Among the brands, owned by Kraft Foods, one can distinguish low-end products that attract price-sensitive buyers. For instance, one can speak about the snack called Wheat Thins distributed predominantly in North America. It is supposed to meet the needs of customers whose purchasing power can vary significantly.
Furthermore, such a brand as Planters can also be viewed as a low-end product since its competitive advantage is also based price differentiation. To a great extent, this strategy is critical for the financial performance of this company. Nevertheless, this organization also owns some high-end products. For example, it is possible to mention Gevalia which is considered to be a gourmet coffee (Kraft Foods, 2013). It is more oriented towards clients who are less price-sensitive.
Some of the brands owned by this company can be described as cash cows or the products that bring considerable revenues, even though they are not marketed actively (Kotler & Keller, 2011). This description is particularly relevant if one speaks about Wheat Thins that has been popular among clients since the late seventies. Such brands are of great value to the management of this corporation since they are vital for its financial performance.
Additionally, it is possible to mention flanker brands or products that belong to the same category (Kotler & Keller, 2011). As a rule, a flanker brand can be viewed as the extension of an existing product category. In this case, one should speak about cheeses such as Knudsen. Yet, this product category also includes such brands as Velveeta which has been sold for more than a century. The development of flanker brands helps Kraft Foods increase its market share. These are some of the main details that can be identified.
Overall, one can argue that this company is effective in creating products that can fit various brand categories. The management of this corporation focuses on the so-called cash cows that generate a continuous stream of revenues without requiring considerable investment.
This is one of the reasons why they discontinued or sold various brands that could not meet the financial performance standards set by the company. Moreover, Kraft Foods is willing to increase the number of low-end brands that are necessary for increasing the customer base of this organization.
Apart from that, this corporation strives to own brands that can be viewed as high-end products by clients. However, this organization purchases companies that can offer such products. In particular, one can mention that this corporation acquired Green & Black’s which is known for its premium-priced goods that are valued by people who attach less importance to the cost of products. This is one of the limitations that should be considered.
Moreover, the strategies of Kraft Foods are partly based on the creation of flanker brands. It is possible to speak about various snacks and cheeses that can differ in terms of size or flavor. The company attempts to create a wide range of similar products that can appeal to clients with various needs. This approach helps this organization to retain its market share.
These examples suggest that this corporation recognizes the necessity to create a diverse brand portfolio which is important for attracting various clients. This approach ensures the long-term sustainability of this corporation and its competitive position in the market. These are some of the arguments that can be put forward.
Reference List
Kotler, P., & Keller, K. (2011). Marketing Management. New York: Prentice Hall.
Kraft Foods. (2013). Our Brands. Web.