Marketing New Products: Kraft Stirs the Pot Again

This exam paper for MKT002 covers the topic of marketing new products with a case study on Kraft's macaroni and cheese ice cream mashup. The paper includes questions on target market, promotion, launch strategy, and challenges. Additionally, it covers new product development strategy and market segmentation for a new electric vehicle in Pakistan.

STUDENT ID
STUDENT NAME
SUBJECT NAME: Marketing New Products
SUBJECT CODE: MKT002
TIME ALLOWED: 2 Hours
PERMITTED MATERIALS:
 This is an Open Book exam.
INSTRUCTIONS FOR STUDENTS:
 You do not require a separate answer booklet. Please type your responses in the
space provided.
 Type your full name and ID at the top of this page.
 This exam consists of two sections:
 Section A has a case study and FOUR questions worth 10 marks each.
 Section B has three questions. Answer only two questions. Each question is worth 10
marks each.
 Total 60 marks.
 This exam is worth 60% of your overall grade for this subject.

MKT002 Trimester 3 2021 FEX Page 2 of 6
SECTION A – Case Study
Read the case study and answer all four questions. Each question is worth 10
marks. Total 40 marks.
Kraft Stirs the Pot Again
In an effort to “bring together two of life’s greatest pleasures”, Kraft cooks up a macaroni and
cheese ice cream mashup that might actually be exactly what today’s consumers want.
Brooklyn favourite ice cream, Van Leeuwen, backs the bizarre and buttery new treat, but if that
does not catch consumers’ eye, the bright orange hue of the ice cream will. The funky new
flavour was sold online (where it has already sold out!) and on the menu at 23 Van Leeuwen
ice cream locations across New York, Los Angeles, and Houston. Kraft also doled out
free samples to passer-by last week in New York’s busy Union Square amidst an ongoing
heatwave. The introduction of the new ice cream aligns with both National Ice Cream Day and
National Macaroni and Cheese Day, making it as delightful gimmicky as it is gross. That in
mind, the daring dessert comes at a time when weird food combinations continue to build
momentum across social media platforms. Indeed, when quarantine forced consumers to get
comfortable eating at home, many amateur chefs took it as an opportunity to get creative in the
kitchen, cooking up dishes like Flamin’ Hot Cheeto Rice Krispie Treats and Pizza Donuts, which
are seeing a particular wave of popularity at present.

MKT002 Trimester 3 2021 FEX Page 3 of 6
It is not the first time Kraft has stirred the pot. In the past, it has offered up avante garde eats
like candy macaroni and cheese and pumpkin spice macaroni and cheese. In addition, in case
you were wondering, yes, the new flavour does use real Kraft Macaroni and Cheese sauce.
But while consumers may cringe at the new noodle concoction, that’s actually exactly what a
brand like Kraft needs. Long considered a classic American comfort food, it can be easy for
Kraft to get lost in the crowd of new brands saturating the market. That in mind, stunt
marketing that tacks onto fun holidays, hot trends, and the everlasting appeal of “limited
edition” batches makes sense. Even though the flavours have sold out online, Kraft has
already taken to Twitter to let people know there’s already more in the making.
Answer the following four qu es tions:
1. Making use of demographics and psychographics, clearly identify the target
market that Kraft are aiming at for this new product and justify your analysis. (10
marks)
[Answer here]
2. Kraft is now looking at introducing this product to Australia. Recommend how
Kraft could promote this new offering to its current and potential customer. (10
marks)
[Answer here]

MKT002 Trimester 3 2021 FEX Page 4 of 6
3. Recommend the strategy for the launch campaign, including the media that Kraft
should use to ensure the success of the new offering. (10 marks)
[Answer here]
4. Identify some of the challenges Kraft could face during the launch and recommend
how these can be overcome. (10 marks)
[Answer here]

MKT002 Trimester 3 2021 FEX Page 5 of 6
SECTION B
There are three questions in this section. Answer ONLY two. Each question
is worth 10 marks.
Question 5 (10 marks)
Describe how you go about putting together a new product development strategy for either
a luxury sports car or a healthcare delivery. Include all steps and provide supporting
justification.
[Answer here]
New product development strategy is one that includes way of bringing a new product in market. It
is seen that there is need to conduct proper research in the market. It is seen that there are various
innovations that may take place. To develop a luxury car the needs and wants of high class customers must
be analysed. The steps that can be used to develop a luxury car are as follows:
Market research: in the first step business organisation will conduct research about the market. It will help
the business organisation to know about the innovation in the market. So that new features that can be
added to existing product can be added.
Analysis: There are huge number of features that are identified .
Question 6 (10 marks)
Designing a new product is a sequential process. It takes more time and may eliminate a
product that could have been a success. Using suitable examples, identify the sequential
steps, explain why we should not just get a good idea, and go to market.
[Answer here]
The sequential term of new product is a liner product desing procedure in all stages of manufacturing
operate in serial. Both product and process design run in parallel and take place in the same time. Process
and Product are coordinated to attain optimal matching of requirements for effective quality and
delivery. As there are suitably varied sort of the new products development sections in terms of sharing of
the concept with effective steps and stages.

MKT002 Trimester 3 2021 FEX Page 6 of 6
Question 7 (10 marks)
Use the desirable characteristics of markets to provide an analysis of market segments best
suited for a new electric vehicle to be launched in Pakistan. Justify you answer with suitable
demographics and psychographics.
[Answer here]
It is very important for an organization that they should make a marketing strategy in order to launch
the products in the market. It is found that the product is new electric vehicle which company wants to launch
in Pakistan. In order to launch the product, it is very important for an organization to segment their market.
Segmentation can be done on the basis of psycho-graphics and demographics. These categories are crucial
to segment the market into groups, it becomes easy for an organization to achieve the objective.
END OF EXAM PAPER
[Extra writing/working space if required]