Justin Damato
4/23/14
Micro Econ Writing Project
Kraft Macaroni and Cheese Vs. Generic Brand
Everyone has his or her own personal preference towards buying generic or name brand products. When shopping in a grocery store does the type of pasta really matter to you? How about the type of macaroni and cheese you reach for? Same ingredients, same directions on how to mix and stir up the final manufactured goods but is it really the “same”. To a lot of people it might not make a difference, but like me, a lot of people prefer spending the extra 50 cents on a box of “Kraft Macaroni and Cheese” and it’s worth every penny. Is it the taste that you are paying for? Or maybe it’s the quality of the product that you’re basing it
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The Kraft Company has been around for a long time now. Personally I believe you must have a protective firm, not allowing other companies to steal your ideas and product. This will give the firm advantage over others. Kraft Macaroni and Cheese is dominating the market with almost 1 million boxes sold a day. They have to keep up their revenue by attracting a new fan base. Shapes and designs of pasta are surprisingly essential for Kraft. Over 2000 patents of shaped macaroni and cheese have been officially signed for and used, only about 280 have been obtained by Kraft Macaroni and Cheese. One of their biggest selling characters and patents is SpongeBob Square Pants, a TV show that has been on air for about 12 years now. Kids thrive for the little macaroni shapes of SpongeBob, Sandy, Patrick, and Mr. Crabs. When Kraft came out with these shapes they couldn’t produce enough of them for mom’s and their kids. Sales rocketed through the roof and Kraft Macaroni and Cheese monopolized the competition with this brand new shape that no one else could use. Knowing exactly what to market at a specific time is huge when it comes to any company that wants to be successful. This is what sets them apart from the rest and has given them that extra economic profit. Macaroni shapes are not the only ingredients that set them apart from the rest. Have you ever
In my opinion, Kraft Food s Inc. has good strategic fit. The profitability trend was upward between 2009 and 2011 fiscal year. The company has strategic created segments that would complement their efforts to reduce cost through efficient value supplier chain that is interconnected with each segment of the incorporation. The system in its entirety is facilitated through the Kraft Foods supply chain initiatives management team. The team ‘s main focuses is improving cash
2. The brand can also have a product failure if the consumers do not like the taste.
The grocery store shelves are filled with many varieties, sizes, and brands of the same item. There are numerous kinds of popcorn, large and small, produced by different manufacturers. Some people choose products based on need, some base their decisions on price and some base their decision on quality or brand loyalty. With all of these options it can be difficult to choose. You may want to save money but at what cost? In this experiment we will determine if generics are equivalent alternatives or if we really get what we pay for. (Bautista, 2006)
We have taught our brains that the quality is not that important and we are only thinking that both brands of peanut butter taste more or less the same so we might as well buy the one that is cheaper. But that should not be the case. Most of the cheaper products sold in stores are not produced correctly thus resulting in harsh consequences for those who consume
In this instance, consumers would spend a greater amount of time researching the various competing brands before settling on a purchase. Products that fall into this category are computers, hand-phones, refrigerators etc. For me, this would be for skincare. If I had to switch from Brand A to Brand B,
Kraft Foods established in 1903 has been in existence for over a century and is a household name. It's a company that when spoken of a thought of Mac-n-Cheese or dairy products come to mind but it is so much more. This organization has progressed dramatically over the years buying over other companies, improving existing brands, and introducing new product lines. Today, Kraft Food products include beverages, cheese, dairy, and snack foods. How has Kraft been able to thrive? Is it because they are striving to ensure that their Mission, Vision, and Values are easily understood and achievable?
The construction of macaroni and cheese is an enthralling process. While appearing simple, it’s complex - it has subtle base flavors of onion and mustard, and intense top flavors of sharp cheese and salt. I often wonder how those flavors come out at different points during a bite or wonder why the contrast between toasted breadcrumbs and cheesy goodness fits so well together. Cooking is a passion of mine as it is an opportunity to connect pieces and construct a whole system from the integrated parts. I find some incredulity in the way certain ingredients interact with other ingredients and transform from individual components into the production of a meal.
as the older brands already existing in the market and those that they are familiar with.
1. What is Kraft Foods Inc.’s corporate strategy? How has its corporate strategy evolved since its independence in 2007?
Many products are identified by particular brand names, like Levi’s (instead of jeans), Kleenex (instead of tissue), or Band-Aid (instead of adhesive bandages). A brand
For instance, McDonald's is a well-known brand for its fast paced service. For buying McDonald's food, customer will think about food content and the values against the money, effort and compare McDonald's with Burger King and Subway and select the one that gives them the greatest delivered value.
The risk of generic substitution is also increasing with especially China dominating the production market. Customers will substitute for a generic product if the disposable incomes of the customers reduce resulting in customers willing to trade down for a inferior but cheaper product.
Case in point, in the event that you decide to purchase one extravagant brand in vogue shirt instead of two less expensive T-shirts from an in-store brand, you must surrender owning a second shirt less chic in return for the more stylish brand shirt. People use distinctive criteria to settle on choices and albeit all reparation things and experience costs, the expense will not be the same, as the quality they assign to specific products or administrations vary.
quality, and recognized by the consumer as such. The brand is seen as expensive, but
➢ Product differentiation - Products that are relatively the same will compete based on price. Brand identification can reduce rivalry.