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Krispy natural case study

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KRISPY NATURAL CASE STUDY

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Krispy natural case study

  1. 1. KRISPY NATURAL
  2. 2. CANDLER ENTERPRISES- Multinational Beverage and Snack Goods Manufacturer PEMBERTON PRODUCTS- SNACK FOOD DIVISION
  3. 3. BACKGROUND CANDLER ENTERPRISES MULTINATIONAL BEVERAGE PEMBERTO N QUICK SERVICE RESTARUANT PET CARE DIVISION
  4. 4. PEMBERTON FOOT PRINT Snack Food Division Food Bars ,Cookies And Sweet Baked Foods Softies Cookies Home Styles , Muffins And Doughnuts 5 Billion Sales in 2011 Own And Uses Direct Store Delivery
  5. 5. MORE ABOUT PEMBERTON Market leader in the U.S. cookie and bakery snacks segments. Contribution of $5 Billion out of $18 Billions of Candler’s Revenue. CAGR of 14% over the last 5 years. The company’s driving force was its culture of innovation. PEMBERTON
  6. 6. PEMBERTONS TURNING POINT OAcquisition Of Crispy Inc. in 2008-First Step to Enter Salty Snack Market.
  7. 7. US CRACKER INDUSTRY Estimated $6.9 Billion in 2011. The growth rate for the overall cracker industry from 2008 to 2010 was approximately 2.2% CAGR.
  8. 8. TOP THREE CRACKER MANUFACTURERS Kraft Food Inc. Pepperid ge Farm. Kellogg Co.
  9. 9. MARKET SHARES TYPE SHARE
  10. 10. KRISPY SALES PERFORMANCE
  11. 11. STRATEGIC PRIORITIES Building a collection of attractive, durable brands. Leveraging leading marketing, sales and DSD systems to increase revenue and profits. Building or acquiring capabilities in salty snack categories.
  12. 12. MARKET AND CONSUMERS MINTEL STUDY 74% respondents consumed crackers on regular basis. 34% of them ate as a part of regular diet. 53% considered overall healthfulnes s.
  13. 13. FACTS AFTER SURVEY 69% of Respondents . • working to improve their physical health 51 % of Respondents • trying to lose weight.
  14. 14. KRISPY SINGLE VS KRISPY NATURALKRISPY NATURAL RE-LAUNCH KRISPY SINGLE SERVE
  15. 15. PRODUCT STRATEGY
  16. 16. MARKET STRATEGY
  17. 17. DISTRIBUTION 1)Long Shelf life of Crackers. 2)Present Capacity of Trucks Poor. 3)Pemberton Hired “KRISPY FORCE” for distribution System
  18. 18. SALES OBJECTIVE SALES OBJECTIVE National Distribution of Crackers. Minimum Sales of $500 Billion Steady State pre- tax profit of at least 13%.
  19. 19. SWOT ANALYSIS STRENGTHS: 1)World renowned product development labs. 2)Product mix. WEAKNESSES: 1)Capacity constraints of DSD for Krispy Natural Products.. OPPURTUNITIES:1)Cracker Market fundamentals were attractive. 2)Market Researchers show consumer dissatisfaction with present cracker brands. THREATS: 1)Fritto-Lays entering the cracker market. 2)1% sale increase in south-east.
  20. 20. PROS AND CONS PROS: 1)Positive purchase intent. 2)Over 2:1 ratio in taste preference. 3)To grow over 10-14% ratio in next several years. CONS: 1)Modest increase of 1% in south- east. 2)Uncertainty of Fritto-Lays Entering the market. 3)Flat crackers taste preference fell below 1:2 ratio.
  21. 21. THANK YOU
  22. 22. Disclaimer Created by Bikumalla . Prudhvi Raj ,NIT GOA during a Marketing Internship ,by Prof . Sameer Mathur ,IIM Lucknow.

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