate its business and
also determine the distance with the university so that it can easily catch the students towards
them.
Operations: It includes various activity and functions which are performed by the Krispy
Kreme. Before opening their stall near the university, manager of the cited firm make effective
operation plan. It contain development stage in which manager can decide production workflow
and availability of raw material. Firm also try to control on their food product's quality and also
maintain the supply chain in which it can arrange the raw material from those suppliers which
provides raw material in high quality with an affordable price.
Competitors: It is a main elements which highly affects the company actual financial
position and its growth. While opening a new branch, manager need to analysis current
competitor's profile such as strength, weakness, objectives, marketing strategies that they were
used, market share and their respond with the new market (Bargain, 2013). They also identify
the potential competitors which make great contribution.
Name of
Competitor
s
Strength Weakness Objectives Marketing
strategies
Market
share
Respond
when
Krispy
Kreme
enters
Cinnabon It has great Mostly Firm They adopt It acquire Welcoming
2

brand and
financial
support.
provides
fast food
and people
are now
health
conscious.
believes to
offers
ethical food
in a fairly
price.
free
sampling for
attracting
the
customers.
13% market
share in UK
's food
industry.
in nature.
Dunkin's
Donut
It is a smart
marketer
which has
great brand
following.
It is difficult
for them to
make
changes in
people's
eating
habits.
It main
objective is
to create and
develop
attractive
and
diversified
menu.
Slow music
and
provides
wide
shopping
chart.
It is a
largest
market
acquire
which holds
37% market
share.
Ready to
face new
competition
and switch
new
strategy.
Pound
Bakery
It has
effective
marketing
strategy
which
attract the
customers in
a large scale
(Wentzense
n and
Wacholder,
2013).
They face
competition
with local
bakery
shops.
It mainly
focus on
provides
best
customer
services as
per the
customer's
need and
choice.
Creating
Online web
page.
It make 10%
market
share in UK
food culture.
Neutral
Greggs Firm used
innovative
ideas and
strategies to
By using
advance
techniques,
it increase in
Its main
objectives is
to provides
catering
Advertiseme
nt and
online
communicat
Firm also
make great
market
share such
Facing fear
and make
some
changes as
3

retain the
customers
by giving
coupon and
discounts.
the cost of
raw material
which they
were
received
from
suppliers.
services and
unlimited
eating menu
in a fixed
payment of
amount.
ion with
customers.
as 20% in
UK's
economy.
per the
requirement.
Part B Objectives of Krispy Kreme
Objectives for Krispy Kreme: To establish a new structure, it is essential for a firm to
set out their objectives by which it can achieve their desire goals. All the objectives is totally
based on the business's operational activity which is related to its planned growth. By the use of
their set objectives, cited firm can execute the plan by framing efficient policies in order to
attract the customers in a large scale. The four most important objectives which are mainly
focused by the Krispy Kreme, can be classified as follows:
Healthy and hygienic meals: It is important for the firm to provides variety of food which
is healthy and hygienic in nature. Before launching a stall nearby the university, Krispy Kreme
determine their first objective is to produce those food products which is tasty but healthy with
full of nutrient. Moreover, cited firm also want to provide organic foods that will be healthy for
the students with full of fibres and grains. Food court will also facilitate meats, fruits and
beverages as to provide all the necessary nutrition and essential vitamins.
Promotion of tradition and culture: It is a second most objectives which is important for
the Krispy Kreme. It is essential for the cited firm to adopt traditional and culture way in their
presence. In order to this, firm always try to promote Romanian and European culture for
providing meals and food items to the customers. The benefits to the 250 students that they will
be satisfied with the homely environment provided by the organisation. The various traditional
recipes will help in generating new consumers and also promote the culture of these countries
(Bargain, 2013).
Profitability: Every organisation has their some profitability issues which is essential for
them to resolved it. Krispy and Kreme provides various kinds of food products and services with
4

a good quality and also in an affordable price. All these process and activities helps them top
achieve their desire goals and make good brand image in front of people. Hence, it is essential
for the firm to prepare those meals which attract the customers specially students which generate
great scale of goodwill. They need to establish itself by offering great quality and nutritious food
products which increases the profitability. Entrepreneur of this organisation has planned to fix
the prices at the very convenient level that it will cover the cost of purchasing the raw material
and also build a good relationship with the scholars and the buyers.
Productivity: Productivity will also make treat contribution for the growth of a business.
It is essential for the Krispy Kreme to identify the best performance and talented people which
produce those products which increases its level of productivity. In order to achieve this
objectives, cited firm need to hire talented and skilled person by which they can understand the
key procedure of using advance techniques (Wentzensen and Wacholder, 2013). Skilled chefs
also appoint by the firm which adopt traditional techniques for preparing their food products.
There must be proper training and guidance to the worker of the entity as they know the methods
and technique to deal with the consumers and also provide them the information regarding their
orders.
Ownership state: By considering the objectives of Krispy Kreme, it is clear that cited
firm mainly focus on providing health and nutritious food products to the students in order to
create good eating habit in their mind. Moreover, they also focus to provides hygienic products
by an affordable price which can be easily afford by the students. Before launching their stall,
manager analysis and set their four objectives such providing hygienic and quality products,
focus on productivity, profitability and taste which can easily attract by the customers. Based on
the objectives, it can be said that Krispy Kreme adopt sole proprietorship as a form of ownership
because in this form all the activity can be performed by the single person. Owner is a person
that has a complete power which is related to the operations and make correct decision without
taking any person's involvement. Hence, it is beneficial for the manager to make effective control
and get complete benefits before opening a stall near an university campus.
5

TASK 2
a) PESTLE analysis of Krispy Kreme
It includes a complete analysis of a company by which it can estimate their strength,
weakness, opportunities and difficulties by comparing the various situation (Watson, McGowan
and Cooper, 2016). PESTLE analysis includes political, economical, social, technical, legal and
environmental factors which essential for the Krispy Kreme before launching their stall in
Kingston University. These are as follows:
Political: It includes those legal rules and regulation which highly affects its operational
activity. It refers some factors such as minimum wage and changes in employment law. Both the
two law make negative impact on the growth of Krispy Kreme because it is essential for a firm to
maintain their operations as per the government's rules. For example: Recently government take
action for reducing obesity and propound the law which is totally against with fat and unhealthy
food. Hence, such kinds of legal rules and regulation make great impact on the growth of cited
business.
Economical: It includes those factors which is related to the UK 's economy. As a result,
country's economy will go to the decline level and consumer control their spending while
purchasing on unhealthy food products. In this situation, Krispy Kreme reduces is food rate and
it make great pressure on their sale. Inflation and changes in UK treasury yield curve are the
some factors which increases the interest rate and cost of capital. It can be said that all the factors
need to be considered by the cited firm while launching its stall.
Social: It includes culture, food habits and mentality of people are the some factors which
highly affects its operational activity (Thomas, 2014). As per the organizing result, it can be
analysed that UK consumer becoming more aware about their health and material which they
were taken in a food such as trans fat. In 2008, Krispy Kreme reduces the trans fat in their food
products and make various efforts to increasing their sale. On the other hand, culture of people
are the major factors which make positive and negative impact. For example: UK is popular for
their coffee drinker people and students are highly loved to drink cold coffee. Hence, it can be
said that social factor highly influence the buying behaviour of people.
Technical: Due to preparing and developing food adopted techniques also make great
impact on the growth of Krispy Kreme business. Technology is a factor which are flexible and
6

changeable as per the time. It improve the company's efficiency, production and distribution
process. For example: Use of electronic media make a revolutionary changes and highly affect
its operations in a large scale. Hence, it can be said that before launching the new stall, Krispy
Kreme need to adopt advance techniques in their production process.
Legal: It includes all the legal rules such as employment law, anti-discrimination law etc.
which are charged by the government. It is essential for a Krispy Kreme company to make
various changes as per the requirement. All the legal rules and regulations helps the cited firm to
work as per the desire plan and achieve the growth in future (Tennoune, 2014).
Environmental: It includes various factors such as climate, weather etc. which highly
affect the growth of a business. Changes in atmosphere and climate in which company deal
influenced the company's operational activity. For example: In a winter season, demand of cold
coffee is decreases, in this conditions cited business need top change their strategies by preparing
hot chocolate, beers and various kinds of food products which is suitable for the winter season.
These activity highly affects the demand and sales of a Krispy Kreme company. Hence, it can be
said that environmental factors highly affect the growth of business. It is necessary for the Krispy
Kreme to adopt changes related top the climate (Sun, 2016).
TASK 3
Part A: Defining a launch event
After analysing the objectives and PESTLE of Krispy Kreme company, this phase
presents a launch events which helps to promote their products. To opens a new stall in a new
areas such as Kingston University, cited firm decides to organize a launch event which is as per
their budgets and helpful to attract their customers in a large level. Before organising an event,
manager need to identify the cash flow in order to determine the actual cash requirement. To
estimate the cost for holding an event is useful to make proper availability of funds (Smith,
2014). A launch event is a best way to promote their products in a large scale. For promoting
their products, Krispy Kreme spend their funds for investing the celebrity. Moreover, Russell
Brand is invited by the firm as a chief guest for successful implementation of their business.
Russell plays an inspirational role to their workers which highly motivate the employees to work
more effectively. While opening a stall from the celebrity, helps to gather more people by which
cited firm's sales will be increases in future. Celebrity attract the customers specially students
7

because Russell is a superstar and make his place in the heart of the students specially. To give
an invitation to him, contains various facts such as many people believes in fellowship and
inspiration. It is useful to the Krispy Kreme because it is an opportunities to their business to
collect maximum number of students which are highly motivated with him.
Another reason for the invitation is that it is beneficial for the firm for achieving its future
objectives (Schaper, 2014). To invite Russell, firm need to pay some amount and it is on budget.
He is also a good chef which make good impression in front of students and best idea to promote
their traditional dishes with full of nutritious and healthy items. In the health perspective,
celebrity also provides motivation and develop eating habits in student's behaviour. Due to
Russell, his fans will also make move forwards the food court and to satisfy the customers in a
short time period is a necessary part for the cited business. Hence, it cam be said that to invite the
celebrity make positive impact on the growth of business. By which, food court can achieve its
objectives in a desire manner and make its good brand image in the market.
Part B: Preparing a budget
A growth of every business is totally depends upon the budgets which are already set by
the manager to achieve its desire goals and objectives (Ramanathan and Ramanathan, 2011). It is
a record of cost, revenues, resource and various expenses which are necessary for the
organisation to implement its desire plan. It includes various cost such as administrative, selling
cost etc. which highly affects its operations. Before opening its branch near the Kingston
university, Krispy Kreme need to set the budgets so that it can estimate each and every
transaction which is useful for its planned growth. The above table shows the budget of Krispy
Kreme, in which every details and transactions are recorded effectively. Below table shows the
cash budget in which there are various expenses are made such as decoration, gifts, music
expenses etc. which highly affects its financial performance of the cited firm.
Cash Budget of
Event by Krispy
Kreme
Particulars
Estimated
(£) Actual (£)
8

Decorations
Table 25000 24000
Candles 400 510
Lighting 4000 3000
Balloons 300 600
Total Decoration 29700 28110
Gifts
Guest of Honour 3000 3000
Guest 45000 45000
Total Gifts 48000 48000
Music
Musicians 13000 10500
Band 4000 3800
Total Music 17000 14300
Photography
Formal 300 350
Extra Prints 200 600
Photo Albums 1000 3900
Videography 12000 12000
Total
Photography 13500 16850
From the above table, it is clear that to organizing a launch event, Krispy Kreme invest
their capital for decorating their stall which is estimated 29700 pound but the actual cost will be
28110 pound. Moreover, total gift cost which are estimated in an event launching was 48000
GBP and actual cost also 48000 incurred. As same as in photography and music cost are incurred
by the cited firm. Hence, it can be said that budget make great impact on the success of every
business. By using the preparing budgets which are prepared by the manager of Krispy Kreme
9

helps to estimate them to analysis the various between actual and estimated cost (Pettigrew,
2014).
TASK 4
a) Marketing Plan of Krispy Kreme
Marketing objectives: To make an effective marketing plan, it is essential for every
business to set up their marketing objectives in order to promote their products. Marketing is an
activity in which products or services are buy or sell through advertisement, personal selling,
online etc. In this phase, marketing objective of Krispy Kreme is to provide various food
products to the students which satisfy their needs or demand. Business provides wide range of
food products in an affordable price. It mainly focus on the quality of foods in a low price which
can easily affordable by the students. Furthermore, all the services such as music, first delivery
free etc. are offered by the firm which has some value in it. Manager also decide to provides
healthy, nutritious and organic food in different flavoured which highly attract the students and
encourages healthy eating habits in their mind (Pestel, 2016).
Target Market: It involves classification of whole market into sub-groups in which
organisation can make great market approach for selling their products. It can be done by
classifying the market on the basis of geographic, demographic and Psycho-graphic sectors. The
present scenario includes segmentation of market by Krispy Kreme which mainly focused on
students. It is necessary for the firm because by focusing on students, cited firm can develop or
create healthy eating habits by offering organic products to them. The classification of target
market can be divided by Krispy Kreme into following parts, these are as follows:
Demographic Segmentation: It includes classification of market which is based on
gender, age, education and religion. In respect to this, Krispy Kreme make their great focuses on
students both girls and boys. Manager also choose aged group between 20-30 years for selling
their products and also provides non-veg or veg food products for green consumers as well as
non-vegetarian students.
Geographic Segmentation: It includes area, city, state, country and region in which a firm
want to sell their products (McKeever, 2016). The present scenario describes that Krispy Kreme
wanted to sell their food products in UK near the Kingston university. Hence, it want to set up
their stall in the campus of the university but due to not getting the permission, manager decides
10