Kraft Mayonnaise and Duke’s Mayonnaise offer the same consumer good. They target mayonnaise users; however, the two companies are clearly varied in their positions.
Duke’s mayonnaise’s brand is southern based on the region in which it is sold. They tout the fact that they have been around since 1917. Duke’s mayonnaise is slightly richer then Kraft mayonnaise because it is made with more eggs. Duke’s recently went through a re
positioning effort to address the fact that they are not used as a condiment as much as other mayonnaise brands because of the richness of the flavor. Duke’s has positioned itself as an ingredient. Instead of competing with Kraft head to head, Duke’s realized they had a unique position. Kraft holds a large portion of the mayonnaise market for use as a condiment. Duke’s is circumventing that competition by telling their consumers that Duke’s is an ingredient. Duke’s is now telling consumers to use Duke’s in their potato salad, or in their chocolate cakes, or their deviled eggs, whereas before their message was that Duke’s was an optimal sandwich topper. Duke’s consumers may even have two jars of mayonnaise in their home. Kraft for sandwiches and Duke’s for baking. Duke’s may be a little too rich for the average mayonnaise consumer, but people want a richer flavor for the items they use mayonnaise as an ingredient in.
positioning effort to address the fact that they are not used as a condiment as much as other mayonnaise brands because of the richness of the flavor. Duke’s has positioned itself as an ingredient. Instead of competing with Kraft head to head, Duke’s realized they had a unique position. Kraft holds a large portion of the mayonnaise market for use as a condiment. Duke’s is circumventing that competition by telling their consumers that Duke’s is an ingredient. Duke’s is now telling consumers to use Duke’s in their potato salad, or in their chocolate cakes, or their deviled eggs, whereas before their message was that Duke’s was an optimal sandwich topper. Duke’s consumers may even have two jars of mayonnaise in their home. Kraft for sandwiches and Duke’s for baking. Duke’s may be a little too rich for the average mayonnaise consumer, but people want a richer flavor for the items they use mayonnaise as an ingredient in. 
Kraft mayonnaise is a more stylish mayonnaise. It is more well-known than Duke’s and is offered nationally, whereas Duke’s is only available in certain regions. The label shows fresh lettuce, tomato and onion invoking images of a nice cold cut sandwich in the mind of the consumer. They are the sandwich mayonnaise. Recently Kraft advertising has focused on the brand versus the individual products. Kraft ran ads to “Kraft your summer” stressing the memory of the brand since they have been leaders in the market. Kraft also ran an ad for their newest version of mayonnaise, one that is made with olive oil instead of vegetable oil. The ad showed women dancing around a house utilizing the mayonnaise. One woman made a tomato sandwich slathered with mayonnaise. Kraft is made for sandwiches. The strategic advantage they have over Duke’s is that they are market leaders, they already have top of mind recognition with consumers who are looking for a sandwich condiment and they are beginning to offer healthier alternatives to basic mayonnaise.
Both companies offer the exact same thing: egg yolks, oil, vinegar and some spices for flavoring, but they have a huge variance in the way they market their brands. Duke’s has avoided competing directly with Kraft as a sandwich condiment. Duke’s could not compete with the mammoth market leaders, but by creating its own position in the mayonnaise market they have been able to remain profitable. Kraft is one of the mammoth market leaders and they have been for a while so clearly being the sandwich mayonnaise is the right position for them and they do not need to address different ways of using mayonnaise, such as an ingredient.
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