Kraft Foods: Brand and Marketing Analysis

This report analyzes the brand attributes, company positioning, brand equity estimation, target market, competitors, threats, outlook and more of Kraft Foods. The report also includes sample marketing material and a summary of the findings.

Running head: KRAFT FOODS: BRAND AND MARKETING ANALYSIS
KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Name of the Student
Name of the University
Author Note

1KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Table of Contents
Part A-..............................................................................................................................................2
Introduction..................................................................................................................................2
Brand Attributes...........................................................................................................................3
Company Positioning...................................................................................................................4
Brand equity estimation...............................................................................................................5
Description of the target market..................................................................................................7
Competitors, threats, outlook.......................................................................................................8
Sample marketing material..........................................................................................................9
Summary....................................................................................................................................10
Part B-............................................................................................................................................12
Objectives..................................................................................................................................12
Target market.............................................................................................................................12
Media selection and justification...............................................................................................13
Estimated costs of Media...........................................................................................................14
Campaign success criteria and measuring.................................................................................15
Bibliography..................................................................................................................................16
Appendix........................................................................................................................................18

2KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Part A-
Introduction
The report is focused towards finding out the essential elements connected with the brand
Kraft Foods. The various aspects that are related to the functional dimensions of the organization
is assessed through the report. Kraft foods groups incorporated is a manufacturing and
processing company specializing in groceries located in Chicago, USA. The company is a part of
the larger Kraft Heinz organization. Kraft was initially established as a cheese-delivery business
in 1903 by James Kraft. The restructuring of the company was done in 2012. In 2015, the
company merged with Heinz, owned by Berkshire Hathaway and 3G capital1. It is currently the
fifth largest company considering food and beverages. The company has a current revenue of
18.2 billion dollars. The company has performed significantly well in the food and beverages
market and has worldwide presence. The CEO of the company is John Cahill.
Kraft Foods filed a registration form in 2012 to split into two companies that were
publicly traded. The business of the company was focused towards the grocery business of North
America. October of the same year Kraft Foods Inc. was created as a new company. The merger
with Heinz happened in 2015 and the company’s shares rose by 17% after just the announcement
of the merger2. The company has since witnessed steady growth in the industry. The company is
a well-known brand in the food market.
Brand Attributes
The motto of the company is “Brands people love” and the logo is Kraft written in red
text and enclosed within a blue somewhat oval shaped box.
1 The Kraft Heinz Company. (2019). Retrieved from http://www.kraftheinzcompany.com/
2 The Kraft Heinz Company. (2019). Retrieved from http://www.kraftheinzcompany.com/

3KRAFT FOODS: BRAND AND MARKETING ANALYSIS
The slogan of the brand is focused towards providing the customers with a large number
of healthy products. Like the parent organization Kraft Heinz, the company also focuses on the
element of environmental values. The designing of the products need to be done in accordance of
the benefits that companies want to provide to its customers. The brand takes into account
customer satisfaction as the top priority while the various marketing and brand promotion
activities. The company is focused towards using more environment friendly and organic
factories for enhancing their productive functions. The brand focuses on reaching out to more
health conscious consumers through their products. Kraft Foods is known to provide products
such as A.1. Sauce, Claussen pickles, Boca Burgers, Jell-O, Gevalia, Grey Poupon, Lunchables,
Complan, Heinz, etc.
The value system of the company is focused towards taking more environment friendly
initiatives concerning both the production process and the CSR initiatives. The values of large
companies in the present corporate situation is more inclined towards environment and
sustainability. Likewise Kraft Foods as a brand is always focused towards improving its
performance in the environment field. The company has added a slogan, “growing a better
world” to focus more towards environmental sustainability. Moreover, the company is also
providing much emphasis on safer, more inclusive and happier workplace for its employees. The
environmental values of the company focus on reduction of gas emissions, reduction of energy
consumption and reduction of water wastage. Concerning the customers, the company is always
focused to provide the value of homemade taste.
Company Positioning
It becomes much important that a company like Kraft Foods significantly consider the
environment around them for the development of strategies that can address the factors that

4KRAFT FOODS: BRAND AND MARKETING ANALYSIS
affect the organization. The most important factors that tend to affect the organization are
competitors, external environment and various legal and political issues. The fact that the
company engages in worldwide operations add to the various external factors that can affect its
operational feasibility. The performance of Kraft Foods can be essentially classified through the
consideration of the various factors that are present with relation to its functions.
The target market of the company is the food and beverages product segment. The
company boasts of having over 20 brands with close to 1000 products available in the market.
Kraft Foods’ most important market USP is due to its mostly organic based products. The
company manufactures products that are inclined towards providing more natural food value to
the customers. The company takes into account the target market that consists of the
differentiated, undifferentiated and concentrated. The company focuses towards reaching a large
number of customers across the world through its differentiated product offerings.
The completion of the company is mainly from the other large players in the food and
beverages market. The larger competitors are Unilever, Nestle and Hershey’s. The competitive
advantage of Kraft Foods lie in the natural products that are provided to the customers. The more
important market advantage is gained due to the unique taste of its products, which is different
from the other brands. The company is among the overall market leaders in the area of food and
beverage. The research and development that takes place continuously in the company helps it to
remain on the top of completion greatly.

5KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Nestle
Pepsico Kraft
High price
Low price
Low quality High quality
Hersey’s
Unilever
Con Agra
foods
Figure 1: Positioning of Kraft Foods
(Source: Kraftfoods.com 2018)
Brand equity estimation
The valuation of Kraft Foods is large considering the market. The current value of the
organization is 58.24 Billion Us Dollars. The revenue of the company is 18.2 Billion US Dollars.
In 2015, the company merged with Heinz, owned by Berkshire Hathaway and 3G capital. It is
currently the fifth largest company considering food and beverages. The company along with its
larger parent company Kraft Heinz is one of the top performing countries with regards to the
food and beverage sector of the country. The company’s net income has dropped in the last
financial year. The operating income had dropped from 10.35 million to 10.27 million. There are
some products that can be considered through sales per measured category.
Amount Product

6KRAFT FOODS: BRAND AND MARKETING ANALYSIS
18.1 billion Powdered coffee Liquid beverages
23.4 billion Cheese and other milk products
20.6 billion Processed food
13.1 billion Healthy and Nutritious processed food
11.3 billion Confectionary items
8.6 billion Pickled items
18.4 billion Mayo and Ketchup
Figure 2: Kraft Foods sales value
(Source: Kraftfoods.com 2018)
The recent trends that affect Kraft Foods are not very satisfactory. However, there have
been more growth oriented changes that can be seen. The customer satisfaction of the
organization have improved significantly. It can be seen that the company is focusing towards
further developing its potential in the market. As mentioned previously the company is
increasingly focusing towards providing customers with organic and healthy food substitutes.
The company focuses on its motto, “brands people love”. This motto is connected with providing
customers with the best food products made from the best produce. The company also wants to
provide the best quality of food to the customers.

7KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Description of the target market
The competitors of the company are focused more towards quantity than quality. Apart
from Nestle, all other brand competitors are specialized in just a few products. This can work to
the advantage of the company as Kraft foods are specialized in the sale of many items. The
Target market of the company is more focused towards attracting the customers through
processed foods, cheese products, and ready to cook macaroni, flavored milk, vegetarian burgers,
confectioneries and other food items. Taking into consideration the target market the company
focuses on mainly the differentiated, concentrated and undifferentiated. This results in the
provision more flexibility to the marketing functions3.
Considering the differentiated target market, Kraft Foods mainly promote their cheese
based products. The company manufactures cheese based products to the customers that already
have developed an affinity towards these products. It is important to understand that that the
company already has a customer base that is attracted to its cheese based products. The
undifferentiated products are mainly the confectionary products that are mostly jelly and milk
based. The company at the same time sells flavored milk. The concentrated market of the
company is regarding the macaroni products that it sells4. Considering, this the market of the
company is quite diverse. The company is essentially banking on the success of its more popular
products like the Boca Burgers, Macaroni, Jell-O, Velveeta cheese and other essentially popular
food items.
3 Newmeyer, C.E., Venkatesh, R., Ruth, J.A. and Chatterjee, R., 2018. A typology of brand alliances and consumer
awareness of brand alliance integration. Marketing Letters, 29(3), pp.275-289.
4 Romaniuk, J., Wight, S. and Faulkner, M., 2017. Brand awareness: revisiting an old metric for a new
world. Journal of Product & Brand Management, 26(5), pp.469-476.

8KRAFT FOODS: BRAND AND MARKETING ANALYSIS
The target market is however larger in case of the ready to cook products such as the
macaroni and cheese products. These are the pre-existing product market for the company.
Hence, the company is also focusing on enhancing the target market with regards to these
specific products.
Competitors, threats, outlook
The competitors of the company is mostly Nestle, Hershey’s and Pepsico. The company
that is the largest competitor is Nestle. The threat specifically from Nestle, is the large number of
products that it provides to the customers. Apart from Nestle, all other brand competitors are
specialized in just a few products. However, the specialized products of Hershey’s like the
chocolate spread are very serious competition to the flavored milk of the company. The company
is affected greatly by the products of Nestle as it is present in mostly across all the wide number
of sectors that are also part of the Kraft Foods brand. The threat is very large with respect to
some of the products. Hence in markets that are normally dominated by the Nestle products
cannot be penetrated by the products of Kraft Foods. The market cannot be essentially dominated
and this will lead to further consolidation of the market of Nestle and the further disintegration of
the market of Kraft Foods. However, this is not the only large factors from the competitors that
tend to affect the company. As discussed above the Hershey’s syrup provides customers with the
option to be used in many different types of food and dessert items. Hence, this leads to a
significant threat to a number of products that are provided by Kraft foods, such as flavored milk.
The options that are provided by Hershey’s at the same time provide tough completion to the
spreads and sauces that are provided by Kraft foods.
The outlook of the company is hence towards the provision of food items to the
customers that are quality wise more effective. Moreover, the company is focused towards

9KRAFT FOODS: BRAND AND MARKETING ANALYSIS
giving the customers better options that are more quality efficient. More natural products are
provided by the customers. Hence, through this the company is focusing towards improving their
product value for the customers. Kraft Foods are becoming efficient and quality enriched
solutions.
Sample marketing material

10KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Summary
Considering the analysis that was done in the study, it can be said that Kraft Foods is one
of the most effective brands in the food and agro based markets. Kraft foods is however facing
stiff competition from the other more established companies such as Nestle. The initial phases of
the study pointed towards the lower revenue of the company in the recent years. However, Kraft
Foods also has many other companies under the Kraft Heinz parent company. The FMCG
industry is greatly affected by the performances of the players such as Nestle, Hershey’s or
Cadbury. It needs to be remembered that the company should take into consideration the
changing demands of the customer base. The revenue division of the company pointed towards
the more prominent and revenue efficient products of the company. It needs to be said that the
FMCG manufacturing enterprises are more efficient with regards to the number of customers

11KRAFT FOODS: BRAND AND MARKETING ANALYSIS
that can be reached. The Kraft foods Inc. has been in the FMCG industry for a long time. Hence,
it becomes much important that they take into consideration the past growth statistics and the
future growth opportunities to frame better strategies for improving their overall performance
figures.

12KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Part B- Media Plan
Objectives
The objectives of media oriented function will be to reach a large number of customers
and find out about their essential needs. It needs to be remembered that the organization will be
looking forward to use the information generated from these to increase the productivity of the
entire marketing processes. The target audience will be people aged between 15 to 30 years of
age. The frequency will be large as a large number of consumers form the market base of food
products. The reach will encompass the urban areas, the suburban households and the rural
households. The company will be offering the customers with products that they can consume.
The objectives from there onwards will be to provide the customers with better opportunity to
promote their products. Hence, the channels that will be used for the promotion will be
television, radio, online, digital, print, etc. Along with the same the company will be using
banners and posters. The key message will be to provide the customers with healthy food
solutions. The company will focus towards promoting healthier food habits among the
consumers. This will make sure that an optimally efficient product promotion initiative will be
taken by the company to promote their product offerings. It becomes much important to
understand that the company needs to invest in more efficient means of media for the essential
promotion of the products. The company will focus towards increasing the frequency of people
coming across the promotional materials of the company. The message that will mostly be used
will be the healthier benefits that can be received from the usage of the products.
Target market
The target market need to be addressed through an effective media plan. This need to go
beyond the aspect of the promotional media. It will be important for Kraft Foods to have an

13KRAFT FOODS: BRAND AND MARKETING ANALYSIS
efficient Public relations plan. This will improve the relationship with the target market. The
company is focused greatly towards increasing the customer reach. This can positively affect the
productive performance of the organization. The target market is to be analyzed with regards to
the products and services that are offered by the company. It is important that the target market is
significantly analyzed. Since as earlier discussed the company essentially focuses on reaching a
diverse range of people through their initiative, it becomes important that multi-dimensional
media channels are used5. The message need to be optimized directly to address the requirements
of the large number of customers that are to be reached through the media promotions. Online
media will be given increasing importance as they are very likely to reach a very large number of
diverse customers. It becomes important that the media channels are very judiciously selected in
order to reach the maximum number of target base customers. All ages of customers will be
given important however the maximum focus will be towards reaching the children and the
urban youth.
Media selection and justification
Selection of media becomes an important criteria with regards to the market of the
organization. Media is a device that can be effectively used towards generating positive reviews
among the intended customer base. It becomes important that the media is given increased
importance. Omni channel promotion need to be very importantly utilized towards improving the
audience reach. Omni Channel media makes sure that the customers are continuously exposed to
the message that is being promoted by the organization. Hence, it is an important choice. The
channels that can mostly be used in case of television are sports channels. The identified
5 Wang, Y., Hsiao, S.H., Yang, Z. and Hajli, N., 2016. The impact of sellers' social influence on the co-creation of
innovation with customers and brand awareness in online communities. Industrial Marketing Management, 54,
pp.56-70.

14KRAFT FOODS: BRAND AND MARKETING ANALYSIS
customer base for the products of Kraft Foods are very attracted towards sports. Moreover, sports
channels are one of the most viewed channels in the country. Hence a large number of customers
can be reached effectively through the promotion at sports channels. More importantly, print and
online channels have to be used. Print is effective medium as the company can also use this
medium to provide special discount vouchers to the target audiences. Moreover, online channels
will mostly be used to promote the diverse ranges of products that the company produces.
Estimated costs of Media
Factors Cost (USD$)
Television 18,000
Radio 14,000
Print 11,000
Digital 8,000
Outdoor 11,000
Total 45, 800
Table 3: Media costs for Kraft Foods
(Source- Kraftfoods.com)
The estimated media costs will be 45, 800. The mostly used media channel will be
Television, Radio and Print. However, the organization is also spending much towards the

15KRAFT FOODS: BRAND AND MARKETING ANALYSIS
outdoor and Digital promotion. It needs to be understood that the cost that Kraft foods will
assign towards the chosen media channels will contribute largely towards the success of the
promotional aspects of the company. Since, the identified customer base for the products of Kraft
Foods are very attracted towards sports. It will be important to venture more towards the initially
expensive advertising slots in between very important and most viewed matches. Additionally, it
is an already established fact that sports channels are one of the most viewed channels in the
country. Hence a large number of customers can be reached effectively through the promotion at
sports channels. Print and online channels have to be used judiciously, the company is
considering to invest in only those companies that have far greater audience reach and a
nationwide circulation. The online media however, will be much cheaper and greatly effective.
Campaign success criteria and measuring
Media planning is intrinsically related to the growth of the organization. The success of
the campaign will depend on how effectively media has been utilized and how better investments
towards the most efficient media channels that can be used6. A very important mark of success
can be said to be the increase in the sale of products. The sale of the products would determine
the effectiveness of the media promotions. Moreover, an important factor determining the
assessment of the success is, the rate of sales. In this case an example can be given of the
Macaroni and cheese product of Kraft Foods. A 15 day sales report of the macaroni and cheese
product will be implemented. If around 200 packs of the same is sold in the first 15 days of the
media promotions, then the entire process can be said to be successful. It is important that the
advertisement screening frequency can be increased from seconds to minutes if feasible.
6 Sharifpour, Y., Khan, M.N.A.A., Alizadeh, M., Akhgarzadeh, M.R. and Mahmodi, E., 2016. The influence of
electronic word-of-mouth on consumers’ purchase intentions and brand awareness in Iranian telecommunication
industry. International Journal of Supply Chain Management, 5(3), pp.133-141.

16KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Bibliography
Newmeyer, C.E., Venkatesh, R., Ruth, J.A. and Chatterjee, R., 2018. A typology of brand
alliances and consumer awareness of brand alliance integration. Marketing Letters, 29(3),
pp.275-289.
Ricardo, D.J.C., 2018. A consumer Staples behemoth: the acquisition of Kimberly-Clark by
Kraft-Heinz (Doctoral dissertation).
Romaniuk, J., Wight, S. and Faulkner, M., 2017. Brand awareness: revisiting an old metric for a
new world. Journal of Product & Brand Management, 26(5), pp.469-476.
Saleem, S., Rahman, S.U. and Umar, R.M., 2015. Measuring customer based beverage brand
equity: Investigating the relationship between perceived quality, brand awareness, brand image,
and brand loyalty. International Journal of Marketing Studies, 7(1), p.66.
Sasmita, J. and Mohd Suki, N., 2015. Young consumers’ insights on brand equity: Effects of
brand association, brand loyalty, brand awareness, and brand image. International Journal of
Retail & Distribution Management, 43(3), pp.276-292.
Schivinski, B. and Dabrowski, D., 2015. The impact of brand communication on brand equity
through Facebook. Journal of Research in Interactive Marketing, 9(1), pp.31-53.
Sharifpour, Y., Khan, M.N.A.A., Alizadeh, M., Akhgarzadeh, M.R. and Mahmodi, E., 2016. The
influence of electronic word-of-mouth on consumers’ purchase intentions and brand awareness
in Iranian telecommunication industry. International Journal of Supply Chain
Management, 5(3), pp.133-141.
The Kraft Heinz Company. (2019). Retrieved from http://www.kraftheinzcompany.com/

17KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Van Waterschoot, W. and Van den Bulte, C., 1992. The 4P classification of the marketing mix
revisited. The Journal of Marketing, pp.83-93.
Wang, Y., Hsiao, S.H., Yang, Z. and Hajli, N., 2016. The impact of sellers' social influence on
the co-creation of innovation with customers and brand awareness in online
communities. Industrial Marketing Management, 54, pp.56-70.

18KRAFT FOODS: BRAND AND MARKETING ANALYSIS
Appendix
Figure 2: Kraft foods logo