Kraft Foods' Mobile Marketing Strategy


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : MKTG232 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Brand Management / Advertising / Marketing Communications
Case Length : 21 Pages
Period : 2008-2009
Pub Date : 2009
Teaching Note : Not Available
Organization : Kraft Foods Inc.
Industry : Consumer Packaged Goods
Countries : Europe; USA

Abstract:

This case is about US-based Consumer Packaged Goods (CPG) Company Kraft Foods' (Kraft) mobile marketing strategy. Due to a reduction in consumer spending on packaged goods, Kraft decided to tap the mobile channel to promote its products as this channel had the capacity to enable value-added marketing. The company's mobile marketing campaigns were designed to meet the needs of customers and to help them integrate the company's brands into their everyday lives.

The case discusses the mobile marketing campaigns launched by Kraft Foods and their objectives. In 2008, Kraft launched a mobile campaign in Germany to promote the launch of its new instant coffee brand called Jacobs 2in1.

It was the first large-scale European product launch which used a mobile sampling campaign to enhance brand awareness. The campaign was integrated with traditional media and allowed customers to request samples and order products from their mobile phones. This was followed by the launch of a mobile cooking application for iPhone users called the iFood Assistant in December 2008. The application allowed customers to search for and download recipes, manage their shopping lists, and locate local stores thereby delivering value to the customer while at the same time promoting the company's products. The case also talks about the mobile website created by Kraft to facilitate consumer engagement on mobile devices, and how Kraft was taking its mobile marketing initiative further in countries such as Germany and the UK.

The case discusses whether the campaigns were successful in enhancing brand awareness and consumer involvement. It concludes by providing the reactions of analysts to Kraft Foods' mobile marketing campaigns. Analysts were of the view that the mobile marketing initiatives adopted by Kraft would serve the purpose of establishing a direct dialogue with customers as the mobile phone was a powerful communications device with respect to mobility, reach, and immediacy. Marketers should take advantage of the mobile medium and adopt it as part of their channel mix to gain a competitive edge, they said.

Issues:

Study the mobile marketing strategy of Kraft Foods
Understand the issues and challenges in creating and rolling out a mobile advertising campaign.
Analyze the mobile marketing campaigns launched by Kraft Foods.
Discuss and debate whether the mobile marketing campaigns of Kraft Foods would be able to achieve their objectives.
Explore ways in which the company could make its mobile marketing campaigns more effective.

Contents:

  Page No.
Introduction 1
Background Note 2
The 3 in 1 / 2 in 1 Campaign in Germany 4
The iFood Assistant 5
The Mobile Website 6
Taking the 3 in 1 / 2 in 1 Campaign Forward in Germany 7
Mobile Marketing Initiative in the UK 8
Results 8
Some Initial Reactions 10
Outlook 11
Exhibits 13

Keywords:

Mobile Marketing strategy, Consumer Packaged Goods companies, Kraft Foods, Mobile website, Interactive marketing, Mobile marketing campaigns, Online marketing, Mobile applications, iFood Assistant, Traditional media, iPhone Applications, Mobile cooking App, Brand management, Mobile recipes, 3 in 1 / 2 in 1 campaign, Mobile marketing agencies, Customer engagement, Mobile interactive services, Brand awareness

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