Coffee Pod Launch - Kraft

As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

• Kraft Foods Inc., is the largest food and beverage company in North America and the second largest in the world. Was founded in 1903 by James L. Kraft.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

Kraft Foods Inc. is the leading foods and Beverage Company in US and the world second largest business after Nestle. Kraft has been offered consumers delightful and wholesome foods for more than 100 years. Kraft Foods headquarter is in North America. Kraft Foods has many of the best-known brands in the world with operations in 72 countries and sales in 155 countries. Kraft Foods has 140,000 diverse employees around the world and this is one of the reasons why they can succeed.

This changed in 2012 when Kraft teamed up with Mondelez International Inc. “Mondelez International’s strategy was directed at exploiting its powerful brands of snack foods across the 165 country markets where its products were sold.” (Gamble, 2016) The company aimed to fulfill their strategy by expanding the company’s product line to include cookies, chocolates, candy, gum, and

Kraft Foods Group is a top fortune 100 company founded by James L Kraft in Chicago, Illinois 3 years ago. They specialize in food and beverage products categorized by beverages, frozen and refrigerated meals, dairy products, and other grocery items. Kraft products are known worldwide and can be found in almost every home in the world. Even though Kraft brand has been around for decades Kraft Foods Group is a type of business subsection that adheres separately to each demographic in the world. Since they provide for over 170 countries, they must divide and conquer to stay successful. Although the company has been very successful they face many challenges including broad competition and target markets.

2. Price: How you will price your product to maximize your profits? I will price my service depending how what the consumer needs. For example, football conditioning will cost more that volleyball because football involves for footwork practice and time. Pricing strategies? -Some of my pricing strategies are like psychology pricing and bundle pricing.

Kraft Foods owned a strong distribution network and a well-earned reputation in the market. In Canada, Maxwell House and Nabob were two brands of Kraft, which was also the leader in coffee sales with 32 per cent, much higher than its major competitors.

1. Identify three key characteristics of the marketing concept. (150 words) The first characteristic is to satisfy the majority of customers, Clare chocolate have to find out who have a need for their product and also who is most likely to buy it, they need to consider the following factors, age, gender and other factors in order to determine how their products would fit into the customers lifestyle. The second characteristic would be identifying their customer’s needs and finding out what a customer would be looking for in Clare Chocolate products, by doing this Clare Chocolate would have to use customer focus groups, surveys/questionnaires and gather this information based on a common customers expectation of their products.

'Place ' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.

Place: These decisions are associated with channels of distribution, which include market coverage, channel member selection, logistics and level of service.

This process helps a firm or organisation in focusing its marketing effort towards a specific segment or a group of segments. Depending on the product, organisational goals, the size of the firm and the marketing resources available a firm may target only one ‘niche’ segment or alternatively focus on several related segments. Another method can be to start with one segment and add more when business grows successfully. Large companies often target all market segments and try to serve them by offering a large variety of products to suit all their needs, wants and demands.

According to Blythe (2010), segmentation, targeting and positioning are fundamental to the concept of meeting customer need. This essay will outline and analyse these fundamental tools of marketing in an academic setting, in addition to, assessing how an organisation of my choice applies them in a working environment. Included in this essay, will be an academic discussion of the advantages of market segmentation, targeting and positioning drawing upon views of various scholars. Furthermore, I will provide a profile of my chosen organisation as well as an assessment of their market segmentation, targeting and positioning strategies. The essay will finish with a summary of the main points and will draw conclusions based on the evidence which has been presented.

In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).