Kraft Foods, Inc.

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Case Topic, Setting, and Perspective Kraft Foods, Inc. pursued an aggressive launch of coffee pods in the United States, but had less than a month to decide whether Kraft should proceed with a similar launch in Canada, or await the U.S. results. However, a Canadian launch withholds several decisions. A suitable branding strategy is necessary, wholesale and suggested retail price for coffee pods, choose which flavors to offer, and decide whether Kraft should use traditional distribution channels or direct-to-store (DSD). Also, the development of an effective advertising and promotion strategy on a relatively limited budget is necessary. From a consultant perspective, Kraft has chosen to pursue the Canadian market. Kraft has chosen a Canadian test market because a test market assumes less risk, less cost, and insightful information regarding the purchase of coffee pods in a foreign country. History and background Kraft is an innovative company that started over 100 years ago, in 1903, by a man named James Lewis Kraft. This man decided to get into the cheese business and purchased wholesale cheese. He then began selling this cheese to small stores in Chicago, Illinois. With the help of his brothers, the business grew exponentially and they eventually began manufacturing their own cheese. With its continued expansion and growth, Kraft quickly became a common household name, and by 1926 sales were $36 million. Over the years Kraft expanded its product line to Philadelphia cream
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