Pemberton, a snack food division of Candler Enterprise, acquired Krispy Inc. in 2008 to enter the salty snack market. Pemberton uses a Direct Store Delivery system to maximize sales and profits. The relaunch of Krispy Natural crackers targeted health-conscious consumers with multiple serving packages, improved taste and quality, and more flavors. Krispy Natural's marketing strategy focused on advertising, promotions, and distribution through Pemberton's DSD system. Initial results in Columbus showed 18% market share gain and forecasted national sales of over $500 million within three years.

1. LAUNCHING KRISPY
NATURAL:
CRACKING THE PRODUCT
MANAGEMENT CODE

2. CANDLER ENTERPRISE
•Pet Care Division
•Multinational Beverage
•Quick service Restaurant
And lastly…
• PEMBERTON

3. More about Pemberton
•Snack food division of Candler Enterprise.
•Majority sales through packaged food bars, cookies and
other sweet baked goods.
•Market leading brands were Softies cookies and
doughnuts.
•Contribution of $5 billion out of $18 billion of Candler’s
revenue.
•Own and uses Direct Store Delivery.(DSD)
•CAGR of 14% over the last 5 years.
Brand Extension:
•Acquisition of Krispy Inc. in 2008 and enetered the salty
snack market.

4. Three key strategic properties of company:
•Building a collection of attractive and durable brand.
•Leveraging leading market, sales and DSD system to
increase revenue and profits.
•Building or acquiring capabilities in salty snack categories.

5. More about Direct Store Delivery:
•Fairly common in the industry.
•Used for low shelf life products or products that could be
easily damaged.
•It maximized sales and profit growths.
•DSD outweighed the added costs to the products.
•It was a significant advantage over the competition.

6. US CRACKER INDUSTRY
•Estimated $6.9 billion in 2011.
•CAGR of 2.2% from 2008-2010.
•Increased growth of 6.2% in “all other” in 2010.
•Annual growth forecasted between 10-14% for crackers with fillings.
MARKET SHARES:TYPE SHARE
Saltines 9%
Crackers with fillings 9%
“All other ” 75%
Graham crackers 6%
Others 1%
Three Largest competitor:
•Kraft Food Inc.
•Kellogs co.
•Pepperidge Farms

7. 2009 Krispy Sales Performance:

8. MARKET AND CONSUMERS
According to a study by Mintel
•74% respondents consumed crackers on regular basis.
•34% ate them as a part of regular diet
•53% considered overall healthfulness.

9. The re-launch of Krsipy Natural
•There were multiple serving packages.
•It targeted health conscious consumers.
•Improved taste and quality.
All of it was different from the other brand which just offered
single serving, had a limited product line, limited flavours and
had a limited product line.

10. Krsipy Natural Marketing
Strategy
Product:
•Increased package size to multiple servings.
•Improvised taste.
•More healthy- 100% wheat and all natural ingredients.
Sales Objective:
•National Distribution of crackers.
•Minimum sales of $50 million.
•Steady state pre tax profit of at least 13%.

11. Marketing Strategy:
Marne suggested the use of PULL strategy unlike other companies who
used the PUSH strategy.
PULL STRATEGY:
•Focus on Extensive advertising and merchandising.
•Aggressive plans for Trade promotions.
DISTRIBUTION
•Relied on DSD.
•Still company was optimizing the process accounting for the longer
shelf life of the crackers.

13. MARKET SHARE

14. CONCLUSIONS
•Grabbed 18% market share in Columbus as a new entrant in
salty snack business.
•Kraft, Kellog and Pepperidge in total lost 10 % market shares,
despite the higher demands cracker products since 2010. –
6.2% for “All other ” crackers and 14% for crackers with fillings.
•Forecasted national roll out figures in Columbus and Southeast
scenario for 3rd year depicts PBT more than 13% and sales
more than $500 million.

15. POSSIBLE COMPETITIVE RESPONSE TO
“FRITTO LAYS”
•Launching more new product mix as per customer taste and
keeping health a primary concern.
•Optimization of DSD system for product cost reduction.

16. Recommended for a National Roll out
•More than 60% tasters preferred taste of Krispy natuarl over other
leading brands.
•Positive purchase intent of 81%.