Pemberton acquired Krispy Inc. in 2008 to enter the salty snack market. The US cracker industry was growing, generating $6.9 billion in sales in 2011. However, Krispy was performing poorly due to limited flavors and packaging. To compete, Pemberton launched Krispy Natural crackers with more flavors, whole wheat ingredients, and multiple serving packages. The marketing strategy focused on advertising and trade promotions. The distribution strategy used a company-owned direct store delivery system. The sales objectives were to achieve $500 million in national sales and a 13% pre-tax profit through improved products and an aggressive marketing and distribution strategy.

1. Launching Krispy Natural
Cracking the Product Management Code

5. From sweet snack market,
Pemberton tried to enter the
salty snack market by acquiring
Krispy Inc. in 2008

7. ● US growing Cracker
Industry retail Cracker sale
- $6.9 billion in 2011.
● 2.2% increase in CAGR
from 2008 to 2010.
● Crackers were the top salty
snacks, even ahead of
potato chips.
US loves Crackers

8. Krispy’s Performance in 2009
But why?
● Flavour dissatisfaction

9. TIME TO FIGHT BACK !!

10. Competitors
• Kraft Food Inc.
• Kellogg Co.
• Pepperidge Farm

11. Time to be better now !!
But how ?

12. ● Regional brand
● Limited flavour options
● Limited product line.
● Multiple Serving packages.
● Targeting health conscious
consumers.
● More flavour options and
better taste experience
through research.
Krispy Single Serve v/s Krispy Natural

13. PRODUCT STRATEGY
● Increasing Package sizes to
Multiple servings
● Improving taste by introducing
new flavours
● Healthfulness – An important
Factor 100% whole wheat Natural
Ingredients

14. Marketing Strategy
● Competitors favoured to
promote products Push
Strategy
● Focus on Extensive advertising
& merchandising
● Aggressive plans for Trade
promotions Pull strategy

15. Pricing Strategy
● Considering product’s
superiority and on the basis of
‘Visual Price’
● Retail price was kept same as
competitors but quantity was
less.

16. Distribution Strategy
• Company owned superior DSD
system.
• Hired representatives being
called as ‘Krispy Force’ for proper
distribution.

17. Sales Objectives
● National Distribution of
crackers.
● Minimum Sales of $500
million.
● Steady state pre-tax profit
of at least 13 %

18. Strengths
Pemberton is already a market
leader in US. – 2:1 ratio in taste
preference.
World renowned product
development labs.
Weakness
Capacity constraints of DSD for
Krispy Natural products.

19. Opportunities
● Market research shows
consumer dissatisfaction
with flavour and taste of
current brands.
● Cracker market
fundamentals are attractive.
Threats
● Modest increase of 1% sale
in Southeast.
● Frito Lays entering into
Cracker market.

22. These slides were made by Sanjay Kumar M under the guidance
of Prof. Sameer Mathur, IIM Lucknow
Sanjay Kumar M Prof. Sameer Mathur