KRISPY NATURAL

CANDLER ENTERPRISES-Multinational Beverage and Snack

Goods Manufacturer

PEMBERTON PRODUCTS-SNACK FOOD DIVISION

BACKGROUND

CANDLER ENTERPRISE

S

MULTINATIONAL BEVERAGE

PEMBERTON

QUICK SERVICE RESTARUANT

PET CARE DIVISION

PEMBERTON FOOT PRINT

Snack Food Division

Food Bars ,Cookies And Sweet Baked Foods

Softies Cookies

Home Styles , Muffins And Doughnuts

5 Billion Sales in

2011

Own And Uses Direct

Store Delivery

MORE ABOUT PEMBERTONMarket leader in the

U.S. cookie and bakery snacks

segments.

Contribution of $5 Billion out of $18

Billions of Candler’s Revenue.

CAGR of 14% over the last 5 years.

The company’s driving force was its culture of innovation.

PEMBERTON

PEMBERTONS TURNING POINT

OAcquisition Of Crispy Inc. in 2008-First Step to

Enter Salty Snack Market.

US CRACKER INDUSTRY

Estimated $6.9 Billion in 2011.

The growth rate for the overall cracker industry from 2008 to 2010 was approximately 2.2% CAGR.

TOP THREE CRACKER MANUFACTURERS

Kraft Food Inc.

Pepperidge Farm.

Kellogg Co.

MARKET SHARES

TYPE SHARE

KRISPY SALES PERFORMANCE

STRATEGIC PRIORITIESBuilding a collection of attractive, durable brands.

Leveraging leading marketing, sales and DSD systems to increase revenue and profits.

Building or acquiring capabilities in salty snack categories.

MARKET AND CONSUMERSMINTEL STUDY

74% respondents

consumed crackers on

regular basis.

34% of them

ate as a part of regular

diet.

53% considered overal

l healthfulness.

FACTS AFTER SURVEY

69% of Responden

ts.• working to improve their

physical health

51 % of Responden

ts• trying to lose weight.

KRISPY SINGLE VSKRISPY

NATURAL

KRISPY NATURAL RE-

LAUNCH

KRISPY SINGLE SERVE

PRODUCT STRATEGY

MARKET STRATEGY

DISTRIBUTION

1)Long Shelf life of Crackers.

2)Present Capacity of Trucks Poor.

3)Pemberton Hired “KRISPY FORCE” for distribution System

SALES OBJECTIVE

SALES OBJECTIVENational Distribution of

Crackers.

Minimum Sales of $500 Billion

Steady State pre-tax profit of at least 13%.

SWOT ANALYSISSTRENGTHS: 1)World renowned product

development labs. 2)Product mix.

WEAKNESSES: 1)Capacity constraints of DSD for Krispy Natural

Products..OPPURTUNITIES:1)Cracker Market

fundamentals were attractive.2)Market Researchers

show consumer dissatisfaction with present cracker brands.THREATS: 1)Fritto-Lays entering the cracker market.

2)1% sale increase in south-east.

PROS AND CONS

PROS: 1)Positive purchase intent.2)Over 2:1 ratio in taste preference.3)To grow over 10-14% ratio in next several years.

CONS: 1)Modest increase of 1% in south-east.

2)Uncertainty of Fritto-Lays Entering the market.3)Flat crackers taste preference fell below 1:2 ratio.

THANK YOU

Disclaimer

Created by Bikumalla . Prudhvi Raj ,NIT GOA during a Marketing Internship ,by Prof . Sameer Mathur ,IIM Lucknow.