Marketing Management Kraft Case

Kraft Foods

The Coffee pod Launch

Background:

Kraft Foods was founded in 1903, initially manufacturing only cheese. Through the years, Kraft has evolved into North America’s largest food and beverage company and the second largest food and beverage company in the world. In 2001, Kraft became a public company, and by 2004, had operations in over 155 countries. Kraft is broken down into two separate entities, Kraft Foods North America and Kraft Foods International. The business is also divided into five product categories: beverages, convenience meals, cheese, grocery, and snacks. Kraft has established itself and its portfolio, boasting over fifty $100 million brands and five $1 billion brands. The company’s mission has always been that of leadership in the market it serves, fostering innovation, high product quality and keeping a close eye on profit margins. Kraft is the world leader in coffee sales, possessing 15% of the global market. In Canada, Maxwell House and Nabob, two major coffee brands of Kraft, collectively command 32% of the market.

SWOT:

Internal | STRENGTHS | WEAKNESS |

Operations | * Operations in more than 155 countries * Strong distribution Network | * Concern with distribution channels: DSD & warehousing * Limited Budget for SSP marketing launch plan |

Industry | * North America’s Largest Food & Beverage company * Number 2 player in the world * Maxwell: Canada’s top retailer of roast & Ground Coffee * Nabob: Leader in Western Canada * Nabob: number 2 in Canada * Coffee Sales-World leader | * Not number one in Canada |

Market | * Coffee Sales:15% share of global market * Canada’s Maxwell & Nabob : 32% share | * Uncertainty of new market penetration |

Product | * 5 product categories * Good Reputation for innovations * Excellent brand | * Cannibalism |

External | OPPORTUNITIES | THREATS |

Industry | * Only 1 competitor currently in market | * 3 known...