Case Study Description of Launching Krispy Natural: Cracking the Product Management Code
Pemberton Products is a U.S. market leader in the cookie and bakery snacks segment of the sweet snack market. Looking to expand into the salty snack market, the company acquires Krispy Inc., a maker of salty snack crackers located in the southeastern U.S. To compete with premium cracker brands, Pemberton plans to reformulate and re-launch the Krispy brand as "Krispy Natural," which offers natural ingredients, improved taste, and revised packaging. Market tests in Columbus, Ohio show market share results that are double the company projections while results in 3 cities in the southeastern U.S. fall well below expectations. The marketing director must interpret the market test results, consider possible competitive responses to the new brand, and present his recommendation for a national rollout to the VP of sales and marketing.
Swot Analysis of "Launching Krispy Natural: Cracking the Product Management Code" written by Frank V. Cespedes, Heather Beckham includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Krispy Snack facing as an external strategic factors. Some of the topics covered in Launching Krispy Natural: Cracking the Product Management Code case study are - Strategic Management Strategies, Collaboration, Competition, Data, Government, Growth strategy, Leading teams, Market research, Mergers & acquisitions, Organizational culture, Product development, Strategy execution and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Launching Krispy Natural: Cracking the Product Management Code casestudy better are - – increasing government debt because of Covid-19 spendings, wage bills are increasing, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, technology disruption, increasing household debt because of falling income levels,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Launching Krispy Natural: Cracking the Product Management Code
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Launching Krispy Natural: Cracking the Product Management Code case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Krispy Snack, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Krispy Snack operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Launching Krispy Natural: Cracking the Product Management Code can be done for the following purposes –
1. Strategic planning using facts provided in Launching Krispy Natural: Cracking the Product Management Code case study
2. Improving business portfolio management of Krispy Snack
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Krispy Snack
Strengths Launching Krispy Natural: Cracking the Product Management Code | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Krispy Snack in Launching Krispy Natural: Cracking the Product Management Code Harvard Business Review case study are -
Effective Research and Development (R&D)
– Krispy Snack has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Launching Krispy Natural: Cracking the Product Management Code - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Krispy Snack has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Successful track record of launching new products
– Krispy Snack has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Krispy Snack has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Analytics focus
– Krispy Snack is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Frank V. Cespedes, Heather Beckham can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Krispy Snack are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Krispy Snack
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Krispy Snack does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Krispy Snack has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Launching Krispy Natural: Cracking the Product Management Code HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Krispy Snack has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Krispy Snack to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Krispy Snack digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Krispy Snack has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Krispy Snack in the sector have low bargaining power. Launching Krispy Natural: Cracking the Product Management Code has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Krispy Snack to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Krispy Snack is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Krispy Snack is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Launching Krispy Natural: Cracking the Product Management Code Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Krispy Snack has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Launching Krispy Natural: Cracking the Product Management Code Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Launching Krispy Natural: Cracking the Product Management Code | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Launching Krispy Natural: Cracking the Product Management Code are -
Slow to strategic competitive environment developments
– As Launching Krispy Natural: Cracking the Product Management Code HBR case study mentions - Krispy Snack takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Launching Krispy Natural: Cracking the Product Management Code, in the dynamic environment Krispy Snack has struggled to respond to the nimble upstart competition. Krispy Snack has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Frank V. Cespedes, Heather Beckham suggests that, Krispy Snack is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Krispy Snack is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Launching Krispy Natural: Cracking the Product Management Code can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Krispy Snack has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow decision making process
– As mentioned earlier in the report, Krispy Snack has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Krispy Snack even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Krispy Snack has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Krispy Snack is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Krispy Snack needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Krispy Snack to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Launching Krispy Natural: Cracking the Product Management Code has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Krispy Snack 's lucrative customers.
Lack of clear differentiation of Krispy Snack products
– To increase the profitability and margins on the products, Krispy Snack needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Krispy Snack supply chain. Even after few cautionary changes mentioned in the HBR case study - Launching Krispy Natural: Cracking the Product Management Code, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Krispy Snack vulnerable to further global disruptions in South East Asia.
Opportunities Launching Krispy Natural: Cracking the Product Management Code | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Launching Krispy Natural: Cracking the Product Management Code are -
Building a culture of innovation
– managers at Krispy Snack can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Krispy Snack can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Krispy Snack can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Launching Krispy Natural: Cracking the Product Management Code suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Using analytics as competitive advantage
– Krispy Snack has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Launching Krispy Natural: Cracking the Product Management Code - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Krispy Snack to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Krispy Snack to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Krispy Snack to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Krispy Snack to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Krispy Snack can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Krispy Snack to increase its market reach. Krispy Snack will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Krispy Snack can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Krispy Snack has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Krispy Snack can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Krispy Snack can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Krispy Snack in the consumer business. Now Krispy Snack can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Launching Krispy Natural: Cracking the Product Management Code External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Launching Krispy Natural: Cracking the Product Management Code are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Krispy Snack in the Sales & Marketing sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Krispy Snack will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Environmental challenges
– Krispy Snack needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Krispy Snack can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Krispy Snack with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Launching Krispy Natural: Cracking the Product Management Code, Krispy Snack may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Regulatory challenges
– Krispy Snack needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Increasing wage structure of Krispy Snack
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Krispy Snack.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Krispy Snack in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Krispy Snack has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Krispy Snack needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Krispy Snack needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Krispy Snack.
Weighted SWOT Analysis of Launching Krispy Natural: Cracking the Product Management Code Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Launching Krispy Natural: Cracking the Product Management Code needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Launching Krispy Natural: Cracking the Product Management Code is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Launching Krispy Natural: Cracking the Product Management Code is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Launching Krispy Natural: Cracking the Product Management Code is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Krispy Snack needs to make to build a sustainable competitive advantage.