1. Pemberton: Introduction Market leaders with Softies, Cookies and Home-style muffins and Doughnuts $5 billion in sales (2011) – 28% of Candler Enterprises sales Market Leader of sweet snack Market in U.S cookie and bakery Snacks Uses Direct Store Delivery (DSD) 2. PembertontriedtoenterthesaltysnackmarketbyacquiringKrispyInc.in2008 3. 1. US growing Cracker Industry retail Cracker sale - $6.9 billion in 2011. 2.2% increase in CAGR from 2008 to 2010. 74% respondents consumed crackers on daily basis. Crackers were the top salty snacks ahead than potato chips. Desire for healthy products was driving cracker industry 4. US Cracker industry overview 5. Krispy Sales Performance vs. Plan in 2009 6. Regional Brand Limited product Line Limited Flavour Options 7. Multiple Serving packages. Targeting health conscious consumers. More flavour options and better taste experience through research. 8. PRODUCT STRATEGY Increasing Package sizes to Multiple servings Improving taste by introducing new flavours Healthfulness – An important Factor 100% whole wheat Natural Ingredients 9. Marketing Strategy Emphasized on heavy advertising Promotion to the end customer and appealing to the trade Aggressive plans for pull spending and trade promotions 10. Price Sought a premium strategy. Priced at 155% above the category average cost per ounce Same retail price as that of competitors but lesser quantity 11. How should the company respond to “Frito-Lay”? Launching more new product mix as per customer taste and keeping health as a priority concern. Optimization of DSD system for Krispy natural product for cost reductions. 12. Strengths Pemberton is already a market leader in US. – 2:1 ratio in taste preference. World renowned product development labs. Weakness Capacity constrains of DSD for Krispy Natural products. 13. Opportunities Market research shows consumer dissatisfaction with flavour and taste of current brands. Cracker market fundamentals are attractive Threats Modest increase of 1% sale in Southeast. Frito Lays entering into Cracker market 14. Conclusions 1.Grabbed 18% market share in Columbus as a new entrant in salty snacks business. 2.Kraft, Kellogg and Pepperidge in total lost 10% of market share, despite of higher demands cracker products since 2010. 3.Forecasted National roll out sales figures in Columbus and Southeast scenario for 3rd year depicts PBT more than 13 % and sales more than $500 million. 15. CREATED BY DIVYANSHI,MUJ,DURING THE MARKETING INTERNSHIP BY PROF.SAMEER MATHUR,IIM LUCKNOW.