Ishita harvard

LAUNCHING KRISPY NATURAL:CRACKING THE PRODUCT MANAGEMENT CODE

WHAT IS KRISPY NATURAL?

Candler enterprise

Pemberton products

Softies cookies Home style muffins

Pet care division

Beverage division

Quick service restaurant

Krispy natural

Pemberton entered the salty cracker market

ABOUT PEMBERTON PRODUCTS…

• Snack food division • Food bars,cookies and other sweet baked foods • Best sellers:muffins and doughnuts • Market leader in us bakery and sweet snacks

sector • Uses direct store delivery

STRATEGIES

•Maintains DSD system for increased revenues. • Improved product quality and taste • Build capability in salty snack category • Leverages leading market,sales

Who are its competitors?

• Kraft food inc : Nabisco ritz biz Nabiso cracker fulls • Kellog co: Sunshine brand Kebbler and austin • Pepperidge farm: Goldfish cracker Goldfish mix These account for 3/4th of the cracker brand

Why did Pemberton enter the salty cracker market

The growing cracking industry • Retail cracker sale-$6.9 billion in 2011

• Desire for healthy products • Top snacks,even ahead of potato snacks • 74% respondents consumed on daily basis

How did it fail the expected selling estimation?

• Limited product line,thus failed to compete with super markets.

• It did not deliver the flavours that were expected.

• The overall scenario was still attractive. • Overall market was huge and was

expected to growat 10-14% every year. • Competitors were not capitalising on

market available.

How did it happen? • All the shortcomings

were addressed. • R&D occupied itself in

improving taste. • It was repositioned to

krispy natural which targetted directly to its segmented audience.

• Multiple serve packings were included.

SUCCESS…

Marketing strategies responsible for the success

Product strategy

• Focused on improving taste,flavours amd icreasing packaging size.

• Use of 100%whole wheat

• R&D reformulate the product.

Pricing strategy

• Considering its superiority,price was kept same as competitors but

quantity was less. • Premium pricing

• ‘visual price’ served the basis.

Market strategy

• Used pull strategy • Focused on

exyensive advertising

• Aggressive plans for trade promotions

• Increased merchandising

CONCLUSION • THREATS: Fritto lays entering the cracker market • Modest increase of sale by 1% in south-east.

• Optimise the direct store delivery for krispy natural product,for product’s cost reduction.

• It must launch more product lines