Understanding the Market — Entrepreneurship STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipUnderstanding the Market5 Marks
Question
Describe Kraft Foods Company's decision model.
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Answer
Kraft Foods was planning to develop a flavoured rice product that would be easier to prepare than the dominant rice brand then available. Rice-A-Roni. After developing the product, Kraft Foods decided to go into a test market if the following three conditions existed.
The average household ate flavoured rice products several times a month.
Preparing the rice products felt that their current brands were not convenient to prepare.
Consumers generally were not satisfied with their current brands.
After conducting the market survey the results were as follows:
About half of the flavoured rice users prepared such dishes less than once a month;
Only 11 percent felt that their current brands were inconvenient to prepare;
Almost 80 percent were satisfied with their current brands.
Thus, Kraft Foods managers decided not to test market with their new flavoured rice product and to drop the idea completely.
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