Case Study

1. LAUNCHING KRISPY NATURAL

2. INTRODUCTION TO PEMBERTON
• Snack food division of Candler Enterprises
(beverage and snack goods manufacturer)
• Generated revenue of 5 Bn USD at a Profit
after tax of 7.7% (contributes 28% to
Candler’s revenue) in 2011.
• Market leader in cookie and bakery snacks
segment
• Direct Store Delivery (DSD) system to go
straight from company distribution centres
to retail outlets.
• Have dozens of plants and product
development labs.

3. PEMBERTON’S KEY PEOPLE
• Patricia Williams; President
• Burt Spivey; Chief Operating
Officer
• Ashley Marne; Executive Vice
President (Marketing & Sales)
• Brandon Fredrick; Marketing
Director

4. GETTING STARTED WITH SALTY SNACKS
• Crackers constitute a dependable
and strong segment of the salty
snacks, ahead of potato chips.
• Retail sales of crackers in 2011 stood
at 6.9 Bn USD.
• Crackers with filling largest subset
(tied with saltines) at 9% share.
• Slated to grow at 10-14% in the
coming years (strongest predicted
growth in the crackers segment)

5. SEGMENTATION OF CRACKERS
9%
9%
6%
1%1%
74%
All other
Bread sticks
Matzoh
Graham crackers
Crackers with filling
Saltines

6. I need
healthy
snacks I need tasty
snacks
Pemberton: That’ll
be my marketing
strategy! Health and
taste combined!

7. COMPETITORS
Pepperidge farm
Kraft
Kellogg

8. CATCH!
• Kraft and Kellogg are losing
market share
• Pepperidge only competitor on
growth track
• Healthier, premium priced
products set to grow
• Frito Lay set to introduce a
whole line of crackers in the
near future

9. LET’S GET STARTED!
• Pemberton acquires Krispy Inc.
• Offered crackers-with-filling
and ‘all other’ crackers
• Operated in Southeastern US
states
• Couldn’t live up to expectations

10. REVAMPED MARKETING STRATEGY
• Improved product taste and
quality
• Rebranding to ‘Krispy natural’
• Multiple serving package sizes
and more options in flavour
• Heavy advertising and
promotion to end customer
• ‘Pull’ instead of ‘push’ strategy
adopted (focus on consumers,
not retailers and distributors)

11. • Utilisation of DSD (Direct Store
Delivery) (Optimisation to
account for longer shelf life)
• Management of shelf-inventory
and in-store merchandising
• Premium pricing
• Growth rate projected at 16 and
21% in 2nd and 3rd years from
1st year sales of 500 mn USD

12. TEST MARKET PLAN & RESULTS
• Officially launched in Columbus and trio of
cities in Southeastern US.
• Aim to secure 15% shelf space in each
supermarket
• Achieved double the target set in Columbus
(18%); indicative of promising results in new
areas; ‘Krispy Force’ representatives’
instrumental, category volume up by 30%
• Did not achieve (10%) set target of 15% in
the Southeast. Indicative of hurdles in
repositioning Krispy
• Shelf space and display activity below
expectations, low introductory discount (15%)
decided as the cause
• Overall a mixed response received from sales
& channel; advertising hit the mark whereas
flavour claims found to be inflated

13. PROMOTIONAL PLAN-COLUMBUS, OHIO
1 month blitz advertising
Flighted advertising from months 2-6
‘Like Us’ campaign from months 3-5
Month 1 2 3 4 5 6
Sampling
In store
sampling
with coupon
In store
sampling
with coupon
Newspaper
sampling
Newspaper
sampling
Couponing Newspaper Shelfpad Electronic Newspaper Shelf pad

14. Month 1
Months 2-4
Months 5-6

15. GO NATIONAL?
• In favour:
• Positive purchase intent
• Over 2:1 ratio in taste
preference
• Segment set to grow at a high
rate (10-14%)
• 18% market share attained in a
place with no previous
presence

16. • Against:
• Flat crackers taste preference
ratio not as high as crackers-
with-filling
• Modest increase of 1% in the
Southeast (indicative of no
major improvement in quality)
• Threat of Frito-Lay entering
and sweeping the market

17. RECOMMENDATIONS
• Rolling out the product nationally is
recommended
• National projection at year 1 well above the
minimum sales expectations of 500 mn USD.
• Tied with and ahead of 3rd biggest
competitor ( Pepperidge Farm) in test market
areas (Southeast and Columbus,
respectively)
• Different roll out strategy for mature markets
(Southeast) recommended
• Promotional association with Theme parks,
entertainment conglomerates recommended
for reaching out to children
• Healthier versions for diabetics, elderly
people to be marketed that way;
Recommended

18. SUMMARY
• Introduction to PEMBERTON
• PEMBERTON’S Key People
• Getting Started With Salty Snacks
• Segmentation of Crackers
• Competitors
• Catch
• Let’s get started
• Revamped Marketing Strategy
• Test Market Plan and Results
• Promotional Plan; Columbus, Ohio
• Go National
• Recommendations

19. -ISHIRA MUNSHI