Background
Kraft decided to re-formulate their Kraft Mac and Cheese product in line with general social trends. However, the company only warned consumers about this after the modified product received criticism from buyers (Aaker & Moorman, 2018). This approach has the potential to backfire, including unpredictable consumer responses and reputational damage due to withholding information.
Customers may have noticed a difference between the old and new Kraft Mac and Cheese products, potentially leading to brand dissatisfaction and frustration. In addition, the fact that the company notified consumers after the fact could have a negative impact on its perception among the target audience. Consumers appreciate the openness and honesty of manufacturers, but Kraft deliberately hid changes in the product formula.
Mitigation Strategies
To mitigate risks and prepare for potential negative consequences, a company can pre-test a new product to determine the response of a selected control group. It would make it easier to predict buyers’ behavior in the market and reduce the likelihood of an adverse reaction to the new formula. Additionally, an essential aspect of business operation is maintaining well-established communication with the target audience.
Kraft should have given consumers advance notice of the changes. Moreover, it opens up more opportunities for the product’s marketing campaign, which could lead to increased sales. Another critical factor is preparing an anti-crisis strategy, which would be applied in the event of a negative market assessment of a new product. This strategy must take into account demographic, cultural, and sustainability trends.
Trends
Demographics
Demographic trends in society can significantly influence the market. These trends encompass age, ethnic composition, income, generational shifts, and other factors. For example, Aaker and Moorman (2018) note that population aging is one of the significant global demographic trends. Taking into account the needs of consumers of different age groups includes offering products of different compositions, taking into account the peculiarities of diets and food restrictions that older people may have.
To understand the audience’s needs, the company needs to interact with specialized organizations. In addition, the United States “is projected to become more racially and ethnically diverse in the coming decades” (Aaker & Moorman, 2018, p. 79). Therefore, it is essential to consider the characteristics of different ethnic groups, especially when developing marketing campaigns. Another trend is the ‘boomerang generation,’ in which young people return to their parents (Aaker & Moorman, 2018). Given this trend, Kraft Mac and Cheese can be promoted as an excellent product for family dinners.
Culture
Cultural trends could positively impact the results of a product marketing campaign and attract a broad audience. For example, one of the trends is Me Nation, in which “consumers see themselves as the center of attention and crave self-expression and individuality” (Aaker & Moorman, 2018, p. 81). Therefore, a good solution would be to invite buyers to develop their own packages or organize a campaign of unusual recipes using the product. In addition, transparency and simplification are critical cultural trends. Kraft went against one of the trends by hiding the change in the product formula. However, the subsequent social media campaign was straightforward and easily understood by consumers.
Sustainability
Today, sustainability is one of the leading business trends that many companies are following. It implies conducting the company’s activities in a manner that benefits both the community and the environment. To develop the community, Kraft can participate in various initiatives as a sponsor or establish partnerships and collaborations with various organizations focused on sustainability. Additionally, the company needs to incorporate innovations and new technologies into its production process to minimize its negative environmental impact.
Reference
Aaker, D. A., & Moorman, C. (2018). Strategic market management (11th ed.). Willey.