launching krispy natural : cracking the product management code

TEAM PLAYERS

Patricia Williams President

Burt SpiveyChief Operating Officer

Ashley MarneExecutive Vice-President,Sales and Marketing

Brandon Fredrik Marketing Director

CANDLER ENTERPRIZES –

Multinational beverage and snacks good manufacturer

PEMBERTON PRODUCTS –

Snack food division

ABOUT PEMBERTON PRODUCTS

Strategic Priorities of Pemberton

Building strong brand values in salty snack categoriesBuilding a collection of attractive and durable brandsApplying Leadership Marketing and DSD to increase the revenue and overall profit.

From Sweet snack Market , Pemberton tried to Enter the Salty Snack market by acquiring Krispy Inc. in 2008.

US loves Crackers

US growing cracker industry retail cracker sale - $6.9 billion in 2011.2.2% increase in CAGR from 2008 to 2010.74% respondents consumed crackers on daily basis.Crackers were top salty product ahead of Potato chips.

KRSIPY disappointed everyone in 2009.

Due to limited product line.Due to flavor dissatisfaction.

Product strategy

Improving taste by introducing new flavors.Increasing package sizes to multiple servings.Healthfulness.100% whole wheat Natural gradients.

Marketing Strategy

Push strategy-Competitors favored to promote product.

Pull strategy-Focus on extensive advertising and merchandising.Aggressive plan for trade promotions.

Pricing strategy

Considering product’s superiority and on the basis of ‘Visual price’ , retail price was kept same as competitors but

quantity was kept low.

Distribution strategy

Company owned superior DSD system .Hired representatives being called as “Krispy Force” for proper Distribution.

Sales Objective

Minimum sales of $500 million per year.National distribution of crackers.Steady state pre-tax profit of nearly 13%.

CONCLUSION

Grabbed 18% market share in Columbus as a new entrant.Other three competent lost in total 10% of market share despite of higher demand of crackers since 2010.Forecasted National roll out sales figure in Columbus and Southeast scenario for 3rd year depicts PBT more than 13% and sales more than $500 millions.

Disclaimer

Created by Manish Kumar , NIT Patna During a marketing internship under the guidance of prof. Sameer Mathur , IIM Lucknow.