Innovation Is Overrated

[BradShaw]

http://www.msnbc.com/news/969329.asp?0ql=c7p

Amazing how you can take points made in this artcle of Dunkin’ Donuts vs. Krispy Kreme and relate them to the online porn biz.

[cj]

excellent article ... i would have liked to see an additional paragraph "The right balance between innovation and imitation'

this is a really good paragraph - very relevant to our industry :okthumb:


LESSON THREE: Markets Have More Niches Than You Think
Part of the benefit of competition is it forces companies to think more carefully about what exactly they’re offering customers. The differences between rivals may be greater than they look on the surface. Dunkin’ Donuts, Starbucks and Krispy Kreme all sell pastries and caffeinated beverages, so they’re obvious competitors. But beneath that similarity, they’re serving different markets. Krispy Kreme’s customers visit only occasionally but buy dozens of donuts; that chain is peddling a dietary splurge, not daily sustenance. “This is a destination experience, one that’s more of a treat,” says Krispy Kreme marketing chief Stan Parker. Starbucks, like Dunkin’, tries to infiltrate customers’ daily routines, but Starbucks chief Howard Schultz has always seen his stores as neighborhood hangouts, a sort of nonalcoholic “Cheers” setting with comfy chairs, porcelain cups and, increasingly, wireless Internet access. Dunkin’ Donuts, in contrast, is increasingly built on speed. Most of its new stores feature drive-throughs, and the chain bills itself as a pit stop for harried commuters. (One recent TV ad features a cops-and-robbers chase in which everyone stops for coffee before resuming the pursuit.) As Starbucks goes after Dunkin’ strongholds, Dunkin’ managers think endlessly about how to get even faster. “We’ve had these raging debates about self-service condiment bars,” says Kussell, referring to those setups in rivals’ stores where customers add milk or sugar to their own coffee. No question: Dunkin’s tradition of having workers customize drinks behind the counter adds to service times. But so far the chain has decided to keep this small luxury.

[bluedesignstudios]

Definitely a very interesting article B)

[JR]

its a good article. i think some of the analogies and comparisons have to be a little off:

"If Starbucks seems ubiquitous, that’s because national expansion was part of Schultz’s game plan when he began reinventing the coffeehouse in the mid-1980s. But that fast-growth strategy caused growing pains early on. Dunkin’ Donuts, by contrast, is still concentrated on the East Coast; it has just a few dozen locations west of the Mississippi. Instead of conquering new lands, Dunkin’s managers have spent much of their energy exploring how deeply the brand could penetrate existing markets"

that cant be completely true i think, because Dunkin Donuts is everywhere in the west coast. its also pretty much everywhere is Europe and Asia.

[A.A.]

It's also interesting that those guys deal with glazed holes about as much as we do!

:groucho:

[Carrie]

Here in Virginia we don't even have to find a Krispy Kreme store to get a fix - boxes of a dozen classic glazed KK donuts are sold in 7-11 stores and grocery stores.
Of course, so are the Starbucks' frappaccino drinks - but no dunkin' donuts stuff.

Funny how the article focuses on DD capitalizing on the "quick" and "convenient" aspect, yet its competitors are the ones who are making their products *more* convenient and putting them into the bastion of "quick" stores - 7-11.

Take a good idea, and make it better - people might yell at you and claim you stole their idea, but in the end you'll come out on top.

[Hell Puppy]

KK donuts are sold in virtually every convenience and grocery store around here. However, there's no substitute for getting them hot off the line from the KK store.

[gonzo]

Originally posted by Hell Puppy@Sep 24 2003, 08:53 PM
KK donuts are sold in virtually every convenience and grocery store around here. However, there's no substitute for getting them hot off the line from the KK store.
I said it before...Dunkin Doughnuts suck.

[voodooman]

For 19 years my parents owned a Daylight Donuts, and until they
sold it to my sister made a very decent living being in Oklahoma.
Hard to believe you can make 150k/year selling donuts.
Also hard to believe how stupid some people are. There isnt a
Krispy Kream within 265 miles of the town they live in, and
since someone started delivering Krispy Kream to this small
town from Oklahoma City, My sisters business has dropped
almost half of what it was before. And Krispy Kream donuts
SUCK!!!!!!!!!!!!!!!!!

:)

[Peaches]

Originally posted by voodooman@Sep 25 2003, 10:18 AM
There isnt a Krispy Kream within 265 miles of the town they live in, and since someone started delivering Krispy Kream to this small town from Oklahoma City, My sisters business has dropped almost half of what it was before. And Krispy Kream donuts SUCK!!!!!!!!!!!!!!!!!

:)
It's obvious we all need to make an informed opinion if Krispy Kremes are worse than your family's doughnuts.

I believe Joee has all our addresses on file - we'll be expecting them in the next week. :)

[voodooman]

Only one problem Peaches.

Krispy Kream donuts has preservatives, so they keep longer.
The donuts my parents made, and now my sister, has none.
Unless you freeze them they go bad in 12 hours, or not
bad really, just get hard, kindof like me. hehe

[Peaches]

Originally posted by voodooman@Sep 25 2003, 10:32 AM
Only one problem Peaches.

Krispy Kream donuts has preservatives, so they keep longer. The donuts my parents made, and now my sister, has none. Unless you freeze them they go bad in 12 hours, or not bad really, just get hard, kindof like me. hehe
'Tis why God created FedEx. B) Heck, if you're that worried about it, send them Delta Dash - they can be here in a few hours - I'll even go pick them up for everyone. :awinky:

[Hell Puppy]

Originally posted by voodooman@Sep 25 2003, 09:18 AM
And Krispy Kream donuts
SUCK!!!!!!!!!!!!!!!!!

:)
BLASAHAMER!

You're gonna smoke a turd in hell for that one!

[voodooman]

Oh, Truth Hurts eh?



:moon: :nyanya:

[voodooman]

I do wish I would have bought KK stock early on.

:angry:

[sarettah]

Originally posted by voodooman@Sep 25 2003, 09:32 AM
go bad in 12 hours, or not
bad really, just get hard, kindof like me. hehe
It takes you 12 hours to get hard ??????

Damn boy, no wonder you never get laid........ Sounds like a wommin type would have to make quite an investment in you............









:yowsa:

[voodooman]

Originally posted by sarettah+Sep 25 2003, 09:56 AM--></span><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (sarettah @ Sep 25 2003, 09:56 AM)</td></tr><tr><td id='QUOTE'><!--QuoteBegin--voodooman@Sep 25 2003, 09:32 AM
go bad in 12 hours, or not
bad really, just get hard, kindof like me. hehe
It takes you 12 hours to get hard ??????

Damn boy, no wonder you never get laid........ Sounds like a wommin type would have to make quite an investment in you............









:yowsa:[/b][/quote]
Bahhhhhh Humbug. :blink:

[Bex]

A good read.
"Business is not a zero-sum game, and competitors create opportunities"
- hugely apparent in this industry.