Kraft Case Coffee Pod Essay

CompetitionMarket Share of CompetitionThis chart of the commercialize place place place share shows that kraft Foods was the realism leader in java gross sales with 15% of the global market. In Canada krafts/Nabob and maxwell had a combined share of 35%, where Nestle had 19%, closed-door labels accounted for 25%, and sm all(prenominal)er companies summed 21%. With grocery markets carrying a selection of deep brown brands and flavors along with major retailers such as Starbucks and Tim Hortons selling their cocoa berry beans in grocery outlets, competitor in the Canadian burnt umber market remains very aggressive. There are four major coffee pod competitors in Canada and they are wiz-to- wholeness, Home Caf, Senseo, and Bunn My Caf.One-to- mavinOne-to- iodine brews coffee pods in two assorted sizes and has a bar quality. This machine has service that it can in worry manner change its spout in order to give rise iced tea or regular tea. They also subroutine the b iggest coffee pods at 9.7 grams vs. the other 7 gram pods used in regular machines. One-to-one also has three different varieties to choose from You can purchase a 16 pack of pods for $4.99. These coffee pod machines are available at the Bay, Canadian Tire, Zellers, and Home forthfitters.Home CafHome Caf has geture brewing coffee pods while getting the full flavor of the bean. This machine has a removable platform to avoid spilling and can brew three different loving cupful sizes. This type of coffee pod has 4 different flavors to choose from and a 16 pack of wizard coffee pods comprise $4.99.SenseoSenseo has a narrow machine that creates a rich froth on each coffee brewed. Each blend is brewed in 30 seconds and has an automatic shutoff after one hour of no use. Senseo uses premium beans and offers four flavors that come in packages of 18 for $4.99.Bunn My CafBunn My Caf use special spray head and delivers maximum flavor in each cup. This machine can also brew a cup in 30 sec onds and has 9 brewing settings to change the strength of the coffee.Out of all the machines listed above Bunn My caf machines sell in retail for $150 per machine, the highest damage out of the four. The cheapest machine is the One-To-One selling in retail from $60 $75. The best deal for retail selling price of pods is Senseo at $4.99 per 18 packs of podsSocial/CulturalCanada compering to other countries work with fast technology and faster workforce. Before Canadians, coffee drinkers were taking them longer to get their coffee. Today the Canadian coffee drinker can get their coffee in one minute. These advanced technologies reflect to overall Canadian technology and the fast-paced surround that Canadians live in.TechnologyEven though coffee pods may cost a little bit more per cup of coffee, it has its benefits. Whit use of the pre forwarding for the single serving coffee the SSP machines can deliver coffee in less than 1 min. The SSP machine measure the water tank or the amount of ground coffee for your cup, just place pod and press a button. You no longer assume to throw away the sozzled wet filter with used coffee you just have to reuse the little plastic pod. Pods also do not use an tangible coffee dummy, so you do not need to plumb the pot of coffee every day. This is perfect for people that usually make only when one coffee, alternatively of making a batch, only a single cup is processed. Different kinds are also available in terms of taste.EnvironmentKraft has taken some significant actions to keep the purlieu safe and clean. One aspect relating to environmental factors is that, the SSP machines are much easier to clean than the other pods on the market. Itallows you to have cluttered ground coffee that is inefficient to be used, no leftover coffee to pour away and no pot to clean. When finished, users would simply dispose of the pod in the garbage or compost bins, whereas regular disposable coffee cups and filters mustiness be thrown and tw isted away in the garbage.Micro EnvironmentThe 4 PsPrice $0.50 per cupProduct Single-Serve coffee tree Pods (SSP)Promotion Consumer shows, demo political platform booth, television sponsorship campaign, giveaways, print ad buy one get one free coupons Place Consumer shows and big retail outlets across Canada. Three different merchandising tools Shelf-strips with coupon AdPad that holds 12 bags and coupon holder, On-Shelf Racking that holds 14 bags, mark Off-Shelf Bins that holds 48 bags.Mission StatementHelping people around the world to eat and live better.Kraft Foods Inc., Consolidated Income StatementUSD $ in zillionsmerchandising ObjectivesHerzogs goal was to obtain 45% market share at the end of 2006 He also expected 6% from a 12.5 million household in 2004 and 8% in 2006. For advertising, Kraft wants to use TV sponsorship using all television programs for 3.5 launching. Production for a 30-second English-language contest blur would cost $10000 airtime to run English lan guage spot for one week would cost $15000, giveaways would cost $5400. Promotional execution would cost $5000. Herzog also wanted to use direct marketing through an email campaign. This is where customers would be sent an email inviting them to visit a website and register to win a fee years supply of coffee pods. Merchandising objectives for Krafts coffee pods includes ledge-strips with coupon AdPad, on-shelf racking, as well as brand off-shelf bins. The cost for the total campaign is $961400 and there would be $38600 left from the $ trillion budget.Proposed Marketing StrategyPriceTo create better value for our customers we clear-cut that price of $4.99 for 16 pods is perfect. Our competitors have the same price but we have better value. This price of $4.99 result fanny Melitta in direct competition since they offer the same value. Maybe a slight increase (18 pods instead of 16 pods). This will ensure that Kraft would win in the competition. The sell price for the coffee pods s hould be $49.99 for 200 coffee pods. And for market share, we exhort Mr. Herzog to start at 20% with an increase of 5% per year that will lead him to those desired 35% 20% is very possible for Kraft and its very profitable ProductKrafts brandingOur brand dodging focuses on the packaging. The branding strategy for Krafts maxwell House and Nabob Brand should reflect the consistent branding strategy already being implemented by the company. However, Kraft should use upscale packaging and back up the upscale high quality return that they have. An slip of an upscale packaging concept by current market entrant is Melitta. The reason for my branding strategy focus on the packaging is due to the principle of first impression and mental association that a potential consumer will have especially Krafts target market. The target market for single serving pods is high-income individuals and families ($91,000) and well-educated individuals.Place approximately Canadians have their cup of cof fee at home or at the nearest available store. Kraft should make coffee so hot it enhances the time we spend with friends and family while enjoying a cup of it. A levelheaded way to go about it would be dividing the Country in regions and market the product targeted right at their consumer profiles. Furthermore delivery straight to retail stores would make the supply chain shorter hence costs will be less. Even better would be to encourage around buyers to buy it on the Website, with free delivery or a more effective packaging tactic. If the Consumer buys the product straight from the manufacturer the dividend will scale up quite a then selling them in bulk to wholesalers and retailers.PromotionPromotion is the most important element of the proposed marketing strategy all medium must be evaluated then used to acquire as many consumers as possible. One of the things that can be used is print advertising billboards, magazines, newspapers etcetera Another option is also TV sponso rship, using almost all television programs for 3.5 months launching. Direct Marketing can also be suggested for example email invite consumers to visit the Website then put an offer like click to win a free supply of coffee pods for a year. Merchandising has its own promotional options too like on shelf racking, shelf-strips with coupon AdPad or branded off shelf bins.ReferencesStephanie Larkin (2007) Current Trends Of burnt umber Consumption. Retrieved from http//www.streetdirectory.com/food_editorials/beverages/coffee/current_trends_of_coffee_consumption.html Ben Berry (Oct.2011) Coffee and Tea Industry Trends from the Canadian Coffee and Tea Show. Retrieved from http//www.ats-sea.agr.gc.ca/eve/6060-eng.htmNPD Group(July 2012)More Canadians opting to brew their favourite drinks at home Retrieved from https//www.npdgroup.ca/wps/ accession/npd/ca/news/prca_120720/Stock Analysis on net(2012)Kraft Foods Inc. (KFT) Income Statement. Retrieved from http//www.stock-analysis-on.net/NYS E/ guild/Kraft-Foods-Inc/Financial-Statement/Income-Statement Dolcera Public (August 2009)Premium Coffee Market Segmentation. Retrieved from http//www.dolcera.com/wiki/index.php?title=Premium_Coffee_Consumers_Market_Segmentation