Kool-Aid Marketing Strategy Essay

Words: 3794
Pages: 16

Table of Contents Executive Summary 3 Situation Analysis 4-7 Competitors 4-5 Company 5-6 Consumers 6-7 Objectives 8 Budgeting 8 Strategy 9-10 Execution 10-11 Evaluation 11-12 References 12

Executive Summary
The Kool-Aid brand has faded as the market has become flooded with various choices of sodas, waters, energy drinks, packaged and powdered sports drinks, and a myriad of other options. Our goal is to bring back this brand which was once at the heart of teen popular culture.
We will focus on bringing two new products to the Kool-Aid lineup: sugar-free premixed and energy drink.
The target market for sugar free
…show more content…
Unlike Coke or Pepsi drinkers, who are pretty much everyone in the world, Kool-Aid drinkers are mainly the minority groups in the U.S. such as Hispanics and African American who make 40% of the Kool-Aid population. This fact can be considered both as strength and as weakness of the Kool-Aid brand. It is easier for Kool-Aid to allocate budget and effort to reach their majority drinkers who belong to minority groups using marketing tool such as geodemographic segmentation. In fact, starting in 2011, Kraft began allocating majority of Kool-Aid marketing budget towards Latinos. However, in order become a bigger brand and competitor to the dominant players, Kool-Aid needs to develop a broader customer variation.

Kool-Aid’s Strength
One of the advantages that Kool-Aid has over the dominant players is its portability and easiness of distribution. Since Kool-Aid was invented for the purpose of reducing shipping cost and comes in small packets or tubes, it is extremely cheap to ship compared to the bottled and canned drinks that most of the soft drink companies are offering. It also does not take up space and therefore reduces space and cost for the retail stores to display Kool-Aid in the store. The distribution advantage is there, so Kool-Aid’s