Krispynatural Harvard business case analysis under Prof. Sameer Mathur, remote internship IIM Lucknow

1. Launching Krispy Natural:
Cracking the Product Management
Code
Harvard Business case
study

2. Situation Analysis
Speciality of Pemberton Products?
Brandon Fredrick, marketing director of Pemberton.
Significant competition from other snack food alternatives.
Competition from other crackers manufacturers.

3. PEMBERTON PRODUCTS

4. Growth On Products
$5 billion sales (in 2011).
Owned and uses direct store delivery (DSD)
distribution system.
Achieved Compounded annual growth of 14%
(over 5 years).

5. US Cracker Industry
Retail Cracker sales, estimated - $6.9 billion in
2011.
CAGR approximately of 2.2%.
38%
4%
5%3%
50%
Market Share
General
Saltness
Crackers with fillings
Graham crackers
Other

6. Crackers with fillings
Growth of approximately 14% in 2010.
Retail sales estimated approximately, $660 million
in 2011.
Manufacturer sales of crackers

7. Krispy Single-Serve
Launched the salty single serve crackers.
Products were marketed as mobile, “Grab and Go” snacks.
The following is the plan v/s actual results.

8. (Marketing strategies)
Krispy Natural product was
re-launched

9. Distribution Pricing
MarketingProduct

10. Product purchasing intent

11. Product testing

12. Marketing
Aggressive plans for pull spending and trade
promotions.
Pemberton’s projected expenses for Krispy Natural
advertising and merchandising.

13. Expenses of other brands

14. Distribution and pricing
Distribution
Effective DSD
distribution would be
critical component.
Most trucks had
capacity to
accommodate test
market quantities.
Pricing
Retail price was
similar to
competitors.
Expectations of
minimum sales of
$500 million.

15. Brand Projections

16. Promotional Plan for 2011

17. RESULTS

18. Test market result Highlights

19. Expectations:
Columbus would achieve 9% share.
South-eastern market would rise from 9%-15% share.
Reality:
Columbus doubled the share to 18%, market category
volume increased to 30%.
South-eastern had slight increase of 10%.

20. Conclusions
The pull marketing really created a buzz and customers
were coming to stores asking for Krispy natural by name .
The positive test market were results driven by significant
price discounts, couponing and sampling.
Few also felt that the taste preference of Krispy natural were
inflated and the flavour was no better than current brand
offerings.

21. Partial Competitive analysis

22. Disclaimer
Created by Kirthi Pandey, APSCE.
During the Marketing internship
by Prof. Sameer Mathur , IIM
Lucknow