The document discusses launching Krispy Naturals crackers into the salty snack market. It analyzes the $6.9 billion cracker market and competitors like Kraft, Kellogg, and Pepperidge Farm that control 75% of the market. The document recommends a premium pricing strategy for Krispy Naturals and leveraging Pemberton's effective Direct Store Delivery system and product development capabilities to gain an 18% market share in 3 years with $500 million in sales.

1. “CRACKING THE PRODUCT MANAGEMENT CODE”
LAUNCHING KRISPY
NATURALS

3. GOALS & OBJECTIVES
PEMBERTON : INTRODUCTION
CONCLUSION
MARKET ANALYSIS
KRISPY NATURALS MARKET STRATEGIES

5. PEMBERTON
FOOTPRINTS
SNACK
FOOD
DIVISION
FOOD
BARS,
COOKIES
5
BILLION
SALES IN
201114%
CAGR
7.7%
PROFIT
AFTER
TAX
DIRECT STORE
DELIVERY
DISTRIBUTION
SYSTEM
MARKET
LEADER IN
COOKIE AND
BAKERY
ACQUISITION
OF KRISPY
INC. IN 2008

6. STRATEGIC PRIORITIES
BUILDING A COLLECTION OF ATTRACTIVE,
DURABLE BRANDS
BUILDING OR ACQUIRING CAPABILITIES IN
SALTY SNACK MARKETS
LEVERAGING LEADING MARKETING, SALES AND
DSD SYSTEMS TO INCREASE REVENUES AND
PROFITS

8. HOWTOLAUNCH AND SUSTAIN THE GROWTH OF KRISPY
NATURALS IN SALTY SNACK MARKETS?

11. ESTIMATED 6.9 BILLION IN 2011
CAGR OF 2.2% FROM 2008 - 2010
INCREASED GROWTH OF 6.2% IN GENERAL
(ALL OTHER) IN 2010
ANNUAL GROWTH FORECASTED BETWEEN 10 –
14% FOR CRACKERS WITH FILLINGS

12. MARKET SHARE
Sales
GENERAL (ALL
OTHER)
SALTINES
CRACKERS
WITH FILLINGS
GRAHAM
CRACKERS
OTHERS
9%
9%
6%
1%
75%

13. 2009 KRISPY SALES PERFORMANCE
PLAN 2009 ACTUAL % TO PLAN
KRISPY RETAIL $97.50 $50.80 52.10%
KRISPY VEND $23.40 $18.00 76.90%
TOTAL KRISPY
SINGLE SERVE
$120.90 $68.80 56.90%

15. KRAFT FOODS INC. KELLOG CO. PEPPERFRIDGE FARM
THEY ACCOUNTED FOR 75% OF THE
CRACKER MARKET IN 2010

19. MULTI SERVE PACKAGING
FOCUSED ON IMPROVING TASTE
FOR HEALTH CONSCIOUS

21. SOUGHT AT PREMIUM STRATEGY
PRICED AT 155% ABOVE AVERAGE COST PER OUNCE
SAME COMPETITION PRICE BUT LESS
QUANTITY

23. PUSH STRATEGY
PULL STRATEGY
COMPETITORS FAVOURED TO
PROMOTE PRODUCTS
• FOCUS ON EXTENSIVE ADVERTISING
AND MERCHANDISING
• AGGRESSIVE PLANS FOR TRADE
PROMOTIONS

25. EFFECTIVE DSD ( DIRECT STORE
DELIVERY) SYSTEM
PROPER MANAGEMENT OF SHELF INVENTORY
AND IN STORE MERCHANDISING
OPTIMIZING THE SYSTEM TO ACCOUNT
FOR LONGER SHELF LIFE OF CRACKERS

26. STRENGTHS
• PRODUCT MIX
• EFFECTIVE DSD
• WORLD RENOWNEND
PRODUCT DEVELOPMENT
LABS
WEAKNESSES
• CAPACITY CONSTRAINTS
OF DSD FOR KRISPY
NATURAL CRACKERS
OPPORTUNITIES
• ATTRACTIVE CRACKER
MARKET
FUNDAMENTALS
THREATS
• FRITTO LAYS ENTERING
THE CRACKER MARKET

27. GRABBED 18% MARKET SHARE IN
COLUMBUS AS A NEW ENTRANT IN
SALTY SNACK BUSINESS
FORECASTED NATIONAL ROLL OUT SALES FIGURE
IN COLUMBUS AND SOUTHEAST SCENARIO FOR 3RD
YEAR DEPICTS PBT MORE THAN 13% AND SALES
MORE THAN $500 MILLION
KRAFT, KELLOG AND PEPPERFRIDGE IN
TOTAL LOST 10% MARKET SHARE DESPITE
HIGHER DEMANDS SINCE 2010