Kraft's Promotional Marketing Mistakes

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  • Topic: Kraft Foods, Processed cheese, General Foods
  • Pages : 8 (2703 words )
  • Download(s) : 28
  • Published : December 11, 2011
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Table of Contents
Abstract……………………………………………………………………………………………3 History of Kraft…………………………………………………………………………………....4 “Ready to Roll” Sweepstakes……………………………………………………………………..6 The Cost…………………………………………………………………………………………...8 The Kraft Clause…………………………………………………………………………………..8 Similar Promotional Mistakes……………………………………………………………………..9 Summary…………………………………………………………………………………………10 References………………………………………………………………………………………..12

Abstract
Kraft Foods, Incorporated has a long history, but even large companies who have been around a long time make mistakes. One of these mistakes happened in 1989 when they ran a promotional sweepstakes in the Chicago and Houston markets. In the end, Kraft had to deal with monetary and brand damages. Companies should learn from each other’s mistakes, but they do not seem to, because other companies have made similar mistakes to the one that Kraft made.

Kraft’s Promotional Mistake
Kraft Food, Incorporated has been in business for a very long time tracing its roots back into the late 1700’s. Kraft was a very successful company with a well known brand name with many of its products. They had a lot of experience with many different aspects of their business, but in 1989, Kraft Food, Incorporated made a promotional mistake that would cost them in monetary and brand damage. They had promoted their “Ready to Roll” sweepstakes in the Chicago and Houston markets. There were game pieces placed in certain cheese packages that could be matched with game pieces found in the local newspapers, but a printing error occurred creating too many winning pieces. Kraft realized this mistake a few hours after the newspapers hit the stands when many people started to call in claiming the prizes. They recalled the contest and declared it null and void, but the mistake had been made. Kraft made a mistake and had to deal with the consequences. Other companies also saw this mistake and the toll it took on Kraft, but did they also learn from it? In some ways, they have learned from Kraft’s mistake by including a Kraft clause in their sweepstakes, but is it enough to save their company when a similar promotional disaster strikes? History of Kraft

Kraft Foods, Incorporated has a long history that has been molded and shaped by many different things. These things include its innovative and risk taking spirit, its commitment, and of course, its founders. Kraft Foods, Incorporated can trace its roots back to three entrepreneurs that form the building blocks that make up the whole company. These founders are: “J.L. Kraft, who

started his cheese business in 1903; C.W. Post, who founded Postum Cereal Company (later renamed General Foods Corporation) in 1895; and Oscar Mayer, who began his meat business in 1883” (The History of, n.d., pg. 1).

Oscar F. Mayer was the first of the founders to start his career which began in 1873 at the tender age of 14. He worked very hard to save enough money to “lease a failing Chicago meat market” which he ran with the help of two of his brothers (The History of, n.d., pg. 3). They made it so successful that their landlord refused to renew the lease making them have to look for their own meat market which they made just as successful, and eventually, they put their old landlord out of business. After almost one hundred years of being an independently run business, Oscar Mayer stockholders sold the company to General Foods Corporation in 1981.

Charles W. Post had “made his first batch of Postum Cereal Beverage” in 1895 which was his first step into the cereal industry (The History of, n.d., pg. 2). He continued to create new and more innovative forms of cereal including the first ready to eat cold cereal. In 1925, Postum Cereal Company acquired the Jell-O Company which expanded their business and product line. In 1929, this company eventually morphed into the General Foods Corporation which went on to acquire other companies and product lines. James L. Kraft started selling cheese off of a...
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