Shoppers talk about Kraft.

Our last Satisfaction Poll included a dialog question on the layoffs taking place at Kraft. Several consumers responded to our question with surprise and shock. These consumers tended to be current users of Kraft products who are more than satisfied, e.g., they like Kraft a lot and think well of the products and the company. But most of the respondents to the survey had one of two simple explanations for Kraft's problem. One was prices--which many consumers saw as too high, especially in relation to competition from store brands (see discussion on store brands below).

The other frequently cited reason was the products themselves. According to our consumers, Kraft doesn't really stand for anything very special any more. One said that she doesn't know what Kraft makes now. "I don't even know what Kraft makes now. Whatever it is, it isn't relative or relevant to my life, shopping needs and habits." (Sounds like a natural for a business school case study on brand extension.)

* "Growing too large and increasing prices beyond reason. Their boxed mac & cheese went up 100%+."

* "It's too expensive."

* "Kraft is affiliated with tobacco companies. I prefer to avoid them."

* "Kraft puts too many unknown chemicals in its foods, as well as too much sugar, salt, MSG, coloring."

* "Kraft refuses to help identify areas of gluten in their products. As a person with celiac disease I cannot eat gluten. We stopped purchasing Kraft for that reason."

* "Needs to be price competitive. I used to use their cents off coupons but they now seem to have a lot of buy 2 to save 50 cents or even less (not worth my time)."

* "Prices seem higher than competitors- fewer coupons on Kraft products lately."

* "Some Kraft products don't seem as distinctive anymore, like they try to please everyone by decreasing distinctiveness."

* "Store brands are getting better. There is less reason to buy Kraft."

* "They have too broad a variety of items. I'm going to smaller companies like Cabot or Tillamook for cheese."

Some consumers went beyond our question to give us what they thought Kraft should do to recover. They didn't talk marketing talk about core competencies or sticking to their knitting, but each of them indicated that Kraft should refocus on the cheese products they did best and were best known for. "I think Kraft has excellent products and should focus on the old tried and true products and not think they have to compete with other companies and make many, many kinds of the same product." Another said that Kraft should develop a "better- than-Stouffer's frozen macaroni and cheese" because "If Kraft made the world's best macaroni and cheese, everyone would buy it."