Kraft Foods Essay

933 WordsApr 28, 20114 Pages
Kraft Foods The Coffee Pod Launch Problem Geoff Herzog, product manager for coffee development of Kraft foods Canada needs to decide whether or not to launch the single serve coffee pod in Canada simultaneously with the United States launch of the product. SWOT Analysis Strengths    Kraft Foods is recognised globally as being a leader in coffee sales. Kraft’s two existing coffee brands in Canada lead the market in retail sales. There is already a well established distribution system. Weaknesses   Financial constraint with a limited budget for a marketing strategy for the launch. The consumers for the existing Kraft brand coffee are typically over the age of 45 whereas the target market for the SSP suggests an age range between 25 and 54 years. Single Serve Coffee Pod machine that is currently in the market is not compatible with Kraft’s coffee pods.  Opportunities     There is a market for the product, with the two thirds of Canadians that prepare their coffee at home. Potential to lower distribution costs with the use of a joint direct – to – store delivery program with another of Kraft products. An immediate launch will make Kraft Foods second to enter the market. Potential new market with a suggested target market outside of the demographics of Kraft’s current market. Threats    Competitive landscape with three other competitors entering the market within a few months of the potential launch. Competition from speciality coffee shops and cafes already in the market. Limited time for Kraft Foods Canada to market and gain any significant competitive advantage before the other competitors enter the market. Alternatives Kraft Canada executives may; 1. Delay the launch in Canada. 2. Launch the product simultaneously with the United States offering coffee pods for the two major coffee brands that Kraft owns in Canada. 3.

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