Pemberton is considering a national rollout of its Krispy Naturals crackers. The document summarizes Pemberton's snack food division, Krispy's acquisition and performance, the US cracker market landscape, consumer insights, competitors, and analyses the potential for national distribution. It identifies positive indicators for national rollout such as consumer purchase intent and taste preferences. However, it also notes challenges around flat crackers preference, distribution capabilities, and uncertainty around competitors' responses.

4. PEMBERTON DIVISION
Snack Food Division
Food Bars, Cookies & Sweet Baked foods
Softies Cookies Home style Muffins &
Doughnuts
5 Billion in Sales
(2011)
Own & Uses Direct
Store Delivery DSD
Acquisition of Krispy Inc. in 2008 – First step to enter
Salty Snack Market

6. U.S CRACKER INDUSTRY
75
9
9
6
1
Market Share
General(All Other) Saltines Crackers with fillings
Graham crackers OthersAll figures are in %
Three Largest Competitors:
•Kraft Food Inc ( Nabisco Brands)
•Kellogg's Co.
•Pepperidge Farm
• Estimated 6.9 billion in 2011
• CAGR of 2.2% from 2008 – 10

8. 2009 - Krispy Sales Performance
2009 Krispy Single-Serve Sales Performance vs. Plan ($ millions)
Plan 2009 Actual % to Plan
Krispy Retail $97.50 $50.80 52.10%
Krispy Vend $23.40 $18.00 76.90%
Total Krispy Single-Serve $120.90 $68.80 56.90%

9. 74% respondents
consumed
crackers on
regular basis.
34% ate them as a part
of regular diet.
53% considered
overall
healthfulness.
MARKET AND CONSUMERS – MINTEL STUDY

10. MARKET TREND
Healthier & Conveniently packaged
Crackers for the Consumers
PEPPERIDGE
FARM GOLDFISH
(2010)
KELLOGS KEEBLER
TOWNHOUSE
FLATBREAD (2010
)
KRAFT’S NABISCO
WHEAT THINS
FLATBREAD
(2009)

12.  Increasing Package sizes to Multiple servings
 Improving taste by introducing new flavors
 Healthfulness – An important Factor
100% whole wheat
Natural Ingredients

14. Krispy’s Natural – Pull Strategy
The goal of pull marketing is to get the customers to come to
you, hence the term pull, where marketers are attempting to pull
customers in.

15. Launching Krispy Natural Nationally
• Product Test :
• Positive purchase intent of 77% - 92% .
• 2:1 ratio in taste preference for crackers with filling.

16.  DSD system –May not work for Cracker business. So Pemberton hired
“Krispy force” for distribution system.
 Longer Shelf life of Crackers
 Present capacity of Trucks poor
DISTRIBUTION STRATEGY

18. • Krispy Natural sought a premium pricing strategy.
• Prices were fixed by considering the product’s superiority.

20. • Minimum sales of $500 million.
• National distribution of crackers.
• Steady state pre-tax profit of atleast13%

21. COMPETITIVE ANALYSIS FROM Krispy’s Rivals

22. World Renowned Product
Development Labs.
Innovation, variety of
product mix.
DSD owned by the
company.
Capacity Constraints of
DSD, Present Capacity of
Trucks is Poor.
Longer Shelf Life of
Crackers.
Presently,
Consumer
Dissatisfaction is there with
Flavour and Taste of current
Crackers.
Frito-lays is Entering with
a new full line of crackers.
Losing Market Share to
Competitors.

23. National Rollout ?
Indications :
 Positive Purchase Intent of 81%.
 Over 2:1 ratio in taste preference in crackers with filling, this segment is expected to grow from
10% to 14% in next few years.
Contradictions :
 Flat Crackers taste preference fell below 2:1 ratio compared to competitors, this segment is largest
part of market.
 Uncertain about Frito-lays entrance into the Market.

24.  Introducing Krispy Naturals into the national market seems like a good move to make immediate and
apparent success.
 Challenges to face in the long-term that will ensure failure
 May not be cost-effective to hire more sales representatives to promote the product in the Southeastern cities.
 Pull marketing strategy may not work as well as expected.
 If they were to focus on one segment, be it the crackers with filling or the “all other crackers” segment, there is a
possibility of varying consumer preferences or the Competitor’s products may decrease its success.
 Consumers will not be willing to pay the industry price for less quantity in a package than other competitors.

25. How to Neutralize Competition ?
 Continue with Innovation and introduce different kinds of products.
 Crackers with less sweet or salt for Diabetic people.
 Collaboration with Cinema theatre, Parks etc.

26. SUMMARY
• INTRODUCTION
• COMPANY BACKGROUNG
• PRODUCTS AND COMPETITIORS
• MARKET ANALYSIS
• MARKETING STRATEGY
• NATIONAL ROLLOUT ANALYSIS

27. PRESENTED BY
B ARAVIND BHARGAV, VNIT NAGPUR
UNDER THE GUIDANCE OF