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Launching Krispy Natural:Cracking the Product Management Code
- 1. Launching Krispy Natural: Cracking the Product Management Code HARVARD BUSINESS SCHOOL CASE
- 2. Candler Enterprises A multinational beverage and snack goods manufacturer with a revenue of $18 billion in 2011. Pemberton is the snack division of Candler Enterprises.
- 3. Pemberton Products Pemberton company manufactures beverages and snacks The company operates in Pet care and quick service restaurants Smells cookies, bakery snacks and other baked items
- 4. Strategic priorities of Pemberton Products • Building a collection of attractive and durable brands • Leveraging leading marketing, sales and DSD distribution systems to increase revenue and profits • Building or acquiring capabilities in salty snack categories
- 5. Primary Goals • Increasing the sales revenue of the products • Study the marketing strategies of newly introduced Krispy Natural Product in the market
- 6. US CRACKER INDUSTRY • 74% respondents consumed crackers on a regular basis • 34% ate them as part of regular weekly diet • 53% respondents considered overall health an important factors
- 8. Launch of Krispy Single-Serve • First entered the salty snack market with the acquisition of Krispy Inc. • Marketed as mobile, “Grab and Go” snacks • Failed to execute its plans due to single line serving, taste problem
- 9. 2009 Krispy Single Sales performance Plan Actual % to plan Krispy Retail $97.5 $50.8 $52.1 KrispyVend $23.4 $18.0 $76.9 Single-Serve $120.9 $69.8 $56.9
- 10. KRISPY RELAUNCH • All shortcoming were addressed • Research and development activities increased to improve taste, quality and shelf life • Rebranded as ‘Krispy Natural’ • New marketing strategies devised to compete strongly against competitors
- 11. Krispy Single Serve vs Krispy Natural Krispy Natural Multiple servicing packages with health conscious consumers as targets More flavor options and products with more research Krispy Single Serve Regional brand with limited flavor option Limited product line
- 12. PRODUCT STRATEGY • Increasing package sizes to multiple servings • Improve taste by introducing new flavors • Healthfulness-100% whole wheat and natural ingredients
- 13. MARKETING STRATEGY • Effective, efficient and optimal adoption of pull strategy by focusing on advertising and trade promotions • Effective use of push strategy to promote products
- 14. PRICING STRATEGY • Krispy Naturals adopted the premium pricing strategy • The prices of their competitor were matched such that there less quantity for the same price so as to maintain the premium image
- 15. DISTRIBUTION STRATEGY • Hired 5 representatives called as “Krispy force for proper distribution” • Effective and efficient direct store distribution system • Optimizing product using R&D for longer shelf life
- 16. SWOT ANALYSIS STRENGTHS • World renowned product development labs • Company owned DSD WEAKNESSES • Capacity constrains of DSD for Krispy natural products
- 17. SWOT ANALYSIS OPPORTUNITIES • Market research shows great opportunity as consumers are dissatisfied with the current cracker brand taste and flavors THREATS • New competitors like Fritto-lays entering the cracker market
- 19. RELAUNCH-TESTING MARKET’S VIEW • The testing market indicates that Krispy natural has a promising future crossing sales • Annualized national projections would for sure to cross a threshold of $500 million
- 20. STRATEGIES AGAINST COMPETITORS • Optimized DSD(Direct Store Delivery) for more market share • Extensive online marketing • Associate the brand with health value • Improvise taste and introducing new flavors • Maintaining it’s premium brand image
- 21. THANKYOU
- 22. DISCLAIMER CREATED BY SHINY K, Amrita University, during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.