Kraft Coffee Pod Essay

270 WordsNov 22, 20122 Pages
Kraft foods successful launch of its single serve coffee pod system in Europe has led to the company’s decision to release the same product in North America. Greg Herzog, Product manager of coffeedevelopment for Kraft foods Canada will be the ultimate decision maker in the situation. Mr. Herzog willdetermine whether to launch the product to the Canadian market at the same time as the United Stateslaunch or wait results from the Unites States launch to gain more market insight. In order to make aninformed decision Mr. Herzog needs to analyze four key components: a suitable branding strategy for Maxwell House and Nabob, wholesale and retail pricing, distribution methods, and an effectiveadvertising and promotional strategy. Lastly, Mr. Herzog must make these decisions within a 1 milliondollar budget and determine if he will be able to meet his market share objective of an initial 35% and stillbreakeven. As a company, Kraft enjoys a worldwide reputation of leading edge innovation and has astated company mission to achieve leadership in the markets it serves. Currently, Kraft holds aleadership position in market share for coffee sales worldwide as well as in Canada. Kraft sells its coffeein Canada under the brands, Maxwell House and Nabob which enjoy a combined market share inCanada of 32%. Maxwell House holds the largest market share in Canada, with top sales in both roastand ground coffee. Nabob coffee is Canada’s leading premium brand of coffee and leads with the largest market share in Western Canada, while following second nationally after Maxwell House. A SWOTanalysis for the possible Canadian launch of single serving coffee pods is located in the Appendix insection

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