hbs krispy natural
TRANSCRIPT
LAUNCHING KRISPY NATURAL:
“CRACKING”
THE PRODUCT MANAGEMENT CODE
CANDELER ENTERPRISES
QUICK SERVICE RESTAURANT PET CARE
DIVISIONSNACK FOODS
BEVERAGES
PEMBERTON FOOTPRINT
ACQUISTION OF KRISPY INC IN 2008
FIRST STEP TO ENTER THE SALTY MARKET
CONTRIBUTED TO ABOUT $5 BILLION IN SALESOWNS AND USES DIRECT STORE DELIVERY(DSD)
SNACK FOOD DIVISION
FOOD BARS, COOKIES AND SWEET BAKED FOODS
WHY PEMBERTON HAS MAINTAINED A DOMINANT MARKET SHARE-
SPECIFIC DIRECTION FOR PRODUCT DEVELOPMENT
• A CULTURE FOR INNOVATION TO BUILD A COLLECTION OF ATTRACTIVE AND DURABLE BRANDS.
• DSD SYSTEM TO INCREASE REVENUE AND PROFITS RESULTING IN COMPOUND ANNUAL GROWTH RATE OF 14%
• KEY STRATEGIC PRIORITY OF BUILDING AND ACQURINGCAPABILITIES IN THE SALTY SNACK CATEGORIES.
THE US CRACKER INDUSTRY
THE DYNAMICS OF KRISPY NATURAL PRODUCT STRATEGY
INCREASING PACKAGE SIZES TO MULTIPLE SERVINGS
IMPROVING TASTES BY
INTRODUCING NEW
FLAVOURS
CONSIDERING
HEALTHFULLNESS AND
USING NATURAL
INGREDIENTS LIKE 100%
WHOLE WHEAT.
PUSH STRATEGY WHERE COMPETIT
ORS
ARE FAVOURED TO PROMOTE
PRODUCTS
PULL STARTEGY WHERE THERE IS FOCUS
ON EXTENSIVE
ADVERTISING
, MERCHANDISING &
TRADE
PROMOTIONS
MARKETING
STRATEGY
•NATIONAL DISTRIBUTION OF CRACKERS• MINIMUM SALES OF $500 MILLION• STEADY STATE PRE-TAX PROFIT OF ATLEAST 13%
CONCLUSIONS – INTERPRETING MARKET TEST RESULTS
• GRABBED 18% MARKET SHARE IN COLUMBUS AS A NEW ENTRANT IN THE SALTY SNACK BUSINESS.
• KRAFT,KELLOG, PEPPERIDGE IN TOTAL LOST 10% OF MARKET SHARE, DESPITE OF HIGHER DEMANDS OF CRACKER PRODUCTS SINCE 2010.(6.2% FOR “ALL OTHER CRACKERS AND 14% FOR CRACKERS WITH FILLINGS)
• FORECASTED NATIONAL ROLLOUT SALES FIGURES IN COLUMBUS AND SOUTHEAST SCENARIO FOR 3RD YEAR DEPICTS PBT MORE THAN 13% AND SALES MORE THAN $500 MILLION.
POSSIBLE COMPETITIVE RESPONSES TO “FRITTO LAY”
• LAUNCHING MORE NEW PRODUCT MIX AS PER CUSTOMER TASTE AND KEEPING HEALTH AS A PRIORITY COCERN
• OPTIMISATION OF DSD SYSTEM FORKRISPY NATURAL PRODUCT FOR COST REDUCTIONS.
HENCE A NATIONAL ROLLOUT IS RECOMMENDED DUE TO THE EXISTENCE OF THE FOLLOWING KEY INDICATORS:
• POSITIVE PURCHASE INTENT OF 18%.
• MORE THAN 60% TASTERS PREFERRED TASTE OF KRISPY NATURAL OVER OTHER LEADING BRANDS.