Kraft Puts Marketing Muscle Behind New Products, Lines

by Nina Lentini, Feb 20, 2008, 5:00 AM

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In a presentation at the Consumer Analyst Group of New York on Tuesday, Kraft introduced new products and line extensions, including Bagel-fuls, hand-held breakfast sandwiches; DiGiorno and California Pizza Kitchen single-serve premium pizzas and a rejuvenated line of Kraft salad dressings with no artificial preservatives.

Bagel-fuls will be introduced through an integrated marketing campaign including national TV advertising, a New York City launch event, media relations, a 20-plus-city local market sampling tour and in-store sales promotions--all targeted at busy consumers, particularly women, according to a Kraft spokesperson.

For the new line of dressings, the company will launch "Pure Kraft," the theme of an integrated marketing campaign this year, says the company. The effort will comprise TV, print, outdoors, online and in-store advertising. Kraft will reach consumers "when they are thinking about fresh salads by advertising the new bottle on produce bags at select retailers," says a spokesperson. "Kraft will also reach consumers with a national banner advertising program in the produce section that will deliver 600 million consumer impressions."

Kraft Salad Dressings will be seen in a whole new way with a new attractive bottle, clear labels that show more of the dressing, easy-open flip-top cap, and even convenient on-the-go, single-serve packets. "What began as a single initiative to contemporize the Kraft Salad Dressing packaging quickly transformed into a top-to-bottom reinvention of an entire product line," says a Kraft spokesperson.

Rick Searer, executive vice president and president, North America for Kraft, spotlighted new product successes for the analysts gathered in Boca Raton, Fla., such as DiGiorno Ultimate pizza and Oscar Mayer Deli Fresh cold cuts, and the expansion of various product platforms, such as Cakesters snack cakes into other cookie brands, LiveActive and South Beach Living into beverages and 100-calorie packs into Candy Bites.

"Clearly, our iconic brands resonate with consumers," said Searer, who noted that where the company invested in quality, innovation and marketing, organic net revenues grew and accelerated throughout 2007--rising 4% in the first half, 7% in the third quarter and 10% in the fourth quarter.

"Going forward, we expect our investments to result in improved pricing power, stronger volume growth and product mix gains, which will lead to improved margin performance in 2008 and beyond," Searer said.

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