Case Work by John Baybay
The first mention of Krispy Kreme conjures an instant image of biting into a crust of perfectly thin glaze of sweetness and sinking into a mouthful of heaven melting unto your palate. And if that isn’t enough, let’s take another bite and then again. Soon you realize that one simply is not enough. To add to the indulgence, let’s wash it down with a perfectly warm and smooth cup of coffee. This is a moment that awakens all senses in a brief moment of clarity beyond a horizon of an aromatic steaming cup. Life is SIMPLY perfect.
It is a Sweet Magic Moment like this that has become the very substance of Krispy Kreme’s strategy. After winning awards year after year since they opened in the Philippines how could you make the best even better? The answer is Perspective!
While others try to compete with the closest competitors, it begs to ask: “Are we really in the business to make the best donuts? Knowing that we already make the best donuts, do we even stop there?” The answer for Krispy Kreme Philippines is a loud and resounding NO!
This focus on the big picture demonstrates how Krispy Kreme has adapted the principles and practice behind Blue Ocean Strategy (BOS). It started with the awakening that they are not competing with competitors drawn along similar categories (where their brand simply leads), but rather on alternatives. Rather than focusing on core donut users, they took a broader look into analyzing the non-customer’s perspective. Key managers took to the field to gather insights from other establishments that their industry would not consider as competition; here they realize that they are simply not competing for a larger share of a segment but rather competing for everyone else’s share of time and wallet.
With this perspective they learned that there is a large and uncontested market out there that their industry simply ignores and now has become the subject of courting.
Instead of bringing emphasis on internal processes, they turned their attention towards the actual Human Experience. Using tools such as the Buyer Experience Cycle and the Buyer Utility Map (BEC/BUM)**, managers were able to empathize with what is going on with the customer Before, During and After the use of their service offering. This developed a greater sense of empathy for their customers. Also by using the Buyer Utility Map, their managers were able to identify customer problems even before they happen.
While many companies are familiar with Blue Ocean Strategy, there still remains a misconception that BOS is about abandoning everything that we are doing now for something totally new and untested. The case proves however that BOS is a matter of changing the perspective away from competition towards things that create true value back to the customers (both existing and future customers). By using tractable tools and frameworks, managers are awakened towards a bigger picture of opportunity and an in-depth understanding of customer needs.
It is through the understanding of a bigger picture that allows us to enjoy even the smallest moments of biting into the pleasure of a perfectly glazed donut. SIMPLY MAGIC!
Nice case study !