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Launching Crispy Natural- Cracking The Product Management Code
- 1. Launching Krispy Natural Cracking The Product Management Code
- 3. Pemberton Packaged food bars, cookies and other sweet-baked goods Softies Cookies Homestyle muffins and doughnuts $5 billion in sales Owns and utilizes a direct store delivery (DSD) system
- 4. Strategic Priorities for Product Development Building a collection of attractive, durable brands Leveraging leading marketing, sales and DSD systems to increase revenue and profits Building or acquiring capabilities in salty snack categories
- 5. Retail cracker sales an estimated $6.9 billion CAGR of 2.2% from 2008-2010 Annual growth forecasted between 10- 14% Increase of 6.2% in all brands in 2010 US Cracker Industry
- 8. 2009 Krispy Sales Performance Plan 2009 Actual % to Plan Krispy Retail $97.5 $50.8 52.1% Krispy Vend $23.4 $18 76.9% Total Krispy Single-Serve $120.9 $68.8 56.9%
- 9. Mintel Study Standalone flavours were the number 1 criterion to purchase crackers. 53% considered overall healthfulness 34% ate them as a part of a regular weekly diet 34% ate them as a part of a weekly diet 74% consumed crackers on a regular basis
- 10. Responding To Market Trends Kraft Nabisco Wheat Thin Flatbread Pepperidge Farm Goldfish Kellogg Keebler Townhouse Flatbread Healthier, premium-priced products for consumers. Flavour-focused product lines
- 12. Krispy Natural Product Strategy Increased package size to multiple servings Improving taste and introducing new flavours Targeting health conscious customers
- 13. Krispy Natural Marketing Strategy Quickly establish Krispy Natural brand Aggressive plans for pull spending and trade promotions Heavy advertising and promotion Employs a Pull strategy
- 14. Krispy Natural Distribution DSD •Longer shelf life of crackers •Low storage capacity of trucks
- 15. Krispy Natural Pricing Strategy Premium pricing strategy Retail price on par with competition Less quantity in Krispy Natural Package
- 16. Sales Objectives •Nationwide distribution of crackers •Minimum sales of $500 million
- 17. S Strengths • World renowned product development labs. • Extensive product mix. • Owns and controls DSD. • Innovates. W Weaknesses • Longer shelf life of crackers. • Capacity constraints of DSD for Krispy Natural products due to truck limitations. T Threats • Frito-lays is entering the market. • Growth in the Southeast is slow. • Losing market share to competitors. O Opportunities Market research shows consumer dissatisfaction with the flavor and taste experience of the current brands.
- 18. Interpreting Market Results Kraft, Kellogg and Pepperidge lost a total of 11% share despite the market demand 18% share in Columbus market as a new entrant
- 19. Competing with Frito-Lay Encourage health awareness as main concern Optimize DSD system with cost reduction Launch new products
- 20. National Rollout Recommended due to positive response in market test results
- 21. Summary • Background Information • Pemberton • US Cracker Industry • Krispy Sales Performance • Responding To Market Trends • Krispy Natural Marketing Strategy • SWOT Analysis • Interpreting Market Results • Competing with Frito-Lay • National Rollout
- 23. DISCLAIMER Created by Swaha Kar, MIT Manipal, during a Marketing Internship under the guidance of Professor Sameer Mathur, IIM Lucknow.