Launching Krispy Natural: Cracking the Product Management Code Case Solution
3. Recommendations
The recommendation for the both problems which are creating dire issues in the growth of the company while launching its product in Southeast and Columbus,could be solved by the marketing techniques which involve the promotion and discount offers. Moreover, the other problem which is the roll out the product on the national level, must be promoted through an extensive marketing and penetration strategy.
The company has to analyze the market demand first and it should also have a snack industry analysis. However, USA is one of the countries where the snack industry has a higher growth and people are fond of munching on snacks and bakery items. The customer is the boss for a company. The taste and the quality must match the customer’s expectations. Moreover, different flavors and premium price matters-immensely. The product must be provided at reasonable prices and with good quality.
The following recommendations are according to the match of problem.
3.1 Recommendations for Problem 1
- The marketing must be done extensively in Southeast, because of its low brand image in Southeast, could not let the new product of Pamberton to enter in the market.
- The market assessment must be done again, because the results of Columbus were not significant for the Southeast.
- There market representative must work with different stores to promote the new product and aware the people about its benefits on health.
- There must be discount offers and push marketing strategy applied, so that the demand of customer would increase.
- Moreover, the company can also market its product by giving the free samples for
3.2 Recommendations for Problem 2
- The product should be introduce-don a national level through high advertisement and promotional activities.
- The company should advertise its products via celebrity endorsements and promotional campaigns in order to go head to head with Frito Lay.
- The messages should be conveyed in such a way that the product must be considered as a hygienic snack in the US’s snacks industry.
- Moreover, the challenge is regarding how the company should introduce its product and sustain its growth in the market. This can be done through the marketing techniques and promotion by print media and also on social media, such as: Facebook, Instagram etc.
Analysis
4.1 Market Analysis
The market analysis of Pamberton is done on the basis of its industry, where it is dealing, i.e. Snack industry of USA. However, USA has a higher growth in snack industry and the industry highly preferable by the customers. The revenue was estimated to be 6.9 billion in 2011 and a further increase is expected. The growth was estimated to be 2.2 CAGR, which was significant for the relevant industry. The study also showed that 75% of people consumes snack in their diet and 34% of them have snacks every day in their meal.
However, there are numerous competitors that are prevailing in the market and there is a tough competition among them. Some of these competitors are Pepperfridge farm, Kellogg Co. and Kraft Food Inc. Pamberton has a good market image because of its brand positioning and customer preference. The innovation in product line made the company increase its sales. The top products of the company are: Bread sticks, graham cracker, cracker with filings and others. The sales are significant and the company generates high revenue. (See exhibit 2)
4.2 Marketing strategy
Pamberton has the pull marketing strategy which focuses on an extensive marketing and trade as well as promotional programs. However, push marketing strategy is quite favorable for any business but the company has mainly emphasized on pull strategy, where the customers come towards the product and the customer’s integration initiates.
4.2.1 Pricing Strategy
The price of the Pamberton products are quite reasonable, which can be easily afforded by everyone, but the quantity of the product was less in comparison to its competitor’s product. Overall, the pricing strategy is well planned for the products.
4.2.2 Distribution Strategy
The distribution strategy of Pamberton is well structured, which is formed on the ground of DSD which reduces its cost and provides on-time delivery. The company has sales representatives, who promote its product in the market.
4.2.3 Sales objectives
The sales of Pamberton is good in Columbus and the company has 18% growth rate there,but in Southeast; the company has declined sales due to some factors and low brand positioning. Overall the company has $500 million sales and distribution system, nationally.
4.3 Internal Analysis
The internal analysis of the company is done through SWOT-Strength, Weaknesses, Opportunity and Threat analysis. Pamberton is having sound position in the snack industry and the company’s overall internal position is considered to be good after having its capacity assessed.
- Strength: The Company has good research and development department, which analyses the market demand and tests the results according to it, which helps in product development. Moreover, the DSD process is beneficial for the company, as it provides cost effectiveness by reducing its cost and increasing its profit.
- Weakness: The Company has its weak factor because of DSD which creates the capacity constraints and the higher inventory cannot be stored for a long time.
- Opportunity: There is higher opportunities for the company to enhance its research department and to innovate its process and products, which could be more satisfactory for its customers and should also provide health benefits. Moreover, the cracker fundamentals are highly appreciated by the customer, so they can increase the flavors in it.
- Threat: The threat for the company is having decline in growth in Southeast and low brand image, which creates numerous challenges. Furthermore, Frito-Lay is launching its new products, which can decrease the Krispy natural’s sales and the company would have to go compete with tough competitor in the market..........................
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