3. PEMBERTON – AN INTRODUCTION
■ Pemberton was the snack food division of Candler Enterprises
■ It clocked a revenue of $5 billion with a profit after tax of 7.7%
■ Healthy growth rate around 14% in revenue achieved
■ It was a market leader in the U.S. cookie and bakery snacks segments of the sweet
snack market.
4.
5. Key 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
6.
7. Strategy
■ Snacks in vending machines and convenience stores
■ Improve product taste and quality
■ Emphasize on healthiness
■ Increase availability in flavours
■ Focus on extensive advertising & merchandising
■ Aggressive plans for trade promotions
8. DSD System – Advantages
■ Control of Shelf space
■ Accurate Forecasting
■ Reduced stockouts
■ Quicker turnover of products
9. US CRACKER INDUSTRY
■ Estimated size of $6.9 USD in 2011
■ 2.2% CAGR from 2008-10
■ Growth of 14% forecasted for ‘crackers with filling’ sector
10. MARKET STUDY
■ 74% respondents consumed crackers on a regular basis.
■ 34% ate them as part of their regular Diet
■ 53% considered overall healthiness
11. MARKETING STRATEGY
■ Sought a premium strategy
■ Priced at 155% above the category average cost per ounce
■ Same retail price as that of competitors but lesser quantity
15. KRISPY NATURAL PERFOMANCE
■ In Columbus, Krispy Natural was able to achieve an 18% market share by stealing
share from other competitors
■ However in Southeast the trade was not generally receptive to the new Krispy Natural
line due to the relatively low introductory trade case discount of 15%.
16. Strengths & Opportunities
■ World renowned product development labs
■ Company Owned DSD
■ Market research shows consumer dissatisfaction with flavor and taste experience of
current cracker brands
Problems
■ Modest increase of 1% sale in southeast
■ Capacity constrains of DSD for Krispy natural products
■ New competitors
22. CONCLUSIONS
■ Grabbed 18% market share in Columbus as a new entrant
■ Kraft ,Kellogg and Pepperidge in total lost 10% of market share, despite increased
demand
■ Forecasted National roll out sales figures in Columbus and Southeast scenario for 3rd
year depicts PBT more than 13 % and sales more than $500 million.
23.
24. SUGGESTIONS – FOR NATIONAL ROLL
OUT
■ More than 60% tasters preferred taste of Krispy natural over other leading brands.
Positive Purchase intent of 81%. Hence, we can say that focus on taste should be the
most important for a successful national roll out
■ Launching more new products mix as per customer taste and keeping health as a
priority concern
■ Optimization of DSD system for Krispy natural product for cost reductions
■ Extensive marketing in Southeast cities
■ Contemporize brand engagement
25. DISCLAIMER
CREATED BY PV SVAMSI KRISHNA, NSIT DURING MARKETING INTERNSHIP
UNDER PROF.SAMEER MATHUR, IIM LUCKNOW
