Launching Krispy Natural: Cracking the Product Management Code

Launching Krispy Natural: Cracking the ProductManagement Code

Pemberton ProductsSnack food division of Candler Enterprises.Softies cookies Homestyle muffins DoughnutsPemberton was a market leader in the U.S. cookie and bakery snacks segments of the sweet snack market.One of our most distinct competencies is our ability to create products that provide a superior taste experience. We are constantly improving our recipes and coming up with new products and flavors to delight our customers.

AIMS OF PEMBERTONDirect store delivery (DSD) distribution system cost Pemberton approximately 20 cents of every sales dollar.(1) building a collection of attractive, durable brands(2) leveraging leading marketing, sales and DSD systems to increase revenue and profits; (3) building or acquiring capabilities in salty snack categories.

SITUATAIONRetail cracker sales in the United States reached an estimated $6.9 billion in 2011

all otherCrackers(almost three quarters)Saltines (9% market share)crackers with filling (9% market share)graham crackers (6% market share)bread sticks (LESS THAN 1 %)matzoh crackers (LESS THAN 1 %)

crackers faced significant competition from other snack foods alternatives, consumption of crackers was frequent and regular.74% respondents consumed crackers on a regular basis 34% part of regular weekly diet.Top three U.S. cracker manufacturers were Kraft Food Inc. (Nabisco brands), Kellogg Co (Sunshine, Keebler, Carrs and Austin brands), and Pepperidge Farm (Goldfish brands).

DIVISION OF PRODUCTS IN MARKET

Challenges Ahead for Pemberton Holding the monopoly in market in the U.S. cookie and bakery snacks segments of the sweet snack market, entering the cracker industries might appeal to people but if the performance is unsatisfactory they might lose their well established market in both the segmentsTheir product line should suit the requirements of peopleTo compete with existing brands, theyd have to regulate their pricesQuality and innovationAdvertisements strategies

WorkFlow of PEMBERTONAcquisition of Krispy Inc. that operated three production plants and competed in the crackers-with-filling and all other" cracker segments.Krispy was a regional brand with distribution focused primarily in the Southeastern United States.Six round toasted cracker sandwiches with cheese filling, available in 3 flavor options. Offered a flat cracker sold in 1.5 ounce bags with 2 flavor options.Grab and Go snacks with a strong presence in vending machines and convenience stores.

But product fell short of management projections

Strategies of Relaunching of Krispy:Market research suggested consumer dissatisfaction with the flavor and taste experience of current cracker brands.So R&D labs were engaged to improve the product taste and quality.Rebranding of the product to Krispy Natural.Multiple-serving package sizes and more flavor options to compete with established brands.

Krispy Natural Marketing StrategyProduct- increasing package sizes to multiple-servings and improving taste. Cracker with filling White Cheddar, Smoked Gouda, Chipotle Cheddar, Creamy Swiss, Tomato Basil, and Vegetable Herb. Flat cracker flavors Cracked Pepper & Olive Oil, Sundried Tomato, Smoked Cheddar, and Roasted Garlic.

Crackers with aggressive plans for pull spending and trade promotions.Price discounts

Marketing:

DSD distribution is a critical component in the overall Krispy Natural program strategyoptimize the system to account for the longer shelf life of crackers

Distribution:

Retail price for each package would be similar to competitors in the category, but there would be less quantity or weight in the Krispy Natural package.Pricing:

What it would mean if one of the biggest, most successful salty-snack marketers moved into the space at the same time?

Having gained the confidence of people in regional market, Krispy was gaining popularity. Through its well designed advertisements, sampling, dealing, and coupons, it became a well known brand but was to compete with a new range of product line of Frito-lay which was a well established name in the market.

Krispy was a new name so people would have wanted to taste it. It could only compete with frito if its quality, flavors and innovative ideas could satisfy people.

This would lead to gaining of popularity of the product. It should go ahead with its strategies of offer and deals to attract more consumers and then should assure the quality to be worth trying again.

BUT KRISPY WAS OPTIMISTIC

Krispy emerging in the market

The data shows that the Krispy was a potential blockbuster as it had already begun to disturb the current markets shares.It had increased its appearances in terms of shelf coverage, market shares and was a big competition for leading brands which were already existing.It spend heavily on advertisement which worked in its favour tremendously.

WHAT SHOULD BE NATIONAL ROLLOUT STRATEGIES?Increase trade spending and consumer promotionsProduct line improvementsQuality and brand reputationImprove direct store delivery (DSD) distribution system in which products were delivered directly to retail outlets, bypassing retailers warehouses and distribution centers.