A Harvard Buisness case presentation made for the Marketing Management Internship Under Professor Sameer Mathur, IIM Lucknow

1. LAUNCHING KRISPY
NATURAL
CRACKING THE PRODUCT
MANAGEMENT CODE

3. Pemberton
• Snack division of Chandler
Enterprises( multinational of snack
and food beverages).
• Market leader of US cookie and
bakery snack segment of sweet
snack market.
• Created a Direct Delivery
Distribution System (DSD)to
bypass mediators.

5. US CRACKER INDUSTRY
OVERVIEW
• US Cracker industry has reached $6.9 million
in 2011
• Growth rate between 2008 and 2010 is
approximately 2.2% CAGR
• Study states that 74% consume cracker on
regular basis and 34% as a part of regular
weekly diet

6. Sales
ALL OTHERS
SALTINESS
CRACKER WITH
FILLING

7. ALL OTHER CRACKERS
• 2.1% CAGR from period 2008-2010
• Retail Sales of $5.1 Billion in 2001 in US
• Expected growth of 6-7% per year

8. CRACKERS WITH FILLING
• After flat sales between 2005-2009,
it has become the strongest segment
• Retail sales of $660 million in 2011 in
US
• Has growth rate of 14% in 2010.

9. KRISPY SINGLE
SERVE
• Pemberton entered salty snack
market by acquiring Krispy
Inc. and launched a cracker
product
• Region targeted was South
Eastern United States
• Krispy products were marketed
as mobile, “Grab and Go”
snacks with a strong presence
in vending machines and
convenience stores.
• Krispy’s underperformance
was a result of the limited
product line, which made it
difficult to command any sort of
presence in supermarkets.

15. 1. Three competitors namely
– Kraft Food Inc.
– Kellogg Co.
– Pepperfridge farm
2. These account for 75% cracker market in
2010.
3. Frito-Lay is about to launch its product in
next quarter.

16. COMPETITIORS ADVERTISMENT
EXPENDITURES

18. Product Marketing
Distribution Pricing

19. PRODUCT
• R&D emphasis on improvement of
taste
• Focus on Health
• Improvement of Packaging

20. Marketing
• Emphasis of Heavy marketing
• Promotion till the consumer end
• Aggressive plans for pull spending
and trade promotions

21. Distribution
• Effective DSD system
• Optimizing system to account for
longer shell life of crackers
• Proper shelf and in-store
management.

22. Pricing
• Premium pricing
• Priced 155% above the average category
per ounce
• Same retail price as of consumers but
lesser quantity

23. Promotion Techniques

25. Expectation
• Will achieve a market
rate of 9%
• Southeast market
share will rise from 9
to 15%
• Have shelf space of
15% in market
Reality
• Doubled the share
target, achieving 18%
market share and 30%
category expansion
• Southeast market
share grew only up till
10%.

27. Market result

29. By stealing market share of others!

31. • Extensive marketing in Southeast countries
• Competitive Pricing
• Global Expansion
• Adding more flavours in market

33. DISCLAIMER
Created by Apoorv Maheshwari ,SRM
Kattankulathur ,during marketing internship
by Professor Sameer Mathur ,IIM Lucknow