Launching Krispy Natural: Cracking the Product Management Code

Krispy Natural: Cracking the Product Management Code
Harvard Business School case:
Analyze traditional, quantitative test market data and understand the role of managerial judgment in the interpretation of hard data.Anticipate and prepare for competitive reaction to marketing moves. Consider the implications of corporate culture and senior management expectations for the decisions and behavior of a company's middle managers.
Subjects Covered:

Acquisition; Branding; Brands; Cause marketing; Competition; Consumer marketing; Competition; Cross-functional management; Databases; Execution; Expansion; Food assistance; Global corporate cultures; Management; Market research; Marketing; Mergers & acquisitions; New product marketing; Organizational culture; Product introduction; Products; Social Security; Strategy; Teams; Test markets; U.S. Food and Drug Administration
Setting:

Geographic: Ohio
Industry: Abrasives
Industry: Apparel accessories
Industry: Beverages
Industry: Food
Event Year Begin: 2013

1. Why study this case?

2. Objective of this Case Analyze traditional, quantitative test market data. U nderstand the role of managerial judgment in the interpretation of hard data . Anticipate and prepare for competitive reaction to marketing moves.

3. “Krispy Natural will provide Pemberton with its next generation blockbuster product and provide the foothold we need to dominate the salty snack market. I am counting on you to make sure our roll-out is a success.” - Ashley Marne

4. Pemberton

5. Candler’s Division

6. Key People Ashley Marne –Executive Vice President (Sales and Marketing). Brandon Fredrick –Marketing Director for Pemberton.

7. Key Strategic Priorities of Pemperton Building a collection of attractive and durable brands Leveraging leading marketing, sales and DSD systems to increase revenue and profits Building or acquiring capabilities in salty snack categories

8. A Attractive and durable brands Marketed as mobile "Grab and Go” snacks strong presence in vending machines convenience store Improve product taste and quality Increasing the package size Available in 3 flavor options

9. Marketing, sales and DSD systems Marketing approach Heavy advertising and promotion Pull strategy DSD (Direct Store Delivery) Greater control of shelf space Accurate forecasting Quicker turnover of products

10. Capabilities in salty snack categories Consumer research High desire for healthy products Regular and frequent demand Competitors analysis (Kellogg Co, Kraft Food) Market tests (Columbus, Ohio, Southwest)

11. The U.S Cracker Industry

12. Competitors Kraft Food Inc. Kellogg Co Pepperidge Farm Private Label Krispy

13. Consumer Survey 74% -Crackers Consumed on regular basis.

14. Manufacturer sales of "All Other" Crackers

15. Manufacturer sales of Crackers with Filling Market Share

16. The product fell short of management projections

17. Marketing Strategies Pull Spending and Trade Promotion Market Strategy. Celebrity Endorsement Tom Brady.

18. III. Price –Premium Pricing Strategy IV. Distribution –Direct Store D elivery (DSD) to maximize shelf space

19. 1 2 3 4 5 6 Months Advertising Social Media Trade Sampling Couponing Television Online Blitz Flighted Television and Online Advertising Facebook Like Us Campaign 15% Discount 12% Discount per case 8% Discount In-Store Sampling with Coupon Newspaper Sampling: Trail size with Coupon Newspaper 80 cents Shelf Pad 2*60 cents Electronic 40 cents Newspaper 50 cents Shelf Pad Buy 2 get 1 free Promotion Plan 2011

20. Result of the campaign Columbus doubled the share target. Derived by stealing from competitors. 30% - Volume increased

21. Partial Competitive Analysis

22. National Rollout?

23. POSSIBLE COMPETITIVE RESPONSES TO NEW BRAND “FRITTO-LAY” Launching more new products mix as per customer taste and keeping health as a priority concern. Optimization of DSD system for Krispy natural product for cost reductions.

24. KEY INDICATORS FOR NATIONAL ROLLOUT

25. Disclaimer Created by Vishal Choudhary, MIT Pune, during a Marketing Management internship by Prof. Sameer Mathur, IIM Lucknow.