CMU202: Kraft Foods Brand and Marketing Analysis Individual Report

This report offers a comprehensive analysis of Kraft Foods, examining its brand elements, brand equity, market positioning, target market, competitive landscape, and marketing strategies. The analysis begins with a brief history of the brand, followed by an exploration of its motto, logo, and product offerings. It then delves into the company's brand equity, assessing its financial value and recent trends. The report also investigates Kraft Foods' target market, including its differentiated, concentrated, and undifferentiated segments. Furthermore, it examines the company's competitors, potential threats, and future outlook. The report concludes with a summary of the findings and a discussion of the company's marketing efforts, including a media plan. The report includes tables and figures illustrating key aspects of the company's performance and market position.

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.