Fredrick Brandon and Ashley Marne are directing the relaunch of Krispy crackers as Krispy Natural. Market research found that 53% of respondents consider healthfulness an important factor when purchasing crackers. Krispy Natural was redesigned to appeal to health-conscious consumers, with improved packaging, taste focused on flavor satisfaction, and a marketing strategy emphasizing the product's natural qualities. Test markets in Columbus and Southeast cities showed increased market share for Krispy Natural against competitors like Kraft and Kellogg when promotional discounts and sampling were used. For national expansion, the product will need a sustainable marketing strategy to build its brand image while cutting costs.

6. WHO ARE THE PLAYERS?
 FREDRICK BRANDON (Marketing
Director)
 ASHLEY MARNE (Executive VP of
Sales and Marketing)

7. THE US CRACKER
INDUSTRY

9. MINTEL STUDY
REPORTED :
74% OF RESPONDENTS
CONSUMED CRACKERS
REGULARLY
34% ATE THEM AS PART OF
REGULAR WEEKLY DIET

10. 53% CONSIDERED OVERALL
HEALTHFULLNESS IMPORTANT
FACTOR.
IN PACKAGED FACTS SURVEY IT
INDICATED 51% SAID THEY WERE
TRYING TO LOOSE WEIGHT.

12. WHAT COULD BE THE BEST ROLL
OUT STRATEGY TO RELAUNCH
KRISPY WITH ADDED FEATURES
SO AS TO MAKE IT A
BLOCKBUSTER PRODUCT AND TO
SUSTAIN ITS GROWTH?

13. WHY WAS KRISPY
RELAUNCHED TO
KRISPY NATURAL?

15. UNDERPERFORMANCE WAS
DUE TO:
Did not deliver flavour
satisfaction scores as
expected.
Limited product line which
reduced visibility.

16. Marne believed:
“with a tweaking of the
product and marketing
strategy, it can provide an
attractive growth
opportunity”

18. PRODUCT PURCHASE
INTENT
COMPETITOR’S
ANALYSIS

26. PRODUCT
MARKETING
DISTRIBUTION
PRICING

27. PRODUCT
 IMPROVED PACKAGING
 IMPROVED TASTE
 FOCUS ON HEALTH CONSCIOUS
CONSUMERS

28. MARKETING

29. DISTRIBUTION
 USES THE EFFECTIVE DSD (DIRECT STORE DELIVERY)
WHICH PROVIDES:
1) GREATER CONTROL OF SHELF SPACE
2) QUICK TURNOVER
3) ACCURATE FORECAST
4) REDUCE STOCK-OUT
 OPTIMIZING THE SYSTEM TO ACCOUNT FOR THE
LONGER SHELF LIFE OF CRACKERS VERSUS BAKED
GOODS AND COOKIES..

30. PRICING
 The marked price same as that of
competitors.
 the packing would have lesser content
due to improved quality,
 overall it would charge at 155% of the
category average cost.

32. BRAND INCOME STATEMENT
YEAR 3
Manufacture Sales $700
COGS $539
Gross Profit $161
Advertising $33
Merchandising $37
Pretax Contribution $91

36. ESTIMATED DOLLAR SHARES
OF MARKET
COLUMBUS SOUTHEAST
Pre test
market
Post Pre test
market
Post
Kraft 40% 33% 34% 32%
Kellogg 25% 22% 23% 22%
Pepperidge Farm 11% 10% 10% 10%
Krispy 0% 18% 9% 10%

37. ANNUALIZED NATIONAL
PROJECTION
Year 1 Sales (million)
Columbus Scenario (national
extended)
$1000
Southeast Scenario (national
extended) $550

38. IN COLUMBUS
 5 special “Krispy Force” representatives
hired in Columbus.
 They worked with Pemberton regional
and district sales managers and
focussed on selling the new Krispy
Natural.

39. IN SOUTHEAST CITIES
 Reposition the product to a more
premium offering
 DSD route delivery reps worked with
regional managers in handling and
placing of the Krispy Natural products so
as to increase its visibility.

40. What Had Been Projected?
 Columbus would achieve market
share of 9%
 Southeast market share will rise from
9% to 15%.

41. What was the actual Result?
 Columbus doubled the market share, achieving an
18% high from 9%, with 30% category expansion.
 Southeast had a very marginal increase i.e. From
9% to just 10% due to relatively low introductory
trade case discount of 15%.

45. PARTIAL COMPETITIVE
ANALYSIS
COMPANY POST-KRISPY
NATURAL TRENDS
IN COLUMBUS
POTENTIAL
COMPETITIVE
RESPONSE
Kraft Loss 7% share New product testing in
process
Increase trade spending and
consumer promotions
Spend heavily to counter
national roll-out
Kellogg Loss 3% share Increase A&M
Capitalize on pull
Product line
improvements
Pepperidge Farm Loss 1% share Increase trade spending
Compete on quality and
brand reputation

46. ALSO.....
An industry analyst said, “positive test market results
were driven by significant price discounts, couponing,
and sampling, which were not sustainable on a national
level. Also, there were those in the industry who felt the
taste preference claims of Krispy Natural were inflated
and the flavour was no better than current brand
offerings”

47. TO ENHANCE ITS GROWTH:
 Cater to the localized needs of
consumers.
 Re-establish brand image to overcome
the shortcoming that it has inflated
its quality claims.
 With effective marketing strategy,
develop ways to cut cost
 Analyse the quality and marketing
trends of market leaders and try to
differentiate their product from the
competitor’s.