Kishan Chauhan

Kraft Coffee Pods Launch Case Work

Target Segment:
I believe our target is variable. Coffee drinkers vary in age; from 16
years old all the way the up to 90 perhaps. Coffee drinkers range from
primary education/no education to young professionals to executives.
Male or female.
Herzog found that Canadian coffee pod users were between the ages
of 25 and 54, well educated and had an average household income of
$91,000. 75% were married and 88% lived in single homes in urban
areas.
Buyer Behavior:
In Europe, consumers usually purchased pods of the same brand
as the machine they bought.
SSP machine owners valued the flexibility of using different
coffee brands in their brewers
Coffee quality fresh, hot cup of coffee with peak flavor and
aroma
Motivations:
Highly active, caffeine-ing behavior includes exercising,
entertaining at home, gourmet cooking, household decorating,
gardening and taking exotic vacations
Relative Advantage:
Kraft was a world leader in coffee sales in 2004
Why

would someone want to buy a coffee pod system?

SSP is a new, exciting technology
Faster, easier, clearer and fun to use
Perfect for someone who wants to make coffee in small batches,
or try several different flavors instantly without having to make
an entire pot.
Perfect for families who may have different tastes

Positioning:
Maxwell House: good to the last drop Canadas number one
brand and favorite mainstream coffee, roasted to deliver peak
flavor and aroma
Nabob: delivers a better cup of coffee, every time Canadas
leading premium coffee, 100 per cent Arabica Colombian beans,

carefully chosen by Nabob for taste and quality, customer

roasted by Nabob to ensure perfect flavor and aroma

Pricing:
18 pods for 3.99
25% retail margin
$0.22 per cup revenue, more than 4 times revenue per cup from
canned ground coffee
Kraft should price their pods at 4.99, similar to their competitors
but providing consumers with 2 extra pods over the 16 pods
Advertising
Print Ad
Category

Magazin
e
Womens Chatelai
interest
ne

Readersh
ip (000s)
2950

Insertio
ns
2

Total
Cost
$55,90
0

Travel

enRoute

863

$42,00
0

Decorati
ng

Canadia 2327
n house
& home
Canadia 2572
n
gardenin
g
Totals 8712

$28,60
0

$9,000

$135,5
00

Gardenin
g

Features
High household
income, well
educated
Reaches both
males and
females
Features on
many lifestyle
trends
Women/men,
high household
income,
educated

TV

Total cost is $35,400 per week without the sponsorship with City
Pulse that can reach 364,100 viewers

Market Adoption:
Year
2004

Adoption
Rate
6%

Buyers from
household
750,000

7 pods a
14 pods a week,
week, 1 year 1 year
273,000,000 546,000,000

2006
8%
Market: 12,500,000
households

1,000,000
Total Pods

364,000,000
637,000,000

728,000,000
1,274,000,000