Presentation on the case study of launch krispy kreme

1. KRISPY NATURAL
MAKING A MOVE IN SALTY SNACK SEGMENT

2. OBJECTIVES
 An idea by Pemberton for the next generation
 To launch a blockbuster product
 Dominate the salty snack market.

3. ABOUT THE COMPANY
 Snack food division of Candler Enterprises
A multinational beverage and snack food manufacturer
Majority of revenues from snack bars, cookies and sweet baked goods
CANDLER
ENTERPRISE
PEMBERTON
PRODUCTS
SOFTIES
COOKIES
HOME
STYLE
MUFFINS
& DONUTS
KRISPY
NATURAL

4. Pemberton’s income as a percent of sales in 2011 :
 Competitive advantage: ability to create products that provide superior taste experience.
Utilized DSD(direct store delivery) distribution system : delivery goods directly to retail outlets, distribution centres.

5. CULTURE OF INNOVATION
Company’s driving force is its culture of innovation.
KEY STRATEGIC PROPERTIES
BUILDINGA
COLLECTION
OF ATTRACTIVE
DURABLE
BRANDS
LEVERAGING
LEADING
MARKETING,
SALESAND
DSD SYSTEMS
TO INCREASE
REVENUEAND
PROFITS
BUILDINGOR
ACQUIRING
CAPABILITIES
IN SALTY
SNACK
CATEGORIES

6. CHALLENGES
The U.S Cracker industry
Purchasing intent
Competitor analysis

7. THE U.S CRACKER INDUSTRY
Retail cracker sales in the U.S- $6.9 billion in 2011.
A mintel study of salted snacks in the U.S reported- 74% of the respondents consumed crackers on a regular
basis and 34% on a regular weekly basis.
53% of the respondents considered overall healthfulness while purchasing cracker.

8. Sales
All other Saltines Crackers with fillings
75%
9%
9%

9. THE U.S CRACKER INDUSTRY

10. PURCHASING INTENT

11. COMPETITOR ANALYSIS
COMPETITORSOF
KRISPY NATURAL
KRAFT FOOD INC
KELLOGG CO.PEPPERFRIDGE FARM
THEY ACCOUNT FOR NEARLY 75% OF
THE CRACKER MARKET IN 2010

12. SALES OBJECTIVE
National distribution of crackers
Sales of approximately $500 million

13. KRISPY PRODUCT LINE
KRISPY SINGLE SERVE KRISPY RELAUNCH
• Regional brand
• Limited variants
• Limited product line
• Multiple serving packages
• Serving health conscious consumers
• Expanded product line

14. MARKETING STRATEGY
PRODUCT:
• Increase package size to serve multiple servings
• Made from 100% whole wheat
• Health conscious

15. MARKETING STRATEGY
MARKETING:
• Pull strategy and trade promotions
• Heavy advertising
• Price discounts with trade spending leading to 15-20% sales.

16. MARKETING STRATEGY
DISTRIBUTION:
• Effective DSD system
• Optimizing the system to account for the longer shelf life of products

17. MARKETING STRATEGY
PRICING:
• Sought a premium pricing strategy
• On the basis of visual price basis, it would be at par with competition

18. TEST RESULTS
Krispy Natural was launched in two test regions: Columbus, Ohio, and a trio of cities in the South eastern
United States.
In Columbus, the Krispy brand did not have any prior presence, so the company was able to assess its ability to
sell a completely new line of cracker products.
In the Southeast, Krispy was already established in the market as a single-serve product; was able to test the
ability to offer at a premium price.

19. STRATEGY AGAINST FRITO LAYS
Continuous innovation
Premium pricing offering benefits different from lays
Utilization of DSD
Trade promotions to create presence
Celebrity endorsements

20. SUMMARY
Analysis of Candler Enterprises
Launching of Krispy Natural- salty snack segment
Sales objective of the new product
Different marketing strategies
Future threat of lays

21. DISCLAIMER
 Created byAbhinav Malik, IFMR Sri City , during a marketing internship under
Prof. Sameer Mathur, IIM Lucknow.
(See www.IIMinternship.com)