1) Pemberton was launching a new product called Krispy Natural to dominate the salty snack market, but initial market tests had mixed results. 2) A situational analysis found that test results in Ohio exceeded projections, but results in Southeast Asia fell below expectations. 3) To increase sales, the marketing strategy for Krispy Natural will need to address issues with product, marketing, distribution, and pricing based on insights from initial market research.

1. HARVARD
BUSINESS
SCHOOL
CASE
LAUNCHING KRISPY NATURAL
Cracking the
Product Management
Code

2. WHAT
IS
KRISPY
NATURAL
?

3. • Krispy Natural is the upcoming Blockbuster
Product of Pemberton which will dominate
the salty snack market.
• Pemberton was the snack food division
of Candler Enterprises, a multinational
beverage and snack goods manufacturer

4. Ashley Marne
Executive vice president of sales and marketing at
Pemberton Products
Brandon Fredrick
Marketing Director for Pemberton

5. This Test was conducted as the as the company was going to
launch its new product “KRISPY NATURAL” in the market.
SITUATIONALANALYSIS(1/2)
Pemberton conducted a market test in Ohio,Columbus as
well as other Cities of South-East Asia.
Columbus market share results were double what the
company had projected but the Southeast results fell well
below management’s expectations.

6. SITUATIONALANALYSIS(2/2)
Pemberton’s income as a sales of 2011
was-
• Sales 100.0%
• COGS 78.8%
• Brand Advertising & Marketing 7.7%
• Pretax Contribution 13.5%
• Profit After Tax 7.7%

7. PEMBERTON’S STRENGTH
• Market leader in the U.S. cookie and
bakery snacks segments of the
sweet snack market
• Utilized a company-owned direct
store delivery (DSD) distribution
system
• Culture of Innovation

8. Strategic for the Company
1)Building a collection of attractive,
durable brands
2)Leveraging leading marketing, sales
and DSD systems to increase
revenue and profits.
3)Building or acquiring capabilities in
salty snack categories

9. Why
Study
This
Case?

10. OBJECTIVES OF THE CASE(1/3)
Illustrate the design, implementation, and interpretation
of research surveys
o Evaluate primary research studies,
o Setting research objectives,
o Questionnaire design,
o Data analysis and interpretation.

11. How to increase the
sales revenue
of the products of Pemberton?

12. MARKETING
of its newly Introduced
Krispy Natural Product
In the market

13. FEW INSIGHTS
OF
THE CRACKER
SALES

14. Manufacturer sales of "All Other"
Crackers
2009% Share 2010% Share
Kraft 37.8% 37.0%
Kellogg 28.9% 28.1%
Pepperidge 13.9% 14.2%
Private Label 4.6% 4.8%
Other 14.8% 16.0%

15. Manufacturer sales of “Crackers with Filling”
Market Share
2009% Share 2010% Share
Kraft 34.7% 32.7%
Lance 31.5% 29.9%
Kellogg 15.5% 21.0%
Private Label 8.0% 8.2%
Other 10.2% 8.1%

16. Krispy Product line was launched in
• 2008
• In 3 flavour options
• Was marketed as mobile
“Grab and Go” Snacks
BUT FAILED

18. •PRODUCT
•MARKETING
•DISTRIBUTION
•PRICING

19. Insights from
its
New
Marketing strategy

20. Crackers with Filling Positive Purchase Intent % Testers that preferred taste of
KrispyNatural over leading
brand
White Cheddar 92% 78%
Smoked Gouda 77% 65%
Chipotle Cheddar 78% 64%
Creamy Swiss 80% 72%
Tomato Basil 85% 75%
Vegetable Herb 77% 50%
Flat Crackers
Smoked Cheddar 81% 61%
Sundried Tomato 80% 58%
Cracked Pepper & Olive Oil 80% 55%
Roasted Garlic 81% 59%

21. Plan 2009 Actual % to Plan Krispy
Retail $97.5 $50.8 52.1%
Krispy Vend $23.4 $18.0 76.9%
Total Krispy
Single-Serve $120.9 $68.8 56.9%