Snack-kit: personalize your nutribox (Oscar Mayer's Product extension)

- Marketing Project by Shantanu Kaprekar (2013)

Snack-Kit: Personalize

Your Nutribox Group No.7

Shantanu Kaprekar, Yuchen Zhang, Dan Wu

Kraft Foods Inc.

Oscar Mayer

● The company was originated in 1900 by German immigrant, Oscar Mayer

● He started small business in Chicago

● First Lunchable was introduced in 1988

● It was offered with Lunch Meat, cheese and crackers which is exsits

● Target market was working women with children

● Today Oscar Mayer contributes 14 % ($ 2500 USD mi) approx. toward

Kraft‟s total revenue

● They also faced a lawsuit for high Sodium content but they fought back

against the media remark - Marketing Project by Shantanu Kaprekar (2013)

Kraft Foods Inc.

•Founded in 1903.

•The world's second largest food company.

•23,000 employees and 175 companies in corporate family

•Supply beverage, cheese, dairy foods, snack foods, and

convenience foods.

•The Company sells its products to supermarket etc.


Kraft Foods Inc. and associated brands


Innovation

• Kraft‟s Snack-Kit mainly offers organic and healthy snack

boxes to people

• More than 30 varieties are offered to make selection of 5

choices.

• Free shipping


Personalize it : 5 kinds of snack from over 30

selections, and put in 5 different parts.

1 2

3 4

5

Dry Fruits

Roasted Grains

Nutri-Grain bar

Roasted chicken

Steamed sweet potato

Boiled Eggs

Roasted Chips

Sundried fruits

Lite cheese

Greek Yogurt

Veggie Cheese

Roasted Fish Chips Shake

Juices

Water

Flavored Milk


Personalize it

1 2

3 4 5

Dry Fruits

Roasted Grains

Nutri-Grain bar

Roasted chicken

Steamed sweet potato

Boiled Eggs

Roasted Chips

Sundried fruits

Lite cheese

Greek Yogurt

Veggie Cheese

Salad mix Shake

Juices

Water

Flavored Milk

Veggie sprouts

That’s the way to Snack-Kit: DIY - Marketing Project by Shantanu Kaprekar (2013)

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=fPhInL1MR5LPuM&tbnid=1qmsdJ9SH7L7PM:&ved=0CAgQjRw&url=http://www.123rf.com/photo_4371997_mix-dry-fruit-and-nut-n-white-background.html&ei=onKmUou0H8fakQfLjoHQCA&psig=AFQjCNET7OXUnkTEXg8NE1ETM_VrxYKtcg&ust=1386726434564571

Mission

•Kraft Snack-Kit's mission is to help people

to save time, also give them a healthy body

and great taste.


Competitor Analysis

BRAND Kraft Snack-Kit Whole Foods

Snack Box

Lunchable Snack

Box

PRICE $3.99--$4.99 $5.99 3.99

TARGET

MARKET Children All Children

STRENGTHS DIY, Organic and

Free shipping Organic Low price

WEAKNESSES No experience for

ship fresh food Lack customized

Fat, Sugar and

Preservatives

Competitive Advantage

•Fresh and Organic Foods.

All of our foods are fresh and organic.

•DIY System

This system is convenient for every customers.

•Free Shipping

We supply free shipping for customers.


Environment Analysis

• According to Global Industry Analysis, “ The world snack

food market is predicted almost $335 billion by 2015. ”

• Snack boxes are the latest healthy eating trend

•With the trend of people having less time to shopping and

cooking, snack boxes are the expanding part of the food

industry.


In US, snacking happens throughout the

whole day.

11%

19%

26%

22%

22%

Snack as Eating Occasions

early morning

morning

afternoon

evening

late evening

12 - Marketing Project by Shantanu Kaprekar (2013)

SWOT ANALYSIS

Strengths

1.Kraft has good reputation

2.Reliable and durable

distribution

3. “DIY” = Choices

4. Healthy food :All materials are organic and fresh

5.Low switching cost

Weakness

1. The deliver cost

2. Kraft has no experience for

the fresh food delivering


Opportunities

1. The arising awareness

of health life

2. Satisfy the increased needs,

combine the convenience and

health together

Threats

1. Competitors

2.Wholefoods

-organic food

3.Similar products

-lunch box


Consumer segmentation, targeting, positioning

SOURCE: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2011.


21,265,000

83,301,000

81,426,000

80,939,000

39,179,000

6.9

27.1

26.6

26.4

12.8

Under 5 years

5 to 24 years

25 to 44

45 to 64 years

65 years and over

Population by Age : 2011

Percent Number


Segmentation & Targeting

Demographic Segmentation

1. young parents who have children who go to school, age around 5 to

24 years old. There are approximately 83,301,000 students in US.

2. Officer who need snack box during the work

Psychographic Segmentation

Parents who has less time to shopping and preparing the health snack

food for their children.


Positioning

We provide the health DIY snack box, which is healthy and

convenience.

We will satisfy different needs and guarantee all the food are

organic and fresh.


Marketing Strategy

• The right product

• The right price

• The right place

• The suitable promotion


Price strategy

Competition and cost-based pricing strategy

According to the survey, 26% of consumers will buy any snack

brand based upon price.

Loose Weekly Monthly

$4.99 $4.49 $3.99

Per item 5-10 11 or more

Daily deliver Twice a week Once a week

Product strategy

Offerings :- Health (organic & fresh)

DIY (different choices)

Convenience (free shipping)

Place strategy:

Reliable and durable distribution

The manufacturers in different states


Promotion

TV

Online Advertisements

Social Medium, such as Facebook, Twitter

Coupon---Mail box

Discount----Bundle discount


Financial analysis

220.05 M products X 0.1 = 22.005 M products

22.005 M products X Average $ 4.49 = $ 98.80 M

Costs Year 2013 Year 2014

(10% increase)

Year 2015 Year 2016 Year 2017

Revenue $ 98.80 m $ 108.68 m $ 119.548 m $131.494 m $144.643 m

Fixed cost

-Marketing

-Additional

delivery supply

-Additional

Machinery

$ 20.0 m

$ 5.0 m

$5.0 m

$20.0 m

$ 5.0m

( Misc)

$ 20.0 m

$ 5.0 m

(MIsc.)

$ 20.0 m

$ 5.0 m

(misc)

$ 20.0 m

$ 5.0 m

(misc)

Net Income $ 68.80 $ 83.86 m $ 94.54 m $ 106.49 m $ 119.64 m

Implementation Plan:

● It dictates what percentage margin the company wants to

achieve

● Important part of budgeting

● Consideration break-even point

● Changes are made considering last year‟s data and new plans

are made - Marketing Project by Shantanu Kaprekar (2013)

Evaluations and Controls:

● Determination of what marketers think and what consumers

perceive

● Generally done performed by marketing research firm

● It is generally done via surveys, questionnaires, and

feedbacks

● Two types of evaluation test „alpha‟ and „beta‟

● Test can be restricted to city, state or country which can best

represent the whole population.


Thank you!


Education

Snack-kit: personalize your nutribox (Oscar Mayer's Product extension)