Kraft mac and cheese target market

MK672 University of Alabama Kraft Mac and Cheese Case Study Discussion
Subject
Business Finance

Course
MK672

School
university of alabama

Question Description
Kraft Mac and Cheese: A Stealth Marketing Approach

A trend that has a critical impact on the consumer packaged goods industry in recent years is consumers’ desire for simpler, more transparent, and more natural ingredients. More companies have responded by publicly stating their intentions to remove artificial coloring and preservatives from longstanding brands and then repositioning the product as “clean” or “pure” within the market. While this strategy aligns well with trends, it risks alienating individuals who are used to purchasing goods based on more intangible factors such as nostalgia, predictability, and even taste.
Kraft used a novel approach to handling these shifting consumer preferences. To stay competitive within the category, the company realized it had to rethink the product formula of one of its superstar brands, Kraft Mac and Cheese. However, management knew it was crucial to make changes without tainting elements of the product that consumers had come to expect. For generations, individuals had associated Kraft Mac and Cheese with its orangish hue and smooth sauce consistency. Kraft made it a point to carefully maintain these identifying attributes as it eliminated ingredients and removed artificial dyes.
The aspect of Kraft’s strategy that was a real differentiator though was how it rolled out the reformulation. Rather than advertising the measures the company had taken to make its product more natural—common practice among competitors—Kraft simply didn’t say anything. Studies have shown that even the mention of a new formula can cause consumers to perceive flavor to be different, so Kraft chose not to call attention to the change.