Kraft Analysis

Introduction to Marketing
COMM 5307

Kraft: The Coffee Pod Launch

January 29th, 2013

Laurentian University

Table of Contents

1. Introduction------------------------------------------------------------------------------------------------2
2. Situational analysis---------------------------------------------------------------------------------------3
3. Alternatives------------------------------------------------------------------------------------------------8
4. Recommendation-----------------------------------------------------------------------------------------10
5. Conclusion------------------------------------------------------------------------------------------------13

1. Introduction 1) Problem Statement
The Product Manager of Kraft Foods Canada (Kraft) needs to decide whether to: * Simultaneously launch coffee pods with the US market, or * Wait for the results of the US launch. 2) Problem Statement Considerations * Launching simultaneously would allow craft to capture and defend market share against P&G with their Folgers’s brand. Risk: Folgers will dominate a strong position in the coffee pod market if Kraft decided to wait to analyze U.S. results. * Risk may be minimized by waiting for U.S. results in order to better target consumers. 3) Decisions to be made * Develop suitable brand strategy for both Maxwell House & Nebob. * Set a wholesale & retail price for the coffee pods * Choose which flavours to offer * Decide between traditional distribution channels or direct-to-store delivery (DSD) * Develop an effective advertising & promotion strategy 4) Decision Criteria
An effective marketing strategy/plan is dependent on fulfilling the following objectives: 1 Expand market share of Canadian Coffee Market. 2 Generate satisfactory return on marketing investment ($1 million