Kraft Foods Product Launch

Table of contents

Executive Summary 2

Marketing Objectives 3

Category Review 3

Consumer Analysis 9

Trade Allowances & Sales Promotions 11

Budget 14

References 15

Appendices 16

Box Design 29

Sales Card 32

Executive summary

Fudge brownie lovers can now eat freely as Kraft’s new fat free Freely Fudge brownie mixes arrive in stores on the Gold Coast. On March 4th 2006, Lakeland Foods will launch a 6 month campaign for the Freely Fudge Original and Decadent Raspberry flavoured fat free brownies beginning in June. The wholesale price of the mix is $2.44 with the retail price of $3.49. This brownie mix has the comparative advantage of being the only brownie mix made from natural ingredients, with no artificial flavours, colours or preservatives and most importantly, no fat. This truly is the brownie of your dreams. Ingredients are simply a combination of the brownie mix and fat free yogurt.

Brand awareness is crucial to the new product being launched. Freely Fudge aims to establish brand visibility which inevitably increases sales benefiting both retailers and Lakeland foods. There is a lot of room for potential growth in the fudge brownie category within Gold Coast supermarkets. Freely Fudge offers the first fat free product within the category as well a range of brownie flavours. Ultimately this product range will increase the growth of the category market and benefit retailers through increased sales due to larger variety. Furthermore, the nature of Freely Fudge brownies is an impulse purchasing product and transaction building item.

Sales during festive seasons will see an increase due to purchasing behaviours and recent trends concerning nutritional and social expectations. A variety of trade allowances and promotions will be conducted throughout the six months and will include in store sampling, coupons, consumer incentives, cross and seasonal promotions.

Freely Fudge is set to stay due to its success driven products and uniqueness. Freely Fudge will be the brownie of both the consumers and retailers dreams.

Marketing Objectives

The general objective of Freely Fudge aims to build sales, together with complement the brand position by raising a brand’s visibility in major retail outlets as well as invigorating consumer sales. The company’s short term goals are to build sales in designated retail outlets by 30% of retail gross margin. Raising brand visibility in stores is also a short term goal which effectively results in more awareness, hence stimulating consumer sales. Long term goals include that of the establishment in the fudge brownie market which will assist significantly when future flavours of Freely Fudge brownie mixes are launched because brand recognition will have been established. This will be measured by comparing sales of the entire range with sales of the original flavour launch.

Category Review:

For the basis of this report, the product has been defined as anything related to the term “brownie,” rather than, “fudge brownie” in specific. Through the research conducted on brownies, it was discovered they are not traditionally a famous seasonal item, however, the nature of freely fudge lends itself to becoming a holiday season product due to the fact that children and adults are more likely to want to bake “homemade” foods during this particular season. Examples of how fudge brownies could be made into a seasonal product are depicted by the slices in the appendix The category is defined by both consumer wants, as opposed to needs, and usage. The product drives consumer wants because brownies are products that are purchased based on consumer’s want and desire to eat them. In relation to bake at home brownies in particular, the fudge brownies are also driven by consumer usage. The consumers wish to make a sweet that is easy to prepare, yet still home made. There are two main reasons why consumers like to bake their own brownies; 1) so they can have the satisfaction of baking home-made foods and 2) as an easy and healthy activity to do with children. Based on the above brownie category characteristics, the product should be defined as an easy to prepare sweet that is able to be baked at home and provide the homemade taste which is great all year round, and a fun activity to engage in especially during the holiday season.

The role of the category for the retailer is providing a product that is easy for the consumers to prepare and bake a homemade sweet. This is the alternative to baking packaged cakes as well as pre-prepared brownies and cookies. Sub categories that are related to the brownie category are as follows:

• Deserts вЂ" cakes, biscuits, sweet slices

• Tea and coffee

• Ice cream

• Kids milk drinks

• Yogurt

• Fudge icing mixes

Of these sub categories kid’s milk drinks and tea and coffee are the complimentary products most commonly used with brownies, while other deserts such as cakes, biscuits and sweet slices are important alternative sub categories. Fudge icing mixes is another sub category that provides consumers with the option of icing their brownies. The pre-requisite for brownie mixes are generally milk, eggs and an oven, however, freely fudge only requires a tub of yogurt and an oven. Cooking utensils are also required when preparing the brownies. Specifically, brownies’ competing goods and substitute products are:

• Pre-made packaged brownies

• Fudge ice cream

• Pre-packaged cookies

• Pre-made cakes and slices

• Freshly made brownies (in the