KRAFT FOODS: COFFEE POD LAUNCH
Problem:
Kraft foods is regarded as a leading food and beverage organization, and it is facing problem of conducting business in the strong competitive industry, where ONE-TO-ONE, Home Cafe, Senseo, Bunn my café, are conducting business. Further, it has to decide on selection of flavor for coffee pods, which are essential in order to build market share and achieve growth. However, it is also facing issue of designing an adequate bag for maintaining quality and freshness of the product. It also requires an adequate plan in order to make an entry or ensure expansion in other market.
Analysis
The company is facing problems because of ineffectual utilization and allocation of resources. It has to use resources such as TV promotions, merchandising, print advertising, direct marketing, and consumer shows in order to create awareness among customers, and to increase market share. Further, it is not meeting expectations of diversification as a result of which the company is facing these issues. The company requires an adequate plan for fulfilling its expectations, and for ensuring growth even if the industry is facing slow growth. The company is not capitalizing on the existing brands, and is not focusing on its production and manufacturing resources. The need is to ensure product innovation so that consumption of coffee can be increased, which can help in improving sales of product.
Alternatives
Kraft Foods must use dual marketing Channels in order to reach their customers, and it should market its products in hotels, restaurants, breakfast cafes, university cafeterias for creating more awareness.
Recommendation
The company should define its target market again so that more customers belonging to other age groups can also be facilitated with products. it should indicate step by step process of coffee making, and should demonstrate use of product in order to attract customers. The need of hour is to use effective strategies.
