"They set out to create a brand mythology, and they've been remarkably successful," says Neil Morgan, assistant professor of marketing at the University of North Carolina at Chapel Hill. "They cultivate people who eulogize over it (Krispy Kreme as a better doughnut). They target these consumers and turn them into what they call Krispy Kreme ambassadors, through Web sites, chat rooms and regular mail. Before they enter a market, they'll send packets of memorabilia to these people, T-shirts and hats and such, and they form an unpaid loyalty base," Mr. Morgan says.
The chain pursues an unusual marketing approach admits Stan Parker, senior vice president of marketing at Krispy Kreme. "We don't do a lot of traditional things, like advertising," he says. "We want to be involved in the local community... We helped raise some $27 million for various causes in our last fiscal year," he says.
In line with their grass roots image, the company will trade doughnuts for ads, but not buy them. "Their old-fashioned attachment to barter is a badge of honor," Mr. Morgan explains. "They're proud of the fact that they've got their equipment into the Smithsonian. There's no question they're trying to make their brand a cultural icon."
Moderator Comment: How has Krispy Kreme created "Raving Fans"? How can managers create and have associates buy in to a culture of customer service?
Kenneth Blanchard and Sheldon Bowles write in their book, Raving Fans A Revolutionary Approach to Customer Service from William Morrow & Company, "If you really want to 'own' a customer, if you want a booming business, you have to go beyond satisfied customers and create Raving Fans."
Krispy Kreme has accomplished this with a great many of its customers. We do not count ourselves among them but we know numerous trendy types from Manhattan and elsewhere that do. [George Anderson - Moderator]