Marketing Strategy of Krispy naturals

3. • Snack food division.
• Sold packaged food bars, cookies and other sweet baked
goods.
• Market leader brands were-Softies cookies and Homestyle
muffin and doughnuts.
• Market leader in US cookie and bakery snacks segment of the
sweet market.
• Pemberton Contributes about 28% of Candler’s total sales.

4. Pemberton took the first step
to enter the salty cracker market.
Why?

5. 1.US CRACKER INDUSTRY
 Estimated 6.9 billion in 2011
 CAGR of 2.2% from 2008 – 10
 Increased growth of 6.2% in General(All other) in 2010
 Annual growth forecasted between 10-14% for crackers
with filling
75
9
9
6
1Market Share
General(All Other)
Saltines
Crackers with fillings
Graham crackers
Others
All figures are in %
Three Largest Competitors:
•Kraft Food Inc ( Nabisco
Brands)
•Kellogs Co.
•Pepperidge Farm

6. 2. RESEARCH OF SALTY SNACKS IN US
74% of respondents consumed cracker
on a daily basis.
Crackers were the top salty snacks ahead
of potato chips.
Desire of healthy products was driving
cracker industry.

7. SPECIFIC DIRECTION FOR PRODUCT DEVELOPMENT
 BUILDING A COLLECTION OF ATTRACTIVE DURABLE BRANDS
 DSD SYSTEMS TO INCREASE REVENUE & PROFITS
 BUILDING OR ACQUIRING CAPABILITIES IN SALTY SNACK CATEGORIES
- Pemberton’s President

8. 2009 Krispy Sales Performance
2009 Krispy Single-Serve Sales Performance vs. Plan ($ millions)
Plan 2009 Actual % to Plan
Krispy Retail $97.50 $50.80 52.10%
Krispy Vend $23.40 $18.00 76.90%
Total Krispy Single-
Serve $120.90 $68.80 56.90%

9. Why did it not work?
 Limited product line – hence no command over
supermarkets.
 Taste- A taste survey showed that the product
did not deliver the flavor scores that were
expected.

10. THE RELAUNCH-WHY?
 The overall scenario and numbers of the cracker
market were still attractive.
 The overall market was huge and was expected to
grow at 10-14% every year.
 Competitors were not capitalizing on the market
available.

11. Various Strategies leading
to

12. KRISPYNATURAL
PRODUCT
STRATEGY
 Increasing Package sizes to Multiple
servings
 Improving taste by introducing new flavors
 Healthfulness – An important Factor
100% whole wheat
Natural Ingredients

13. MARKETING STRATEGY
• Competitors favored to
promote products
PUSH
STRATEGY
• Focus on Extensive
advertising &
merchandising
• Aggressive plans for
Trade promotions
PULL
STRATEGY

14. DISTRIBUTION STRATEGY
1. Effective DSD distribution.
2. Optimizing system for longer shelf life of
crackers.
3. Hired representatives known as “Krispy force
for proper distribution.”

15. 1. Krispy went for a premium pricing strategy.
2. But on the retail side they matched the prices of
their competitor on a “visual price basis” that is less
quantity or weight for the same price so as to
maintain their premium product image.

16. Krispy Single Serve v/s Krispy Natural
Krispy Natural
Re Launch
Krispy Single
Serve

17. SWOT Analysis
Strengths
1. World renowned product
development labs.
2. Product mix
3. Company Owned DSD
Weaknesses
1. Capacity constrains of DSD for
Krispy natural products.
Opportunities
1. Market research shows
consumer dissatisfaction with
flavor and taste experience of
current cracker brands.
2. Cracker market fundamentals
were attractive.
Threats
1. Fritto-lays entering the cracker
market.
2. Modest increase of 1% sale in
southeast.

18. CONCLUSIONS
INTERPRETING MARKET RESULTS
1. Grabbed 18% market share in Columbus as a new entrant in salty snacks business.
2. Kraft,Kellogg and Pepperidge in total lost 10% of market share, despite of higher
demands cracker products since 2010 . ( 6.2% for “All other crackers and 14% for
chacker will fillings).
3 Forecasted National roll out sales figures in Columbus and Southeast scenario for
3rd year depicts PBT more than 13 % and sales more than $500 millions.

19. POSSIBLE COMPETITIVE RESPONSES TO NEW BRAND
“FRITTO-LAY”
• LAUNCHING MORE NEW PRODUCT MIX AS PER CUSTOMER TASTE AND KEEPING
HEALTH AS A PRIORITY CONCERN.
• OPTIMIZATION OF DSD SYSTEM FOR KRISPY NATURAL PRODUCT FOR COST
REDUCTIONS.

21. DISCLAIMER
Created by MRIDUL AGARWAL of VIT
Vellore, during a marketing internship
Under Prof. Sameer Mathur,
IIM Lucknow.