Sample Essay

Marketing Strategy

The marketing strategy that should be used to target the Canadian market is to position the Kraft coffee pod products as a premium quality coffee product that provides its consumers with high quality taste, and related benefits. The pod based coffee products would be targeted towards the 25-54 year old population of Canada that would include singles, couples, families as well as office staff. This along with strong promotional activities and market awareness programs would help the Kraft foods attain a 35 percent majority of the market share in the Canadian market.

Price

The price of the coffee pods has to be kept low enough to encourage the customers to purchase the products, while maintaining a high enough price to portray the positive premium coffee image for its Nabob and Maxwell House brands. Competitors have prices 16 pods for US$3.99, pertaining to this a price of $3.99 for 18 pods would be suitable as it would provide the company with the per cup profit of $0.22. In order to protect the brand image of its coffee brands, Kraft should price its regular coffee pods at the price of $3.99 while the speciality coffees and exotic flavours can be priced at a higher price of $4.00-$4.50. In the wholesale market the company should seek to provide the Canadian wholesalers and retailers with a margin of 30 percent with special high rates of 35 percent in the initials period of the product launch.

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