MMK101 Marketing Strategy Plan - Kool Aid Assignment Sample

• Subject Code : MMK101
• University : Deakin University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Marketing Fundamentals

Marketing Fundamentals

Table of Contents

Introduction

Marketing mix strategies

Product strategy

Pricing strategy

Distribution and logistics strategy

Integrated Marketing Communication strategy

Conclusion and implications

Reference List

Introduction to Kool Aid

The popularity of the product has increased by the end of the 20th century. In the early half of the twentieth century, the product was costlier, and in comparison, to other drink mixes, it was only an average product in the market. Nevertheless, in comparison to the previous position, the product proposition has now changed, and currently, consumers are happy with the product offering. However, also, it can also be identified that after Kraft Foods purchase the manufacturing rights of the product, it can be highlighted that latest price proposition of the product has been decided by Kraft Foods which is the manufacturer of Kool Aid at the moment. In addition, it can be highlighted that convenient distribution with experienced local area distributors is the reason why the brand has been popularised with a large number of consumers. Nevertheless, one of the biggest credibility is of Kraft food is that despite having a large number of internal distribution network as well as a large number of intermediaries in the operating market like the distributors, retailers and finally the consumers, the price of the product has still been considerably on the lower side.

Marketing Mix Strategies of Kool Aid 

Product strategy

In this connection, it can be highlighted that the enduring popularity of Kool Aid had been attributed to various factors which are the components of the developed product. In this relation, it can be highlighted that the low-cost value of the product, per serving, has been the outcome of the new product offerings towards the customer. The 0.14-ounce packet, which contents about 96 pieces of the product, is available in different flavours (Olenski 2018). The company produces the unsweetened grape product, majorly, in comparison to the other flavours of the product as it is mostly in sales. Nevertheless, lesser variation in the product is a major issue for customers as a major section of the customers who had been fantasized about the product and now not aware about the market availability of the product. Nevertheless, in this case, it can be highlighted the product popularity increase after popular online, as well as offline stores like Walmart.com, started selling the product. One of the initial touchpoints of making the product popular again in the market is selling the unsweetened lemonade powder drink mix, which is caffeine-free. Initially, it had been a 0.23 oz Packet (Odell 2018).

Figure 1: Kool Aid most favourite products

(Source: Koolaid.com 2020)

Pricing strategy

The pricing strategy of the product has been one of the important customer touchpoints, which is the reason why the organization has been able to create the popularity of the product in the consumer market again. The aggressive advertising strategy implemented by the company has been on the basis of the plastic production of the price to a much extent. In this relation, 10:25 that on the pricing strategy of the organization, it can be highlighted that the product will be immensely popular among young children. This is a good section of buyers who are fascinated over products which are highly illustrated, and attractive for children, never the less priced at very less. Hence, the customer category agent between 93 and 15 years of age is attracted to purchase a product as they have a fascination for the product, but very less purchasing parity as they do not have any disposable income with them (Hodge, 2019). Currently, the price of the product is 0.14 ounce for a small packet which has 96 units of the product and comes with the flavour of unsweetened grape (Christie 2020).

The price of the product during the depression age had been 10 cents to 5 cents for one packet, and that time it was one of the most successful products belonging to the Perkins product. Nevertheless, the sales proposition has increased, as it is available in a large number of areas, including the branded departmental stores also. Nevertheless, in this relation and also identified that because of selective distribution in the past, the product price had to be kept as unit sales value has been lesser in comparison to what is now. In Association, it can also be determined that Kraft Foods has selected A multi-channel distribution strategy which is twice the number of units sold has increased. Hence, the company can afford the price of the product to be reduced as an increase in sales rate compensates for the lower price of the product.

Distribution and logistics strategy

The distribution channels for the product has increased after Kool Aid was taken over by the American originated company Kraft Foods. After Kraft Foods took over the manufacturing, distribution as well as sales of the product, its presents spread over extensive areas of the United States of America. Currently, the headquarters of the company is situated at Northfield in Illinois. Nevertheless, Kraft Foods also help in the extensive popularity of the product in the European region (Schebendachet al. 2017). In order to achieve extensive intercontinental sales of the product, the company adopted the innovative strategy of developing to headquarters, one for the sales in the United States at Northfield and another at Glatt park, Switzerland. Nevertheless, in order to determine the success of the product in the European region, the strategic position of the headquarters in Switzerland is responsible to a large extent.

This is because the majority of the candy and child food products which are popular among children in Europe have their origin in Switzerland. The manufacturing plants of Kraft Foods has been established at more than 70 nations which is the reason why they form one of the biggest manufactured food companies in the whole world. Therefore, Kool Aid was rejuvenated as a consumer product after Kraft food acquired the brand and implemented a robust as well as widespread distribution network incorporating service from distributors, manufacturers and consumers in the end by means of convenience stores, corner shop, hypermarket, food Bazaar, shopping mall, supermarket as well as discount stores. Like all other brands of craft food, there is a personalized distribution network of Kool Aid also. Hence, it is evident in this regard that 0.14 ounce per unit price is incorporating the share prices of all these intermediary agents (Angel 2020). The market strategy of low-price proposition of the manufacturing brand is the reason why they have been able to compensate the same with enhanced sales in the market.

Figure 2: Kool Aid value proposition

(Source: Koolaid.com 2020)

Integrated Marketing Communication strategy

In the first place, it can be highlighted that the initial price proposition of the product will help in achieving the objective of enhancing the market area for the product. It is because of the low-price proposition of the products that craft food for deferred marketing the product in Europe as well as the United States of America, easily (Koolaid.com 2020).

As an outcome of this strategy, the sales for the unit has enhanced in the consumer market. In order to meet the target market requirements, the company has developed two ideal positioning strategies. In the first place, all favourite product qualities like caffeine-free product, same popular flavours like massive production of the unsweetened and great category of the product as well as easy of purchase and preparation have been very popular among the customers. Preparation of the product is very easy as people only need to add water and sugar in some cases with the sachet (Hatchet al. 2019). In addition, the tiny sachets of the product come at a lesser price. In this relation, it can also be highlighted that there are two primary propositions of the product which will help in making it available in the consumer market. Firstly, diversification of the market, by setting up headquarters in both Europe and America will help Kraft Foods to keep the popularity of the product intact over a massive area. Therefore, if alternative products occupy a certain share of the market in the future, the sales from the rest of the areas will be compensating for the same. In addition, it can also be demonstrated that if the product price is kept specifically low (0.14 ounce), it can be clearly identified that this severe price competitiveness will help in keeping the product in competition, always with the rival brand (Koolaid.com, 2020).

Figure 3: Market share of Kraft Food (Kool Aid)

(Source: Pymnts.com 2020)

Conclusion and Implications on Marketing Strategy Plan - Kool Aid  

In conclusion, it can be identified that the company has been relaunched after undertaking by Kraft Foods, and the organization has undertaken a large number of steps in order to ensure brand popularity. Besides, different propositions like reduction in price and increase in variation ensure that the company tries to keep in the previously existing customer base in the text as well as the development of a new customer base. Therefore, it can be highlighted that the product mix strategy of the company also highlights that the preferences of a wide range of customers are incorporated into the manufacturing strategy.

This is emphasized at developing the product as a global consumer product. Another specific element of the marketing mix strategy that deserves mention in this section is the diversification the product distribution. Hence, in this relation, and also be identified that if the product is made to enter the Australian market, it will face fierce competition. This is because the raw materials needed for developing Cadbury, candy and other consumables for children is very less in Australia because of the easy availability and very low price of milk and milk solids as well as other products like flavouring agents. Nevertheless, in this connection, the company will also face major competition from the extensive market of Cadbury in Australia and other small and local area products like Caramello Koalas Freddo

Frogs and so on (Jacobsen 2020). The recent emergence of Allen's lollies in the market with the variations like redskin, milko chew and so on will be responsible for giving stiff competition to Kool Aid.

Reference List for Marketing Strategy Plan - Kool Aid 

Olenski, S. 2018. Kool-Aid Gets Cool With Teens. (Online). Available at: https://www.forbes.com/sites/steveolenski/2018/07/06/kool-aid-gets-cool-with-teens/#648561fb490e [Accessed: 09th May 2020]

Odell, P. 2018. KOOL-AID TARGETS OLDER KIDS WITH SOCIAL BLITZ. (Online). Available at: https://www.chiefmarketer.com/kool-aid-targets-older-kids-social-blitz/[Accessed: 09th May 2020]

Hodge, W. 2019. Inside the black (cherry) market of vintage Kool-Aid packet collectors. Available at: https://thetakeout.com/inside-black-market-vintage-kool-aid-packet-collectors-1835123510[Accessed: 09th May 2020]

Christie, D. 2020. Kool-Aid Man goes missing in new campaign. (Online). Available at: https://www.marketingdive.com/news/kool-aid-man-goes-missing-in-new-campaign/573791/[Accessed: 09th May 2020]

Schebendach, J., Klein, D.A., Mayer, L.E., Attia, E., Devlin, M.J., Foltin, R.W. and Walsh, B.T. 2017. Assessment of the motivation to use artificial sweetener among individuals with an eating disorder. Appetite, 109, pp.131-136.

Angel, T. 2020. Top 40 Australian Lollies, Candy & Sweets. (Online). Available at: https://manofmany.com/lifestyle/food/top-40-australian-lollies-candy-sweets[Accessed: 09th May 2020]

Hatch, A.R., Sternlieb, S. and Gordon, J. 2019. Sugar ecologies: their metabolic and racial effects. Food, Culture & Society, 22(5), pp.595-607.

Pymnts.com, 2020. Kool Aid 90th Anniversary. (Online). Available at: https://www.pymnts.com/news/merchant-innovation/2017/kool-aid-90th-anniversary/[Accessed: 09th May 2020]

Jacobsen, J, 2020. Drink Mixes capitalize on flavour trends. (Online). Available at:https://www.bevindustry.com/articles/87598-drink-mixes-capitalize-on-flavor-trends[Accessed: 09th May 2020]

Koolaid.com, 2020. Products, Fun, Recipes and Find Kool aid Man. (Online). Available at: https://www.koolaid.com/[Accessed: 09th May 2020]

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