Jholina B. GamboaKate Bernadette T. Madayag

BA 190 – Marketing ManagementUniversity of the Philippines

Prof. Mita Angela M. Dimalanta

SPACE Matrix for Krispy Kreme Doughnuts Inc.

Y –

axi

sX

– a

xis

  Internal Strategic Position External Strategic Position

  Financial Position (FP) Rating Stability Position (SP) Rating

LeverageLiquidity

Working CapitalGross Profit MarginInventory TurnoverEarnings per share

+3+2+2+2+4+1

Price range of competing productsBarriers to entry into market

Competitive pressurePrice Elasticity

Demand VariabilityTechnological changes

-2-2-3-2-3-1

Average 2.33 Average -2.17

  Competitive Position (CP ) Rating Industry Position (IP) Rating

Market shareProduct quality

Product life cycleCustomer loyalty

Technological know-how

-6-3-3 -3-4

Growth potentialProfit potential

Financial stabilityResource Utilization

Productivity

+4+2+1 +3+3

Average -3.8 Average 2.6

SPACE Matrix for Krispy Kreme Doughnuts Inc.

FP

IP

SP

CP

(-1.2,0.16)

Conservative Aggressive

Defensive Competitive

BCG Matrix for Krispy Kreme Doughnuts Inc.

Business Segment

Revenues Profits

Relative Market Share Position

Industry Growth Rate

(%)($) (%) ($) (%)

Company Stores 325,306,000 66.3 9,287,000 11.72 0.06 6.02

Domestic Franchise 13,450,000 2.7 8,103,000 10.23 0.06 13.61

International Franchise 28,598,000 5.8 20,026,000 25.27 0.06 11.69

KK Supply Chain 122,980,000 25.1 41,823,000 52.78 0.06 5.96

TOTAL 490,334,000 100 30,060,000 100    

Due to unavailability of data, we used business segments instead of geographical divisions in developing BCG matrix for Krispy Kreme Doughnuts, Inc. The data on the market share of each segment is also not available for both KKD and Starbucks (largest rival firm in the industry). Because of this, we just get the ratio of KKD’s reported market share in 2013, which is 2.1%, to the market share held by Starbucks (36%). From this, we got a result of 0.06 as the relative market share position of KKD. We again assumed that relative market share position of KKD for each business segment is constant at 0.06 to simplify the evaluation.

BCG Matrix for Krispy Kreme Doughnuts Inc.

11.72% 

IND

UST

RY S

ALE

S G

RO

WTH

(%)

 

RELATIVE MARKET SHARE POSITION IN THE INDUSTRY  Low

0.0 

Medium0.50

 

High1.0

 

Medium 0   

Low -20   

High +20   

10.23%% 

25.27%% 

52.78%% 

Product-Positioning Map for Krispy Kreme Doughnuts Inc.

High freshness

Low freshness

High PriceLow Price