Kraft Tang Consumer Sales Promotions and Sales Promotions Research Paper

Kraft Tang Consumer Sales Promotions and Sales Promotions - Research Paper Example Kraft Foods manufactures and markets packaged foods, biscuits, confectionery items, hot and cold beverages, cheeses, ready-to-eat meals and other grocery items. Kraft food provides these products to approximately 170 countries world-wide (Kraft Foods Inc. Annual Report). Furthermore, the Annual Report states that Kraft Foods generated as high a 57% of their net revenues outside of their home country (8). Kraft Food Inc. is a company that produces Tang. Tang is a non-carbonated soft drink that comes in liquid and powdered form. Tang has recently been added at the twelfth position to the list of billion dollars brands owned by Kraft Foods, which includes brands like Oreo, Oscar Mayer, Cadbury and Maxwell House (Schultz & Zmuda). However, according to Schultz, international sales promotions and other marketing efforts in countries like Brazil, Argentina, Mexico and Philippines have accounted for a major chunk of revenues of Tang. Sales promotion is a type of marketing activity. According to Lamb et al, the main purpose of sales promotion is to facilitate purchase by providing short-term incentive to consumers or retailers in the form of discounts or added value. The sales promotion directed at consumers is called consumer sales promotion and the one directed at members of the supply-chain is referred to as trade sales promotion (537). Sales promotion have become more common than ever before, this is because of higher degree of completion as well as a larger array of media choices which provide information to the consumers. Tang has had to face a lot of challenges both locally and internationally in terms of sales promotion. According to the Kraft Foods Inc Annual Report (8), they concentrate their marketing efforts in three key areas: the first is targeted at the consumer in the form of mass-media, out-door, print and digital media, the second is offering consumer incentives like coupons and contests and lastly they engage in trade promotions to