Created by Suchariitha Saravanan (Pune University) during a marketing internship under Prof. Sameer Mathur

1. Launching Krispy Natural:
Cracking the Product Management
Code

3. • Summary and analysis of test market results
• Draw conclusions from test market data
results
• Recommendation and plan for a national
rollout to Krispy natural (national market)

4. CANDLER
ENTERPRISES
Snack
Food
Division
Beverage
Division
Quick
Service
Restaurant
Division
Pet care
Division
Pemberton
Introduction
Krispy Natural

5. Pemberton Products
• Market Leader in the US cookie and
bakery snacks segment of sweet snack
market.
• Majority of Pemberton’s sales from
packaged food bars, cookies and
baked goods.
• Uses Direct Store Delivery System
(DSD).
• CAGR of 14% for revenue over the
past five years.
• $5 Billion sales in 2011.

6. Krispy Natural: Key
Members
• President: Patricia Williams.
• Chief Operating Officer – Burt
Spivey.
• Executive Vice President – Sales
and Marketing: Ashley Marney.
• Marketing Director: Brandon
Fredrick.

7. US
Cracker Industry

8. 74%
9%
9%
6%
1% 1%
Retail Cracker Sales
All Other Crackers
Saltiness with filling
Crackers with filling
Graham Crackers
Bread sticks
Matzoh Crackers

9. • Overall Cracker Industry - 2.2% CAGR increase from 2008 to
2010.
• All other Crackers – 2.1% CAGR increase from 2008 to 2010
• Estimated Sales in 2011 - $5.1 billion. (6.2% increase)

10. • Crackers with Filling – strongest segment growth with 14% in
2010.
• Estimated Sales in 2011 - $660 million. (11% increase from 2010)
• Annual growth forecasted between 10-14% in upcoming years.
• Volume sales rose from 2010 onwards.

11. Customer Analysis
A study of salty snacks in US revealed that –
• 74% consumed crackers on regular basis
34% part of their weekly diet.
• Plain standalone crackers are most
preferred.
• Packaged conveniently in portable
quantities preferred. Overall healthfulness
considered important factor in purchase
decisions.

12. Competitors Analysis
Top Us Cracker
Manufacturers
Kraft Food Inc. (Nabisco
brands)
Kellogg Co (Sunshine, Keebler,
Carrs and Austin brands.
Pepperidge Farm (Goldfish
brands).

13. Krispy Product Line
Krispy Single Serve
• Regional brand.
• Competing only in ‘all other
crackers’ segment.
• Limited Product line with 2 to 3
flavors.
Krispy Relaunch
• National Brand.
• Competing in all segments
including crackers with filling.
• Product line extended with
multiple flavors.
• Multiple Serving Package sizes.
• Healthy and superior quality
products.

14. Product Marketing
Distribution Pricing
MARKETING
STRATEGY

15. Product
• Increasing Package sizes to
multiple servings
• Improving taste
• Using Natural Ingredients
like whole wheat to meet
consumer preferences.
• Increasing Product line with
different flavors.
• Continuous R&D to
reformulate product.

17. Marketing
• Heavy advertising and promotion to end
consumer and trade.
• Aggressive plans for PULL Spending
and trade promotions.
• Price Discounts.
• More focus on Pull Strategy.

18. Pricing
• Premium Pricing Strategy
• Considered reasonable due to product
superiority.
• Price would be equal to competitors but the
quantity provided will be comparatively less.

19. Distribution
• Effective Direct Store
Delivery System (DSD).
• In process of optimizing
system to account for
longer shelf life of crackers.

21. Test Market Plan
• Sept 2011 – Product launched in two test market regions. In
Columbus, Ohio and cities in the Southeastern US.
• Krispy natural hoped to secure 15% of shelf space.
COLUMBUS / OHIO –
 No prior presence – Introducing a complete new line
 5 Representatives employed other than DSD to focus on selling the
new line.
 Projected 9% share at the end of 16 weeks.

22. SOUTHEASTERN UNITED STATES–
 Already established as Krispy Single Serve Product.
 Company repositioning product to a more premium offering.
 Projected share increase from 9% to 15%.
 DSD route delivery done by regular Pemberton representatives.
Advertising and Promotion similar for both regions.

25. • Results showed Krispy Natural to be a serious competitor in
the Cracker Industry.
• Columbus/ Ohio doubled expected share target from 9% to
18%. Increased 30% of category volume.
• Southeastern US – Slight share increase from 9% to 10%
and little category expansion.
• Trade receptive to new Krispy natural line.

28. • Krispy Natural has chances of being the market leader in Columbus
and Ohio market regions.
• Success of test results in Columbus and Ohio is due to no prior
presence in these regions helping the company to market
themselves entirely as a new brand.
• Price Discounts, Couponing and sampling have played a very
important role in the success.
• Recruiting the 5 representatives has worked very impressively
helping the organization to connect with the trade and customers
individually.

29. • Southeast Us Failure may be due to prior negative brand
presence.
• Consumers are aware of the product taste and quality
beforehand so may not give attention to the new product.
• Also the premium pricing of a product having negative
brand presence may not be encouraged.
• Trade may also not cooperate with DSD representatives.

30. Recommendations For National Roll Out
• Create strong brand presence with brand elements including
logo, tagline etc.
• Identify target audience for each product line and create
marketing strategies accordingly.
• Regions having prior brand presence to be cautious. Customers
must be well educated about the change in product quality and
flavors.
• Maintain quality and taste of product with premium pricing.

31. • Reduce discounts on products with time and check results to plan
strategies accordingly.
• Sponsor events, tradeshows for more visibility.
• Optimize Direct Store Delivery system according to product demand.
• Cover all stores in the particular region.
• 5 representatives can be employed for every region other than DSD
representatives to focus on selling the new line.
• Continuous market research to know about change in consumer taste
and preferences,
• Aggressive digital marketing particularly social media marketing for
better communication with customers.

32. Summary
I. Introduction
II. US Cracker Industry
III. Customer Analysis
IV. Competitor Analysis
V. Marketing Strategy
VI. Test Market Plan and Results
VII. Conclusion
VIII.Recommendations

33. Disclaimer
Created by Sucharitha Saravanan, ASM CSIT - Pune University
during a Marketing Internship under Prof. Sameer Mathur