KRAFT FOODS Prof. R. Mulholland COMM 5306 Introduction to Marketing 2010 Chao Zhang (Richard) Laurentian University 2010-12-1 TABLE OF CONTENTS SECTION | CONTENTS | PAGE | 1 | Executive Summary | 3 | 2 | Problem Statement | 4 | 3 | Situation Analysis | 4 | 3.1 | Objectives and Goals | 4 | 3.2 | Background | 4 | 3.3 | SWOT Analysis | 5 | 3.4 | Market Analysis | 8 | 3.5 | Financial Analysis | 15 | 3.6 | Keys | 18 | 4 | Alternatives and Analysis | 20 | 5 | Recommendations | 21 | 6 | Action Plan | 23 | 7 | Contingency | 24 | 1. Executive Summary Kraft (the company) did very so far in the foods and beverage market in Canada. The company was planning to launch the new coffee pods. However, the …show more content…
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. Competition in the Canadian coffee market was intense. More and more new competitors entered into the market, such as some specialty retailers. As the leader of the market, Kraft should consider to adjust its current strategy. The company should not only dominated traditional ground and whole bean coffee segment, but also invested in other niche market, like coffee pods segment. Although single-serve coffee pod (SSP) was a concept to Canadians, it still had high growth potential in Canada. According to its features, SSP would become an important part in daily-life coffee consumption. Many competitors realized that the potential development of SSP, and began to set strategies for this segment. Kraft targeted to capture at least 35 per cent of the coffee pod segment, and increased to a 45 per cent market share by the end of 2006. If Kraft was hesitating to launch immediately, it might lose the opportunity to defend against its major competitors. Thus, the company would also lose its current market share and could not hit the goal. In this situation, Kraft had to change its existing strategy to achieve higher pofit margins and innovative reputation, in order to stay ahead in
As stated above, we learned that Canadians were not only big time coffee drinkers, but they also enjoyed the specialty type of coffee that Biggby provides. According to the Five Tasks of Foreign Market Attractiveness Assessment, we were able to clearly deduce the strengths and weaknesses entering into the Canadian market. Using this, we first screened Canada’s readiness for foreign entry and decided Biggby had a large market potential due to the large coffee consumption and growth rate. Additionally, we evaluated the industry with Porter’s Five Forces and established our competitive advantages between our competitors and new entrants. Based off of these facts, we recommend that Biggby continues to use franchising because it allows the business to emerge themselves into the culture and uses the same business strategy that Biggby currently employs in the United States. Lastly, Biggby has a high sales potential in Canada because of their competitive advantages and industry growth rates. Therefore, we recommend that Biggby enters the Canadian market with a large selection of specialty coffee, green products, and through
In looking at our product, Folgers Coffee, a sure way to see where a product is going sometimes is to look at where it has been. In 1992, Kraft’s brand of coffee, Maxwell House, had gained the lead in market share and appeared to be poised
The Keurig coffee brewer is the leader in the retail market for single serves coffee brewers but it can do better. Keurig has been slowly losing some of its share of the retail market in recent years. In 2011 Keurig controlled 54 percent of the market which is down from its 2010 number of 60 percent and 2009 number of 63 percent (Geller). Keurig needs to take its product and it has to offer and enter into new markets and segments. It mainly needs to focus on the younger and lower income level of its
Currently, Tim Hortons is one of the largest fast food restaurants in Canada that offers a range of products to appeal a wide range of consumer preferences at reasonably attractive prices. The company’s product line consists of multiple categories which are hot and cold beverages, breakfast, lunch, and snacks. However, I would recommend Tim Horton’s make menu improvements and increases regarding beverages. They can increase the cold and hot beverage variety, especially the tea category as they have limited tea collections by adding products such as herbal, loose, and oolong teas. They should also consider adding chamomile and cinnamon beverages. This will ensure that its customer base will not become bored with the same products and to attract new consumers.
In 1990, John Sylvan and Peter Dragone entered the coffee brewing industry by launching their company Keurig built upon on the question of, “why do we brew coffee by the pot when we only drink it by the cup?” Within a few years after their start-up, they were able to secure multiple patents as well as acquiring $1 million from venture capitalists to improve upon their prototype. By 1998, Keurig, which is German for excellence, was finally able to launch their first industrial strength, single-serve machine delivering a perfect cup of coffee every time. Keurig was lucky to join the coffee market at the dawn of its explosion, when consumers’ wants and needs began to shy away from
Cameron’s Coffee was founded in 1978 by Jim Cameron and was later on purchased by Jim Kirkpatrick in 1999. The company specializes in ‘…premium flavored coffees, teas and powdered cocoa and cappuccino mixes (Petersen).’ Even though the coffee market is almost saturated, Cameron is looking to expand its operations not only in the United States, but in Europe and other continents. The company currently has a great advantage in this tight market, due to its dedication to quality. But in order to increase the probability for success, Cameron’s Coffee will need to expand its knowledge and involvement in technology and communication.
Keurig has been successful in selling its coffee brewing system to the office coffee segment (OCS) of the US market. This success led its leaders to ponder entering the consumer market. While making the move might seem like a reasonable next step in the development of the company core business, it also presents unique challenges.
Keurig Inc.’s main concern is how to obtain the position they want in the at-home coffee market
Yet while Tim Hortons overwhelms the Canadian espresso market, it has attempted to discover accomplishment in the U.s., and has confronted rivalry at home as of late from Starbucks Corp. what 's more Mcdonalds Corp.
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.
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
Kraft Foods is the largest confectionery, food, and beverage corporation headquartered in the United States and the second largest in the world, marketing a vast number of brands in over 155 countries (NYSE, 2010). A big reason Kraft Foods has been so successful over the years is that they are always trying to remain current and creative when they market their products, and really have developed a firm grasp on their target markets. In 2008 Kraft changed the way companies will market their products, when they introduced their new Brand of instant coffee, and created a platform to connect themselves with their consumer at the point of purchase, all the while showing the world the future of marketing by taking both promotional ideas mobile
Green Mountain Coffee Roaster’s Keurig Single Brew system is dominating the U.S. market with an overwhelming market share. Analysts expect sales of single-cup brewing systems to continue to grow in the U.S. and competitors are eyeing a piece of the pie. An analysis of Keurig’s current position, based on Michael E. Porters 5-Forces, highlights a number of key areas of opportunity and risk for the company. Handled correctly, the Keurig product line should continue its growth, however, a number of significant pitfalls threaten its dominance.
The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.
The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.