Pemberton, a leading bakery company, acquired Krispy Inc. in 2008 to enter the salty snack market. However, Krispy disappointed with limited product lines and flavors. To revitalize Krispy, Pemberton developed Krispy Natural with whole wheat ingredients, multiple package sizes, and new flavors based on research. Their marketing strategy included both push strategies like advertising and pull strategies like promotions. In their first year in Columbus, Ohio, Krispy Natural gained 18% market share, showing potential for national expansion.

1. Launching Krispy Natural
Cracking the Product Management Code

2. Pemberton
Cookies
and bakery
products
CAGR of
14% for
revenue for
the past 5
years
Owns DSD
System
5 billion
revenue in
2011

3. Fromsweetsnackmarket,Pembertontriedto
enterthesaltysnackmarketbyacquiringKrispy
Inc.in2008

4. But
why?

5. US loves Crackers
1. US growing Cracker Industry retail Cracker
sale - $6.9 billion in 2011.
 2.2% increase in CAGR from 2008 to 2010.
74% respondents consumed crackers on daily
basis.
Crackers were the top salty snacks ahead than
potato chips.
Desire for healthy products was driving cracker
industry

6. Krispy disappointed everyone in 2009
But why?
Limited product line
Flavour dissatisfaction

7. We believe in
Krispy, Let’s fight
back!

8. Competitors
• Kraft Food Inc.
• Kellogg Co.
• Pepperidge Farm

9. How will
Krispy be
better this
time?

10. Krispy Single Serve v/s Krispy Natural
 Regional brand
 Limited flavour options
 Limited product line.
 Multiple Serving
packages.
 Targeting health
conscious consumers.
 More flavour options
and better taste
experience through
research.

11. PRODUCT STRATEGY
Increasing Package sizes to Multiple
servings
Improving taste by introducing new
flavours
Healthfulness – An important Factor
100% whole wheat Natural Ingredients

12. Marketing Strategy
• Competitors favoured
to promote products
Push
Strategy
• Focus on Extensive advertising &
merchandising
• Aggressive plans for Trade
promotions
Pull
strategy

13. 2011 Promotional Plan- Columbus,Ohio

14. Pricing Strategy
• Considering product’s superiority and on
the basis of ‘Visual Price’, retail price was
kept same as competitors but quantity
was less.

15. Distribution Strategy
• Company owned superior DSD
system.
• Hired representatives being called as
‘Krispy Force’ for proper distribution.

16. Sales Objectives
National Distribution of crackers.
Minimum Sales of $500 million.
Steady state pre-tax profit of at least
13 %

17. And They did it..

18. Potential Competitive Responses
• Short term
• New product testing in process.
• Increase A&M.
• Increase trade spending and consumer promotions.
• Long term
• Spend heavily to counter national roll-out.
• Capitalize on pull.
• Product line improvements.
• Compete on quality and brand reputation.

19. How should the company respond to
“Frito-Lay”?
• Launching more new product mix as per
customer taste and keeping health as a
priority concern.
• Optimization of DSD system for Krispy natural
product for cost reductions.

20. Strengths
 Pemberton is already a market leader in US. –
 2:1 ratio in taste preference.
 World renowned product development labs.
Weakness
 Capacity constrains of DSD for Krispy
Natural products.

21. Opportunities
 Market research shows consumer dissatisfaction
with flavour and taste of current brands.
 Cracker market fundamentals are attractive.
Threats
Modest increase of 1% sale in Southeast.
Frito Lays entering into Cracker market.

22. Conclusion
 Grabbed 18% market share in Columbus as a new
entrant in salty snacks business.
 Kraft, Kellogg and Pepperidge in total lost 10% of
market share, despite of higher demands cracker
products since 2010 . ( 6.2% for “All other crackers
and 14% for cracker will fillings).
 Forecasted National roll out sales figures in
Columbus and Southeast scenario for 3rd year
depicts PBT more than 13 % and sales more than
$500 millions.

23. CREATED BY GURNOOR KAUR, THAPAR UNIVERSITY, PATIALA, DURING
A MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM,
LUCKNOW.
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