Launching Krispy NaturalCRACKING THE PRODUCT MANAGEMENT CODE

Problem of the Case

Krispy Natural

Candler Enterprise

s

Quick Service

Restaurant

MultinationalBeverage

PET Care Division

Pemberton

PembertonSnack Food Division

Food Bars and Cookies 5 Billion Sales

Softies Cookies Doughnut

sUsing Direct Store Delivery

Strategic Priorities of Pemberton

• Building strong brand values in salty snack categories

• Applying leading marketing and DSD systems to increase the revenues and overall profits

• Building a good brand imaging in the market.

1.Higher Brand ValueConsumer researchHigh desire for healthy productsRegular and frequent demand74% consume crackers at a regular basis34% consume crackers as a part of regular weekly diet

Competitors analysis (KraftFood, Kellogg Co, Pepperidge Farm)

Market tests(Columbus, Ohio, Southwest)

2.

DSD (direct store delivery)Greater control of shelf space 

Accurate forecasting Reduced stockouts

Quicker turnover of products

3.Attractive and durable brandsMarketed as mobile "Grab and Go"snacks.Strong presence in vending machines convenience store

Improve product taste and quality

Increasing the package size

Made from 100% whole wheat and other natural ingredients

Available in 3 flavor options

6 Month Period Activities

1 Month

5 Month

4 Month

3 Month

2 Month

6 Month

Television and Online Advertising

Facebook and Like Us Campaign

15% Discounts 12% Discounts 8% Discounts

What are DSD Representatives?

DSD Representatives are the representatives that “are in the store every week and the store managers respect our knowledge of the business”

%Stores in distribution

94%85%

%Stores with Gondolas

9%12%

%Stores with end aisle display

14%10%Southeast

Columbus

PULL MARKETING STRATEGY

 The goal of pull marketing is to get the customers to come to you, hence the term pull, where marketers are attempting to pull customers in. 

Celebrity Endorsement

Tom Brady

Krispy Natural

Marketing Strategy

Premium Pricing

Strategy

DSD to maximize

shelf space

Grabbed 18% market share in Columbus as a new entrant in salty snacks business

Kraft, Kellogg and Pepperidge in total lost 10% of market share, despite of higher demands cracker products since 2010

POSSIBLE COMPETITIVE RESPONSES TO NEW BRAND “FRITTO-LAY” • Launching more new product mix as per customer taste and keeping health as a priority concern

Conclusions

Thank You