Pemberton Snack Foods launched a new cracker product called Krispy Natural to crack into the snack market. The original Krispy Single Serve product failed due to limited flavors and poor taste. Krispy Natural was redeveloped with improved taste, multiple package sizes, and a focus on being 100% natural and healthy. It utilized Pemberton's direct store delivery system and promotional advertising. In test markets, Krispy Natural gained 18% market share in Columbus and a slight increase to 10% in the Southeast, outperforming competitors. The company plans a national rollout.

1. Launching Krispy Natural : Cracking
The Product Management Code
HARVARD CASE STUDY

3. PEMBERTON WAS THE SNACK FOOD DIVISION OF
CANDLER ENTERPRISES , A MULTINATIONAL
BEVERAGE AND SNACKS FOOD MANUFACTURER.

4. ELITE MEMBERS
PATRICIA WILLIAMS : PRESIDENT
ASHLEY MARNE : EXECUTIVE VICE
PRESIDENT
BURT SPIVEY : CHIEF OPERATING
OFFICER
BRANDON FREDERICK : MARKETING
DIRECTOR

5. PEMBERTON PRODUCTS
Majority of Pemberton’s sales are :
Packaged food bars , cookies.
Sweet baked goods.
Homestyle Muffins
Soft cookies
Doughnuts

6. Pemberton contributed
5 billion$ in Candler’s
revenue in 2011
LEADING MARKET BRANDS
PETCARE DIVISION RESTAURANTS BEVERAGE DIVISION

7. DIRECT STORE DELIVERY
 This distribution system helped in delivering products directly to retail outlets,
by Passing Retailer’s warehouses and distribution centers.
 It is mainly used to transport low shelf life products like baked goods , high
Velocity products Like soft drinks or products that could be easily damaged that
are handled too many times Like chips.
 This system maximized sales and profit growth , reduced stock- outs and quick
turnover of Products.

8. THREE KEY STRATEGIES FOR THE COMPANY BY PATRICIA WILLIAMS
1. Building a collection of attractive , durable brands.
2. Leveraging leading marketing sales and DSD systems to
increase revenue and profits.
3. Building or acquiring capabilities in salty snack categories.

9. U.S. CRACKER INDUSTRY
 Retailer crack sales in US reached an estimated
6.9 billion$ in 2011.
 Retail crackers with filling had an approximately
9% market share.
 The growth rate of overall cracker industry was
approximately 2.2% CAGR From 2008-2010.

11. COMPETITOR MARKETS
NABISCO
BRANDS
KRAFT FOOD INC.
SUNSHINE,
KEEBLER,
KARRS,
AUSTIN
BRANDS
KELLOGG CO.
GOLDFISH
BRANDS
PEPPERIDGE FARM

12. MINTEL STUDY
74%
26%
 A Mintel study reported that 74% consumed
crackers on a regular basis.
 26% ate them as a part of regular diet.
A survey of salty snacks in United States

13. PRODUCT LINES
KRISPY SINGLE SERVE
 It was introduced in 2008 by Pemberton with the acquisition of
Kraft Foods Inc.
 The distribution was focused primarily in the South Eastern
United States.
 The product contained six round toasted cracker sandwiches
With cheese filling available in 3 flavors.
 Krispy products are marketed as mobile or in vending machines
And convenience stores.

14. WHY DID IT FAIL
 Limited product line – so no command over
Supermarkets
 Taste- A taste survey showed that the product
did not deliver the Flavor scores that were
expected.

15.  It targeted health conscious customers.
 Extending product line beyond single serve and introducing more
Flavors.
 Pemberton R&D labs were engaged to improve the taste and quality.
 Rebranding as ‘ KRISPY NATURAL’.

16. KRISPY NATURAL

17. PRODUCT MARKETING
DISTRIBUTION PRICING

18. PRODUCT
 The product strategy is that they focused on increasing package sizes
to multiple servings.
 Improving taste so that more and more consumers would prefer Krispy
Natural to competitor brands.
 Pemberton R&D lab worked tirelessly to reformulate the product.

19. KRISPY NATURAL IS HEALTHY
 100% Wheat
 All natural ingredients
 Approximately 150 calories
 3 grams of fiber
 6 grams of protein

21. MARKETING
1. PUSH AND PULL
STRATEGY
2. ADVERTISING AND
PROMOTION

25. Promotional Funny Advertisements Through

26. DISTRIBUTION
 The company owned effective
DSD system .
 It hired special ‘Krispy Force’
representatives In Columbus region.

27. DIRECT STORE DELIVERY

29. PRICING
Considering product superiority and On ‘Visual Price’ basis
it maintained a same retail price similar to its Competitors
but the quantity was less.

30. MARKET RESULTS
 It was seen that Columbus doubled the share target by
achieving a 18% share.
 While the southeast results were not as impressive with
a slight increase To 10% share and a little category expansion.

32. How should the company respond
to “Frito- Lay” ?
 Launching more product mix as per customer
taste and keeping health as a Priority concern.
 Optimization of DSD system for Krispy natural
Product for cost reductions.

33. CONCLUSION
 Grabbed 18% market share in Columbus as a new entrant
in salt snacks business.
 Forecasted National roll out sales figures in Columbus and
Southeast scenario for the 3rd year depicts PBT more than
13% and sales more than $500million.
 Kraft, Kellogg and Pepperidge in total lost 10% of market share
despite of higher demands Cracker products since 2010.

34. CONCLUSION
Created by Arekatla Harshit of VNIT Nagpur,
during marketing internship Under professor
Sameer Mathur , IIM Lucknow.