Kool-Aid Marketing Strategy

3790 Words Jun 2nd, 2012 16 Pages
Table of Contents Executive Summary 3 Situation Analysis 4-7 Competitors 4-5 Company 5-6 Consumers 6-7 Objectives 8 Budgeting 8 Strategy 9-10 Execution 10-11 Evaluation 11-12 References 12

Executive Summary
The Kool-Aid brand has faded as the market has become flooded with various choices of sodas, waters, energy drinks, packaged and powdered sports drinks, and a myriad of other options. Our goal is to bring back this brand which was once at the heart of teen popular culture.
We will focus on bringing two new products to the Kool-Aid lineup: sugar-free premixed and energy drink.
The target market for sugar free Kool-Aid is
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In fact, starting in 2011, Kraft began allocating majority of Kool-Aid marketing budget towards Latinos. However, in order become a bigger brand and competitor to the dominant players, Kool-Aid needs to develop a broader customer variation.

Kool-Aid’s Strength
One of the advantages that Kool-Aid has over the dominant players is its portability and easiness of distribution. Since Kool-Aid was invented for the purpose of reducing shipping cost and comes in small packets or tubes, it is extremely cheap to ship compared to the bottled and canned drinks that most of the soft drink companies are offering. It also does not take up space and therefore reduces space and cost for the retail stores to display Kool-Aid in the store. The distribution advantage is there, so Kool-Aid’s main focus should be creating demand and to be on consumers’ consideration set in order to compete with the dominant players in the juice/punch category. However, multinationals such as Coke and Pepsi are also very profitable in the concentration category by selling their products through fast food chains and convenient stores, which allow them to be profitable in both as bottlers and concentration producers. In order to compete with companies like Coke and Pepsi, Kool-Aid needs to offer “ready to drink” products that are bottled or
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