There aren’t too many industries that have enjoyed an upswing during the past two years of the downward economy. That is, with the exception of private label food brands. Once akin to the dorky guy no one wanted to date, Wegmans, Target, even Walgreen’s Drug Stores, seeing their chance to woo shoppers with lower costs, improved quality and packaging, and raised expectations in terms of overall use, have created desirable private label products that no consumer is ashamed to take out for dinner – or breakfast, or lunch.
In fact, The Nielson Company, according to an article on Food Navigator-USA.com in December 2009, stated that sales of private label products have increased by 17 percent compared to two years ago – up 12 billion. So how do the name brand products rekindle their relationship with shoppers and compete with the sweetness of low costs and higher quality products?
Kraft, who many consider a staid and true traditionalist when it comes to marketing, have undertaken what many find successful when trying to rekindle the romance. A makeover. A new, modern look. A new, modern attitude.
Taking a holistic approach to marketing, Kraft has recently launched iFood Assistant, an app for the iphone; revamped it’s consumer website, similar to Campbell’s user friendly site; repackaged products giving them a clean more natural look, i.e. Kraft Natural Cheese; revised it’s Food and Family magazine; increased their presence on Facebook; and given fresh attitude to products like Miracle Whip depicting the spread as defiant and quirky to appeal to younger consumers. All while working to create foods that are tastier and more real while reflecting these qualities in their advertising. Advertising that tells a story. The consumer’s story.
The results? Sales have grown to $42 billion from $36 billion.
Looking mighty delicious there, Kraft.