Introduction Krispy Kreme is as much a company as it is a divine doughnut experience. The opening of a new location is a publicly hailed occasion where the believers joyously welcome the non-believers into the family. Success in the company came swiftly by effectively spreading its unique Hot Fresh Original Glazed Doughnut throughout the United States and Canada by word of mouth only. The company was able to generate revenue by selling a variety of doughnuts both in store and out, coffee and other beverages, and sale of its equipment and ingredients to its franchise locations. Problem Identification After phenomenal growth on sales from its single differentiated product, the company has hit an unforeseen wall. Krispy Kreme Doughnuts Inc. has lost more than a percentage point of market share to Tim Hortons and Dunkin' Donuts, while the latter brand gained nearly 3 percentage points between fiscal 2004 and 2005. With a $6 billion market and current low-carb and anti-transfat diet fads, what can Krispy Kreme do to continue creating customer evangelists when the irrational custo......

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