Shipley Do-Nuts Marketing Strategy
Executive Summary
After reading and learning about Porter’s 3 Generic Strategies and although all three generic strategies coincide with one another, the Focus Strategy emerges. As a company, we are attempting to focus on Shipley’s Do-Nuts cost advantage on the target population; by doing this, we must focus on technology and healthier donut options for our customers. The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others (Porter, 1985). Focus strategy has shown that if done in an appropriate way, its performance will be increased. Focus strategy is a strategy in which an organization concentrates on a specific regional market. Through focus strategy, the company has as a purpose to serve a segment in the close market. Pursuing this strategy provides firm the integration of wide range activities that are connected with differentiation and low cost in a particular segment from which company generates higher profits (Robbins, 2005). We understand there are many donut shops state and local wide, however, what we are attempting to do is find the centralize market that involves customers who are technologically advance and the customers who are desiring healthier options. Using Porter’s Focus Strategy will allow our target market to be reached so that we can produce more customers and revenue.
Business Summary
Shipley Do-Nuts is a renowned donut restaurant initially founded in 1936 by Lawrence Shipley. Shipley’s goal from conception was to keep selling customers hot doughnuts. Sixty-six years later, Shipley Do-Nuts now has over 300 locations in 9 states, serving over 60 different products such as hot and fresh glazed, iced and filled donuts, cakes, donut holes, assorted kolaches, coffees, and cinnamon rolls. As a firm, they pride themselves in carrying on the heritage of offering the best donuts and kolaches in the industry. As a franchising company, Shipley Do-Nuts relies heavily on well-trained and skilled employees to help achieve their goal of quality and consistency. The organization has worked hard to streamline its operation throughout the years, ensuring that the standards they have set are maintained. All of Shipley’s products stem from the same easy-to-use doughnut mix. This distinctive feature is uncommon in today’s competitive landscape. Similar businesses have opted for automated manufacturing over traditional methods. In contrast, Shipley Do-Nuts takes a more balanced approach, enabling increased volume without sacrificing the traditional customer’s expectation of quality and variety. Today, customers of all ages continue to be delighted with Shipley Do-Nuts. The nearly 60 varieties are as consistent as the products’ freshness, and while the basic glazed is the most popular, everyone appears to have a preference. Shipley Do-Nuts maintains its reputation for producing the best donuts and kolaches in the industry, ensuring their gourmet products are created to order every day. In addition, the company provides exceptional customer service, clean stores, and friendly workers that are as enthusiastic about the donuts as their customers.
Marketing Problems
Two marketing problems presented for Shipley Do-Nuts are the lack of technology and healthy choice options for customers. They currently do not offer a healthy choice option on their current menu. As the risks of high sugar consumption become better known, it may become challenging for the organization to sell its donuts. Therefore, the marketing plan will include a healthy addition to the menu, providing sugar-free and gluten options. The lack of technology is an inconvenience for their customers. Therefore, the marketing plan will include an upgraded website that offers delivery and custom ordering options. In addition, it will consist of a digital app that will attract a larger audience.
[Order to Get Customized Paper]
Shipley’s provides a loving, family environment for people to enjoy. For example, on the Shipley’s history website, Ms. Kathy Froleigh speaks on her experience with Shipley’s. “One of the best memories I have of my father is walking to Shipley Do-Nuts on Saturday morning for that hot plain glazed,” said Kathy Froleigh. “It was the one time of the week, when Daddy was all mine, giving me his full attention. I have tried to create that same kind of memory for my own children who I take to Shipley’s every Saturday morning.” (MyShipley’s History, 2021). As you can see she states why Shipley’s is a valuable place and their business is much loved by society. It provides a family friendly environment and good donuts.