This is a case study analysis of krispy naturals made by Saubhik Bhaumik, DSCSDEC, during a Marketing Internship under the guidance of Prof. Sameer Mathur.

1. Launching Krispy Natural: Cracking the Product
Management Code

2. CANDLER
Beverage
Division
Quick Service
Restaurant.
Pet Care
Division.
Snack Food
Division
Parent Company

3. Pemberton is the snack food division of
Candler Enterprises.

4. KEY LEADERS of Pemberton
Ashley Marne - Executive VP, Sales and Marketing,
Pemberton Products
Brandon Fredrick - Marketing Director ,Pemberton
Products

5. KEY STRATEGIC PRIORITIES :
(1) Building a collection of attractive, durable brands.
(2) Leveraging leading marketing, sales and DSD systems to
increase revenue and profits;
(3) Building or acquiring capabilities in salty snack categories.

6. THE US CRACKER INDUSTRY :
1) Retail cracker sales in the United States reached an estimated $6.9
billion in 2011.
2) 74% of respondents consumed crackers on a regular basis.
3) 34% ate them as part of regular weekly diet.
4) 53% of respondents considered overall healthfulness an important
factor in their cracker purchase decisions

7. Almost three quarters—were categorized in a general “all other”
crackers segment. This broad segment experienced a 2.1% CAGR for
the period from 2008 to 2010. The retail sales was estimated at $5.1
billion in 2011.
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Sales 37.8 28.9 13.9 4.6 14.8
0
10
20
30
40
SALES
Kraft
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Sales 37 28.1 14.2 4.8 16
0
10
20
30
40
SALES
2009% share
2010% share.

8. Krispy product line
Entered the salty snack market with the acquisition of Krispy Inc.
“Grab and Go” snacks with a strong presence in vending machines and
convenience stores.
.....but FAILED short of
management projections..........

9. WHY?
•Limited product line.
•Less presence in Supermarkets.
•Did not deliver to the flavour satisfaction scores.
•Krispy Retail
•Krispy Vend
•Total Krispy
Single-Serve
Plan
• $97.5
• $23.4
• $120.9
2009 Actual
• $50.08
• $18.0
• $68.8
% to Plan
• 52.1
• 76.9
• 56.9
2009 Krispy Single-Serve Sales Performance vs. Plan ($ millions)

10. KRISPY RELAUNCH
1. Improved product taste and quality.
2. Rebranded the product as KRISPY NATURAL.
3. Extended beyond single-serve offerings.

11. Product
Marketing
Distribution
Price
Marketing
Strategy
RELAUNCH STRATEGIES

12. Product
• IMPROVISING TEST.
•Made with 100% Natural Ingredients.
•Multiple serve packing was introduced.

13. • Adoption of pull marketing strategy.
• Price discounts offered initially.
• Focused on more and more advertisement and
promotion.
Marketing
Advertising and Merchandising Estimate

14. Distribution
• Effective DSD distribution.
• Hired 5 representatives known as
“Krispy force for proper distribution.
• Optimizing product using R&D for
longer shelf life of crackers.

15. Price
• Sought a premium pricing strategy.
•The prices of their competitor were
matched on a “visual price basis”
i.e. less quantity for the same price
so as to maintain their premium
product image.

16. TEST MARKET PLAN

17. TEST MARKET RESULT

18. S W
O T
ANALYSIS

19. 1) World renowned product development labs which it uses for
product development and R&D.
2) DSD used for deliveries.
3) Premium Pricing Strategy.
STRENGTH:

20. WEAKNESS:
1. Capacity Constraints for DSD for Krispy Natural products
2. Most of the profit goes on heavy marketing and advertising.
3. Low sale in southeast.

21. OPPORTUNITIES
• Cracker market fundamentals are attractive.
• Market research shows consumer dissatisfaction with
flavour and taste experience of current cracker brands.

22. •Fritto-Lays Entering Cracker market.
•Low sales in south-east.
THREATS :

24. DISCLAIMER
CREATED BY Saubhik Bhaumik, DSCSDEC, during a MARKETING
INTERNSHIP under guidance of Prof. Sameer Mathur, IIM
LUCKNOW.