Tuesday, February 11, 2014

Why is Kraft Changing its Cheese? Changing with the Market

Millions of kids eat Kraft cheese every year in the form of American and White Kraft Singles. The company will be moving from the preservative sorbic acid to the more natural mold inhibitor natamycin. The change is in response to growing consumer trends that are pushing for more natural foods. Kraft is meeting the trend in their own crafty way. 

Even though the preservatives are FDA approved the decision makers of the organization are responding to customer preferences and needs. It took nearly five years for them to test the shelf-life and taste to ensure that they do not lose market position or damage the product in anyway. It is hoped with new commercials that the company will be able to gain more market share by the improved product. 

The change helps us understand how the market and market preferences can impact strategic decisions within an organization. It takes time to adjust and change successful products to enhance their market position. Seeing these trends in advance and branding your change can be a game changer for growth. This takes a level of analysis and customer market study.

Beside the push for more natural products parents are also concerned about the food they are giving their children. This is natural parental responsibility to the young. Kraft cheese appeals to this market demographic and naturally does well when showing interest to their needs. The adjustment is a wise choice for Kraft and helps them maintain long-term competitiveness while pleasing their target customer. 

Commercials will be airing soon and products are already on the shelf. Look for a red circle that says No Artificial Preservatives or Flavors. 

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