Kraft Foods Inc 2009 Case Study Analysis In Education


Abstract:

This case is about US-based Consumer Packaged Goods (CPG) Company Kraft Foods' (Kraft) mobile marketing strategy. Due to a reduction in consumer spending on packaged goods, Kraft decided to tap the mobile channel to promote its products as this channel had the capacity to enable value-added marketing. The company's mobile marketing campaigns were designed to meet the needs of customers and to help them integrate the company's brands into their everyday lives.

The case discusses the mobile marketing campaigns launched by Kraft Foods and their objectives. In 2008, Kraft launched a mobile campaign in Germany to promote the launch of its new instant coffee brand called Jacobs 2in1.


It was the first large-scale European product launch which used a mobile sampling campaign to enhance brand awareness. The campaign was integrated with traditional media and allowed customers to request samples and order products from their mobile phones. This was followed by the launch of a mobile cooking application for iPhone users called the iFood Assistant in December 2008. The application allowed customers to search for and download recipes, manage their shopping lists, and locate local stores thereby delivering value to the customer while at the same time promoting the company's products. The case also talks about the mobile website created by Kraft to facilitate consumer engagement on mobile devices, and how Kraft was taking its mobile marketing initiative further in countries such as Germany and the UK.

The case discusses whether the campaigns were successful in enhancing brand awareness and consumer involvement. It concludes by providing the reactions of analysts to Kraft Foods' mobile marketing campaigns. Analysts were of the view that the mobile marketing initiatives adopted by Kraft would serve the purpose of establishing a direct dialogue with customers as the mobile phone was a powerful communications device with respect to mobility, reach, and immediacy. Marketers should take advantage of the mobile medium and adopt it as part of their channel mix to gain a competitive edge, they said.

Issues:

» Study the mobile marketing strategy of Kraft Foods
» Understand the issues and challenges in creating and rolling out a mobile advertising campaign.
» Analyze the mobile marketing campaigns launched by Kraft Foods.
» Discuss and debate whether the mobile marketing campaigns of Kraft Foods would be able to achieve their objectives.
» Explore ways in which the company could make its mobile marketing campaigns more effective.

Contents:

Keywords:

Mobile Marketing strategy, Consumer Packaged Goods companies, Kraft Foods, Mobile website, Interactive marketing, Mobile marketing campaigns, Online marketing, Mobile applications, iFood Assistant, Traditional media, iPhone Applications, Mobile cooking App, Brand management, Mobile recipes, 3 in 1 / 2 in 1 campaign, Mobile marketing agencies, Customer engagement, Mobile interactive services, Brand awareness

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3 GROUP 2 CASE ANALYSIS 1 Executive Summary Kraft Foods is the largest packaged foods company in North America and the second largest in the world (Datamonitor, 2011). The mission of Kraft Foods is to “make today delicious” or “make a delicious difference” in the company, as well as in the community and the world (Kraft Foods, Inc., 2012). Kraft’s objectives include improving local and global health and well-being, improved sustainability, optimal food safety and quality, enhanced workplace culture, and compliance with community and government expectations. Kraft presently strategizes to target multiple markets and consumers, leverage brand name recognition of its iconic brands, and drive success with a focus on enhanced performance and unmistakable values. Kraft Foods can enhance its focus on growth with a new mission statement. The new mission is to have our large portfolio of iconic brands in every household and to bring smiles and enjoyment to every consumer. Using current technologies and financially sound decisions, we strive to promote social and environmental responsibility; enhanced global and domestic distribution; and inspiration from our employees, while focusing on providing delicious food and beverage options to the public. With Kraft Food striving to remain at the top of its game, the competition has proven to be fierce. A Competitive Profile Matrix provides Kraft with important internal strategic information and also displays Kraft’s competitiveness in relation to the strategic position of its major competitors, ConAgra Foods and Nestle (David, 2011 p. 81). The results show that overall Nestle is strongest; however, for the three areas most important to Kraft (Global Expansion, Customer Satisfaction, and Global Name Brand Recognition), Kraft is showing great promise.

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