Krispy Natural case study

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Rikin Raheja

Launching Krispy Natural: Cracking the product management code.

Marketing

Candler
Enterprises
($ 18
Billion)
Beverage
Division
A Quick
service
restaurant
division
Pet care
division
Pemberton
(snack food
division)

Superior Taste
Experience
Direct Store
Delivery Distribution
System
Market Leader in U.S. cookie and
bakery snacks

U.S. Cracker Industry
$6.9 billion in 2011.
• 2.2% CAGR from 2008-10
• 6.2% growth in “All other”
crackers

Krispy enters
salty snack
market
Krispy Single Serve
Cracker sandwich with
cheese filling
• 1.5 ounce bag
• 2 flavors
Ease of use

A B C
Krispy Retail $97.5 $50.8 52.1%
Krispy Vend $23.4 $18.0 76.9%
Total Krispy
Single-Serve
$120.9 $68.8 56.9%

What went WRONG ??
Limited Product line
Unapproved taste

75% market
74%
34%
Regular basis
Weekly basis
Mintel Study
Desire of
healthy
products
• 10-14% annual
growth rate
forecasted

R&D to improve taste
Product Line extension
KRISPY NATURAL
Multiple serving packages
Effective Marketing Strategy

Product Strategy
Increased Package size – multiple
serving
Improved Taste
100% whole wheat

Marketing Strategy
Extensive advertising & merchandising
Aggressive trade promotion
Price Discounts
Pull Strategy

Distribution Strategy
Direct Store Delivery (DSD)
Longer Shelf Life
“Krispy Force” representatives

Pricing Strategy
Premium Pricing Strategy
Pricing 155% the category average cost
“Visual Price”

Frito-Lays face off
Product Line Extension
Coupons + Package deals
Use TAGLINE

“Created by Rikin Raheja, LNMIIT, Jaipur
during marketing internship under Prof.
Sameer Mathur, IIM LUCKNOW

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Krispy Natural case study

1. Launching Krispy Natural: Cracking the product management code

2. Candler Enterprises ($ 18 Billion) Beverage Division A Quick service restaurant division Pet care division Pemberton (snack food division)

3. Superior Taste Experience Direct Store Delivery Distribution System Market Leader in U.S. cookie and bakery snacks

4. U.S. Cracker Industry $6.9 billion in 2011. • 2.2% CAGR from 2008-10 • 6.2% growth in “All other” crackers

5. Strong Brand Value Increase Revenue and Profits Develop Capabilities

6. Krispy enters salty snack market Krispy Single Serve Cracker sandwich with cheese filling • 1.5 ounce bag • 2 flavors Ease of use

7. A B C Krispy Retail $97.5 $50.8 52.1% Krispy Vend $23.4 $18.0 76.9% Total Krispy Single-Serve $120.9 $68.8 56.9%

8. What went WRONG ?? Limited Product line Unapproved taste

9. Why??

10. 75% market 74% 34% Regular basis Weekly basis Mintel Study Desire of healthy products • 10-14% annual growth rate forecasted

11. We believe in Krispy, Let’s fight back!

12. R&D to improve taste Product Line extension KRISPY NATURAL Multiple serving packages Effective Marketing Strategy

13. Product Strategy Increased Package size – multiple serving Improved Taste 100% whole wheat

14. Marketing Strategy Extensive advertising & merchandising Aggressive trade promotion Price Discounts Pull Strategy

15. Promotional Plan: Columbus, Ohio

16. Distribution Strategy Direct Store Delivery (DSD) Longer Shelf Life “Krispy Force” representatives

17. Pricing Strategy Premium Pricing Strategy Pricing 155% the category average cost “Visual Price”

18. Finally….

19. • World renowned Brand • Diversified Portfolios • Effective DSD • DSD optimization • Frito-Lays entering market • Modest increase in southeast. • Consumer’s taste dissatisfaction • Lucrative cracker market

20. Frito-Lays face off Product Line Extension Coupons + Package deals Use TAGLINE

21. “Created by Rikin Raheja, LNMIIT, Jaipur during marketing internship under Prof. Sameer Mathur, IIM LUCKNOW

Krispy Natural case study

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