THREE-YEAR MARKETING PLAN

Kiwi Flavoured Kool-Aid Drink

Agnihotri, Akhilesh (M12412766)

Appalla, Sai Uday Kumar (M12383301)

Saini, Jatin (M12382157)

Sharma, Nirupam (M12384101)

Karen Manning

MARKETING 7000

November 30, 2017

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Table of Contents

 Executive Summary

 Company Description

 Strategic Focus and Plan

 Situation Analysis

 Market Product Focus

 Marketing Program

 Financial Data and Projections

 References
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1. Executive Summary

Main aim of Kool-Aid is to provide refreshing beverages of the highest quality to our

customers and their households. We will achieve this by continuing with Kraft Heinz’s

longstanding legacies of superior quality food, safety, and service. Kool Aid is a household

brand and its proven past will allow the business to continue to increase its hold on the market

and build its reputation in the organic, health conscious market.

Kool Aid will add a new product in their product line – Kiwi base refreshing juice. With

this product, company will continue its focus on families and continue to appeal to the interests

and happiness of children in those household.

Our advertising will focus on health benefits of this drink and will associate the drink with

words like added health benefits, low calorie/sugar and refreshing drink. This is to ensure

appeal to the people looking for health benefits from a drink.

We expect to reach popularity and success as soon as we rollout our product under Kool

Aid brand.

Objectives

The objective of first three years include:

1. Increase the overall sales by 7.5% every year for the next 3 years

2. Consistently generate at least $1.5M on the sales of the new Kiwi flavored juice in all

the three years

3. Increase the gross margin percentage by 15%

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Mission

A globally trusted producer of refreshing drinks, The Kool Aid Company provides

high quality, great taste and nutrition for all consumers.

Key to Success

The keys to success are:

 Appealing health conscious consumers with health benefits of the drink

 Reaching masses through present logistics and supply chain infrastructure

 Use core-competency of Kool-Aid brand as an advantage for the product launch and

marketing

2. Company Description

The Kraft Heinz Company is a food company formed in 2015 by the merger of Krafts

Food Group, an American grocery manufacturing and processing conglomerate and Heinz,

also a food processing company. After the merger, Kraft Heinz became the fifth largest food

production company in the world and the third largest in North America. The main aim of

bringing these two iconic companies together through this transaction, is to create a strong

platform for growth, both in the US and in the world. One of the other big reasons for the

deal is to cut costs at Kraft. The two companies, after this $49 billion merger, are planning to

generate $1.5 billion in annual cost cuttings by the end of 2017. The Company’s iconic

brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables,

Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight

Watchers Smart Ones and Velveeta.

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Kool-Aid is a brand of flavoured juice mix owned by Kraft Foods. Kool-Aid was

invented by Edwin Perkins in 1927 and was later sold to General Foods in 1953 which

introduced the famous ‘Kool Aid Man’ mascot.

The Kraft Heinz Company believes its proven success as separate entities over the

past several decades will translate to even more success due to its broader range of products

and solutions. This marketing plan demonstrates how the Kraft Heinz Company will

introduce and ensure Kiwi Kool Aid will be a major player.

3. Strategic Focus and Plan

i. Mission

The Kraft Heinz Company is committed to investing in world-class brands and long-

term value creation. From the way, they grow their brands to how they run their

business, they are working to transform the food and beverage industry1.

ii. Goals

Over the next 3 years, the Kool-Aid brand of the Kraft Heinz company wants to

achieve the following goals

a) Non-financial goals:

 To Improve the customer satisfaction by 30%

 To penetrate 3 countries in Asia having high consumer market

 To be the first choice among health-conscious beverage consumers

 To improve the Kool-Aid’s brand value of by 7%

 To increase the online reach via Facebook and Twitter by 10%

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 To reduce greenhouse gas emissions, energy, water and waste in its operations

by 12% globally in the next 3 years

b) Financial goals:

 Increase the overall sales by 7.5% every year for the next 3 years

 Consistently generate at least $1.5M on the sales of the new Kiwi flavored

juice in all the three years

 Increase the gross margin percentage by 15%

 Decrease the operating costs of manufacturing worldwide by 5%

iii. Core Competencies and Competitive Advantage

The Kraft Heinz Company aims to be the best foods and beverages company and is

dedicated to the sustainable health of our people, our planet and our Company. Kraft

Heinz is well served by its unparalleled portfolio of leading brands, including eight

billion-dollar brands and five $500 million-plus labels. The company has strong

presence and customer base in many of the global economies which makes it easier

for Kraft Heinz to roll out the new innovative product to multiple economies.

They have an existing functional operation and employees in over 45 countries which

gives them a competitive advantage in adding a kiwi flavour to their portfolio of Kool

Aid juices. Nearly 90 years of history and experience in manufacturing Kool Aid

products gives them an extra edge in coming up with cost effective supply chain

practices for kiwi flavoured product and in turn lower the manufacturing costs

resulting in competitive pricing.

Their core competencies can be summarized as -

 R&D

 Strategic

 Setup in many places across the globe

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 High revenues leading to high potential for investment

For these core competencies to translate into sustainable competitive advantages, the

company will establish an uninterrupted supply of kiwi fruit from the right vendor to

forge a long-lasting relationship necessary to satisfy the high-quality standard set by

the company.

4. Situation Analysis

Situation starts with a snapshot of the current environment in which the Kraft Heinz

company finds itself by providing a brief SWOT (strengths, weaknesses,

opportunities, threats) analysis. After this overview, the analysis probes ever-finer

levels of detail: industry, competitors, company, and consumers.

Here we attach a table to state in brief the SWOT analysis of both Kraft Heinz and

new Kiwi Kool-Aid product, this analysis displays the strengths, weaknesses,

opportunities, and threats impacting the introduction and on-going business

opportunity for Kraft Heinz Kiwi Kool-Aid.

SWOT Analysis

STRENGTHS WEAKNESSES

Successful brand with diverse flavours Risk of internal cannibalization

Company already has a huge market The company has low/no presence high

penetration in US, Canada and Africa potential regions such as Asia

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Established operations make new product High operation cost due to import of kiwi

launch easy and helps in early market fruit

acceptance

Competitive pricing strategy Company has suffered many lawsuits in the

past which led to negative impact on its

brand value

Kiwi is a healthy exotic fruit which makes The company does not have young people

it desirable as its consumers

OPPORTUNITIES THREATS

Aggressive competition

Growth of global juice market

High awareness of health benefits of Kiwi

in present market Effects of Natural disasters and crop

diseases on supply, demand and cost of

fruit

Target new market of young people Dependence on trade relations and

protocols between USA and Kiwi

exporting countries

None of current competitors sell similar

product Risk associated with launch of new product

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Strengths:

Successful brand with diverse flavours: Kool-Aid has wide variety of flavours which

attract all age groups of people. According to the brand, almost 20 percent of Kool-Aid

juice consumers are Hispanic, and slightly more than 20 percent are African-American. Its

sugar-free flavours are quite popular among calorie conscious people. Already established

market and reach makes Kool-Aid a distinct and recognizable brand.

Company already has a huge market penetration in US, Canada and Africa: Kraft-Heinz

is world’s fifth biggest company and its products reach more than 15 countries in the world

with US and Canada being its biggest markets. Successful reach and wide consumer base

helps Kraft-Heinz products to be accepted by consumers quickly.

Established operations make new product launch easy and helps in early market

acceptance: With operations and supply-chain setup around the world, Kraft-Heinz is a

leader in launching products on world platform which helps its new brands and products to

make use of current supply chain and operations setup.

Competitive pricing strategy: Competitive pricing strategy of Kraft-Heinz group has been

unbeatable in the past as they have launched hundreds of products and different markets

and they have an expert team to build pricing strategy around their product which takes into

consideration the market competition, market size and willingness of people to spend on

the product

Kiwi is a healthy exotic fruit which makes it desirable: Rich in vitamin C and K, kiwi is

an exotic fruit with many health benefits like it helps in preventing blood clot, and helps in

digestion. Kiwi is liked by people for its taste and its antioxidants.
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Weaknesses:

Risk of cannibalization: Cannibalization is a concept where a new product gains sale by

diverting customers from an existing product. Presently, Kool-Aid has a Kiwi-lime

flavoured juice which can pose as a threat to sales of kiwi flavoured juice. To minimize the

effect of cannibalization, we can focus on our new product as a “sugary” and “flavoured”

juice which separates it from our existing Kiwi-lime flavour in a sugarless juice category.

The company has low/no presence high potential regions such as Asia: Kool-Aid is

missing its presence in Asian markets where market potential is huge. Countries like India,

China and Singapore can prove to be great consumer markets for Kool-Aid brand. Kiwi has

been an exotic fruit in Asia and its cultivation in China can help us in supply and

production of our juice. Asian market, with more than 2 billion population, are untested

markets for these fruit juices which can turn out either profitable or a bad decision.

Untested potential of this market is a huge weakness for Kool-Aid.

High operation cost due to import of kiwi fruit: Kiwi requires special transportation

conditions for import/export activities and its cultivation is limited to few countries in the

world. This would increase our operational cost and may create challenges in planning

ahead and keeping up with the demand.

Company has suffered many lawsuits in the past which led to negative impact on its

brand value: Kraft Heinz has been in the middle of many lawsuits in past decade. Most of

the time it can settle the suit, but this impacts brand reputation and may affect our product

launch.

The company does not have young people as its consumers: Kool-Aid has a huge

consumer base, but it is not wide. Kool-Aid is popular among middle aged people (around
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40) which makes it difficult for Kiwi juice to be popular among other age groups since

brand association is one of the most important part for connecting with consumers.

Opportunities:

Growth of global juice market: The global juice market is growing at CAGR 3.96% in

revenue. This means there is huge potential in the market with more people becoming health

conscious. Also, ad-hoc availability of fruit juices especially in summers provides consumers

quick access to high source of energy without much hassle.

High awareness of health benefits of Kiwi in present market: Old and middle age people

form much of current market of Kraft Heinz. This segment is aware of the health benefits of

kiwi such as it is high source of vitamin C, B and K, potassium and many other minerals.

The popularity of Mediterranean diet among people (a survey by Nielson showed that a high

43% of people in age group 30-60 in North America plan on or want to switch to

Mediterranean diet) would also propel consumers to buy more of Kool-Aid juices rich in

Mediterranean fruits.

Target new market of young people: Young people are the big consumers of energy juices

and juices. This potential is further high in sports and other athletics. Almost, 40 % of

consumers of Kiwi are young people in age group of 18- 30. Targeting young people will

increase not only the market of Kraft Heinz but also help acquire more market share in the

food and beverages industry as no other company sells Kiwi Kool-Aid.

None of current competitors sell similar product: Presently, no company sells kiwi Kool-aid

in major markets such as North America, Asia and Europe. Kraft Heinz not only has an
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opportunity to launch new product but also to acquire large untapped market due to absence

of any similar product in the market.

Threats:

Aggressive competition: Nestle and Unilever are Kraft Heinz’s biggest competitors. They

already have better brand value and larger market share in food and beverage industry. There

is possibility of aggressive competition from them in case they plan to release similar

product. To mitigate such threat, Kraft Heinz would require great quality of product,

competitive pricing and aggressive marketing strategies.

Effects of Natural disasters and crop diseases on supply, demand and cost of fruit: Since

Kiwi is 100 percent imported from only two countries New Zealand and Italy, spread of crop

diseases due to pests, etc., and occurrence of natural disasters such as landslides, and floods

affect the availability of Kiwi fruit. This means high volatility in supply which can affect

future cost of fruit import and lead to decrease in profits. Also, this would lead to issues in

satisfying the demand as local production of fruit is not an option.

Dependence on trade relations and protocols between USA and Kiwi exporting countries:

International trade and rules and relations between USA and New Zealand or Italy also

govern the business as these protocols have an impact on costing, import duties and

availability of raw material. Also, rising labour wages in above mentioned regions also affect

the operational cost of Kool-Aid. This would mean operational expenses get affected

drastically with changes in trade rules which goes beyond the control of Kraft Heinz.

Risk associated with launch of new product: None of the companies have launched a similar

product in any of the markets. This means there is always a possibility of product failure in

case consumer does not respond positively. Regular tracking of consumer behaviour would
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be very critical and gradual changes should be brought in both marketing and pricing strategy

according to response received.

The Kraft Heinz company can leverage its strengths and opportunities associated with

product Kiwi Kool-Aid to expand market and sales consequently. Company has presence in

almost 98% of North American households and recently in FY 2015 had very high revenue

propelling them to invest US $120 million on R&D in FY 2016. Also, it has large market

share in segment comprising of middle age people and thus huge potential to expand to

young people. Kiwi as a fruit juice itself brings many benefits. It is very healthy because of

high nutrient content and carriers a lot of exotic value. Add to it the fact that juice industry is

growing at CAGR of 3.96%. With proper and efficient marketing strategy and competitive

pricing Kraft Heinz can succeed in achieving its financial and non-financial goals.

The ride for growth is not too smooth. There are certain weaknesses and threats that

needs to be given attention to and solved to succeed in achieving goals. The product is new

and hasn’t been introduced in market yet, which means it carries an inherent risk of failing to

attract consumers. Also, Nestle and Unilever are Kraft Heinz’s biggest competitors who may

in future provide similar product. So, aggressive marketing is very critical. Kiwi is an

expensive imported raw material that gets affected by international trade rules, relations and

natural disasters. These uncontrollable factors affect supply, selling cost and operational costs

of the final product. Proper strategies and countermeasures need to be developed to overcome

these challenges if need arises.

Industry Analysis

The total juice market is forecast to grow 5% from 2016 to 2021; this is a net decline

of 7% in sales when accounting for inflation. The juice market is flat due to the continued

sales decline of 100% juice and the relatively flat juice category.
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Total US retail sales and forecast of juice, juice juices, and smoothies, at current prices, 2011-

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Flavoured juices market is estimated to be around $2.6 Billion yearly in USA alone.

US household spends around $25 per house per month on flavoured juices. Technavios

analysts forecast the global flavoured powder juices market to grow at a CAGR of 8.16%

during the period 2017-2021.

Based on regions, flavoured juice mix market is segmented into following key

regions; North America, Latin America, Eastern Europe and Western Europe, Asia Pacific &

Japan, and The Middle East and Africa. Among these, North America grabs the major share

of global flavoured juice mix market, followed by other developing countries. Availability of

flavoured juice mix along with launch of new products across the globe is driving the growth

of this market.

The kids and teenagers segment get more attracted towards the feature of flavoured

juice mix which includes flavour variant, attractive packaging, and smooth texture.

Moreover, launch of new products in the market such as low calorie or sugar-free energy

juice mix is expected to gain more traction of health-conscious consumers and fuel the
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growth of energy juice mix market in the future. This is evident from the below figure which

depicts the response to following question

“Which of the following juice attributes are most appealing to you? Please select ALL that

apply.”

% Respondents
Added health benefits (eg… 46
Low/reduced sugar 44
Hydrating 44
Energy boosting 30
Added fiber 26
Added probiotics 24
Added protein 23
Made with superfoods 23
Anti-inflammatory 21
Mood-boosting 20
Filling 18
Beauty-enhancing (eg… 15

Base: 1,697 internet users aged 18+ who have purchased any juice product in the past three

months

Source: Lightspeed/Mintel

The juice market faces stagnation due to competition from other innovative beverages and

consumer concerns over sugar content. Kool Aid may be able to turn around falling sales by

focusing on the functionality of juices and by developing products that satisfy occasions/need

states that fall outside the realm of traditional juice.

Competitor Analysis

Global flavoured juices market is classified based on geography as Asia Pacific,

North America, South America, Middle East and Africa. Key players in global flavoured

juices market are Bright and Early, Calypso, Fuze, Minute-Maid, Hawaiian Punch, Snapple,

SoBe, Tropicana, Huberts, Nectars, Arizona, Lipton, Ssips and SImply

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There are 30 companies with products in Flavoured juices market with 43 brands and

434 products. The products mainly fall in 3 categories – Fruit Juices, Children’s Juices and

Reduced-Sugar Juicing Products. But they share their market with other categories like

Regular Soda, Iced Tea, Energy Juices and other Sports Juices.

Only two companies have more than 50 products in beverage market: Kraft Foods and

Monster Beverage Corporation, which indicates that there is well established market size for

Kool-Aid to reach through Kraft Foods

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Company Analysis

Kraft Heinz Company was formed in 2015 when the Investment giants 3G Capital

and Berkshire Hathaway decided to come together and create a new company through the

merger of H.J. Heinz Co. and The Kraft Food Group. Kraft Heinz is the fifth largest food

company in the world and the third largest in the United States. The company which started

with the per share value of $64 in 2015 is now in the mid-seventies. The Kraft Heinz

Company has its helm leaders drawn from the two merging entities. Advice from seasoned

experts from the two companies will certainly help Kraft Heinz do well.

Being one of the largest food companies in the world, Kraft Heinz has a leading

market position in various categories which gives it a competitive advantage and also

enhances its bargaining power. The company also has a global footprint with high presence in

developed markets and increasing presence in the emerging markets along with a large

workforce. Kraft Heinz is present in North America, Asia Pacific, Europe and Latin America.

With a wide and diversified global presence, the company has been able to dilute risks of

overdependence on a few markets. Also, the company is able to tap on any new opportunity

created in these markets.

Kraft Heinz is well served by its unparalleled portfolio of leading brands including

eight billion-dollar brands and five $ 500 million plus labels. Apart from the well-known

brands, the company is also exposed to some attractive categories such as baby food, cheese

and ketchup.

The company has also announced that they would be saving around $1.5 billion by

2017. They also changed their operations strategy which will influence the cost savings. The

company is doing this by doing proper target marketing and shutting down

marketing facilities which are not giving them good returns.

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Customer Analysis

This segment describes the characteristics of the customers who will buy the Kraft

Heinz’s Kiwi Kool-Aid. This analysis also contains the health and nutrition concerns of the

American society.

Customer Characteristics

According to recent analysis from market research firm Mintel, nutritional,

refreshment and performance juices are becoming an increasingly popular meal option due to

evolving dietary habits of on-the-go consumers and positive functional attributes. 39% of

consumers in age group 40 years to 60 years use refreshment and nutritional juices as a

replacement for breakfast.

Additionally, three in five (58%) college going students currently use nutritional and

refreshment juices as a meal replacement, and 48% consume them as part of a meal, up from

just 20% who used nutritional juices as a meal supplement in 2012.

Overall, when purchasing nutritional and refreshment juices, the most important

factors for U.S. consumers are favourite flavour (41%), amount of energy (40%) and high

fibre (33%), something that is abundant in Kiwi Kool-Aid.

The segmentation of the consumers of the flavoured juices can be done into following

categories:

1. Geography: The major target regions for the next three years are North America,

Asia and Europe. Consumers in these regions have better access to health and

nutritional education and are thus aware of the health benefits of natural fruits and

Heinz Kraft already has market penetration in these regions which can provide
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opportunities for market diversification. Also, regions such as Africa and India have

very hot summers and thus add as potential markets for refreshment juices

2. Gender: Kiwi as a fruit is meant to be consumed by every gender and does have any

side effects. So, marketing plan will target both the genders equally and make

campaigns for both the genders.

3. Age: Nutrition benefits of Kiwi and freshness boosting benefits of Kool-Aid are for

all age groups. Young generation is actively involved in sports and recreational sports

and tend to favour health juices over other ones. Also, Kiwi is rich in vitamin C, B

and K which makes is a favourable option for old as well as middle aged age people

who need to acquire these minerals from external sources. So, these three age groups

can be targeted using different techniques which might be both common or different

for each of the three segments.

4. Psychology: The biggest consumers of the juice would be health conscious people.

These people read health blogs and fitness articles and can be found in public gardens

and gyms. The target for kiwi Kool-Aid is the uber and ultra-health savvy generation

in the market. Another segment consists of people who are in jobs that require hard

physical work and outdoor work. They need regular refreshment and source of

minerals and Kiwi Kool-Aid can be both a refreshment as well as energy booster.

Customer Health and Nutrition concerns

Consumers are looking for real fruits and vegetables, as well as high quality protein in

the healthy juice because consumers have come to understand the important role these things

play in a healthy diet. The challenge is to provide these ingredients in a format that
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consistently delivers the nutrition consumers are looking for in a convenient and delicious

form. It’s important to check all the boxes: taste, convenience and natural nutrition.

Shoppers have become sceptical of the claims functional beverage brands make today.

So, as a product manufacturer and marketer, the question you have to ask is: ‘am I using

ingredients with benefits that are supported by sound science?’ If you want to develop a

100% fruit juice with heart-health benefits, for example, use juices that are backed by clinical

research demonstrating those benefits.

A beverage should look great, taste great and sound great. No matter what the

functional benefit or added value, it must meet the sensory characteristics that a consumer is

used to, while having the next generation of health benefits that make it desirable, and the

commercial and market viability to make it a success.

Consumers are able to access internet to garner more information about the labels,

ingredients and nutritional benefits of the product. They can then compare this information

with other products and offerings by other companies. Even a small ingredient that is not that

useful has potential of causing customer loss as competition is very stiff and consumers today

are more aware and health conscious than ever before.

5. Market Product Focus

This section describes the three-year marketing and product objectives for Kraft

Heinz and the target markets, points of difference, and positioning of Kool-Aid Juice.

Marketing and Product Objectives

The most important aim of marketing is to expand the brand value of Kraft Heinz

among current customers and to acquire new high potential markets by launching new Kiwi

Kool Aid juice. Also, the marketing efforts are also aimed at mitigating the threats associated
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with competitors and reducing unnecessary marketing costs by optimizing target marketing

and using efficient channels for marketing activities.

Current Markets

Kraft Foods already has over 10 percent market share in juices across North America,

Europe and South Africa. The aim of the 3-year marketing plan is to expand this market share

in these markets to 18 percent. This will be done by designing marketing activities which

extol customers belief on Kraft Heinz and propel them to buy more products further opening

avenues and opportunities for cross selling new products. Company would also use social

media and similar platform to market Kiwi Kool Aid to current customers.

New Markets

Marketing team’s next 3-year aim is to expand Kraft Heinz juice market to include

other regions such as Asia and unexplored parts of Europe. Developing countries in Asia are

densely populated with large market waiting to be acquired. Also, there are not many

established competitors in these regions thus Kraft Heinz has large opportunity for market

expansion. The aim is to acquire 30 percent market in these new markets and to open 90 new

stores in not only these aforementioned markets but also current markets and collaborate with

local retail stores to sell Kiwi Kool Aid juices and other similar products. Kraft Heinz can

also sponsor recreational events such as marathons and sports events/competitions to market

the product as Kiwi Kool Aid is refreshment cum energizing juice and its major target market

consists of people who either participate in or follow these events. Revenue of $7 MM is

expected in coming 3 years.

New Products
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Marketing team will gradually introduce the Kiwi Kool Aid juice into different

markets and offer discounts initially to attract customers. Different kinds of packaging can be

used for the product to offer many options to customers. Also, platforms such as Facebook,

Twitter and YouTube can be used for marketing and acquiring customer feedback. At the end

of each year review would be done to make changes in product based on customer feedback.

New strategies and markets will also be identified at the end of each year. Multiple channels

will be used for marketing.

Target Market

The target market for the next three consists of people in the age group of 18 to 50

living in metropolitan areas of North America, Asia and Europe. These people are either into

sports, are corporate employees or prefer healthy refreshment juices or generic aerated juices.

With the advent of social media more people are aware of benefits of health juices which

contain large and diverse nutrient portfolio and are brand conscious.

Points of Difference

The “points of difference” – characteristics that make Kool-Aid Kiwi Juice different

from its competitors – fall into three important areas:

Health trend: Due to the recent increase of health-conscious consumers over the last several

years, Kool-Aid Kiwi Juice will be organic, healthy and refreshing juice that is not offered by

its competitors. Kool-Aid Kiwi Juice is guaranteed to have less fat, sugar and calories and

better taste than any of its competitors. It is also safe for consumption by children.

Unique ingredients: Kool-Aid Kiwi flavored juice is made from 100% organic fruits,

containing vitamin c
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Unique Packaging: Packaging of Kool-Aid juices have always stood out due to its animated

boxes, packaging and special offers. Kool-Aid would continue this process of marketing as it

has proven to be extremely effective in the past.

Positioning

For people from all age groups looking for healthy organic refreshing juice, Kool-Aid

Kiwi flavored juice can be the first choice. It is fruit-based and completely organic, which

makes it perfect for children and adults. Also, this is a good source of vitamin C which makes

it a good product choice for health-conscious consumers.

6. Marketing Program
Product Strategy

This section elaborates on the approach to Product Quality and Product Packaging

after initially summarizing about the Product Line.

Product Line: Kool-Aid Kiwi juice will be sold in 60-ounce packages with each package

consisting of 10 bottles.

Unique Product Quality: The flavor system for the Kool-Aid Kiwi juice is proprietary and it

will be meticulously manufactured using only organic ingredients of unusually high quality.

There are no synthetic additives used as ingredients, except for Sodium Benzoate which acts

as a preservative. The water used to prepare the juice is of the highest quality and is derived

from natural springs. Additional care is also taken so that the sugar content in the juice is as

low as possible, making Kool-Aid Kiwi a more salubrious option to the consumers than its

other competitor juices.

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Packaging: A single cardboard crate consists of ten individually packaged recyclable plastic

bottles each containing six ounces of Kiwi juice. The crate consists of the Kool-Aid man

holding a glass of Kiwi juice with the Kiwi fruit in the background. This form of packaging is

done as a part of the Promotional Marketing Strategy. The bottles will be colored bright green

symbolizing the color of Kiwifruit. The bottle caps are also made of recyclable plastic as a

part of the Environmental Protection Policy by Kraft Heinz.

Price Strategy

Kool-Aid jammers Kiwi flavored juice will retail for $2.62 for 10-6fl.oz. pouches.

This is a below market competitive pricing strategy given the fact that most other flavored

juices are priced between 50% to 150+% higher than per fl. oz. price of Kool-Aid. For

example, Minute Maid’s retail price per fl oz. is $0.06 and Tropicana packs are $0.09 per fl.

Oz. A summary of pricing for competitive products which are sold in bunch are shown below

Volume per

Product Name Price Quantity bottle (in fl.Oz.) Price per fl oz

Kiwi flavored Kool Aid $2.62 10 6 $0.04

Minute Maid 100% Juice $3.32 6 10 $0.06

Bai Rainforest Variety

Pack $22.68 12 18 $0.11

Gatorade Thirst

Quencher Fierce Sports

Juice $6.00 12 12 $0.04

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Tropicana 100% Juice $5.20 10 6 $0.09

Hawaiian Punch $5.98 24 12 $0.02

Little Hug $2.98 20 8 $0.02

Promotion strategy

To promote Kiwi Kool-Aid, marketing team would be using techniques such as

bundle pricing, initial discounts, point-of-sale promotion, social media promotion and

giveaways. These strategies would be designed in accordance with target customers.

Bundle Pricing

Bundling products is a great way to generate a higher perceived value for a lower cost

that customers have a hard time staying away from. At the initial stage of product lifecycle,

company would provide offers such as "3 for the price of 2" special, this tactic is great for

making customers feel that they're getting more for what they're paying.

Point-of-Sale Promotion and End-Cap Marketing

Point-of-sale and end-cap marketing are ways of selling product and promoting items

in stores. The idea behind this promotional strategy is convenience and impulse. Point-of-sale

is a way to promote new product at strategic places such as gyms, parks and other places

frequently visited by target customers. The end cap, which sits at the end of aisles in target

places, features products a store wants to promote or move quickly. Kiwi Kool-Aid would be

positioned so it is easily accessible to the customer. These items are placed near the checkout

in the store and are often purchased by consumers on impulse as they wait to be checked out.
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Social Media

Social media websites such as Facebook, twitter and YouTube offer company a way

to promote products and services in a more relaxed environment. This is direct marketing at

its best. Social networks connect with a world of potential customers that can view your

company from a different perspective through viral campaigns on group pages, etc., Rather

than seeing our company as "trying to sell" something, the social network can see a company

that is in touch with people on a more personal level. Marketing team will release

promotional ads, contests and videos about Kiwi Kool-Aid on above mentioned platforms.

Product Giveaways

Strategies such as product giveaways, tryouts and allowing potential customers to try

a sample of product will be used to generate curiosity about product and gain valuable

feedback.

Place (Distribution) Strategy

Kool-Aid is currently distributed in the market through multiple food distributors. The

distributors buy the product, store it in warehouses and sell it in the local retail stores,

groceries, wholesale stores and supermarkets. It is through all these secondary level channels

that the product reaches the end customer. Kool-Aid is also sold to the end consumers

through Internet retailers like Amazon.

7. Financial Data and Projections

This section discusses both past financial data and future projections of Kool-Aid and the

Kraft-Heinz Company.
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Past Sales Revenue

Over recent years, the Kool-Aid brand has faced stagnation in their revenue trend. By

addition of a kiwi flavored product, the company is seeking to rejuvenate the revenue growth

in coming years. The income statement, net profit, revenue figures of the company are

mentioned below -

Income Statement of The Kraft Heinz Company

Year Revenue Net Income Net Profit Margin Employees

Dec 2016 $26,487.00M $3,632.00M 13.71% 41,000
Jan 2016 $18,338.00M $634.00M 3.46% 42,000
Dec 2014 $10,922.00M $657.00M 6.02% --
Dec 2013 $6,240.00M ($77.00M) -- --
Note: Million is abbreviated as M in above table.

Historical YoY % Net Profit Margin of The Kraft Heinz Company

Source: D&B Hoovers

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Revenue vs. Net Income of the Kraft Heinz Company

Source: D&B Hoovers

Three Year Projections

The three-year financial projections for Kiwi-flavored Kool Aid is mentioned below. These

are expected to encompass and reflect the anticipated growth in the number of boxes of Kiwi

Kool-Aid sold.

3 YEAR PROJECTIONS OF SALES

FY - 2018 FY - 2019 FY - 2020

500
Number of boxes sold (in 000)

400

300

200

100

0
Boxes Sold (000s)
Coming Financial Years
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Please refer to below table for addition metrics such as revenue and profit for this product –

Forecasted figures for Kiwi flavored Kool Aid Boxes

Year 1 Year 2 Year 3

Financial Element FY - 2018 FY - 2019 FY - 2020
Boxes Sold (000s) 180 320 450
Net Sales ($) $ 471,600 $ 838,400 $ 1,179,000
Gross Profit ($) $ 291,600 $ 518,400 $ 729,000
Operating Profit ($) $ 174,960 $ 311,040 $ 437,400
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References
 https://seekingalpha.com/article/4093078-kraft-heinz-will-grow-juices-investors-will-

toast

 http://www.sugaryjuicefacts.org/resources/SugaryJuiceFACTS_Report_Results.pdf

 http://www.businesswire.com/news/home/20170313006089/en/Global-Functional-

Powder-Juices-Concentrates-Market-Growth

 http://www.businesswire.com/news/home/20170313006089/en/Global-Functional-

Powder-Juices-Concentrates-Market-Growth

 http://academic.mintel.com.proxy.libraries.uc.edu/display/793199/

 https://www.reportlinker.com/p04838992/Global-Flavored-Powder-Juices-Market.html

 https://en.wikipedia.org/wiki/Kraft_Heinz

 https://en.wikipedia.org/wiki/Kool-Aid

 http://www.kraftheinzcompany.com/careers-our-culture.html

 http://food.ndtv.com/food-/7-kiwi-fruit-benefits-from-a-powerhouse-of-antioxidants-

to-inducing-sleep-1236599

 https://www.docdroid.net/wq6c/global-juice-market-2015-2019-worldwide-industry-

size-share-trend-growth-analysis-and-research-report.pdf

 http://subscriber.hoovers.com.proxy.libraries.uc.edu/H/home/index.html