Articles & Discussion Questions
December 16, 2024
Kraft Heinz’s iconic macaroni and cheese brand is facing increased competition in the market, with new products like Goodles gaining popularity. Goodles offers a protein-packed alternative with vibrant packaging, appealing to consumers willing to pay a premium for healthier options. The trend is not limited to mac and cheese; consumers are increasingly choosing either high-end products or low-cost store brands, leaving mid-priced options like Kraft and Velveeta struggling. Kraft’s sales have declined as it competes with both store brands and premium alternatives, which have been gaining market share, especially with inflation pushing consumers to be more value-conscious.
As mid-range brands lose ground, companies are adapting by targeting either the high-end or budget segments. For instance, Kraft is attempting to appeal to Gen Z with new, bold flavors, while other companies like Procter & Gamble and Kenvue are focusing on premium product innovation to compete with upscale alternatives. This bifurcation of the market has led to a shift in consumer behavior, where people are more willing to either splurge on luxury items or opt for cheaper store-branded products. As competition intensifies, the challenge for traditional brands is to either reinvent their products or sharpen their focus on a specific market segment to regain consumer loyalty.
Discussion Questions:
1. Think of a mid-range brand that you personally use in any industry and discuss whether it is losing ground in your opinion like Kraft and Velveeta have been?
2. If you were the Chief Marketing Officer for a mid-range brand would you pursue a strategy of reinventing the products or sharpening your focus on a particular market segment? Discuss your answer.
“Shoppers are Ditching Classic Brands They Once Loved” by Leslie Patton and Jaewon Kang, November 18, 2024
Full Article Link: https://www.bloomberg.com/news/features/2024-11-18/kraft-mac-cheese-sales-fall-as-shoppers-ditch-classic-us-brands
