KRISPY NATURAL - CASE STUDY ANALYSIS

1. LAUNCHING KRISPY NATURAL:
Cracking the Product Management Code

2. BACKGROUND
1

3. Candler Enterprises
PEMBERTON
~ Snack Food Division of Candler Enterprises
~ Pemberton was a market leader in the U.S. cookie and bakery snacks segments of the
sweet snack market

5. 2

6. 75%
9%
9%
6% 1%
Cracker Sales
General Saltiness
Crackers with fillings Graham Crackers
Other segments

7. MARKET FORMULA
Growth market was driven by
Flavor based product line
+
Marketing Emphasis on healthiness
3

8. KRISPY LINE
~Pemberton acquired Krispy in 2008
KRISPY SINGLE SERVE
~ Operated 3 production plants
~ Known as a Regional brand (Distribution focused on South
Eastern US)
~ Products marketed as “ Grab & Go”
~ In 2009, the product fell short of management projections
4

9. UNDERPERFORMANCE OF KRISPY
Limited Product Line
No flavor satisfaction

10. 5

11. Deeper Analysis of Cracker market was performed
Market was found to be LARGE
“Crackers with Filling”  GROWING segment
“Kraft” Appeared to fall back with other brands
Consumer dissatisfaction with existing flavor of cracker
brands
• KRISPY Rebranding
• Marketing strategies - improved to enter the market
• R&D labs - improved to enhance quality and taste
• Extension of product line

12. KRISPY “NATURAL” 6
Whole wheat ,natural ingredients
Proper Proportion of

13. PULL

14. DISTRIBUTION
 DSD Distribution
 Operational tests  To analyze
distribution logistics
 Enable Longer shelf life

15. Same PRICE as competitors
BUT
LESS quantity

16. 7

18. COLUMBUS
1. No prior presence of
KRISPY
2. “Krispy Force”
Representatives assigned
3. 16- week period 9%
Market Share
4. Advertising through TV,
ONLINE,
5. 15% Discount
6. In store Sampling with
Coupon
SOUTH EAST
1. Already established as
Single- serve product
2. Increase in share from 9-
15%
3. Advertising and promotion
similar to Columbus plan
4. No separate representatives
5. Reposition the market to a
more premium pricing

19. COLUMBUS
~ 18% Share  Doubling the
share market!
~ Category volume increased
by 30%
SOUTH EAST
~ Only 1% increase in market share
~ Little category expansion

20. DIFFICULTY IN RE-ESTABLISHING THE
PRODUCT IN A CITY WHICH ALREADY
HAD A FOOTHOLD OF THE BRAND

21. 8

22. Was Marne’s view of BLOCKBUSTER
potential of KRISPY NATURAL supported
by the data?
Perception varies
Not very reliable on a larger scale
because only the quality of the product to
get the customers shouldn’t be an option

23. Best ROLLOUT strategy to neutralize the
competition?
Pull Strategy
Promotional activities emphasizing quality, flavor and Varieties
Easy availability of product
Keeping brand promises and publicizing them
CATCHY TAGLINE- For revitalization

24. How should the ROLLOUT strategy
CHANGE if they were trying to go head
to head with FRITO-LAY?
Introduce coupons and package deals
Discounts and promotions
Increase product line with no compromise on quality to improve
BRAND EQUITY

27. Created by Jahnavi Kaza , GNITS, during a marketing internship by Prof. Sameer
Mathur, IIM Lucknow