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Number One

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Submitted By erezfisher
Words 4387
Pages 18
9-913-574
JUNE 11, 2013

FRANK V. CESPEDES HEATHER BECKHAM

Launching Krispy Natural: Cracking the Product Management Code
“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.” The words of Ashley Marne, executive vice president of sales and marketing at Pemberton Products, echoed in Brandon Fredrick’s mind. It was January of 2012 and Fredrick, a marketing director for Pemberton, was reviewing test market results for a new cracker product, Krispy Natural. Pemberton had just concluded market tests in Columbus, Ohio as well as three cities in the Southeast. Fredrick was delighted that the Columbus market share results were double what the company had projected. However, the Southeast results fell well below management’s expectations. It was a late Monday night and Fredrick sat in his office preparing for a meeting with Marne, his boss. She had asked for summary analysis of the test market results and a recommendation for taking Krispy Natural to market. As Fredrick sketched out his proposal, he worried how he would draw conclusions from test market data that was so disparate. Equally as troublesome was the fact that he questioned if Marne’s high expectations were realistic.

Pemberton Products
Pemberton was the snack food division of Candler Enterprises, a multinational beverage and snack goods manufacturer. The majority of Pemberton’s sales were from packaged food bars, cookies, and other sweet baked goods; their market-leading brands were Softies cookies and Homestyle muffins and doughnuts. In addition to Pemberton, Candler also operated a beverage division, a quick service restaurant division and a pet care division. Candler’s 2011 revenue was $18 billion, with Pemberton contributing approximately

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