Kraft Foods

1. Company background

a. Kraft Foods, Inc, headquartered at 3 Lakes Dr., Northfield, IL 60093, USA. (1)

b. The firm’s primary product is a boxed Macaroni and Cheese, part of the Convenient Meals division of Kraft.

c. The firm’s primary product is a Food and Kindred products, SIC code 2000, NAICS code 311991 Perishable Prepared Food Manufacturing. (2)

2. Market definition

d. Product dimension.

The market for boxed Kraft Mac and Cheese is rather deep, because there are several close substitutes for Kraft Mac and Cheese. Some substitutes come in the same format, aka a cardboard box with the pouch of pasta and another of cheese (Annie’s Macaroni and Cheese), and some substitutes come in slightly different format, such as already prepared in a can (Chef Boyardee Macaroni and Cheese), or in a microwavable bowl (Kid's Kitchen Microwave Cup Cheezy Mac and Cheese). Some examples below (3)

* Beecher’s – World’s Best mac and Cheese

* Annie’s – Macaroni and Cheese

* Amy’s – Macaroni and Cheese

* Kraft – Velveeta Shells and Cheese

* Back to Nature – Harvest Wheat Macaroni and Cheese Dinner

* Joe’s Dinner – Mac ‘n Cheese

* Boston Market – Macaroni and Cheese

* Kid's Kitchen - Microwave Cup Cheezy Mac and Cheese

* Chef Boyardee - Macaroni and Cheese

e. Geographic dimension.

In the US, the geographic dimension is very deep for macaroni and cheese as every grocery store; many convenient stores and even internet based retailers carry some type of mac and cheese.

f. Customers Segments

* Households with children or teenagers.

Irene Rosenfeld, Kraft’s CEO , claims “The iconic mac in the blue box is a kid favorite” (4)

* Adult seeking a comfort food easy meal.

Kraft has been interested in capturing the attention of the “adult user”. (4)

3. Market structure

g. Market Structure:

Kraft Food operates in a...