This is a presentation on a Case Study done during my internship at IIM-Lucknow. The case analysed is- Launching Krispy Natural: Cracking the Product Management Code

1. Title Layout
Subtitle
LAUNCHING CRISPY NATURAL: CRACKING
THE PRODUCT MANAGEMENT CODE

3. • Pemberton: Products &
Challenges
• Market Analysis
• Krispy Natural Market
Strategies
• Result and Conclusions

4. PRODUCTS
REVENUE & CAGR
STRATEGY
PERFORMANCE

5. PEMBERTON
• Pemberton was the snack food division of Candler Enterprises: A
Multinational Beverage & Snack Goods Manufacturer.
• Candler’s overall revenue was around $18 billion in 2011, with Pemberton
contributing approximately $5 billion in Sales (7.7% Profit after Tax).
• The compound annual growth rate is14% for the revenue over the past five
years.
• Pemberton was a Market Leader in the U.S. cookie and bakery snack
segments of the sweet market.
• Pemberton utilized a company-owned Direct Store Market Delivery (DSD)
distribution system in which products were delivered directly to retail outlets.

6. • Building a collection of
attractive and durable brands.
• Building or acquiring capabilities
in salty snack categories.
Leveraging leading Marketing, Sales and
DSD systems to increase revenue and
profits.

9. When going through this case, it was
found that Pemberton followed these
words wisely!!!!!

10. HOW TO LAUNCH AND SUSTAIN
THE GROWTH OF KRISPY
NATURAL IN THE SALTY SNACK
MARKET???

11. 1. U.S. cracker industry overview
2. Product purchasing intent
3. Competitor’s intent.

12. US CRACKER INDUSTRY

13. • Retail Cracker Sales in United States reached an
estimated $6.9 billion in 2011.
• The growth rate for the overall cracker industry from
2008 to 2010 was approximately 2.2% CAGR.
• A Mintel study of salty snacks in United States
reported that out of the total population, 74%
consumed crackers on a regular basis and 34% ate
them as a part of weekly diet.

14. 75%
9%
9%
6%
1%
All other
Saltiness
Crackers with Fillings
Graham Crackers
Bread Sticks and Matzoh crackers
0% 10% 20% 30% 40% 50% 60% 70% 80%
Sales
Sales
Sales of different Products of
the US Cracker Industry.
All the other cracker industry –
• Experienced 2.1% CAGR
from 2008-10.
• Retail sales of $5.1 Billion in
2011 in U.S.
• Expected growth rate is 6%-
7% per year.

15. COMPETITOR ANALYSIS

16. • The top 3 cracker manufacturers are:
1. Kraft food Incorporation
2. Kellogg Corporation
3. Pepper fridge Farm
• These accounted for about 75% of the
total cracker market in 2010.
• The company Frito Lay is rumored to
be introducing a new full line of
crackers by the end of second quarter.

19. • Multiple serving Packaging.
• Focused on improved taste.
• Health Conscious.

20. MARKETING
• Emphasized on Heavy Advertising.
• Promotion to the end customer and
appealing to the trade.
• Aggressive plans for pull spreading
and trade promotions.

21. DISTRIBUTION
• Effective DSD (Direct Store Delivery)
system.
• Proper Management of shelf
inventory & in-store merchandising.
• Optimizing the system to account for
longer shell life of crackers.

22. • Sought a Premium Strategy.
• Priced at 155% above category count per
ounce.
• Same retail price as that of competitors
but lesser quantity.

24. PROMOTIONAL STRATEGY OF KRISPY NATURAL

30. • ‘5’ special “Krispy Force” representatives were
hired in Columbus.
• These “Krispy Force” reps worked with
Pemberton Regional and District Sales
Managers and focused solely on selling the new
Krispy Product Line.

31. • In Southeastern cities, the company was able to
test its ability to reposition the product to a more
premium offering.
• The regular Pemberton DSD route delivery
representatives worked with regional and district
sales managers, handling sales and service of the
new Krispy Line.
and lead to…..

34. WHAT EXACTLY DOES EXPECTATION V/S REALITY
MEAN?????
OR

35. BUT ON A SERIOUS NOTE…

36. Columbus would achieve a market share of 9%.
Southeast market share will rise from 9% to 15 %.
The company hoped for 15% shelf space in both the
markets.

38.  Columbus doubled the share target,
achieving 18% market share with 30%
category expansion.
 Southeast had a slight increase to pay
just 10% with little category expansion.

40.  Columbus was able to an 18%
market share by stealing share
from other companies.
 However in Southeast the trade
was generally receptive to the
new Krispy Natural line due to
the relatively low introductory
trade case discount of 15%.

42.  The large chain headquarters buyers were impressed with the consumer research results & inventory turn
estimates.
 They also loved all the promotional activity and consumer advertising.
 The pull marketing really created a buzz and customers were coming to the stores asking for Krispy Natural
name.

44. Extensive marketing in south east countries.
Contemporize brand engagement.
Tailor the Krispy Natural to different need states.

46. CREATED BY ADITYA SHEKHAR, DURING A MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM-
LUCKNOW.