Kraft

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Executive Summary

Maxwell Coffee is a product that has been a great success here at Kraft, giving use an annual sales of $2 million.  We would like to expand upon this success by offering Walmart this plan will increase sales by 2% or more within a year at Walmart.  Kraft will expand its sales territory and attract new customers through direct mailing, publicity, and the personal selling efforts of independent manufacturers’ representatives.

Our coffee, has a shelf life longer than a year, and with its popularity will fly off the shelves, it is a product of value with low cost.  Our coffee also comes in a variety of different forms including coffee grounds as well as concentrate, so the needs are being met no matter how your customers take their coffee.

We propose Walmart increase the sales price of Maxwell House Coffee products 1-3% to ensure a 1-2% increase in profit. This would translate to an increase in price by a mere $0.08-0.50 depending of the product keeping the price lower than your competitor’s prices to ensure an everyday low value.

In terms of our new product, the iced coffee concentrate made by Maxwell House will be

a success; with more and more of the younger generation drinking coffee. We have also in the past had a similar product which was quite successful, Mio drink concentrate which was used to create flavored water on the go.

        So, are you ready to jump on board and get these Sales percentage increases started?

Customer Needs and Proposed Solutions

        Amazon, is set to open a regional distribution center September of 2016. The location of this distribution center is to be in Fall River, Massachusetts. This can be an issue for Walmart’s in the New England area. Kraft representatives have noticed that inventory of certain products is low throughout different points in the day leading to empty and unappealing shelf space. At Walmart locations given the opportunity, we would like to implement a new campaign with Walmart to increase both your sales and foot traffic in your Rhode Island locations.

        Our solution is already established and ready to roll out once we have your approval. We believe we can guarantee a 1-2% increase in sales of Maxwell House Coffee products as well as an increase in foot traffic in your perishable foods section of your Rhode Island locations. We will also make sure that your shelfs are full and appealing, all this while keeping your customers everyday great value in mind. Therefore, with our proposal geared to launch early to mid-August, we would be launching almost a month before Amazon’s distribution center opens.

        We propose Walmart increase the sales price of Maxwell House Coffee products 1-3% to ensure a 1-2% increase in profit. This would translate to an increase in price by a mere $0.08-0.50 depending of the product keeping the price lower than your competitor’s prices to ensure an everyday low value. On Kraft’s end we promise to launch an ad campaign geared towards millennials, parents and college students’ on-the-go for the upcoming 2016-2017 school year. This campaign will include television and radio ads exclusive to this area emphasizing Walmart’s order online and free in store pick-up.

Our Relevant Company Profile Information

 Kraft Foods has a long and extensive history of successful brands, including Maxwell House Coffee. With our recourses at Kraft Foods we will be able to ship large quantities of our product directly to Walmart, way of our distribution center located in New York City, New York; which will be able to combat the new distribution center being built by Amazon in Fall River, Massachusetts.

As a company, Kraft Foods have had success in being able to team up with others

for the success of both parties. This can be shown by one our most recent business partnerships

in our merger with Heinz as of June 29, 2015, whose products are sold at Walmart stores.

Our iced coffee concentrate made by one of our many brands, Maxwell House has also been able

to secure a partnership with Michael Waltrip; a Nascar driver whose car will feature the Maxwell

House logo during the Indy 500. We believe a closer relationship with Walmart would be

successful for both parties involved.

In terms of our new product, the iced coffee concentrate made by Maxwell House will be

a success; with more and more of the younger generation drinking coffee. We have also in the

past had a similar product which was quite successful, Mio drink concentrate which was used to

create flavored water on the go. In terms of risk, regarding the product there is barely any, with

our planned upcoming launch in September when school begins this product will fly off of your

shelves as more people no longer have the time or money to make coffee every morning.  

With the launch of our product we would also like to introduce a coupon exclusive to