Harvard Business School Case Study

1. Launching Krispy Natural :
Cracking the Product
Management Code

2. What is Krispy Natural ?

3. Harvard Business School Case
Product Insight
3
• A new cracker product launched by Pemberton Products
• Launched in 2 markets :
1) Columbus, Ohio
2) Southeast America

4. Who is Brandon Fredrick ?
What are Pemberton Products ?

5. 5
Candler Enterprises
The snack food division of Candler Enterprises
• Pemberton Products
Marketing Director for Pemberton
• Brandon Fredrick

6. What is the
Present Situation ?

7. Launching Krispy Natural: Cracking the Product Management Code
7
Situation Analysis
In 2008, Pemberton Products, a market leader in the U.S.
cookie and bakery segment of the sweet snack market
entered the salty snack market with the acquisition of
Krispy Inc.
The failure of Krispy led to its re-launch as Krispy Natural
after continuous improvement in taste and quality along
with multiple-serving packages with more flavour options.
A test market analysis has been done with the objective
of capturing 15% of shelf space in each supermarket’s cracker
section of Columbus,Ohio and 3 cities in Southeast America.
As Pemberton plans for a national rollout of Krispy
Natural, determining the best rollout strategy while meeting
the original forecasts of $500 million need evaluation.

8. THE U.S. CRACKER INDUSTRY

9. 9
THE U.S. CRACKER INDUSTRY

10. Objectives of Pemberton ?

11. 11
Objectives
• Cross the original forecasts of $500 million and
pre-tax profit contribution of at least 13%.
• Design the best national rollout strategy for
Krispy Natural to
neutralise its competition with others.
• Maintain the same market results of Columbus,
Ohio as the company
plans a national rollout.

12. Brand Projections
700 * 13% = 91
12

13. PRODUCT INSIGHTS
AND
MARKETING STRATEGY

14. PLAN V/S ACTUAL SALES - KRISPY
14

15. KRISPY NATURAL
• R&D Labs to improve product taste and quality
• Product Rebranding
• Multiple-serving package sizes
• Cracker with filling options featuring :
• White Cheddar
• Smoked Gouda
• Chipotle Cheddar
• Creamy Swiss
• Tomato Basil
• Vegetable Herbs
15

16. Latest Consumer Taste Test
77-92% Positive Purchase Intent for
Krispy Natural Flavours
16

17. THE PULL STRATEGY
• Many companies in the cracker market favoured
a push marketing strategy to promote products.
• However, Marne’s focus on pull efforts helped
establish the Krispy Natural Brand quickly
in Columbus,Ohio.
17

18. What are the Test Market Results ?
How should the Company plan to grow
further with Krispy Natural ?

20. Test Market Results
COLUMBUS
Forecasted
9% Market Share
Actual
18% Market Share
20

21. Test Market Results
Southeast America
Forecasted
Current
Actual
9% Market Share
15% Market Share
10% Market Share
21

22. What are the key factors to be kept in mind
as the company goes national ?

23. National Rollout Analysis
Strengths of Pemberton Products
• Marketing Strategy - Advertisement and
Merchandising Expenditure
• Social Media Marketing Campaigns
• In store sampling with Coupon - Must be
maintained as the company grows nationally.
• Direct Store Delivery Distribution System.
23

24. Pemberton Break Even Analysis
The company needs to add more of “Krispy Force”
representatives in capturing national market.
It needs to cut down on its “visual price” strategy
and bring in par with its competitors, instead of offering less
quantity to the customers.
As the company faces Potential Competitive Response from
Kraft, Kelloggs and Pepperidge Farm, it needs to increase trade
spending and consumer promotions.
Also, the significant price discounts, couponing, and
sampling should be sustained at the national level.

25. These Implications will help achieve
the company’s ultimate Goal

26. DISCLAIMER
Created By Keshav Agarwal, Kirori Mal College, DU,
during a marketing internship under
Prof. Sameer Mathur, IIM Lucknow.