Created by Aritra Mondal, VIT Mumbai, during a marketing management internship under the guidance of Prof. Sameer Mathur, IIM Lucknow

1. Launching
Krispy Natural:
Cracking the Product
Management Code

2. Pemberton’s Dream Team
Patricia Williams
:President
Ashley Marne
:Executive
Vice-President
(Sales & Marketing)
Burt Spivey
:Chief Operating
Officer
(COO)
Brandon Frederick
:Marketing Director

3. Candler
Enterprises
Quick
Service
Restaurant
Multinational
Beverage
PET Care
Division
Pemberton

4. Pemberton took the step to enter Salty
Snack Market. It acquired Krispy Inc. and
plans to tweak its product and marketing
strategy to succeed.
R&D of the product to improve quality.
Product rebranded as Krispy Natural.
Product line extended for more options.
Launched the product in 2 test market
regions of Columbus, Ohio and three cities
in Southeast U.S.
Test results have been obtained to decide
the strategy to roll out the product
natinally(if at all).

5. • Analysis of
product
performance in
test market and
interpretation.
• Decision to roll out
the product
nationally.

6. • Rationalization
of future
Projections.
• Zeroing on a roll
out strategy.
• Plan to combat
rivals.

7. Product - Lines

8. US CRACKER INDUSTRY
• Estimated 6.9 billion in 2011
• CAGR of 2.2% from 2008 – 10
• Increased growth of 6.2% in General(All other) in 2010
• Annual growth forecasted between 10-14% for crackers with
filling
75
9
9
6
1
Market Share
General(All Other)
Saltines
Crackers with fillings
Graham crackers
Others
All figures are in %
Three Largest Competitors:
•Kraft Food Inc ( Nabisco
Brands)
•Kellogs Co.
•Pepperidge Farm

9. After Relaunch
Consumer’s Behavior

10. Direct Store Delivery

12. Cues from Cracker
Industry
Consumptio
n of crackers
was frequent
and regular.
A Mintel study of salty snacks in the
U.S reported that 74% of
respondants consumed crackers on
a regular basis and 34% ate them as
part of regular weekly diet.
Consumers
liked
convenient
and portable
packages.
50% of respondants liked crackers
that were conveniently packaged in
easily portable quantities.
Emergind
desire of
healthy
products.
53% respondents considered overall
healthfulness an important factor in
cracker purchase decision.

13. Cues from Cracker
Industry
Premium
priced
products
were being
introduced
.
Kraft's Nabisco Wheat Thins
Flatbread( launched in 2009) and
Kellogg's Keebler Townhouse
Flatbread(launched in 2010) were
healthier and upscale options.
Growth
was driven
by new
flavour
focussed
product
lines.
Market share for Pepperidge Farm
Goldfish grew from 13.9% to
14.2% by focussing on new
flavours.
Cracker
with fillings
were
gaining
The segment was having flat sales
from 2005 to 2009. It experienced
the strongest growth of 14%
approx in 2010. Annual growth
forecast was between 10-14% for
the next several years.

14. The following players
occupied 3/4th of
market share in 2010
-
• Kraft Food Inc
• Kellogg's
• Pepperidge Farm

15. Analysis of rivals- Some statistics
• Kraft and Kellogg's
market share was
declining.
• Kraft appeared to be
complacent as they
continued to lose share
to Pepperidge and
smaller brands.
• Launch of Krispy Natural
led to a 7% share decline
of Kraft in Columbus.
Columbus Southeast
Pretest Post Pretest Post
Kraft 40% 33% 34% 32%
Kellogg 25% 22% 23% 22%
Pepperid
ge Farm
11% 10% 10% 10%
Krispy 0% 18% 9% 10%

16. Krispy Natural Marketing
Strategy(1/2)
Product- The strategy focussed on increasing package sizes and introducing
new and healthy filling options as per the industry's preference. Internal
market research suggested consumer dissatisfaction with the flavor and taste
experience of current cracker brands.
However, the test summary shows, taste preference is less than purchase intent
and the product pricing is not included in taste test.

17. Krispy Natural Marketing
Strategy(2/2)
• Marketing- Focus on pull spending and
trade promotion to help quickly establish
the brand.
• Distribution- Optimizing the DSD
distribution would be a critical component
for the overall Krispy Natural Program
Strategy.
• Pricing- Adopted a premium pricing
strategy as per the market trends.

18. • Columbus had no prior presence of
Krispy. Here special Krispy forces
were formed seperate from DSD
route.
• They doubled the share target
achieving an 18% market share.

19. • Here, Krispy was already established as
single serve product at a lower cost.
• So it was challenging to reposition at a
premium range.
• Actual shelf space and display was below
expectations.
• Only 10% increase in market share. It
can be attributed to low introductory
trade discount of 15%.

20. If an average is taken for poor performance national extended
and good performance national extended sales of $ 775
million can be expected. However even in the worst case sales
projection is $ 550 million,well above the expectation of $ 500
million. Thus, the product should be rolled out nationally.

21. • Pull Strategy was proving to be effective and
hence to be used to combat competitors
response.
• Since price discounts, coupons and sampling
could not be sustained at a national level. It
should be aggressive in places where it was
previously positioned at a lower cost.
• Continuous R&D to come up with newer and
better flavours and strong brand building to go
head to head with Frito-Lay.

23. Created by Aritra Mondal,
VIT Mumbai, during a
marketing management
internship, by Prof. Sameer
Mathur, IIM Lucknow.