This is a Harvard Case study and this ppt is created by me during internship under Prof.Sameer Mathur,IIM Lucknow.

1. Launching Krispy Natural:
Cracking the Product Management
Code

2. CANDLER
ENTERPRISES
• Pemberton
Multinational Beverage and
snack goods manufacturer .It
consists of divisions-
1. Pemberton (snack food
Division)
2. Beverage Division
3. Quick Service Restaurant
Division
4. Pet Care Division

3. PEMBERTON
• Market Leader in US Cookie and
bakery snacks segments.
• Pemberton operated dozens of
plants and had world renowned
product development labs.
• “Superior taste experience”
make Pemberton distinct from
competitors like Kraft ,
Kellogg,etc.

4. PEMBERTON DSD
• Used for low shelf life products like
baked goods,high velocity products
like soft drinks,chips etc.
• DSD maximized sales and profit
growth through-
1. Greater control of shelf space
2. More accurate forecasting
3. Reduced stock-outs
4. Quicker turnover of products.

5. SWOT ANALYSIS
1. R&D Labs
2. DSD Distribution
3. Product Line
1. Attractive market
2. Consumption of
cracker frequent &
regular(74%
consumed on
regular basis & 34%
ate as weekly diet)
3. High acceptance
rate in surveys.
1. Capacity limitation
of DSD
1. Competitors like
Frito-Lay entering in
cracker markets.

6. PRIORITIES OF COMPANY
1. Building attractive & durable brand.
2. Leveraging leading marketing,sales and DSD systems to increase
revenue and profits.
3. Building or acquiring capabilities in salty snack categories.

7. U.S. CRACKER INDUSTRY
• Retail Cracker sales reached $6.9 billion in 2011.
• Saltines and Crackers with filling capture approx. 9% market share.
• Graham Cracker capture approx. 6% share.
• Bread stick and Matzoh each represent approx. 2.2% CAGR.
• The top three US Cracker manufacture are-
a) Kraft Food Inc.(Nabisco brands)
b) Kellogg Co(Sunshine,Keebler,Carrs and Austin Brands)
c) Pepperidge Farm(Goldfish brands)
• Consumption of crackers was frequent and regular.

8. “ALL OTHER” CRACKERS
• 2.1CAGR from 2008-2010.
• Retail sales ~$5.1 billion in 2011, a 6.2%
increase over 2010.
• Forecasted to grow 6-7% per year,growth
driven by healthier ,premium priced
product introduction.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Kraft Kellogg Pepperidg
e Farm
(GoldFish)
Private
Label
Others
2009% SHARE 34.70% 31.50% 15.50% 8.00% 10.20%
2010% Share 32.70% 29.90% 21.00% 8.20% 8%
Chart Title
2009% SHARE 2010% Share

9. CRACKERS WITH FILLING
• After flat sale from 2005-09,it experience
strong segment growth of ~14% in 2010.
• Annual growth forecasted ~10-14%.
• Retail sale ~$660 million in 2011(11%
increase over 2010)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Kraft Kellogg Pepperidg
e Farm
(GoldFish)
Private
Label
Others
2009% SHARE 34.70% 31.50% 15.50% 8.00% 10.20%
2010% Share 32.70% 29.90% 21.00% 8.20% 8%
Manufacturer sale of cracker with fillingMarket
share
2009% SHARE 2010% Share

10. KRISPY RELAUNCH
Krispy team changes the marketing strategy before entering in market
again-
• R&D labs engaged to improve the product taste and quality.
• Leads to rebranding of the product to Krispy Natural.
• Product Size extended beyond single serve offerings.
• Multiple Serving package sizes and more flavour option critical to gain a
foothold in supermarket and to compete with established brands.

11. KRISPY SINGLE SERVE
• In 2008 enter into salty snack market
with acquisition Krispy Inc.
• In Southeastern United States.
• Flagship product-six round toasted
cracker sandwich with cheese filling
in 3 flavour.
• Marketed as mobile “Grab and Go”
• Product underperformance as
expected.0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
$50.8 $18 $68.8
$97.5 $23.4 $120.9
Krispy Retail Krispy Vend Total Krispy Single
Serve
% TO PLAN 52.10% 76.90% 56.90%
52.10%
76.90%
56.90%
2009 Krispy Single Serve Sales Performance vs
Plan($ millions)

12. KRISPY NATURAL MARKETING
STRATEGY
Product : Krispy Focused on
increasing package sizes to
multiple servings and improving
taste.
• Krispy Natural made from
i. 100% whole wheat and
ingradient 150 calories
ii. 6gram of fiber
iii. 3 gram of protein per serving

13. MARKETING
• Emphasis on heavy advertising and
promotional and also appealing to
trade.
• Price Discount.
This shows marketing
spending by other crackers
brands.
This shows Kripsy advertising
and Merchandising (Year 3
national estimate)

14. PRICING
• Krispy Natural sought a premium
pricing strategy.
• Pricing ~155% category average
cost per ounce was reasonable
considering the product superiority.
• KRISPY expectation-
Min. sale of $500million during year
one of national distribution & Steady
state pre tax profit contribution of at
least 13%.

15. TEST MARKET PLAN AND RESULT
• In September 2011,Krispy Natural officially launched in two test market region-
1. Columbus,Ohio 2. Southeastern United State
a) Krispy brand was new a) already established as single serve
product
b) 5 special “Krispy Force” appointed b) Reposition product to a more
premium offerings
c) Focused on selling the new Krispy c)Reformulated Krispy Natural line.
Natural product line.
Columbus doubled the share target, Southeastern result were not
achieving an 18% share. Impressive, slight increase of 10%
share and little category expansion.

16. “2011”PROMOTIONAL PLAN-
COLUMBUS,OHIO

17. SALES AND CHANNEL RESPONSE
• Pemberton Sales managers were pleased and felt trade was interesting in new
offerings.
• Midwest Division Sales manager,Wanda Fitzgerald ,Felt Direct Store Delievery plays
a huge role in its success.
• The large chain headquarter buyers were particularly impressed with consumer
research result.
• Industry Analyst had less encouraging view because he believe +ve test market
result driven by discount,couponing,and sampling,which were not sustainable on
national level.
• Some in Industry felt taste claim of Krispy Natural were inflated and flavor was no
better.

18. PARTIAL COMPETITIVE ANALYSIS

19. NATIONAL ROLLOUT STRATEGY
• Promotional activities emphasizing on quality,flavour and varieties.
• Easy availability of product to consumers.
• Emphasis on Discounts , coupons and samplings.
• There should be motto and slogan of the company on which it works.
• It should work on
1.Company Social Responsibility- provides emotional attachment with
consumers.
2.Digital Marketing
3.Brand Ambassadors

20. THANK YOU

21. DISCLAIMER
Created By Tarun Kumar ,Thapar University,
during a marketing internship under
Prof.Sameer Mathur, IIM Lucknow.