Kraft Foods

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KRAFT FOODS Prof. R. Mulholland COMM 5306 Introduction to Marketing 2010 Chao Zhang (Richard) Laurentian University 2010-12-1 TABLE OF CONTENTS SECTION | CONTENTS | PAGE | 1 | Executive Summary | 3 | 2 | Problem Statement | 4 | 3 | Situation Analysis | 4 | 3.1 | Objectives and Goals | 4 | 3.2 | Background | 4 | 3.3 | SWOT Analysis | 5 | 3.4 | Market Analysis | 8 | 3.5 | Financial Analysis | 15 | 3.6 | Keys | 18 | 4 | Alternatives and Analysis | 20 | 5 | Recommendations | 21 | 6 | Action Plan | 23 | 7 | Contingency | 24 | 1. Executive Summary Kraft (the company) did very so far in the foods and beverage market in Canada. The company was planning to launch the new coffee pods. However, the…show more content…
Kraft Foods owned a strong distribution network and a well-earned reputation in the market. In Canada, Maxwell House and Nabob were two brands of Kraft, which was also the leader in coffee sales with 32 per cent, much higher than its major competitors. Competition in the Canadian coffee market was intense. More and more new competitors entered into the market, such as some specialty retailers. As the leader of the market, Kraft should consider to adjust its current strategy. The company should not only dominated traditional ground and whole bean coffee segment, but also invested in other niche market, like coffee pods segment. Although single-serve coffee pod (SSP) was a concept to Canadians, it still had high growth potential in Canada. According to its features, SSP would become an important part in daily-life coffee consumption. Many competitors realized that the potential development of SSP, and began to set strategies for this segment. Kraft targeted to capture at least 35 per cent of the coffee pod segment, and increased to a 45 per cent market share by the end of 2006. If Kraft was hesitating to launch immediately, it might lose the opportunity to defend against its major competitors. Thus, the company would also lose its current market share and could not hit the goal. In this situation, Kraft had to change its existing strategy to achieve higher pofit margins and innovative reputation, in order to stay ahead in

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