Why nobody talks about Krispy Kreme any more

Krispy Kreme built a wonderful word-of-mouth phenomenon – and a valuable national brand – around one great reason to talk: Hot donuts.

It was simple, easy to remember, and easy to repeat – word of mouth gold. People told a friend. They brought their friends to see the machine. They drove around the block and all over town to catch that special moment when the HOT sign lit up.

Business schools will tell you that it takes $100 million to build a national brand. Krispy Kreme did it with a neon sign. 

Lesson #1: Give people reason to talk about you.

As we all know, this is a before-and-after story. Because no one is talking about Krispy Kreme anymore.

Why? They forgot about their reason to talk.

You can get their donuts cold in every grocery store, and as shrink-wrapped minis in every gas station.

Nobody tells their friends about food you buy in a gas station.

Lesson #2: Protect and preserve your reason to talk. Or make sure you have a new one ready.

 

Comments

Josh Klein said... (Nov 16, 2007 11:31:47 AM)

Also an example of growth not always being a good thing. When Krispy Kreme grew into gas stations and supermarkets, they became a commodity. Like you said, a cold donut is just a cold donut.