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

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|Aug 4|magazine11 min read

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?

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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.

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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]

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