For Kraft, the South Beach Deal Seems an Admission That

question 49

Essay

For Kraft, the South Beach deal seems an admission that the diet - - linked with celebrity dieters such as Bill Clinton, Bette Midler and Nicole Kidman -- may be a bigger consumer draw currently than the Kraft name. The South Beach Diet book, by cardiologist Arthur Agatston, has sold more than 8 million copies. Among Kraft products that will carry the South Beach diet seal of approval is Jello. (Bruce Horvitz, "Kraft gets South Beach diet's seal of approval; New labels part of deal to keep waist watchers buying," USAToday.com, September 27, 2004.)
To maximize Jell-O's chances for success, describe the general characteristics its new position should possess.

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Definitions:

Cost Center

A department or function within an organization where its costs are accumulated, but it does not directly generate revenue.

Profit Center

A business unit or department within an organization that is treated as a separate entity for the purpose of calculating its profitability.

Transfer Prices

Prices charged for the sale of goods or services between divisions or subsidiaries within the same company.

Variable Production Costs

Costs that vary in direct proportion to changes in production volume or levels, such as materials and labor.