Kraft Foods
Kraft foods is one of the strongest international brand that serves several product categories such as snacks, grocery, cheese, convenience meals and beverages. The mission of the company is to achieve position of a leader in all the markets where it serves through offering high quality products, focusing on innovation and generating higher profits (Visram).
OVERVIEW OF THE CASE
With respect to the case study, Geoff Herzog, product manager at Kraft Canada is uncertain about the decision, i.e., whether to wait for the results received from American market or launch the single serve coffee pod in Canada. Moreover, in order to launch the product in Canada, a breakeven marketing plan will be required that shows the end of 2006’s product launch.
COMPETITOR ANALYSIS
Globally, Canada is leader in coffee market with a share of 15%. However in Canada, Kraft competes with Nestle that has 17% market share and with Proctor and Gamble that has 9% market share. Moreover, private companies have 23% share whereas small companies have nearly 19% share in the Canadian market. In addition, the direct competitors of single serving coffee pods include Salton and Melitta’s SSP machine, Senso machine of Sara Lee Corporations and Philips Electronics, Home Café of Proctor and Gamble and My Café of Bunn Home Brewers. Other competitors include Tom Hortons, Starbucks and other substitute/ alternative beverages and drinks.
Decision Alternatives
Marketing Plan to Launch Kraft’s SSP in Canada
The following is the proposed marketing mix (4Ps) for the given target consumer group to achieve 45% market share (by end of 2006) in Canada:
Target Consumer Group. The target consumer group is highlighted below:
Consumers between age bracket of 25 -54
Income greater than $ 91,000 (where average income is about $55,000)
Well educated
Hobbies such as gardening, household decorating, gourmet cooking, entertaining, exercising and going on exotic vacations
Married people comprising of ¾ of target market
Resident in detached homes in large provinces including Alberta, British Columbia, Quebec and Ontario.
Positioning Strategy/Marketing Mix. As the coffee consumption in Canada is more than two-third that makes the country one of the largest coffee consumer, therefore launch of SSP is expected to be successful. The following is the positioning strategy to launch Singe Serving Coffee Pods in Canada:
Works Cited
Visram, Aleem. Kraft Foods: The Coffee Pod Launch (A). Richard Ivey School of Business Foundation. 2008. Print
