LAUNCHING KRISPY NATURAL : CRACKING THE PRODUCT MANAGEMENT CODE CASE STUDY
LAUNCHING KRISPYNATURAL : CRACKINGTHE PRODUCTMANAGEMENT CODE
CASE STUDY
introduction
PEMBERTON WAS THE SNACK FOODDIVISION OF CANDLER ENTERPRISES, AMULTINATIONAL BEVERAGE AND SNACKGOODS MANUFACTURER
main players
CANDLER ENTERPRISESSnack food division
Beverage division
Quick service restaurant
Pet care division
PEMBERTON PRODUCTSFood bars, cookies and sweet baked foods
Softies cookies
Homestyle muffins
Doughnuts
PEMBERTON FOOTPRINTSDirect Store Delivery (DSD System)
Representatives performed critical merchandising functions
U.S. CRACKER INDUSTRYCAGR : 2.2% from 2008-2010
Reached 6.9 billion in 2011
Crackers with fillings sector is expected to grow 10-14% in next few years
KRISPY SALES PERFORMANCE(2009)
COMPETITORS
MARKET AND CONSUMERSMINTEL STUDY
74% respondents consumed crackers on regular basis.
34% ate them as part of regular diet.
53% considered overall healthfulness.
KRISPY PRODUCT LINE
KRISPY SINGLE-SERVE
&
KRISPY RELAUNCH
PRODUCT STRATEGYMultiple Servings
New Flavours
Healthfulness
MARKETING STRATEGYPULL STRATEGY helped in quick establishment of the brand.
Aggressive plans for PULL spending and trade promotions with pervasive price discounts.
DISTRIBUTION STRATEGY
DSD System was not suitable for Cracker business.
Optimization for longer shelf life of crackers.
Krispy Natural sought a premium pricing strategy.
Prices were fixed by considering the product’ssuperiority.
Minimum sales of $500 million.
National distribution of crackers.
Steady state pre-tax profit of atleast 13%.
SWOT ANALYSIS
STRENGTH
DSD
R&D LABS
PRODUCT MIX
WEAKNESS
CAPACITY CONSTRAINTS
OPPORTUNITIES
CONSUMER DISSATISFACTION WITH CURRENT
BRANDS
THREAT
COMPETITORS AND THE SOUTHEAST
CONSUMERS’ NEGATIVE RESPONSE
LEVERAGE
PROBLEMS
SALES CHANNEL AND RESPONSE
1• The PULL marketing was successful
2• But, a less sustainability on a National Level
3
• The flavour was no better than the current brandings
RAMP-UP TONATIONAL ROLLOUT?
INDICATIONS
Positive purchase intent of 81%
Crackers with filling preferred on a ratio of 2 : 1
CONTRADICTIONS
Entry of Frito-lays into the market
Varying consumer preferences and the competitor’s products may decrease the sales
SUMMARY
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•INTRODUCTION•COMPANY BACKGROUND
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•PRODUCTS & COMPETITORS•MARKETING STRATEGY
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•MARKET ANALYSIS•NATIONAL ROLLOUT
DISCLAIMERCreated by Divya Priya K, PSG College of Technology,Coimbatore, during a marketing internship byProf. Sameer Mathur, IIM Lucknow.