Kraft Foods Presentation

The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or await results from the United States. Key strategic decisions include which target market to focus on and what value proposition to signal. Important questions are also raised as to how the new product should be branded, which flavors to offer, whether Kraft should use traditional distribution channels or direct-to-store delivery, and what forms of advertising and promotion to use. The case provides a basis for discussing consumer decision making, and stresses the importance of providing a clear incremental benefit when introducing a new product in an established category.

Decision Statement: Should Kraft have waited to launch the coffee pod in Canada until the company received results from the U.S.? Since they did a simultaneous launch, how can Kraft foods alter their marketing strategy to increase sales of the coffee pod?


Kraft Foods:
  - Kraft Foods was originally began as a cheese manufacturer   in 1903 & has since evolved into North America’s largest food and beverage company
    -   Had previously been a division of Phillip Morris Companies   but became a public company in June 2001
    -   Operations consist of Kraft Foods North America and Kraft   Foods international
    - Business is divided into five product categories: beverages, convenience meals, cheese, grocery, and snacks.
    - One of the strongest brand portfolios of global consumer packaged   goods players
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    - Strong distribution network and a well-earned reputation   for developing innovative new products and food applications
      Mission: to achieve leadership in the markets it served, which   it pursued by fostering innovation, achieving high product   quality, and keeping a close eye on profit margins.
    -   World leader in coffee sales with 15% of the global market;   In... [continues]

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