The document discusses Kraft Foods' proposed Snack-Kit personalized snack box service. It would allow customers to choose from over 30 snack options to fill a box with 5 customized snacks. The service aims to help people save time while getting healthy, organic snacks. If successful, it could generate $98.8 million in revenue in its first year. However, Kraft will need to ensure the fresh foods are delivered safely and consider competitors like Whole Foods in the healthy snack market.

1. Snack-Kit: Personalize
Your Nutribox
Group No.7
Shantanu Kaprekar, Yuchen Zhang, Dan Wu
- Marketing Project by Shantanu Kaprekar (2013)

2. Kraft Foods Inc.
Oscar Mayer
● The company was originated in 1900 by German immigrant, Oscar Mayer
● He started small business in Chicago
● First Lunchable was introduced in 1988
● It was offered with Lunch Meat, cheese and crackers which is exsits
● Target market was working women with children
● Today Oscar Mayer contributes 14 % ($ 2500 USD mi) approx. toward
Kraft‟s total revenue
● They also faced a lawsuit for high Sodium content but they fought back
against the media remark
- Marketing Project by Shantanu Kaprekar (2013)

3. Kraft Foods Inc.
•Founded in 1903.
•The world's second largest food company.
•23,000 employees and 175 companies in corporate family
•Supply beverage, cheese, dairy foods, snack foods, and
convenience foods.
•The Company sells its products to supermarket etc.
- Marketing Project by Shantanu Kaprekar (2013)

4. Kraft Foods Inc. and associated brands
- Marketing Project by Shantanu Kaprekar (2013)

5. Innovation
• Kraft‟s Snack-Kit mainly offers organic and healthy snack
boxes to people
• More than 30 varieties are offered to make selection of 5
choices.
• Free shipping
- Marketing Project by Shantanu Kaprekar (2013)

6. Personalize it : 5 kinds of snack from over 30
selections, and put in 5 different parts.
1
2
Dry Fruits
Boiled Eggs
Roasted Grains
Roasted chicken
Nutri-Grain bar
Roasted Fish Chips
Water
Shake
5
3
Steamed sweet potato
4
Roasted Chips
Lite cheese
Greek Yogurt
Sundried fruits
Juices
Veggie Cheese
Flavored Milk
- Marketing Project by Shantanu Kaprekar (2013)

7. Personalize it
1
2
Dry Fruits
Boiled Eggs
Roasted Grains
Roasted chicken
Nutri-Grain bar
Salad mix
Veggie sprouts
3
Steamed sweet potato
4
Roasted Chips
Lite cheese
Greek Yogurt
Sundried fruits
Water
Shake
5
Juices
Veggie Cheese
Flavored Milk
That’s the way to Snack-Kit: DIY
- Marketing Project by Shantanu Kaprekar (2013)

8. Mission
•Kraft Snack-Kit's mission is to help people
to save time, also give them a healthy body
and great taste.
- Marketing Project by Shantanu Kaprekar (2013)

9. Competitor Analysis
BRAND
Kraft Snack-Kit
Whole Foods
Snack Box
Lunchable Snack
Box
PRICE
$3.99--$4.99
$5.99
3.99
TARGET
MARKET
Children
All
Children
STRENGTHS
DIY, Organic and
Free shipping
Organic
Low price
WEAKNESSES
No experience for
ship fresh food
Lack customized
Fat, Sugar and
Preservatives

10. Competitive Advantage
•Fresh and Organic Foods.
All of our foods are fresh and organic.
•DIY System
This system is convenient for every customers.
•Free Shipping
We supply free shipping for customers.
- Marketing Project by Shantanu Kaprekar (2013)

11. Environment Analysis
• According to Global Industry Analysis, “ The world snack
food market is predicted almost $335 billion by 2015. ”
• Snack boxes are the latest healthy eating trend
•With the trend of people having less time to shopping and
cooking, snack boxes are the expanding part of the food
industry.
- Marketing Project by Shantanu Kaprekar (2013)

12. In US, snacking happens throughout the
whole day.
Snack as Eating Occasions
22%
11%
early morning
morning
19%
afternoon
evening
22%
late evening
26%
12
- Marketing Project by Shantanu Kaprekar (2013)

13. SWOT ANALYSIS
Strengths
1.Kraft has good reputation
2.Reliable and durable
distribution
3. “DIY” = Choices
4. Healthy food :All materials
are organic and fresh
5.Low switching cost
Weakness
1. The deliver cost
2. Kraft has no experience for
the fresh food delivering
13
- Marketing Project by Shantanu Kaprekar (2013)

14. Opportunities
1. The arising awareness
of health life
2. Satisfy the increased needs,
combine the convenience and
health together
Threats
1. Competitors
2.Wholefoods
-organic food
3.Similar products
-lunch box
14
- Marketing Project by Shantanu Kaprekar (2013)

15. Consumer segmentation, targeting, positioning
SOURCE: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2011.
- Marketing Project by Shantanu Kaprekar (2013)

16. Population by Age : 2011
Percent
65 years and over
45 to 64 years
25 to 44
5 to 24 years
Under 5 years
Number
12.8
39,179,000
26.4
80,939,000
26.6
81,426,000
27.1
83,301,000
6.9
21,265,000
- Marketing Project by Shantanu Kaprekar (2013)

17. Segmentation & Targeting
Demographic Segmentation
1. young parents who have children who go to school, age around 5 to
24 years old. There are approximately 83,301,000 students in US.
2. Officer who need snack box during the work
Psychographic Segmentation
Parents who has less time to shopping and preparing the health snack
food for their children.
- Marketing Project by Shantanu Kaprekar (2013)

18. Positioning
We provide the health DIY snack box, which is healthy and
convenience.
We will satisfy different needs and guarantee all the food are
organic and fresh.
- Marketing Project by Shantanu Kaprekar (2013)

19. Marketing Strategy
•
•
•
•
The right product
The right price
The right place
The suitable promotion
19
- Marketing Project by Shantanu Kaprekar (2013)

20. Price strategy
Competition and cost-based pricing strategy
According to the survey, 26% of consumers will buy any snack
brand based upon price.
Loose
Weekly
Monthly
$4.99
$4.49
$3.99
Per item
5-10
11 or more
Daily deliver
Twice a week
Once a week

21. Product strategy
Offerings :- Health (organic & fresh)
DIY (different choices)
Convenience (free shipping)
Place strategy:
Reliable and durable distribution
The manufacturers in different states
- Marketing Project by Shantanu Kaprekar (2013)

22. Promotion
TV
Online Advertisements
Social Medium, such as Facebook, Twitter
Coupon---Mail box
Discount----Bundle discount
- Marketing Project by Shantanu Kaprekar (2013)

23. Financial analysis
220.05 M products X 0.1 = 22.005 M products
22.005 M products X Average $ 4.49 = $ 98.80 M
Costs
Year 2013
Year 2014
(10% increase)
Year 2015
Year 2016
Year 2017
Revenue
$ 98.80 m
$ 108.68 m
$ 119.548 m
$131.494 m
$144.643 m
$ 20.0 m
$20.0 m
$ 20.0 m
$ 20.0 m
$ 20.0 m
$ 5.0 m
$ 5.0m
( Misc)
$ 5.0 m
(MIsc.)
$ 5.0 m
(misc)
$ 5.0 m
(misc)
$ 83.86 m
$ 94.54 m
$ 106.49 m
$ 119.64 m
Fixed cost
-Marketing
-Additional
delivery supply
-Additional
Machinery
Net Income
$5.0 m
$ 68.80

24. Implementation Plan:
● It dictates what percentage margin the company wants to
achieve
● Important part of budgeting
● Consideration break-even point
● Changes are made considering last year‟s data and new plans
are made
- Marketing Project by Shantanu Kaprekar (2013)

25. Evaluations and Controls:
● Determination of what marketers think and what consumers
perceive
● Generally done performed by marketing research firm
● It is generally done via surveys, questionnaires, and
feedbacks
● Two types of evaluation test „alpha‟ and „beta‟
● Test can be restricted to city, state or country which can best
represent the whole population.
- Marketing Project by Shantanu Kaprekar (2013)

26. Thank you!
- Marketing Project by Shantanu Kaprekar (2013)