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KRISPY NATURAL
CANDLER ENTERPRISES-
Multinational Beverage and Snack Goods
Manufacturer
PEMBERTON PRODUCTS-
SNACK FOOD DIVISION
BACKGROUND
CANDLER
ENTERPRISES
MULTINATIONAL
BEVERAGE
PEMBERTO
N
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 PEMBERTON
Market 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.
Pepperid
ge Farm.
Kellogg
Co.
MARKET SHARES
TYPE SHARE
KRISPY SALES PERFORMANCE
STRATEGIC PRIORITIES
Building 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 CONSUMERS
MINTEL STUDY
74%
respondents
consumed
crackers on
regular basis.
34% of them
ate as a part of
regular diet.
53%
considered
overall
healthfulnes
s.
FACTS AFTER SURVEY
69% of
Respondents
.
• working to improve their physical
health
51 % of
Respondents
• trying to lose weight.
KRISPY SINGLE VS
KRISPY
NATURALKRISPY 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
OBJECTIVE
National Distribution
of Crackers.
Minimum Sales of
$500 Billion
Steady State pre-
tax profit of at least
13%.
SWOT ANALYSIS
STRENGTHS: 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.

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Krispy natural case study