Lately I’ve been eating Kraft Dinner. KD is often considered an example of an inferior good in my Econ 101 lectures. However, my personally opinion is that it is amazing food for its price; I would buy it regardless if I was wealthier. Why is this recognition associated with KD? Why is KD often associated as a food for children? Because of branding.
We talked about Marketing in class this year and many aspects of it considers the branding and value of a product based on the advertising and marketing. I realized that their marketing strategy has positioned their brand most likely using tools such as value proposition and brand positioning that we learned in class to establish their market segmentation focused towards both young children and immigrants (Chapman). Although this niche targeting strategy invests into advertisements geared towards these domestic groups, they have to clear the stigma of the brand recognition to stay profitable outside of Canada according to the New York Times article.
Sources:
1. Chapman, Sasha (September 2012). “Manufacturing Taste”. The Walrus. Retrieved September 01, 2012. http://walrusmagazine.com/printerFriendly.php?ref=2012.09-food-manufacturing-taste.
2. Stuart, Elliot (May 26, 2010). “Kraft Hopes to Encourage Adults to Revert to a Childhood Favorite”. The New York Times. Retrieved 28 May 2010. http://www.nytimes.com/2010/05/27/business/media/27adco.html?_r=0.
this is a quality post. i approve.
Solid Mark, solid.
Mark Sha. You beast.