Krispy Natural is a newly launched cracker product by Pemberton Products, a snack food division of Candler Enterprises. In a test market in Columbus, Ohio, Krispy Natural was very successful through strategies like hiring "Krispy Force" representatives and significant discounts, coupons, and sampling. However, these strategies may not work for a national rollout. The case discusses analyzing the test market results and developing a marketing strategy to properly position Krispy Natural nationally against established brands while anticipating competitive responses. Recommendations include differentiating through quality, taste, and flavors; restarting a "Grab and Go" campaign; and developing strong brand equity and loyalty.

1. Launching Krispy Natural
Cracking the Product Management Code
Harvard Business School Case

2. What is Krispy Natural?
Krispy Natural is the repositioned cracker
product of the “Pemberton Products” which is
the snack food division of “Candler Enterprises”

3. Candler Enterprises
2011 TR=$18b
Pemberton (Snack Food
Division)
2011 Revenue=$5b
Packaged Food
bar Soft Cookies
Home style
muffins &
doughnuts
Other sweet
baked goods
Pet Care Division
Multinational
Beverage
Division
Quick Service
Restaurant

4. Key Players
Ashley Marne
Executive Vice President
of sales and marketing at
Pemberton
Patricia Williams
Pemberton President
Brendon Fredrick
Marketing Director for
Pemberton
Burt Spivey
Chief Operating Officer

5. Building or
acquiring
capabilities in salty
snack category.
DSD
system to
increase
revenue
and profits
Permberton acquired Krispy Inc. in 2008 and has following priorities

6. 1)Krispy Natural, a newly launched
product to compete with the
established big brands such as
Kraft, Kelogg and Pepperidge Farm.
2)The test market results are out and
Fredrick is trying to analyze them.
3)It has already failed once, with the
launch of Krispy in 2009, positioned
as single-serve cracker package.

7. Krispy vs Competitors : Situation Analysis

8. 1)Formulate a marketing strategy to
properly advertise and position the brand
as salty cracker package to compete
established brands at national level.
2)Study the market research data and test
market results to adjust the strategy
accordingly.
3)Predict the moves of competitors and
counter the strategy they would initiate
after our product launch.
Objectives of the Case

9. 1)The overall US market was of $6.9b and
segments like crackers-with-filling were
expected to grow 10-14% per year where
the over all growth rate was 2.2 %.
2)Kraft was continuously losing share to
smaller companies and brands.
3)Consumer dissatisfaction with the flavor
and taste experience of current cracker
brands.

10. Strength
•World renowned product development labs.
•Extensive product mix.
•Owns and controls DSD.
•Innovates.
Weakness
•Longer shelf life of crackers.
•Capacity constraints of DSD for Krispy Natural
products due to truck limitations.
Opportunity
Market research shows consumer dissatisfaction
with the flavour and
taste experience of the current brands.
Threats
•Frito-lays is entering the market.
•Growth in the Southeast is slow.
•Losing market share to competitors.
SWOT
Analysis

11. Consumer Behaviour Analysis
74%
respondents
consumed
crackers on
regular basis.
34% of them
ate as a part of
regular diet.
53%
considered
overall
healthfulnes
s.
69% of
Respond
ents.
• working to improve their
physical health
51 % of
Respond
ents
• trying to lose weight.

12. Product Strategy
1)Improving taste to build the preference
of customers over competitors.
2)Expanding in multiple-serving category.
3)Indulging healthy ingredients to gain the
preference of the major American
population
• 100% Wheat
• Natural Ingredients
• Approx. 150
Calories
• 6 grams of Fiber
• 3 grams of Protein

13. KRISPY SINGLE VS
KRISPY NATURAL
KRISPY NATURAL
RE-LAUNCH
KRISPY SINGLE
SERVE

14. RESULTS WITH PRODUCT MODIFICATION

15. 1)Chose the pull strategy and trade
promotions to make the brand worthy in the
minds of the customers.
2)Keeping a premium price strategy and
applying discounts along with less quantity
of crackers in same package size.
3)Longer shelf life and efficient DSD
systems.
Promotion & Pricing

16. 1)Launching the product in Columbus, Ohio and three
cities in South-Eastern US.
2)Hiring special agents named “Krispy Force” to
market the product in Columbus but not in the other
three cities.
3)Expecting a shelf space of 15% and 9% share of the
cracker category.
TEST MARKET PLAN

17. ADVERTISING PLANS for COLUMBUS CITY

18. PROJECTIONS WITH THIS STRATEGY

19. TEST MARKET RESULTS

20. RESPONSE study

21. 1)The success of Krispy Natural in the Columbus city can be one of the outcomes of
the special “Krispy Force” representatives.
2)The positive test market results were driven by significant price discounts,
couponing, and sampling.
3)Southeast results could also be poorer because of the existing low priced
products of Krispy in the market.
4)Expanding the brand nationally won’t work on the pillars of sampling, discounting
and couponing.
5)Expecting and getting ready for the potential competitive responses with the
national roll-out.
Conclusions

22. Recommendations
1. Cover all the retail stores’ displays to catch maximum attention of the customers.
2. Keep introducing new products with varying prices so as to optimally fit maximum population without
any discounts/couponing.
3. To stick to the premium prices, the quality, taste and flavors must be good enough to break even the
costs and gain customer loyalty.
4. They should restart the “Grab and Go” campaign to have an upper hand over competitors in this
generation.
5. Develop strong brand equity and hence, loyalty among various segments before the competitive
responses.
6. A “Brand Mantra” and creative use of resources can help gain the company competitive advantage.
7. Going head on with Frito-Lay must require sharp focus on producing more line of products with flavors
favouring the target market.
8. Some incentives like couponing and “Brand Club” ideas can help the buyers of the product to get loyal
to the brand.

23. THANK YOU
Presented by Mr. Soumyaranjan Jena ,
during a marketing internship under
Professor Sameer Mathur, IIM - Lucknow
DISCLAIMER