Nova Southeastern University H.

Wayne Huizenga School of

Business & Entrepreneurship

Assignment for Course: MKT 5125 - Marketing Decisions for Managers

Submitted to: Dr.  John Ricky Fergurson

Submitted by: Sandra Farag

Date of Submission: 05/25/2019

Title of Assignment: Develop and establish an effective position strategy LO1

CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that
any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I
have also cited any sources from which I used data, ideas or words, either quoted directly or
paraphrased. I also certify that this paper was prepared by me specifically for this course.

Student's Signature: _Sandra Farag

*****************************************************************
Instructor's Grade on Assignment: Instructor's Comments:
 Case Analysis: PACADI Approach
Kraft Foods Canada: Targeting the Millennials

Problem

In the Kraft Foods Canada: Targeting the Millennials case, there were several problems

identified. One of these problems was the shift in market demographics and segmentation that

resulted in that the market for Kraft Singles dropped and this led to the need to be marketed to a

new segment because the sales declined dramatically. This new segment is the Canadian

Millennials moms. The second problem was to decide on which of the four core brand attributes

to focus. The best way for Kraft Canada to attract millennial moms was to play on Kraft Singles’

four core brand attributes: health, nutrition, taste, and convenience. The messaging needed to be

rooted in these attributes. It was only then that the messaging would be authentic. The issue

before the company was determining which attributes needed to be played up in the context of

the unique needs of Canadian millennial moms. Kraft Singles would not rank high on the

attribute of health because it was processed cheese, which was a limitation. The third problem

arise from the evolving consumers; although consistency was Kraft Singles’ main virtue, yet the

packaging needs to be changed for several reasons. One of the reasons is to maintain the price

point on the shelf and another reason was to make it portable for Millennials moms. It’s not only

the packaging problem but it includes the product innovation as a whole that they need to bring

and align with the new messaging and positioning that targets the Millennials moms. The fourth

problem is that at Kraft Canada, the dilemma around messaging was compounded by a

commercial that had been launched by U.S. Kraft Foods in February 2014 that was doing the

rounds on some Canadian TV channels. The U.S. commercial promoted Kraft Singles (the

American version, though this was not specified in the commercial) as containing no artificial

preservatives. In Canada, consumers had a lower tolerance for food preservatives than in the
United States. But with U.S. commercials being aired freely on Canadian channels, longstanding

Canadian consumers of Kraft Singles watched the commercial and wondered: What is going on?

Therefore, they need to design a new positioning strategy that target the new segment while

retaining the old segment which is the Canadian families.

To summarize the problems, their focus now must be to increase sales of Kraft Singles which is a

processed cheese category that is very competitive and adhere to the needs of this new segment in order

to attract them to Kraft Singles, this is vital for their growth and to stop the rapid decline in sales.

Therefore, the key issues that Kraft Canada face include:

 Execute the brand messaging and the positioning strategy in a way that attracts millennial

moms

 Bring innovation to Kraft Singles that align with the new brand messaging

 Take caution to avoid alienating their present consumer group- Canadian families.

Alternatives

There are number of alternatives Kraft Food Canada can choose to resolve the problem:

 Rebrand Kraft Singles to target millennials moms

 Increase nutrition of Kraft Singles

 Add more recipes

 change the packaging of Kraft Singles

 Work with retail stores to develop innovative promotions.

 Increase their online presence on social media

 Criteria

The alternatives were assessed on a decision criterion of alienation of existing target market,

potential increase in profit, increase market share, potential to meet all consumer demands,

additional advertising and implementation cost.

 Rebrand Kraft Singles to target millennials moms the same way they successfully

rebranded peanut butter in 2014 by developing an advertising campaign that established

an emotional connection with the Millennials moms which increased sales dramatically:

it will have costs of new advertising and filming, reposition Kraft singles to be seen as a

comfort food to bring joy, consumers will make decisions on brand based on feelings

rather than information, shift in millennial viewing habits could affect the number of

consumers reached, increase in consumer loyalty and brand recognition

 Increase nutrition of Kraft Singles in order to focus on targeting all millennials, but this

needs spending on R&D: it’s not cost effective, it will take substantial time in R&D, in

the long run it will be maximizing profit from new segment, it will be dominating in its

category, and it will accelerate the growth rate, added health factor will interest health

conscious millennials, changing aspects of iconic product may alienate existing segment

 Add more recipes that would entice millennial moms to buy Kraft Singles who are

interested in the new social trend of “home chefs”

 Change the packaging of Kraft Singles to make it portable so that to target millennial

moms who love snacking: Will act a basis for meeting the needs of millennial moms

 Work with retail stores to develop innovative promotions: Some of the retail

innovations that Kraft Canada could work on included encouraging retail customers to
 linger at the cheese counter during store promotions; establishing unique “brand

elements”—such as a logo, a color, a melody, or symbol—to accompany Kraft Singles;

developing flavors that were bold and adventurous; creating in-store cheese experiences;

educating consumers at a store’s point-of-sale; appointing a cheese ambassador in each

store; promoting sampling; suggesting how to cook with cheese and how to serve cheese;

and even pairing wines with cheese.

 Increase their online presence on social media to target Millennials moms who spend

47 per cent more time online on their smartphones than Gen X moms: Hire social media

marketers, content producers, will create platform for conversation and increase engagement, may

alienate core customer group, cultivate target segments knowledge of their products, Improved

customer service, create brand loyalty and consumer recognition

Analysis

Rebrand Kraft Singles to target millennials moms:

Pros

- The positive impact that cheese slices could bring to the lives of millennial moms

- They would be consistent in their objective of compelling their consumer target

consumer segment to purchase this product.

- The repositioning of Kraft Singles through an emotional advertisement will enable

millennials mom to see the product for more than an unhealthy snack, but as a

solace in form of food.

- In the long term, television ads serve to increase consumer loyalty and brand

recognition so that viewers are more likely to purchase that brand based off of the

familiarity and connection they feel to it.

 - Based on Kraft Canada’s experience with delivering impactful television
commercials, doing so for Kraft Single’s will create a personal attachment with the
viewer that extends beyond the benefits that a physical product could bring.
- It will be less costly than introducing new products or investing in product
innovation.
Cons

- Although advertisements are short in length, the cost and time involved in their

production are often underestimated.

Increase nutrition of Kraft Singles

Pros

- This method aligns with the current objectives of Kraft Canada because it will

directly attract the interest of millennial moms by creating a product that it is

compatible with the diet of their children through its aspects of health and

nutrition that will be beneficial to them.

- Although college debt renders millennial moms to have unpredictable economic

circumstances, millennial spending habits indicate that they are price insensitive

in regard to obtaining higher quality food. Therefore, an increase in price would

not pose as an issue to attracting this segment using this means.

- The short-term growth experienced from this method would entail an expansion
in their product line and an increase in cheese sales. If the highest penetration of
the target consumer segment were to take place through effective sales and
distribution channels, Kraft Canada would experience long-term growth
equating to a larger demographic of buyers.
Cons

- The costs involved with this alternative include the research that would go

towards changing the formula and the development of using ingredients to create

a healthier product.

- Production costs would increase if the amount of artificial ingredients used in the
 products decreased because additional outputs would be required elsewhere.

Add more recipes

Pros

- This method aligns with the current objectives of Kraft Canada because it will

directly attract the interest of millennial moms by creating a product that it is

compatible with their needs in being “home chefs” with minimal preparation.

- The positive impact of adding recipes to the lives of millennial moms.

- Makes product more enticing because of the wide variety of use

- Will to spend more money on cheese

- Allows customer to learn of the different ways to use the product

- Real-time technology that provides recipes

Cons

- The cost is minimal

Change the packaging of Kraft Singles

Pros

- Maintain the price point on the shelf

- This method aligns with the current objectives of Kraft Canada because it will

directly attract the interest of millennial moms by creating a product that it is

portable as they like snacking.

Cons

- Cost of new packaging

Work with retail stores to develop innovative promotions:

 Pros

- Establishing unique “brand elements”—such as a logo, a color, a

melody, or symbol

- Developing flavors that were bold and adventurous; creating in-store

cheese experiences

Cons

- Clutter due to the number of competitive promotions

Increase their online presence on social media

Pros

- To capitalize on this trend and increase the online presence of their brand through

social media and sharing relevant product-related information

- Entail the hiring of social media coordinators and marketers who understand the

needs of this consumer segment

Cons

- Increasing the brands online presence method is met with criticism because it

cannot accurately represent all groups affiliated with Kraft considering that older

generations do not have as strong of an online presence.

Decision

It is recommended that Kraft Canada integrate the four alternatives of developing a television commercial
that appeals to the emotions of millennial mothers, add more recipes, change the packaging and increase
the brands online presence through social media. For millennial moms in Canada who have a focus on the
welfare of their children, producing a television commercial that appeals to these emotions with Kraft
Singles will prove to be effective in catering the brand.
The new message and the new positioning strategy should still align with the objectives of Kraft Canada
without alienating the existing consumers-Canadian families. The existing segment should even resonate
more with the enhanced packaging and the added recipes that can be useful to them like the Millennials
moms.

For statistical hungry millennial moms, the information sharing on social media and brand engagement
will cultivate their knowledge of the brand and consequently increase their brand loyalty and awareness.
Therefore, the merging of these two methods will serve to tackle Kraft Canada’s key issues and objectives
involved with increasing the sales of processed cheese.

Adding recipes to Kraft Singles will allow Millennials moms to share them over social media which will
allow more presence online and strengthen the brand and create awareness to different segments. This
awareness can attract other market segments.

Also, changing the packaging of Kraft singles will directly attract the interest of millennial moms by
creating a product that it is portable as they like snacking. In addition, that changing the packaging will
maintain the price on the shelf.
Implementation Plan

First 3-6 months-

 The integration of these solutions would be achieved through understanding how consumers use

Kraft Singles cheese slices, and what aspect of that usage could prompt happiness and joy for

both segments.

 Create the new positioning strategy with the new message that resonates with both

segments; the old and the new.

 Create a theme for the new TV advertisement and develop an advertising campaign with

a story that can resonate and attract Millennials moms like wise the peanut butter

advertisement they developed in 2014

  Film the new advertising and make TV advertisements to establish the emotional

connection and build their affection for the Kraft Singles

 Create an added sense of relaxation that Kraft singles could bring to the busy lives of consumers.

 Develop and add more recipes through experienced chefs for targeting the new segment

and the existing segment.

 In order to determine which content and platform would be most effective to reach millennial

moms, social media monitoring research should be conducted.

 Focus on a strong presence in social media like Facebook, Instagram, twitter…etc. after

conducting the research and hiring the social media specialists.

After 12 months-

Continue with the integration of releasing an emotional television advertisement and increasing Kraft

Canada’s online social presence. This will allow Kraft Canada to satisfy both their short term and long-

term growth. By doing so, they will increase brand awareness within the next generation and increase

future growth.