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KRISPY NATURAL
MAKING A MOVE IN SALTY SNACK SEGMENT
OBJECTIVES
 An idea by Pemberton for the next generation
 To launch a blockbuster product
 Dominate the salty snack market.
ABOUT THE COMPANY
 Snack food division of Candler Enterprises
A multinational beverage and snack food manufacturer
Majority of revenues from snack bars, cookies and sweet baked goods
CANDLER
ENTERPRISE
PEMBERTON
PRODUCTS
SOFTIES
COOKIES
HOME
STYLE
MUFFINS
& DONUTS
KRISPY
NATURAL
Pemberton’s income as a percent of sales in 2011 :
 Competitive advantage: ability to create products that provide superior taste experience.
Utilized DSD(direct store delivery) distribution system : delivery goods directly to retail outlets, distribution centres.
CULTURE OF INNOVATION
Company’s driving force is its culture of innovation.
KEY STRATEGIC PROPERTIES
BUILDINGA
COLLECTION
OF ATTRACTIVE
DURABLE
BRANDS
LEVERAGING
LEADING
MARKETING,
SALESAND
DSD SYSTEMS
TO INCREASE
REVENUEAND
PROFITS
BUILDINGOR
ACQUIRING
CAPABILITIES
IN SALTY
SNACK
CATEGORIES
CHALLENGES
The U.S Cracker industry
Purchasing intent
Competitor analysis
THE U.S CRACKER INDUSTRY
Retail cracker sales in the U.S- $6.9 billion in 2011.
A mintel study of salted snacks in the U.S reported- 74% of the respondents consumed crackers on a regular
basis and 34% on a regular weekly basis.
53% of the respondents considered overall healthfulness while purchasing cracker.
Sales
All other Saltines Crackers with fillings
75%
9%
9%
THE U.S CRACKER INDUSTRY
PURCHASING INTENT
COMPETITOR ANALYSIS
COMPETITORSOF
KRISPY NATURAL
KRAFT FOOD INC
KELLOGG CO.PEPPERFRIDGE FARM
THEY ACCOUNT FOR NEARLY 75% OF
THE CRACKER MARKET IN 2010
SALES OBJECTIVE
National distribution of crackers
Sales of approximately $500 million
KRISPY PRODUCT LINE
KRISPY SINGLE SERVE KRISPY RELAUNCH
• Regional brand
• Limited variants
• Limited product line
• Multiple serving packages
• Serving health conscious consumers
• Expanded product line
MARKETING STRATEGY
PRODUCT:
• Increase package size to serve multiple servings
• Made from 100% whole wheat
• Health conscious
MARKETING STRATEGY
MARKETING:
• Pull strategy and trade promotions
• Heavy advertising
• Price discounts with trade spending leading to 15-20% sales.
MARKETING STRATEGY
DISTRIBUTION:
• Effective DSD system
• Optimizing the system to account for the longer shelf life of products
MARKETING STRATEGY
PRICING:
• Sought a premium pricing strategy
• On the basis of visual price basis, it would be at par with competition
TEST RESULTS
Krispy Natural was launched in two test regions: Columbus, Ohio, and a trio of cities in the South eastern
United States.
In Columbus, the Krispy brand did not have any prior presence, so the company was able to assess its ability to
sell a completely new line of cracker products.
In the Southeast, Krispy was already established in the market as a single-serve product; was able to test the
ability to offer at a premium price.
STRATEGY AGAINST FRITO LAYS
Continuous innovation
Premium pricing offering benefits different from lays
Utilization of DSD
Trade promotions to create presence
Celebrity endorsements
SUMMARY
Analysis of Candler Enterprises
Launching of Krispy Natural- salty snack segment
Sales objective of the new product
Different marketing strategies
Future threat of lays
DISCLAIMER
 Created byAbhinav Malik, IFMR Sri City , during a marketing internship under
Prof. Sameer Mathur, IIM Lucknow.
(See www.IIMinternship.com)

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Krispy natural presentation

  • 1. KRISPY NATURAL MAKING A MOVE IN SALTY SNACK SEGMENT
  • 2. OBJECTIVES  An idea by Pemberton for the next generation  To launch a blockbuster product  Dominate the salty snack market.
  • 3. ABOUT THE COMPANY  Snack food division of Candler Enterprises A multinational beverage and snack food manufacturer Majority of revenues from snack bars, cookies and sweet baked goods CANDLER ENTERPRISE PEMBERTON PRODUCTS SOFTIES COOKIES HOME STYLE MUFFINS & DONUTS KRISPY NATURAL
  • 4. Pemberton’s income as a percent of sales in 2011 :  Competitive advantage: ability to create products that provide superior taste experience. Utilized DSD(direct store delivery) distribution system : delivery goods directly to retail outlets, distribution centres.
  • 5. CULTURE OF INNOVATION Company’s driving force is its culture of innovation. KEY STRATEGIC PROPERTIES BUILDINGA COLLECTION OF ATTRACTIVE DURABLE BRANDS LEVERAGING LEADING MARKETING, SALESAND DSD SYSTEMS TO INCREASE REVENUEAND PROFITS BUILDINGOR ACQUIRING CAPABILITIES IN SALTY SNACK CATEGORIES
  • 6. CHALLENGES The U.S Cracker industry Purchasing intent Competitor analysis
  • 7. THE U.S CRACKER INDUSTRY Retail cracker sales in the U.S- $6.9 billion in 2011. A mintel study of salted snacks in the U.S reported- 74% of the respondents consumed crackers on a regular basis and 34% on a regular weekly basis. 53% of the respondents considered overall healthfulness while purchasing cracker.
  • 8. Sales All other Saltines Crackers with fillings 75% 9% 9%
  • 9. THE U.S CRACKER INDUSTRY
  • 11. COMPETITOR ANALYSIS COMPETITORSOF KRISPY NATURAL KRAFT FOOD INC KELLOGG CO.PEPPERFRIDGE FARM THEY ACCOUNT FOR NEARLY 75% OF THE CRACKER MARKET IN 2010
  • 12. SALES OBJECTIVE National distribution of crackers Sales of approximately $500 million
  • 13. KRISPY PRODUCT LINE KRISPY SINGLE SERVE KRISPY RELAUNCH • Regional brand • Limited variants • Limited product line • Multiple serving packages • Serving health conscious consumers • Expanded product line
  • 14. MARKETING STRATEGY PRODUCT: • Increase package size to serve multiple servings • Made from 100% whole wheat • Health conscious
  • 15. MARKETING STRATEGY MARKETING: • Pull strategy and trade promotions • Heavy advertising • Price discounts with trade spending leading to 15-20% sales.
  • 16. MARKETING STRATEGY DISTRIBUTION: • Effective DSD system • Optimizing the system to account for the longer shelf life of products
  • 17. MARKETING STRATEGY PRICING: • Sought a premium pricing strategy • On the basis of visual price basis, it would be at par with competition
  • 18. TEST RESULTS Krispy Natural was launched in two test regions: Columbus, Ohio, and a trio of cities in the South eastern United States. In Columbus, the Krispy brand did not have any prior presence, so the company was able to assess its ability to sell a completely new line of cracker products. In the Southeast, Krispy was already established in the market as a single-serve product; was able to test the ability to offer at a premium price.
  • 19. STRATEGY AGAINST FRITO LAYS Continuous innovation Premium pricing offering benefits different from lays Utilization of DSD Trade promotions to create presence Celebrity endorsements
  • 20. SUMMARY Analysis of Candler Enterprises Launching of Krispy Natural- salty snack segment Sales objective of the new product Different marketing strategies Future threat of lays
  • 21. DISCLAIMER  Created byAbhinav Malik, IFMR Sri City , during a marketing internship under Prof. Sameer Mathur, IIM Lucknow. (See www.IIMinternship.com)