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EXAM 2: Case Analysis (Consumer Marketing)

Kraft Foods: The Coffee Pod Launch  

   

NOTE: The purpose of this assignment is for you to apply your understanding of the first phase of the strategic marketing process: planning, (including target consumer / customer behavioral research, competitive situation analysis (SWOT), pricing, implementation cost estimation, etc.) to the business challenge Kraft’s product manager faces. Our focus is on applying the marketing planning process, market and consumer research, knowledge about consumer behavior and decision making, and implementation planning from your marketing courses thus far to the business challenge presented in the Kraft case. For the purpose of this assignment, you are to assume that you are Jeff Herzog, product manager for coffee development at Kraft Foods Canada (Kraft). It is July of 2004, and you have just learned that Kraft Foods North America was planning an aggressive launch of coffee pods in the United States. You have less than a month to decide whether Kraft should proceed with a simultaneous launch in Canada, delay the launch to await the US results, or not launch this product at all. If you are to go ahead with the launch, you must make several decisions:

1) You must select a suitable branding strategy (including pricing, product, distribution channels, etc.), and 2) You must also develop an effectiveness advertising and promotion strategy on a relatively limited budget. 3) You must prepare a marketing plan that can break even by the end of 2006.

Of course, in making your recommendations and plans, you will need to make a convincing case that your plan will help Kraft expand its stare of the Canadian coffee market (you must correctly understand your potential customer’s preferences and decision process), while generating a satisfactory return on the company’s marketing investment. However you decide, you must justify your decision based on clear evidence and data. For example, if you decide to recommend that Kraft not launch (or delay its launch), you must also make a strong case, based on competitive marketing data, a deep understanding of the habits and decision processes of the Canadian consumer, and competitive pricing and marketing cost information. All of this data are contained in the case document – when you use data to support your arguments, be sure to cite its page and/or Exhibit number.. Your task is to write a < 8 page memo to JLS, Kraft Foods CEO, presenting your 1) Decision Recommendation, and a 3-part 2) Analysis / Justification for your Recommendation, in which you include the following:  

 Decision Recommendation (Part 1): Launch, Delayed Launch, or No Launch. In a brief, less than 5- paragraph introduction, identify the core problems, issues and challenges presented by the single-serve coffee pod (SSP) launch decision. In your final paragraph, present your decision and outline briefly the major reasons why you will argue that this is the best decision for Kraft Canada at this time.

 Analysis (Part 2): Competitive Analysis: SWOT. In this section, identify and summarize your assessment of Kraft Canada’s internal strengths and weaknesses and its external opportunities and threats (SWOT) in entering this market with the SSP product. Your analysis should include: 1) an overview of major industry (and technology) trends, 2) an identification and analysis of its major competitors (and their products), 3) an internal assessment of significant strengths and weaknesses of the organization, and 4) a general overview of the Kraft Canada’s present and prospective customers. Be sure to include supporting data (and citations) for each component of your analysis. Remember, you are only to use data presented in the case itself to support

your arguments.

 Analysis (Part 3): Strategic Market Analysis – Consumer Preferences and Decision Processes. This section of your analysis continues the previous one, and it focuses on the preferences and challenges that you believe will be encountered in engaging and persuading your target customer to decide to purchase the SSP product. After you identify the primary challenges (Chapter 10 in your text), identify two or three “choice tactics” or “simplifying strategies” that you intend to employ to engage your customer in choosing your product. For each choice tactic / simplifying strategy that you plan to employ, list: 1) the reason / justification why this strategy is critical in meeting your strategic marketing goals, 2) two or 3 specific examples of marketing actions that you might use to achieve this strategic objective , for each marketing action that you have chosen, 3) an assessment of risk and its sources (organizational, resources, political, etc.) that are involved in this action, and 4) its possible cost in $$ for this marketing actions You may present your response to this section in the form of a table or chart. However, you must also provide a few paragraphs of textual explanation of the major components of your analysis.

 Analysis (Part 4): Summary of Market Plan Projection -- Product, Price, Promotion, and Place: As you will probably recognize, the following figure outlines the components of a good marketing program. Given your analysis above and speculation on the significant risk factors involved, outline for each component – Product, Price, Promotion and Place –1) what you consider to be the optimal solution to the challenge it presents for launching the SSP successfully in Canada, and 2) an outline / estimate of the relative costs and benefits for each component of the solution.

.  Summary and Conclusion (Part 5) Given the above analyses, in a brief section (no more than 4 paragraphs)

review your launch recommendation and its major justifications. Systematically and clearly review each of the major points of your argument for your recommendation, in each case highlighting and reiterating supporting evidence from the analyses you have presented in the previous three sections.

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EXAM 2: Kraft Foods Coffee Pod Launch case assignment (150 points)

Name: ________________

Criteria Points

1 2 3 4

 

 

1. ( Introduction): Student provides a clear and concise overview of the core problem, issues, and challenges presented by the launch decision challenge. Additionally, the student presents an overview of his or her launch recommendation and its rationale. (10%)

  Student provides a vague and unclear overview of the core problem, issues, and challenges presented by the launch decision challenge.

Additionally, the student presents a preview of his or her launch recommendation, without providing a summary of its supporting arguments..

Student provides a minimal overview of the core problem, issues, and challenges presented by the launch decision challenge.

Additionally, the student presents a preview of his or her launch recommendation, with a weak set of supporting arguments

  Student provides a general overview of the core problem, issues, and challenges presented by the launch decision challenge.

Additionally, the student presents a preview of his or her launch recommendation, with a set of supporting arguments.

  Student provides a clear and concise overview of the core problem, issues, and challenges presented by the launch decision challenge.

Additionally, the student presents a concise preview of his or her launch recommendation and a summary of its major supporting arguments..

 

2. (Competitive Analysis: SWOT). Student identifies and summarizes Kraft Canada’s internal strengths and weaknesses and its external opportunities and threats (SWOT) in entering the market with the SSP product. Analysis includes: 1) an overview of major industry (and technology) trends, 2) an identification and analysis of its major competitors (and their products), 3) an internal assessment of significant

An SWOT analysis that includes one or more of the following components (without supporting evidence): 1) an overview of major industry (and technology) trends, 2) an identification and analysis of its major competitors (and their products), 3) an internal assessment of significant strengths and weaknesses of the organization, and 4) a general overview of the Kraft Canada’s present and prospective customers. .

A SWOT analysis that includes one or more of the following components with supporting evidence: 1) an overview of major industry (and technology) trends, 2) an identification and analysis of its major competitors (and their products), 3) an internal assessment of significant strengths and weaknesses of the organization, and 4) a general overview of the Kraft Canada’s present and prospective customers. .

A complete and generally well- supported SWOT analysis that includes most of the following components: 1) an overview of major industry (and technology) trends, 2) an identification and analysis of its major competitors (and their products), 3) an internal assessment of significant strengths and weaknesses of the organization, and 4) a general overview of the Kraft Canada’s present and prospective customers. .

A creative, complete, and well- supported SWOT analysis that includes all of the following components: 1) an overview of major industry (and technology) trends, 2) an identification and analysis of its major competitors (and their products), 3) an internal assessment of significant strengths and weaknesses of the organization, and 4) a general overview of the Kraft Canada’s present and prospective customers. .

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strengths and weaknesses of the organization, and 4) a general overview of the Kraft Canada’s present and prospective customers. Supporting evidence is provided for all components of the analysis. (25%)

3. (Strategic Market Analysis – Consumer Preferences and Decision Processes.) Student focuses analysis on identifying and meeting challenges that will be encountered in engaging and persuading the target customer to decide to purchase the SSP product.

Student identifies the primary challenges and presents “choice tactics” or “simplifying strategies” to engage the customer in choosing SSP.

For each choice tactic / simplifying strategy, student presents: 1) the justification why this strategy is critical in meeting the strategic marketing goals, 2) 2 or 3 specific examples of marketing actions that could achieve this strategic objective. For each marketing action, student includes 3) an assessment of risk and its sources (organizational, resources, political, etc.) that are involved in this action, and 4) its possible cost in $$ for this marketing action. (25%)

Student fails to identify the primary challenges to customer decision- making and choice, and/or presents few or minimal “choice tactics” or “simplifying strategies” to engage the customer in choosing SSP.

Student identifies some primary challenges and a few “choice tactics” or “simplifying strategies” to engage the customer in choosing SSP.

For each choice tactic / simplifying strategy identified, student presents: 1) minimal or no justification why this strategy is critical in meeting strategic marketing goals, and/or 2) minimal examples of marketing actions that could achieve this strategic objective.

Student identifies some challenges and presents “choice tactics” or “simplifying strategies” to engage the customer in choosing SSP.

For each choice tactic / simplifying strategy, student presents one or more of the following: 1) a justification why this strategy is critical in meeting the strategic marketing goals, 2) 2 or 3 specific examples of marketing actions that could achieve this strategic objective. For most of the marketing actions, student includes: 3) a general assessment of risk and its sources (organizational, resources, political, etc.) that are involved in this action, and 4) its possible cost in $$ for this marketing action. .

Student identifies the primary challenges and presents “choice tactics” or “simplifying strategies” to engage the customer in choosing SSP.

For each choice tactic / simplifying strategy, student presents: 1) a clear justification why this strategy is critical in meeting the strategic marketing goals, 2) 2 or 3 specific examples of marketing actions that could achieve this strategic objective. Additionally, for each marketing action, student includes 3) an assessment of risk and its sources (organizational, resources, political, etc.) that are involved in this action, and 4) its possible cost in $$ for this marketing action.

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4. (Market Plan Projection): Student outlines for each component of the marketing plan – Product, Price, Promotion and Place –1) an optimal solution to the challenge it presents for launching the SSP, and 2) an outline / estimate of the relative

Student outlines a minimal marketing plan that consists of one or two components – Product, Price, Promotion and Place..

Student outlines a well-designed marketing plan that consists of the four components – Product, Price, Promotion and Place.

Student outlines a complete and well- designed marketing For most but not all components of the plan -- Product, Price, Promotion and Place –1) a solution to the challenge it presents for launching the SSP is outlined, and 2) a general estimate of the relative costs and benefits for each component of

Student outlines for each component of the marketing plan – Product, Price,Promotion and Place –1) a complete and optimal solution to the challenge it presents for launching the SSP, and 2) a complete and thorough outline / estimate of the relative costs and

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costs and benefits for each component of the solution. (25%)

the solution is provided. benefits for each component of the solution.

 

  5. Students communicate ideas clearly and professionally in written English, using correct documentation and references for a graduate and professional paper. Additionally, students include an adequate Conclusion to the paper that summarizes the main arguments that have been presented. (15%)

   

 

Paper loosely written, unorganized, and lacks proper documentation and references. Serious grammatical errors are common. Incorrect or absent documentation an/or references.

   

 

Paper is generally organized, composed of complete sentences, and contains few if any grammatical or spelling errors. Documentation and references are minimally and inconsistently present.

  Paper is well-organized, and ideas are presented in a clear and logical manner. Syntax and sentence structure are correct, and there are no grammatical or spelling errors. Internal citations are inconsistent or missing, and/or the reference list at the end of the paper is inconsistent or inaccurate.

  Paper is well-organized, and ideas are presented in a clear and logical manner. Syntax and sentence structure are correct, and there are no grammatical or spelling errors. Internal citations are placed correctly using an appropriate format, and the reference list at the end of the paper is correct and consistent.

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Total----> ____

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