Krispy natural case study
-
Upload
prudhvi-raj-bikumalla -
Category
Business
-
view
148 -
download
3
Transcript of Krispy natural case study
KRISPY NATURAL
CANDLER ENTERPRISES-Multinational Beverage and Snack
Goods Manufacturer
PEMBERTON PRODUCTS-SNACK FOOD DIVISION
BACKGROUND
CANDLER ENTERPRISE
S
MULTINATIONAL BEVERAGE
PEMBERTON
QUICK SERVICE RESTARUANT
PET CARE DIVISION
PEMBERTON FOOT PRINT
Snack Food Division
Food Bars ,Cookies And Sweet Baked Foods
Softies Cookies
Home Styles , Muffins And Doughnuts
5 Billion Sales in
2011
Own And Uses Direct
Store Delivery
MORE ABOUT PEMBERTONMarket leader in the
U.S. cookie and bakery snacks
segments.
Contribution of $5 Billion out of $18
Billions of Candler’s Revenue.
CAGR of 14% over the last 5 years.
The company’s driving force was its culture of innovation.
PEMBERTON
PEMBERTONS TURNING POINT
OAcquisition Of Crispy Inc. in 2008-First Step to
Enter Salty Snack Market.
US CRACKER INDUSTRY
Estimated $6.9 Billion in 2011.
The growth rate for the overall cracker industry from 2008 to 2010 was approximately 2.2% CAGR.
TOP THREE CRACKER MANUFACTURERS
Kraft Food Inc.
Pepperidge Farm.
Kellogg Co.
MARKET SHARES
TYPE SHARE
KRISPY SALES PERFORMANCE
STRATEGIC PRIORITIESBuilding a collection of attractive, durable brands.
Leveraging leading marketing, sales and DSD systems to increase revenue and profits.
Building or acquiring capabilities in salty snack categories.
MARKET AND CONSUMERSMINTEL STUDY
74% respondents
consumed crackers on
regular basis.
34% of them
ate as a part of regular
diet.
53% considered overal
l healthfulness.
FACTS AFTER SURVEY
69% of Responden
ts.• working to improve their
physical health
51 % of Responden
ts• trying to lose weight.
KRISPY SINGLE VSKRISPY
NATURAL
KRISPY NATURAL RE-
LAUNCH
KRISPY SINGLE SERVE
PRODUCT STRATEGY
MARKET STRATEGY
DISTRIBUTION
1)Long Shelf life of Crackers.
2)Present Capacity of Trucks Poor.
3)Pemberton Hired “KRISPY FORCE” for distribution System
SALES OBJECTIVE
SALES OBJECTIVENational Distribution of
Crackers.
Minimum Sales of $500 Billion
Steady State pre-tax profit of at least 13%.
SWOT ANALYSISSTRENGTHS: 1)World renowned product
development labs. 2)Product mix.
WEAKNESSES: 1)Capacity constraints of DSD for Krispy Natural
Products..OPPURTUNITIES:1)Cracker Market
fundamentals were attractive.2)Market Researchers
show consumer dissatisfaction with present cracker brands.THREATS: 1)Fritto-Lays entering the cracker market.
2)1% sale increase in south-east.
PROS AND CONS
PROS: 1)Positive purchase intent.2)Over 2:1 ratio in taste preference.3)To grow over 10-14% ratio in next several years.
CONS: 1)Modest increase of 1% in south-east.
2)Uncertainty of Fritto-Lays Entering the market.3)Flat crackers taste preference fell below 1:2 ratio.
THANK YOU
Disclaimer
Created by Bikumalla . Prudhvi Raj ,NIT GOA during a Marketing Internship ,by Prof . Sameer Mathur ,IIM Lucknow.