Kraft Foods is currently trying to change its position of its well-known product of “JELL-O”. Currently, the company is facing a steady decline in their sales from dessert products, such as their gelatin mix and refrigerated pudding. With this problem in hand, Kraft is straying away from their value proposition of a “sugar-free” alternative from the Atkin’s Diet craze in the early 2000s.
Source: http://www.americansweets.co.uk/kraft-instant-sugar-free-orange-jello-1011-p.asp
To change the value proposition to a “wholesome product that tastes good and is fun,” is a very bold move by Kraft Foods. Many people who talk about a gelatin dessert would probably result to this product: making JELL-O the number 1 product that comes to their minds. Even I would think of this product. But when was the last time you ACTUALLY had JELL-O? Studies show that dinners that include dessert has fallen 13.8%, an all time low in the last 3 decades.They couldn’t disengage in their wave of transient advantage. With the popularity of desserts decreasing and the tastes that are shifting towards more healthier options, this move was not ideal for Kraft. To reposition their product will require a greater sum of money and work. Instead, they could create a new product.-line. They have already positioned JELL-O to occupy a single position in the minds of consumers. A new brand-line would be cheaper and efficient, and the change of taste in the consumers also drive this idea to be a better option.
A company that can realize that change is inevitable and embrace the change will always be more successful than one that stays fixed.
Works Cited:
<http://adage.com/article/news/kraft-launches-campaign-revive-jell-o/243616/>.