Kraft Dinner rebranding in Canada—Learn when and why it's time to make a change for your business

By qqtqtqt etqt

Are you a big fan of cheese? If so, then you may be interested in learning that Kraft Dinner is changing—in Canada, anyway.  Before you start panicking, learn about this company’s new rebranding technique and decide for yourself if it will work.

Furthermore, we’re also going to take a look at brands in general to see when and why rebranding for a particular company may be appropriate. And even if rebranding is appropriate, does the ploy always work?

RELATED TOPIC: Will McDonald’s new menu items last?

Kraft Dinner, which has for quite some time been referred to as “KD,” is rebranding.

In a recent statement, Kristen Eyre, brand director, said this on the subject: “Why would we continue to call it Kraft Dinner when Canadians don’t refer to use that way? The way Canadians refer to Kraft Dinner as KD is as much a term of endearment as when you call a relative or a friend by a nickname—it’s such a love mark for them, and we should be reflecting that.”

Other past and future changes to the food include the reduction of sodium by 19 per cent, the removal of all artificial colours from the macaroni and cheese and the introduction of turmeric, paprika and annatto.

RELATED TOPIC: Maggi noodles deemed safe in Canada—How other imports can avoid potential health risks

Success is no stranger to Kraft, have commanded 55.1 per cent of the market over all. However, in recent years, sales have fallen by 5.3 per cent—hence the rebranding technique.

Now, it’s probably not a big surprise that when a company chooses to rebrand, several different things can happen, including an increase or decrease in sales. In short, rebranding is a risk, but sometimes that risk is needed and can pay off.

For example, in an attempt to decrease the negative connotation of fried food, Kentucky Fried Chicken shortened its name and became KFC. This method worked; customers are more likely to relate to a new identity when the changes promote positive messages.  

But the pendulum can and does swing both ways: When famous clothing store Gap changed their safe and comfortable logo, trouble ensued—the store lost business.

It all goes back to risk. Sure, if your company is suffering and your known product doesn’t seem to be doing as well, then rebranding is a likely and common option.

Specifically, if you’ve tried other avenues and nothing else has seemed to work, then making a positive change in your logo or product is probably needed. However, it can take time to see results. If you’re losing money, don’t expect to see improvement overnight—give yourself, as well as your customers, time to accept the alteration.

It also pays to know your customers, to know what they like and what they don’t like. For example, Kraft’s rebranding is a low-risk move, as a survey has shown that 80 per cent of Canadians already know what KD is without being told.

Bottom line: Don’t be afraid of rebranding. However, when rebranding, make sure it’s the right time, the right technique and most importantly, make sure that you’re not abandoning your loyal client base.

For the latest news in the food industry, visit our sister brand Food Drink & Franchise

[SOURCE:  The Globe and Mail]

RELATED TOPIC: If Canadian restaurants continue to increase menu prices, will residents quit eating out?

Let's Connect!

 

Read the latest edition of Business Review Canada!

Share

Featured Articles

Broadridge study reveals huge impact of AI on C-suite

Broadridge Financial Solutions spoke to 500 C-suite executives from across the globe, many of whom said AI was significantly changing the way they work

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

Technology & AI

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy