Launching Natural: Cracking the Product Management Code by Swagat Pradhan MNNIT Allahabad under Prof. Sameer Mathur

1. Launching
Natural: Cracking
the Product
Management Code

2. OBJECTIVES

3. BACKGROUND

4. CANDLER ENTERPRISES
• multinational beverage and snack goods manufacturer
• snack food division of Candler Enterprises.
• U.S. market leader in the cookie and bakery snacks segments of the
sweet snack market.
PEMBERTON

5. • Acquired KRISPY in 2008 to compete in the
salty snacks market, that showed a promise of
7%-14% growth over relevant segments.
•However, the sales of the Krispy product line fell
below expectations, sparking and urgent
rebranding of the product

7. TIME TO FIGHTBACK!!
HOW!?

8. After prolonged efforts from the Pemberton R&D
team,
Krispy was rebranded , hoping for successful
introduction to the National Market.
The new product was called….
KRISPY NATURAL

9. REBRAND

10. ITS HEALTHIER
• Targets the heath conscious drive, Krispy Natural is
made form natural and healthy ingredients.
ITS TASTIER
ITS BIGGER
• Product made for international market, unlike the old
Version was predominant only in South-eastern
US. Packaged for multiple servings too
• More focused research on taste, along with more flavor
options.

11. WHAT
MARKETING
STRATEGY
SHOULD BE
FOLLOWED?

12. PUBLIC
TARGETING

13. REASONABLE
PRICE FOR
THE
PRODUCT

14. SEGMENTATION

15. Month 1 •Television, 15% Discount, Newspaper
Month 2
•In store Sampling, Shelf Pad
Month 3
•Electronic coupons, 12%discount,online ad
Month 4
•Facebook like us campaign, increased tv and online ads.
Month 5
•Newspaper Sampling, Trial size coupon
Month 6
•8%discount, shelf pad buy 2 get one free.
ADVERTISEMENT

16. COMPETITORS
Kraft Food Inc.
Kellogg Co.
Pepperidge Farm

17. HOW TO DEAL WITH COMPETITORS
• Staying one step ahead of the curve, creating new ways to improve upon existing
products.
INNOVATION
DIRECT STORE DELIVERY
DIVERSIFICATION
• Diversifying the product based on age group, eg: higher sweet content for children
and less sweet ones for the elderly.
• Delivering the products directly to the retail outlets; bypassing retailer’s warehouse
and distribution centers.

18. V/sKRISPY SINGLE
SERVE
 Regional brand
Limited flavor options
 Limited product line.
KRISPY NATURAL
 Multiple Serving
packages.
Targeting health
conscious consumers.
More flavor options and
better taste experience
through research

19. RESULT OF TEST
MARKET LAUNCH

20. Columbus
• Crispy occupied a
whopping 18%
market share
• People took the
change well, as a
change from the
increasingly
unpopular
established products
in the market.
• Krispy Natural barely
made any
improvement,
increasing from 9-10%
in marketing shares.
• The brand was already
established and
consumers did not
expect much
difference.
% store
count
% stores
with
Gondola
Placement
% stores
with End
Aisle
Display
Columbus 94 9 14
South-east
85 12
10
South-East US
STORE PENETRATION DISPLAY

22. CONCLUSION
• 1) Discount and couponing have played a important
role in the success.
• 2) South east US failure may be due to bad
impression on brand.
• 3) Trade may not cooperate with DSD
Representatives
• 4) Premium pricing for negative brand presence
may not be encouraged.

23. SUMMARY

24. DISCLAIMER
Created by Swagat Pradhan, MNNIT Allahabad, during a marketing internship by Prof.
Sameer Mathur, IIM Lucknow.