The document discusses Pemberton Products, the snack food division of Candler Enterprises, which is looking to expand into the growing salty snacks market by acquiring Krispy Inc., a manufacturer of single-serve cracker packages. Market tests of Krispy's product in Columbus and the Southeast showed an increase in Krispy's market share compared to competitors like Kraft, Kellogg, and Pepperidge Farm. Pemberton aims to leverage its marketing, sales and distribution systems to help drive further growth for Krispy in the salty snacks category.

3. Changing Times
CANDLER ENTERPRISES - Multinational beverage and
snack goods manufacturer
PEMBERTON PRODUCTS – Snack food division

4. About Pemberton Products
• Snack food division
• Sold packaged food bars , cookies and other
sweet baked goods
• Market leader brands were – Softies cookies
and Homestyle muffin and doughnuts .
• Market leader in US cookie and bakery snacks
segment of the sweet market .
• Pemberton Contributes about 28% of
Candler’s total sales .

5. Key Strategic Priorities of Pemperton
• Building a collection of attractive and durable
brands .
• Leveraging leading marketing , sales and DSD
systems to increase revenue and profits .
• Building or acquiring capabilities in salty snack
categories .

6. 1. Attractive and durable brands
• Marketed as mobile “Grab and Go” snacks
strong presence in vending machines
convenience store .
• Improve product taste and quality .
• Increasing the package size .
• Made from 100% whole wheat and other
natural ingredients .
• Available in 3 flavor options .

7. 2. Marketing, sales and DSD systems
• Marketing Approach
Heavy advertising and promotion Pull strategy
• DSD ( Direct store delivery )
greater control of shelf space
Accurate forecasting
Reduced stockouts
Quicker turnover of products

8. 3. Capabilities in salty snack categories
Consumer Research
High desire for healthy products . Regular and
frequent demand . 74% consume crackers at a
regular basis . 34% consume crackers as a part of
regular weekly diet .
Competitors Analysis
KraftFood , Kellogg Co , Pepperidge Farm )
Market Tests
Columbus , Ohio , Southwest

9. Pemberton took the first step to enter the salty
cracker market . Why ?

10. • U.S. Growing Cracker Industry
• Estimated 6.9 billion in 2011 .
• CAGR of 2.2% from 2008 – 10 .
• Increased growth of 6.2% in General ( All
other ) in 2010 .
• Annual growth forecasted between 10-14%
for crackers with filling .

11. Three Largest Competitors :
1. Kraft Food Inc ( Nabisco Brands )
2. Kellogs Co.
3. Pepperidge Farm

12. 2. Research Of Salty Snacks In US
• 74 % of respondents consumed cracker on a
daily basis .
• Crackers were the top salty snacks ahead of
potato chips .
• Desire of healthy products was driving cracker
industry .

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 %

14. The Krispy Product Line
• In 2008 Pemberton entered the salty snack market with the
acquisition of Krispy Inc. who was a manufacturer of single-
serve cracker packages that competed in the cracker-with-
filling and “all other” cracker segment .
• Their Offering : A package containing 6 round toasted cracker
sandwiches with cheese filling available in 3 flavor options .
• Marketing : They marketed it as “ Grab and Go” with a major
presence in vending machines and convenience stores .

15. Result of the Campaign
Columbus Southeast
Pretest Market Post Pretest Market Post
Kraft 40 % 33 % 34 % 32 %
Kellogg 25 % 22 % 23 % 22 %
Pepperidge
Farm
11 % 10 % 10 % 10 %
Krispy 0 % 18 % 9 % 10 %
Projected sales
in 1 year 1000 min $ 550 min $

16. What is DSD reps ?
• DSD reps are representatives that “ are in the
store every week and the store managers
respect our knowledge of the business .
% stores in
distribution
% of stores
with
Gondolas
% of stores
with End
Aisle Display
Columbus 94 % 9 % 14 %
Southeast 85 % 12 % 10 %

17. More Valid Indicators

18. Marketing Strategy
• Pull marketing strategy
• Celebrity endorsement
TOM BRADY

19. Krispy Natural Marketing Strategy
• Price – Premium Pricing Strategy
• Distribution – Direct Store Delivery to
maximize shelf space

20. Partial Competitors Analysis
Company Post – Krispy Natural
trends in Columbus
Potential Competitive
Response
Kraft Lost 7 % share Short Term :
• New product testing
process
• Increase trade spending
and consumer promotions
Long Term: Spend heavily
to counter national roll-out
Kellog Lost 3 % share Short Term : Increase A&M
Long Term :
• Capitalize on pull
• Product line
improvements
Pepperidge Farm Lost 1 % share Short Term : Increase Trade
Spending
Long Term :Compete on
quality and brand
reputation .

21. DISCLAIMER
Created by Harshil Jain of Commerce College ,
Jaipur , during a marketing internship Under
Prof . Sameer Mathur , IIM Lucknow