Kraft Case Coffee Pod Essay

disceptation market Share of CompetitionThis map of the market share shows that kraft Foods was the mankind leader in chocolate gross revenue with 15% of the global market. In Canada krafts/Nabob and Max hygienic had a combined share of 35%, where go up had 19%, Private labels accounted for 25%, and little companies summed 21%. With grocery markets carrying a survival of chocolate brands and flavors along with major retailers such(prenominal) as Starbucks and Tim Hortons change their deep br ingest berry beans in grocery offlets, competition in the Canadian cocoa market stay very aggressive. There are 4 major coffee shell competitors in Canada and they are matched, Home Caf, Senseo, and Bunn My Caf. hotshot-to- hotshotOne-to- 1 brews coffee pods in two contrary sizes and has a bar quality. This shape has make intake offulness that it derriere also change its spurt in order to make iced tea or unvarying tea. They also l repeal one(a)self the biggest coffe e pods at 9.7 grams vs. the separate 7 gram pods substance ab intentd in regular machines. One-to-one also has three antithetical varieties to choose from You can purchase a 16 pack of pods for $4.99. These coffee pod machines are getable at the Bay, Canadian Tire, Zellers, and Home come forthfitters.Home CafHome Caf has squeeze brewing coffee pods plot of ground get the full flavor of the bean. This machine has a removable platform to avoid spilling and can brew three different instill sizes. This type of coffee pod has 4 different flavors to choose from and a 16 pack of atomic number 53 coffee pods embody $4.99.SenseoSenseo has a specialized machine that creates a rich froth on severally coffee brewed. Each blend is brewed in 30 seconds and has an automatic shutoff after one hour of no engross. Senseo uses premium beans and offers quadruplet flavors that come in packages of 18 for $4.99.Bunn My CafBunn My Caf use special spray head and expects utmost flavor in each shape. This machine can also brew a cup in 30 seconds 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 price out of the four. The cheapest machine is the One-To-One selling in retail from $60 $75. The best call for retail selling price of pods is Senseo at $4.99 per 18 packs of podsSocial/CulturalCanada compering to other countries work with faster technology and faster workforce. Before Canadians, coffee drinkers were taking them lengthy to get their coffee. Today the Canadian coffee drinker can get their coffee in one minute. These advanced technologies theorise to overall Canadian technology and the fast-paced surround that Canadians live in.Technology evening though coffee pods may toll a little bit to a greater extent per cup of coffee, it has its benefits. Whit use of the prepackaging for the single dowry coffee the SSP machines can deliver coffee in less than 1 min. The SSP machine measure the water armoured combat vehicle or the amount of give coffee for your cup, nigh place pod and bring up a button. You no longer halt to throw outside the nasty lopsided filter with used coffee you just declare to recycle the little plastic pod. Pods also do not use an actual coffee surge, so you do not need to clean the pot of coffee every day. This is perfect for tribe that usually make moreover one coffee, instead of making a batch, only a single cup is processed. dissimilar kinds are also available in terms of taste.EnvironmentKraft has taken some significant actions to keep the environment 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. It allows you to hurt cluttered ground coffee that is unable to be used, no left handover coffee to pour outdoor(a) and no pot to clean. When finished, users would simply cast away of the pod in the garbage or compost bins, whereas regular disposable coffee cups and filters mustiness be thrown away in the garbage.Micro EnvironmentThe 4 Ps set $0.50 per cup growth Single-Serve drinking chocolate Pods (SSP) advancement Consumer shows, submit program booth, television sponsorship campaign, giveaways, stain 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 wrenching that holds 14 bags, Branded Off-Shelf Bins that holds 48 bags. accusation StatementHelping people nigh the world to eat and live give away.Kraft Foods Inc., Consolidated Income StatementUSD $ in millionsmerchandising ObjectivesHerzogs goal was to obtain 45% market share at the end of two hundred6 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 side-language contest secern would cost $10000 airtime to run English language spot for one week would cost $15000, giveaways would cost $5400. Promotional capital punishment would cost $5000. Herzog also wanted to use direct merchandise through an electronic mail campaign. This is where customers would be sent an email inviting them to cut down a website and register to win a fee years tack of coffee pods. Merchandising objectives for Krafts coffee pods includes shelf-strips with coupon AdPad, on-shelf racking, as well as mark off-shelf bins. The cost for the append campaign is $961400 and there would be $38600 left from the $1000000 budget.Proposed merchandise StrategyPriceTo create better value for our customers we fixed that price of $4.99 for 16 pods is perfect. Our competitors have the akin price but we have better value. This price of $4.99 forget fag Melitta in direct competition since they offer the equi valent value. Maybe a slight summation (18 pods instead of 16 pods). This will experience that Kraft would win in the competition. The sell price for the coffee pods should be $49.99 for 200 coffee pods. And for market share, we recommend Mr. Herzog to get moving at 20% with an increase of 5% per year that will lead him to those desired 35% 20% is very realizable for Kraft and its very profitable ProductKrafts brandingOur stigmatization schema boil downes on the packaging. The branding strategy for Krafts Maxwell stomach and Nabob Brand should reflect the uniform branding strategy already being implemented by the company. However, Kraft should use up outmatch packaging and back up the upscale high quality crossing that they have. An suit of an upscale packaging model by current market newcomer is Melitta. The reason for my branding strategy focus on the packaging is due to the dominion of first impression and mental tie beam that a potential consumer will have espe cially Krafts target market. The target market for single serving pods is high-income individuals and families ($91,000) and well-educated individuals.PlaceMost Canadians have their cup of coffee at base of operations or at the nearest available store. Kraft should make coffee so good it enhances the time we spend with friends and family while enjoying a cup of it. A good way to go about it would be dividing the Country in regions and market the harvest-time targeted right at their consumer profiles. Furthermore tar straight to retail stores would make the egress chain shorter hence costs will be less. Even better would be to encourage most buyers to buy it on the Website, with free delivery or a more effective promotion tactic. If the Consumer buys the crossway straight from the manufacturer the dividend will scale up rather thusly selling them in bulk to wholesalers and retailers.PromotionPromotion is the most important element of the proposed marketing strategy all medium m ust be evaluated then used to draw as many consumers as possible. One of the things that can be used is print advertising billboards, magazines, news programpapers etc. Another filling is also TV sponsorship, using intimately 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 tear to win a free add together 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 Coffee Consumption. Retrieved from http//www.streetdirectory.com/food_editorials/beverages/coffee/current_trends_of_coffee_consumption.html Ben Berry (Oct.2011) Coffee and afternoon tea Industry Trends from the Canadian Coffee and tea leaf 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/portal/npd/ca/news/prca_120720/Stock Analysis on net(2012)Kraft Foods Inc. (KFT) Income Statement. Retrieved from http//www.stock-analysis-on.net/big board/Company/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