HBS case study on launching Krispy Natural.

1. LAUNCHING KRISPY NATURAL:
THE PRODUCT MANAGEMENT CODE

2. CANDELER ENTERPRISES
QUICK SERVICE
RESTAURANT PET CARE
DIVISION
SNACK FOODS
BEVERAGES

3. ACQUISTION OF KRISPY INC IN 2008
FIRST STEP TO ENTER THE SALTY MARKET
CONTRIBUTED TO ABOUT $5 BILLION IN SALES
OWNS AND USES DIRECT STORE DELIVERY(DSD)
SNACK FOOD DIVISION
FOOD BARS, COOKIES AND SWEET BAKED FOODS

5. WHY PEMBERTON HAS MAINTAINED A DOMINANT MARKET SHARE-
SPECIFIC DIRECTION FOR PRODUCT DEVELOPMENT
• A CULTURE FOR INNOVATION TO BUILD A COLLECTION OF
ATTRACTIVE AND DURABLE BRANDS.
• DSD SYSTEM TO INCREASE REVENUE AND PROFITS RESULTING
IN COMPOUND ANNUAL GROWTH RATE OF 14%
• KEY STRATEGIC PRIORITY OF BUILDING AND ACQURING
CAPABILITIES IN THE SALTY SNACK CATEGORIES.

6. THE US CRACKER INDUSTRY

12. THE DYNAMICS OF KRISPY
NATURAL PRODUCT
STRATEGY
INCREASING PACKAGE
SIZES TO MULTIPLE
SERVINGS
IMPROVING TASTES BY
INTRODUCING NEW
FLAVOURS
CONSIDERING
HEALTHFULLNESS AND
USING NATURAL
INGREDIENTS LIKE 100%
WHOLE WHEAT.

13. PUSH STRATEGY
WHERE
COMPETITORS ARE
FAVOURED TO
PROMOTE
PRODUCTS
PULL STARTEGY
WHERE THERE IS
FOCUS ON EXTENSIVE
ADVERTISING,
MERCHANDISING &
TRADE PROMOTIONS
MARKETING
STRATEGY

15. •NATIONAL DISTRIBUTION OF CRACKERS
• MINIMUM SALES OF $500 MILLION
• STEADY STATE PRE-TAX PROFIT OF AT
LEAST 13%

20. CONCLUSIONS – INTERPRETING MARKET TEST RESULTS
• GRABBED 18% MARKET SHARE IN COLUMBUS AS A NEW ENTRANT IN THE
SALTY SNACK BUSINESS.
• KRAFT,KELLOG, PEPPERIDGE IN TOTAL LOST 10% OF MARKET SHARE,
DESPITE OF HIGHER DEMANDS OF CRACKER PRODUCTS SINCE 2010.
(6.2% FOR “ALL OTHER CRACKERS AND 14% FOR CRACKERS WITH FILLINGS)
• FORECASTED NATIONAL ROLLOUT SALES FIGURES IN COLUMBUS AND
SOUTHEAST SCENARIO FOR 3RD YEAR DEPICTS PBT MORE THAN 13% AND
SALES MORE THAN $500 MILLION.

21. POSSIBLE COMPETITIVE RESPONSES TO “FRITTO LAY”
• LAUNCHING MORE NEW PRODUCT MIX AS PER CUSTOMER
TASTE AND
KEEPING HEALTH AS A PRIORITY COCERN
• OPTIMISATION OF DSD SYSTEM FORKRISPY NATURAL
PRODUCT FOR
COST REDUCTIONS.

22. HENCE A NATIONAL ROLLOUT IS RECOMMENDED DUE TO THE
EXISTENCE OF THE FOLLOWING KEY INDICATORS:
• POSITIVE PURCHASE INTENT OF 18%.
• MORE THAN 60% TASTERS PREFERRED TASTE OF KRISPY
NATURAL OVER OTHER LEADING BRANDS.