Expanding a product line into another country can be a very difficult decision. This decision is made harder by the establishment of competitors already in the market place and without proper market testing being done. Ultimately a decision must be made whether to pursue an unfamiliar and competitive market with great force and speed or to step back and wait. Kraft Foods beverage sector already has a strong hand in the Canadian market, with its coffee line of Maxwell and Nabob being number one and number two coffee brands in Canada. With the increasingly popularity of the Single Serve Coffee Pods (SSP) in Europe and the initial introduction planned in the United States very shortly, a move into the Canadian market can be a big success or a bust. Along with the introduction into the Canadian market place a good price, flavour offerings, advertisements, and distribution channels need to be assessed and chosen appropriately to capture the majority of share in the market. SWOT Analysis
The strengths that Kraft Foods have in this new venture inside of Canada is that they are already an recognized force in the market. Currently Kraft operates in many different markets and is a trusted brand in households nationwide. More specifically, they already have the number one and number two branded coffees that Canadians like to consume. In the beverage sector in Canada, coffee is also the second highest beverage consumed (63%), only outdone by water consumption (69%).
Weaknesses with the new venture of SSP are that Kraft’s typical demographic of coffee drinkers are 45 and over, well established families and single professionals. The Demographics for the SSP are typically coffee drinkers between ages 25-54, well educated, and an average household income of $91,000. Three quarters were married and they lived in single-detached homes in urban areas. Kraft would have to advertise and appeal to a lot younger consumers and, smaller but wealthier demographics....
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