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Kraft Foods Essay
Wholesalers across the world obtain many vendors and many customers. Associated Wholesale
Grocers is owned by their customers who are independent grocers. AWG buys their products from
various vendors around the world. The giant wholesaler offers fresh produce, national brands,
certified meat, and their private label brand. Vendors that AWG buys from benefit the most because
of the large number of sales brought by AWG. Actually, AWG was forced to open a new warehouse
in Louisiana to take stress off of their other distribution centers (ZWIEBACH, 2012). One of AWG's
main vendors is Kraft Foods which obtains their own website to display competitiveness and
advertise the products they sell. After reviewing Kraft's website, it is clear that there is no mention
of AWG on their website. However, Kraft's website is genius in the way they display pictures of
their products to attract customers. The primary association with AWG that is posted on Kraft's
website is that AWG carries and sells ninety percent of the products Kraft offers. Within the
warehouses around the world, Kraft products seem to enter the warehouse more than any other
vendor AWG buys from to ... Show more content on Helpwriting.net ...
To benefit AWG, their customers will have to refill their shelves which means buying more products
from their distribution centers. Also, after viewing one of AWG's customers and their webpage, it is
evident that this customer is focused on advertising their products more than acknowledging where
these products came from. Naturally, AWG's customers should use their websites for advertising
purposes anyway. The customer's webpage that is viewed is a store in Kansas City named
Constantino's. Constantinos website is extravagant by displaying goods provided by Associated
Wholesale Grocers. Obviously, Constantinos can help AWG by giving credit to them for the quality
of the good bought from
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Case Study Kraft Foods And Vegemite
Table of Content:
1.0
Introduction
P.1
2.0
Key Issues in the Case
P.1­
2
3.0
Secondary Issues in the Case 4.0
Links with Consumer Behaviour Theories 5.0
Answers to the Questions in the Case 6.0 Conclusions Bibliography
P.2
P.3
P.4­
5
P.6
P.7
Behavior Case Study iSnack 2.0 : It looked good on paper...
Introduction In 2009, Kraft foods and Vegemite undertook a product line extension and significant
public and interactive campaign to incite consumers to name the new brand of vegemite that was
developed under their specifications and preferences. Throughout
Australia and New ... Show more content on Helpwriting.net ...
Secondary Issues in the Case As stated above, Kraft had a lack of connection to consumers and
consumer trends which lead to the decline in sales for isnack 2.0. The lack of connection with
consumers came from the poor entrepreneurial drive that kraft offered which therefore lead to the
lack innovation of isnack 2.0. Pros and cons of using social media to ask consumers what they want
the product named : The campaign "Name me" was not the issue, the issue was how Kraft
responded and interpreted the information that was given to them by the public which lead to the
decrease in sales.
Pros
● Allows for consumers to have a say on new product
● More chance of the consumers liking the product due to their involvement
● Kraft is able to revolve their product more around exactly what consumers want Cons
● Kraft had the possibility to cop a lot of negative comments towards the products
2
● Potential consumers could just donkey vote for a name, leading Kraft to think that people
actually like name that's a bit of a joke
Another issue that relates to isnack 2.0 is salience, which means even though they changed the name
to cheesy mite consumers will still be under
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Processed Cheese and Kraft Foods
Kraft Foods
2011
TABLE OF CONTENTS
Executive summary(KH) 6
Indroduction(ME) 7 Background/ History of Kraft (ME) 7 Mission Statement(ME) 8 Major
Goals(ME) 12 Business(ME) 12 Corporate and Environmental Philosophy(ME) 12 Mission
Statement Analysis(ME) 13 Strategic Evolution(KH) 13 Intended Strategies(KH) 14 Emergent
Strategies(KH) 16 Stakeholders(CB) 20 Internal(CB) 20 External(CB) 22 Kraft's Organization and
Structure (YL) 23 Purpose of the Report(KH) 26
External analysis 26 Industry overview/History(YL) 27 Industry Growth & Profit(YL) 28
Package Foods and Meats Segments (YL) 29 Industry Analysis/Porter's Five Forces (YL) 29 Risk of
Entry by Potential Competitors (YL) 30 Entry ... Show more content on Helpwriting.net ...
and because of that we have been able to make determinations about the company. Kraft Foods has a
rich history of innovation which is evident through there many research and development facilities
located throughout the world and their extensive product line. However, the company has some
strategic issues that they must rectify to continue the success that they have had throughout the year.
Due to the company's acquisition of Cadbury, they have increased their debt level which in turn has
lowered their credit rating. Also, the company has failed to take full advantage to the changes in the
consumer's interest in healthier products. These issues combined with a struggling economy could
pose many issues for the Kraft. In this paper we have examined these issues, and many more. Based
off of our research and analysis of the company we were asked to make certain recommendations
that may help solve strategic issues. First, Kraft must
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MGT 599 SLP 3 Internal Analysis Kraft Foods Essay
TUI UNIVERSITY
Module 3 SLP
MGT 599 Strategic Management
Dr. Nanette Metz
Business Dictionary defines internal analysis as "a review of an organization's strengths and
weaknesses that focus on those factors within its domain" (2014). Conducting an internal analysis
allows organizations to adapt and change the way they conduct business in order to remain
competitive. Internal analysis obtains information from financials, operational and marketing
departments to help management determine strategic planning for future growth. In this paper the
author will discuss an internal analysis of Kraft Foods.
Tangible Resources Investopedia defines tangible assets as assets having a physical form, ... Show
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Additionally Kraft Foods opens their plant facilities to other company's allowing for the "develop of
ingredients and applications for their products" (Kraft Foods, 2014).
Intellectual Resources
Intellectual resources encompass the collective knowledge of the organization that is gained
overtime through experience and education (Xaxx, n.d.). Kraft Foods has a very diverse portfolio
which includes ownership of numerous patents worldwide which covers basic packaging techniques
to processes relating to specific products and the products themselves (Kraft Foods, 2014). These
patents protect the unique products of Kraft Foods that distinguish them from their competitors.
Goodwill
Kraft Foods is a household name that has been around for over 100 years providing consumers with
quality products they demand (Kraft Foods, 2014). Conducting research on trends and demands has
generated trust, respect and goodwill from their consumers allowing Kraft Foods to become number
two in the food industry (Kraft Foods). In addition to goodwill Kraft Foods has developed strategic
alliances with extremely powerful customer, i.e. Wal–Mart, which account for 23% of their total net
revenues (Kraft Foods Financial Report, 2013). Kraft Foods understands that the loss of these
relationships will generate "decreased sales, financial position and operating results" (Kraft
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Kraft Foods
INTEGRATED COMPANY ANALYSIS
Andy Fleming Laura Hausfeld Brett Hoerz Anna Lyman Eduardo Saenz
DECEMBER 15, 2010
1
TABLE OF CONTENTS EXECUTIVE SUMMARY COMPANY OVERVIEW COMPETITOR
OVERVIEW GLOBAL GROWTH STRATEGY – "HITTING OUR SWEET SPOT" OREO IN
INDIA: MARKETING ANALYSIS
TARGET SEGMENT POSITIONING MARKETING MIX (PRODUCT, PLACEMENT,
PROMOTION, PRICING) COMPETITOR ANALYSIS 3 3–4 4 4–5 5 6 6–8 8 8 8–9 9 9–11 11 12
13 14 14–15 15 16 17 18 19 19 20 20 21 21 22 23 24 25 26 27 28 29 30–31 31 32 33 34 35 36 36 37
37 38 39–40
KRAFT IN INDIA: FUTURE MARKETING STRATEGIES
NEW PRODUCTS INNOVATION
ACCOUNTING
INCOME STATEMENT ANALYSIS BALANCE SHEET ANALYSIS
VALUATION DISCOUNTED CASH FLOW (DCF) ANALYSIS CONCLUSION APPENDICES ...
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Kraft maintains focus on its "unrivaled portfolio of brands people love,"2 as more than 80% of its
revenues come from products that hold the number one share position in their respective categories.
Kraft‟s capital structure is 64.1% equity and 35.9% debt. Its operating margin is currently 13.69%
(EBIT/revenue). Kraft is a high yield dividend–paying company offering 3.70% dividend yield. Its
earnings per share ratio (EPS) is currently 2.09. COMPETITOR OVERVIEW Given Kraft‟s large
portfolio of brands (see Appendix E) and range of products, it faces competition from domestic and
international companies, smaller regional companies, and generic brands. Some of Kraft‟s key
competitors are Nestle, Pepsi–co, Coca–Cola, Danone, and Heinz. As Kraft moves forward with its
plan to capture market share in developing markets, it must be aware that several of its competitors
have similar growth strategies. For example, Coca–Cola has named Mumbai one of the cities most
important to its growth and Nestle touts its commitment to Middle East operations after opening a
$136 million manufacturing plant in Dubai (see Appendix F). GLOBAL GROWTH STRATEGY –
"HITTING OUR SWEET SPOT" Seven months after acquiring Cadbury, Kraft announced a new
global growth strategy. Centered on marketing leading consumer brands (see Appendix G) and
pursuing growth opportunities consistent with consumer
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Kraft Foods, Inc.
Case Topic, Setting, and Perspective Kraft Foods, Inc. pursued an aggressive launch of coffee pods
in the United States, but had less than a month to decide whether Kraft should proceed with a
similar launch in Canada, or await the U.S. results. However, a Canadian launch withholds several
decisions. A suitable branding strategy is necessary, wholesale and suggested retail price for coffee
pods, choose which flavors to offer, and decide whether Kraft should use traditional distribution
channels or direct–to–store (DSD). Also, the development of an effective advertising and promotion
strategy on a relatively limited budget is necessary. From a consultant perspective, Kraft has chosen
to pursue the Canadian market. Kraft has chosen a Canadian test market because a test market
assumes less risk, less cost, and insightful information regarding the purchase of coffee pods in a
foreign country. History and background Kraft is an innovative company that started over 100 years
ago, in 1903, by a man named James Lewis Kraft. This man decided to get into the cheese business
and purchased wholesale cheese. He then began selling this cheese to small stores in Chicago,
Illinois. With the help of his brothers, the business grew exponentially and they eventually began
manufacturing their own cheese. With its continued expansion and growth, Kraft quickly became a
common household name, and by 1926 sales were $36 million. Over the years Kraft expanded its
product line to Philadelphia cream
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Essay on How Craft Changed Oreo Marketing Strategy in China
How Kraft Changed the Oreo and Its Global Marketing Strategy for Success in China
Gale Business Insights: Global Case Study Collection
Learning Objectives
After analyzing this case study, students should be able to do the following:
Explain at least three benefits of market research in product development for international and
emerging markets
Identify traditional and nontraditional strategies for increasing revenue through entering new global
markets
Appreciate the effect of cultural norms and tastes for firms expanding to new markets
Discuss how firms can focus products to local tastes while increasing brand value globally
Introduction
One of the more popular strategies for firms to increase profits in the 21st century ... Show more
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Sales had been flat for the first five years of the 2000s and were in decline. "In 2007, Kraft Foods
China was an unprofitable, $100 million business that was not growing," noted Sanjay Khosla, Kraft
Foods' president of developing markets, in an interview published by the Boston Consulting Group.
Kraft was even thinking of pulling the product out of the Chinese market completely, due to poor
sales.
The company as a whole was performing poorly. This led to a shake–up of executive management in
2006, with Irene B. Rosenfeld installed as chief executive officer (CEO). Rosenfeld had previously
worked at Kraft for 22 years before leaving in 2003 to head Frito–Lay North America. In early
2007, Rosenfeld outlined a strategy to turn the company around that included product quality,
research and development (R&D), and acquisitions as critical to the future growth of the
company. Rosenfeld hired cutting–edge business leaders such as Khosla to help create the strategy
that would change the way Kraft Foods Inc. does business.
Fewer, but Larger Bets: Growth Through Focus and the 5–10–10 Strategy at Kraft Foods
When Sanjay Khosla left Fonterra Group in 2007 to spearhead Kraft Foods' business in developing
countries, he was tasked with discovering a way to realize the potential for growth in developing
markets that had eluded Kraft and so many other large, successful
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Analysis of Kraft Foods
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Kraft Food
Analysis of Kraft Food Kraft Foods is an American food and beverage multinational company. It
produces and markets many brands to more than 170 countries, and 12 of its brands earn more than
$1 billion worldwide annually ("Kraft Foods", 2011). Most of the food products which we consume
everyday belongs to this company. For instance, some of well–known brands are Jacobs and
Maxwell, Milka and Toblerone, Tang and Cipso. It is the successful and popular leading food
companies of the world. So, Kraft Foods will be reviewed in terms of values and promises that it
communicates with consumers and employees, communication and job satisfaction respectively.
Values of the company are shared among its ... Show more content on Helpwriting.net ...
Their motto is "We discuss. We decide. We deliver." The company uses variety of internal
communication channels. Social and sports activities are among the practices which HR department
prefer to use as internal communication channels. Employees can join sports teams and organized
social events including a winter ski day, summer golfing day and a winter family fun day during the
holidays. Those enjoyable events are organized by the company–subsidized social committee. They
make work atmosphere better and improve communication among workers. It also creates a sense of
equity, because every employee has equal access to them. In addition to this, employees can have a
chance of socializing and increasing interaction with their co–workers by providing richly physical
workplace which contains the fitness facility with free membership, employee lounge with foosball
and television, quiet room for meditation and reflection, and a nap room for employees who need a
quick break during the day, cafeteria with healthy menus and subsidized meals. While those places
offer many opportunities for employees, they can facilitate the internal communication at the same
time. The company thinks that every people has different ways of absorbing news and information,
every people can use different channels, therefore the company must use very different channels to
communicate with its employees. The
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Kraft Foods Group Inc.
' Kraft foods group Inc. is an equal employment employer and is committed to providing
employment opportunities to minorities, females, veterans, and disabled individuals. As an equal
opportunity employer, Kraft foods are committed to a diverse and inclusive workforce' (Kraft Foods
Group Inc. 2012). The human resource department of Kraft foods has this strong statement which
provides a clear and distinctive image of what the company has to offer. This highlights Kraft's
foods differences in comparison to other companies in terms of what Kraft foods is willing to offer
and aim to achieve for all individuals which include employment opportunities to all despite age,
sex and status. Kraft's staffing policy is open and inclusive and has a simple concept. In most cases,
managers are hired in their home country, e.g. manager in Greece is Greek nationality, but later on
he/she is transferred to another country within the Kraft's operations. Finance: Kraft foods uses
budgets to allow the company meet business objectives linked to financial performance with a view
to achieving its vision: to become 'the undisputed global food leader'. Kraft has significant
objectives associated to its vision that comprise, being the employer of choice, being a food industry
high performer, being a responsible organization and a positive force in the communities in which
Kraft employees live, work and make its products. The finance team supports and contributes to the
work generated by other
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The American Biscuit Oreo: Case Study
Oreos International
Overview
In 1898, through the merger of the midwestern American Biscuit Company, eastern New York
Biscuit Company, and the United States Baking Company, Nabisco was established. In 1941 the
company finally adopted the name Nabisco which was already a popular nickname for the company,
before then it was called N.B.C. The chairman of the N.B.C. was Adolphus Green, who emphasized
standardized products, all bakeries had the exact same recipes and standards of production. Through
this N.B.C. developed products that could be nationally recognized. All the merchandise is marked
with a distinct emblem, an oval with two bars across it. Which Green found in a medieval Italian
printers' mark catalog, which is said to represent the triumph of good over evil. In 1912 the first
Oreo was invented, which looked very similar to the one we enjoy today. How did Oreo get its
name? Some say it came from the french word for gold "or' which was the main color of the
packaging. Others say it was named from the Greek word for mountains, because of the hill–shaped
test version. Others say it was a combination of cream ("re") and chocolate (the two "o"s) creating
o–re–o's. In 1975 the company invented a new Oreo, the double stuff Oreo. Nabisco continued
creating variations of the Oreo, in 1987 fudge covered Oreos, in 1991 halloween Oreos, and in 1995
Christmas Oreos were invented. Since then over 362 billion Oreo cookies have been sold in the
United States. Oreo has become the
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Kraft Foods Memo Essay
Kraft Foods Memorandum
Date: February 1, 2005
To: David Smith, CEO
Copy: David Johnson, CEO of North America; Donna King, Investor Relations Director; Jane
Houston, General Counsel; Matt Conrad, Advertising and Marketing Director; Michael Mudd,
Obesity Strategy Director
From: Alex Murray, Communication Director
Subject: Advertising campaigns led to increase in child obesity
In response to critic about targeting children under 12 in advertising unhealthy food which lead to
the increase of childhood obesity, Kraft announced not to advertise products like Kool–Aid
beverages, Oreo and Chips Ahoy cookies to children under 12 last month. We also have formed a
lobbying group with General Mills and Kellogg to prevent the ... Show more content on
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No public policy is in place to encourage marketers to promote healthy lifestyle to children. If
Congress starts to regulate food marketing to children, it can impact our ability to promote products,
the cost of marketing will increase significantly as we need to hire more lawyers to screen our
advertising in compliance to the law. The public, especially parents, may perceive us as a company
that does not care about ethics but maximizing profits.
McDonald's class–action lawsuit can serve as a benchmark for any similar cases that follows. If
Kraft ever get sued because of our advertising practice toward children, the loss can be in multi–
million dollars.
We have lost an estimated $75 million profit due to the effort to cut advertising on Kool–Aid, Oreo
and Chips Ahoy. We cannot afford the government to regulate how we market to children as much
more losses will occur.
Recommendations
Create a YouTube channel to educate children about healthy lifestyle. Using characters we already
have created on different food products to promote short cartoons to teach children how to choose a
balance diet, exercise daily and other healthy lifestyle choices. Hire consultants like Dr. Ellen
Wartella, who is already involved in our Worldwide Health & Wellness Advisory Council and
Institute of Medicine, to give us
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Analysis of Kraft Foods Inc.
Analysis of Kraft Foods Inc. Executive Summary The following report is an evaluation of Kraft
Foods Inc. from both an internal and external perspective using fundamental and technical analysis.
Kraft Foods Inc. is a worldwide food company operating within the Packaged Foods industry. With
annual revenues in excess of $49 billion they are the second largest firm in the industry, controlling
8% of the total market. Fundamental analysis reveals that Kraft is a healthy company with growing
revenues, and increasing margins. Technical analysis confirms much of what can be seen from a
fundamental perspective but expands on it to show that Kraft is heavily debt financed and operates
at a risky level of liquidity, which could be ... Show more content on Helpwriting.net ...
Food producers world–wide recognize this need and have great opportunity to ensure the growth of
their business is in line with that of the market. Fundamental Analysis USD (000s) | 2007 | % Δ |
2008 | % Δ | 2009 | % Δ | 2010 | % Δ (Overall) | Revenues | 35,858 | 12.92% | 40,492 | –4.29% |
38,754 | 26.97% | 49,207 | 37.22% | Cost of Goods Sold | 23.589 | 14.99% | 27,126 | –8.50% | 24,819
| 26.13% | 31,305 | 32.71% | Net Income | 2,721 | 5.99% | 2.884 | 4.75% | 3,021 | 36.18% | 4,114 |
51.19% | Cash | 567 | 119.00% | 1,244 | 81.18% | 2,254 | 14.86% | 2,598 | 358.00% | Accounts Rec |
5,197 | –9.48% | 4,704 | 9.48% | 5,197 | 25.82% | 6,539 | 25.82% | Inventory | 4,096 | –5.24% | 3,881
| –2.73% | 3,775 | 40.66% | 5.31 | 29.63% | Current Liabilities | 17,086 | –35.36% | 11,044 | 4.04% |
11,491 | 36.28% | 15,66 | –8.34% | Long Term Debt | 12,902 | 47.03% | 18,589 | –3.03% | 18,024 |
49.01% | 26,859 | 108.17% | Before doing any calculations there are many important observations
and conclusions that can be drawn from analysing Kraft's financial statements from a fundamental
perspective. Kraft has gone through some major changes in the past 4 years with the many
acquisitions and divestitures they have undergone and these changes have had major implications on
the financial statements. Since 2007 Kraft has been able to maintain high revenues with strong
overall growth. The cost of goods sold has also seen an overall
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Does Kraft Foods Portfolio Exhibit Good Strategic Fit
The Nine –Cell industry attractiveness/business strength matrix will have the industry attractiveness
on the vertical axis and the competitive strength will be on the horizontal axis ; to the far left corner
will be a large bubble representing U.S. grocery and The U.S. snacks indicating that the U.S.
Grocery and the U.S. snacks have both favorable industry attractiveness and competitive strength
and thus warrants priority attention . In addition the U.S beverage, U.S. cheese and the U.S.
convenient meals seem to huddle in the 3 diagonal cell stretching from the lower left to upper,
indicating they merit intermediate attention by the Kraft incorporation, however these segments of
the company can be profitable if the company can investigate the possibility of improving
consumers demand for beverages, cheese and convenient meals through innovation and by
providing the consumers with what they want.
Does Kraft Foods ' portfolio exhibit good strategic fit? What value–chain match–ups do you see? In
my opinion, Kraft Food s Inc. has good strategic fit. The profitability trend was upward between
2009 and 2011 fiscal year. The company has strategic created segments that would complement their
efforts to reduce cost through efficient value supplier chain that is interconnected with each segment
of the incorporation. The system in its entirety is facilitated through the Kraft Foods supply chain
initiatives management team. The team 's main focuses is improving cash
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Company Overview: Kraft Foods
Overview of Company– Kraft Foods is an example of a complex and innovative company. It is the
largest branded food and beverage company in North America and the second largest globally. It
operates in over 150 countries worldwide with a number of the world's preferred food brands. Kraft
holds more than 35 major brands with over a century of successful sales: Oscar Mayer, Maxwell
House, Jell–O, and Velveeta. In 2011 the company posted revenues of over $54 billion and
continues to employee over 125,000 people worldwide (www.kraftfoodsgroup.com). Structure –
Kraft operates a diversified product portfolio with five core divisions: snacks, beverages cheeses,
groceries and convenience prepared meals. The company is global in operations and has nine brands
that exceed $1 billion in revenue. Kraft has over 223 manufacturing and processing plants
worldwide, and 236 distribution plants. Conservative values of property and plant equipment top
$14 billion. Kraft has just under 130,000 employees globally. As of December 31, 2010, Kraft held
total assets of $95 billion dollars worldwide, with $5 billion tied up in inventories. The company has
$28 billion in debt, making their actual assets at about $71 billion. Most of Kraft's growth, in fact
comes from the developing world and new, emerging markets. (Annual Report). Systems – Kraft
realized that there were sliding revenues and share points. Since 2009, the company has pushed
R&S by spending almost ½ billion dollars annually. The
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Kraft Food : A Subsidiary Of Mondelez International Inc.
Kraft Food, originally a subsidiary of Mondelez International Inc., has grown initially through
acquisitions, including brands such as Boca Burger, Balance Bar, and the family of Nabisco brands.
Kraft Foods Group reports its earnings into five categories; grocery, cheese, beverages, refrigerated
meals and international & foodservice. Each of Kraft's divisions markets some of North America's
highly popular brands in their categories.
Kraft Foods Group product portfolio consists of more than 70 major brands, to name a few, Kraft
Cheeses, Maxwell House, Post ready–to–eat Cereals, Oreo Cookies, Ritz Crackers, Lifesavers
Candies, Planters Nuts and Snacks, Jell–O Desserts, Kool–Aid Beverages, Philadelphia Cream
Cheese, Stove Top Stuffing Mixes and Miracle Whip Salad Dressing. Nearly nine of Kraft's various
brands earn more than $500 million in revenue each year and contribute close to 70% to the
company's total net revenues.
Kraft Foods Group, since its inception, has focused mainly on North America where majority of
their sales have originated. Due to Kraft's primary focus on North America, they haven't had to deal
with Europe's and Asia's currency fluctuations. At the same time, losing out on the international
market.
Kraft Foods wanted to create a vision in which it would be recognized as the undisputed leader in
the global market for foods, while gradually expanding onward from North America into Europe.
In pursuit of its aim, Kraft devised a strategy intended to ensure
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Kraft Foods
Introduction Expanding a product line into another country can be a very difficult decision. This
decision is made harder by the establishment of competitors already in the market place and without
proper market testing being done. Ultimately a decision must be made whether to pursue an
unfamiliar and competitive market with great force and speed or to step back and wait. Kraft Foods
beverage sector already has a strong hand in the Canadian market, with its coffee line of Maxwell
and Nabob being number one and number two coffee brands in Canada. With the increasingly
popularity of the Single Serve Coffee Pods (SSP) in Europe and the initial introduction planned in
the United States very shortly, a move into the Canadian market can be a ... Show more content on
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To establish our presence in retail stores this alternative opts to give the necessary 35% margin to
the retailer and a 20% to the wholesaler. The wholesaler realizes a lower margin due to them
supplying multiple locations, thus having more products pass through their locations. The unit break
even volume is slightly higher then what may be achievable at first entrance but, since our
marketing promotional mix is quite extensive we should be able to capitalize on gaining consumers
that are just entering into the market. This marketing mix will slowly taper off as our products
become more popular thus reducing costs and creating a more reasonable unit break–even volume.
Our promotional mix includes all the TV sponsorships suggested, all of the consumer shows
(utilizing the bigger 10 x 30 foot booth) and the three step merchandising plan. These three big
promotions should give us exposure to approximately 1.7 million people reached, not including the
merchandising (variable). The total cost of our promotions is $768,677.00. To get the product on the
shelves we will use the warehouse distribution method. It will cost more to distribute this way in the
short run but in the long run it may prove crucial to eliminating the problem of stocking shelves
when SSP gbecomes popular. For the second alternative (Appendix 2) we chose the same price of
the competitors again and added 2 more pods. With this alternative we assumed that the retailer
wants more than 35% margin and
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Kraft Foods Group Mission Statement
Kraft Foods Group is a top fortune 100 company founded by James L Kraft in Chicago, Illinois 3
years ago. They specialize in food and beverage products categorized by beverages, frozen and
refrigerated meals, dairy products, and other grocery items. Kraft products are known worldwide
and can be found in almost every home in the world. Even though Kraft brand has been around for
decades Kraft Foods Group is a type of business subsection that adheres separately to each
demographic in the world. Since they provide for over 170 countries, they must divide and conquer
to stay successful. Although the company has been very successful they face many challenges
including broad competition and target markets.
Mission Statement
Kraft Foods Group produces annual revenues of about $18 billion or more. CEO, John T. Cahillore
ensures that "with the spirit of a startup and the soul of a powerhouse, we are on a mission to be the
best food and beverage company in North America." Kraft exists around that statement and every
decision made for the business should reflect being a powerhouse in food and beverages. So far, this
company's strategies have made that statement true.
The company may now be known as just Kraft Foods Group but the slogans "make today delicious"
and the old statements about healthy enjoyable food still stands true. Just like everything in life,
things must adapt and grow with time. So being the best food and beverage company means having
healthy and delicious food.
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Terracycle: Outsmarting Waste
TerraCycle: Outsmarting waste
1. Upon what basis did Szaky make decisions throughout the development of the venture?
Tom Szaky is an entrepreneur, known for starting TerraCycle, a company that makes consumer
products out of waste. Although the environment and the venture itself changed a lot throughout the
development, Szaky always remained true to himself. He believed that a waste management
business could make a profit and promote environmental protection at the same time. However, gut
instincts and being in the right place at the right time was also an important issue for the former
success – commencing with the idea for the startup business when he visited his friends and
discovered the fertilizer which they had developed. Shortage ... Show more content on
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TerraCyle turned down the money from the capital firm because they were not interested in the
environmental benefits of the product and wanted to cut out the rest of the team.
A turning point in the startups business was the idea of packaging their product in used plastic
bottles – now they could offer a product made from garbage packaged in garbage. The new
challenge was getting notable retailers to introduce their unknown and maverick product. They
managed to get an order from Walmart for 100.000 bottles which was much more than the average
order volume. TerraCycle could fulfil the contract under greatest efforts and proved that eco–
capitalism is functioning. The next major step was the defining of a new business model, called
sponsored waste. Together with Kraft Foods the startup began to made products from recycled
materials. The partnership developed fast and leads to enormous strategic challenges because of the
huge amount and storage requirements which involve high costs. TerraCycle still has to work hard
to produce a profit and struggles with the wide range of activities and products they offer.
3. What business is TerraCycle actually in? Do you think the company needs to change its business
model? Why or why not?
The primary business function of TerraCycle was manufacturing and selling compound fertilizer.
Related to their
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Analysis of the Kraft Food- Cadbury Merger
Table of contents
I. Introduction 4
II. The case 5
III. Analysis: competitive assessment 6
1) Confectionery sector overview. 7
2) Relevant product market 9
3) Relevant geographic markets 11
4) Unilateral Effects 11
IV. Our results: pro–collusive effects and efficiency gains. 14
V. Conclusions 15
Bibliography 16
I. Introduction
Kraft is a worldwide food and beverage company active in more than 150 countries with annual
revenues of $48 billion while Cadbury is a worldwide producer and seller of chocolate and sugar
confectionery products in over 60 countries. As stated by the European Commission: "Both Kraft
and Cadbury are strong players in the chocolate confectionary business in the European Economic
Area. With its ... Show more content on Helpwriting.net ...
In addition, the parties have a combined aggregate worldwide turnover of more than EUR 5 billion,
moreover, each of them has a communitywide turnover in excess of EUR 250 million but none of
the two has more than two–third of their aggregate communitywide turnover within one and the
same Member State. For these reasons, the case was considered to have a Community dimension
and therefore, to be relevant.
The commission was not concerned about the entire activity of the two groups, but focused its
attention on the chocolate confectionery market and to a lesser extent, on the sugar confectionery
and chocolate drinks, where the two parties presented overlapping activities, large market shares,
and in some Member States, namely Romania and Poland, the two were brands were regarded as
close substitutes and no other similar products were registered in the reference market.
The commission based its decision on the results on various economic analysis and market research
undertaken with the explicit purpose of assessing the market power of the two group before and
after the merger.
On 7 December 2009 Kraft Food proposed a first commitment package in order to render the
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Kraft's Feeding The World
Kraft Feeding the World
Meet Kraft Foods
The Kraft Foods company is an organization that through acquisitions has added a variety of
companies with not only a mix of products, but also an amazing knowledge base. Kraft products are
found and manufactured all over the world. As of 2009, the company had 9 brands that exceeded
over $1 billion in revenue annually and more than 50 brands with over $100 million (Company
Spotlight, 2009). Kraft North America is home to more than 303 distribution centers and there are
13 distribution centers around the world (Company Spotlight, 2009). In 2009 Kraft employed over
98,000 people, of those "2,400 are food scientists, chemists and engineers" (Company Spotlight,
2009, pg. 96).
For over 100 years, Kraft has been innovating products to meet the needs of the changing consumer,
their ability to remain at a global leader stems from the constant focus on the consumer. Kraft foods
has had various names throughout its existence, but the one constant that has always remained is
that at Kraft meeting the needs of the people comes first.
History
The first man to be recognized in the creation of Kraft Foods is James Kraft. At 29 years of age,
James Kraft was in a partnership with a cheese company out of New York (Rhoads, 2006). While
checking in on a branch located in Chicago, he was informed that his part of the partnership had
been dissolved. Stranded in a city that was not his home, with only $65 in his pocket, J.L. Kraft
rented a horse
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Kraft Foods Inc
Kraft Foods Romania Kraft Foods Romania
Tudor Corneliu
Master Fabiz, An II, Gr. II
12/23/2011
Tudor Corneliu
Master Fabiz, An II, Gr. II
12/23/2011
Contents 1. Kraft Foods Int 1 1.1. History 2 1.2. The Business 2 1.3. Sales evolution 3 1.4. MNE
characteristics 4 2. The internationalization process of Kraft Foods 5 2.1. Kraft Foods in Romania 5
2.2. 2008/2009 turn around 6 3. Kraft Foods strategic management 7 3.1. Kraft foods mission,
vision and values 8 3.2. External analysis 8 3.2.1. Competitors 9 3.2.2. New entrants 9 3.2.3.
Substitutes 10 3.2.4. Suppliers 10 3.2.5. Buyers 11 3.3. Internal analysis FCA/CSA Matrix 11 3.4.
Oreo Campaign in Romania 12 ... Show more content on Helpwriting.net ...
Figure 2
2.3. Sales evolution
In the last 4 years Kraft Foods are on a positive trend with most of $49,207 billion of sales in the last
year, 2010. The effects of the crisis can be also seen as 2009 is the only position when the trend was
disrupted. In spite of this they their net profit continues to skyrocket (Appendix 1).
Table 1: Percentage of 2010 Net Revenues by Consumer Sector
| Confect– | | | | | | | | Convenient | | Segment | Biscuits(2) | | ionery(2) | | Beverages | | Cheese | |
Grocery | | Meals | | Total |
Kraft Foods North America:
U.S. Beverages – – 36.5% – – – 6.5% U.S.
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Kraft Macaroni and Cheese VS generic brand
Justin Damato
4/23/14
Micro Econ Writing Project
Kraft Macaroni and Cheese Vs. Generic Brand
Everyone has his or her own personal preference towards buying generic or name brand products.
When shopping in a grocery store does the type of pasta really matter to you? How about the type of
macaroni and cheese you reach for? Same ingredients, same directions on how to mix and stir up the
final manufactured goods but is it really the "same". To a lot of people it might not make a
difference, but like me, a lot of people prefer spending the extra 50 cents on a box of "Kraft
Macaroni and Cheese" and it's worth every penny. Is it the taste that you are paying for? Or maybe
it's the quality of the product that you're basing it ... Show more content on Helpwriting.net ...
The Kraft Company has been around for a long time now. Personally I believe you must have a
protective firm, not allowing other companies to steal your ideas and product. This will give the firm
advantage over others. Kraft Macaroni and Cheese is dominating the market with almost 1 million
boxes sold a day. They have to keep up their revenue by attracting a new fan base. Shapes and
designs of pasta are surprisingly essential for Kraft. Over 2000 patents of shaped macaroni and
cheese have been officially signed for and used, only about 280 have been obtained by Kraft
Macaroni and Cheese. One of their biggest selling characters and patents is SpongeBob Square
Pants, a TV show that has been on air for about 12 years now. Kids thrive for the little macaroni
shapes of SpongeBob, Sandy, Patrick, and Mr. Crabs. When Kraft came out with these shapes they
couldn't produce enough of them for mom's and their kids. Sales rocketed through the roof and Kraft
Macaroni and Cheese monopolized the competition with this brand new shape that no one else could
use. Knowing exactly what to market at a specific time is huge when it comes to any company that
wants to be successful. This is what sets them apart from the rest and has given them that extra
economic profit. Macaroni shapes are not the only ingredients that set them apart from the rest.
Have you ever
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Case Study Of Kraft Foods
Name: Naivd Sadeh Student ID: Y1512.130090 Kraft Foods Kraft nourishments Group, inc.
Produces including businesses sustenance furthermore refreshment products, including helpful
meals, refreshment drinks what's more coffee, cheddar also other grocery items. The organization
works its business through six segments: Beverages, Cheese, refrigerated Meals, Meals & Desserts,
Enhancers & nuts also Canada. The drinks section incorporates Maxwell House, Gevalia, and Yuban
coffees; Tassimo hot drinks system; capri sun and Kool–Aid bundled juice drinks; Crystal Light,
Kool–Aid, also country time powdered beverages; Also MiO fluid. Those cheddar fragment
incorporates kraft and saltine barrel natural cheeses; philadelphia cream cheese; kraft furthermore ...
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Kraft organization ought to be animated sufficient over guaranteeing that it progressions with the
transforms in the business request. This would help those associations should boost its incomes.
Those kraft oversaw economy needs to inspire their groups clinched alongside guaranteeing that
they perform great in the association. Inspiration can be in the groundwork from claiming
remunerates of the best performing groups. Corporate governance is vital should kraft sustenance
likewise it gives the suitableness skeleton that company could successfully attain its objectives also
targets. Keeping tabs on the advertising methodologies moreover money related additions might not
successfully assistance kraft shares of the organization for achieving its objectives. Those
managements ought further bolstering concentrate on guaranteeing corporate social obligation may
be enhanced, thus Similarly as on make a great picture to those public eye and the clients. This will
help the organization clinched alongside accomplishing a greater amount returns for long–run.
Viable inner correspondence furthermore mix plan may be a project that might guarantee legitimate
correspondence inside the association Furthermore improve customer's fulfillment. Correspondence
is basically essential done an association thereabouts Similarly as to guarantee the accomplishment
about objectives also destinations. Should move forward those customer's fulfillment furthermore
legitimate client's service, those administrations ought to be taught capably so Likewise to also
mentor their laborers great. Kraft Company ought to conjointly make the most of their complete
recognition and invest in analysis and development thus on alter their new merchandise and
services. this can facilitate in increasing the
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Kraft and Cadbury Merger Analysis Essay
On February 2, 2010 Kraft and Cadbury, two leading firms in the snack industry finalized their
merger decision after five months of negotiation. In this report we will examine why it made
strategic sense for the two companies to combine and evaluate the performance of the combined
companies since its merger. In particular we will analyze the post–merger financial statements and
highlight a few points regarding the accounting.
INTRODUCTION OF KRAFT AND CADBURY
Kraft Foods Inc. (KFT) is the world's largest food processing company with revenues of $40 billion
(fiscal year 2009) which sells its products in more than 150 countries. We are familiar with many of
its global brands – Oreo, Philadelphia Cream Cheese, Trident, Nabisco, ... Show more content on
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The expenses included in SG&A were, transaction related fees of $2 million for the three months
after the acquisition and $217 million in the remaining nine months of the fiscal year, ending Sep
30, 2010. Another $11 million was expensed in the three and nine months ending September 30,
2009. In Addition, Kraft also incurred acquisition financing fees of $96 million in the first quarter of
2010 and recorded this expense in interest and other expenses, net account. As a result, SG&A
expenses rose more than 40% in nine months ending September 2010 from 2009. The 2010 increase
in general and administrative expenses was predominantly due to acquisition related transaction
fees, Integration costs and the impact of Cadbury's corporate charges.
PERFORMANCE OF COMBINED FIRMS (3 months)
Kraft's consolidated financial statement, indicates that the company is profiting from its core
competences. The most significant increases in net revenues and operating income are, form its
successful entry into emerging markets and accessing wide
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Kraft Foods
1.What is Kraft Foods Inc.'s corporate strategy? How has its corporate strategy evolved since its
independence in 2007? Management and business tactic is usually developed to include price
towards the organization and also it could be completed by simply arranging and also preventing the
business activities which can improve the particular income. For this reason, the corporation
provides different types of food and beverage related items throughout North America. In achieving
this goal regarding offering the best food and beverages, their tactic incorporates innovation and also
venture. This overall performance primarily based way of life is also the particular section of the
company tactic that provokes staff to produce a better product to supply the consumers.
2. What is your assessment of the long–term attractiveness and competitive strength of the industries
represented in Kraft Foods' business portfolio?
Because an organizations stock portfolio contains foodstuff and also beverages in order that it offers
long life as much as organization preserves the caliber of products based on the have to have
regarding shoppers. The reality is obvious from the overall earnings intended for previous years that
have been close to $18. 6 million throughout 2011, $18. 3 million throughout 2012 and also $18. 2
... Show more content on Helpwriting.net ...
It is very good in certain locations however, not incredibly desirable, because organization offers
market place reveal regarding close to 2% is actually progress regarding close to 1% towards 25%
regarding commercial common. Nonetheless, the particular earning from the organization is usually
very good because the organization is usually gaining 400% greater than commercial common as
per functioning margin. However, the corporation provides the prospective growing and also
overcome competitors, it is often mentioned previously mentioned which how well organization
may
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Essay about Porter's 5 Forces and Pest Analyses of Kraft...
Running head: ANALYSES FOR KRAFT FOODS
Porter's 5 forces and PEST analyses of Kraft Foods.
MGT 599 Module 2 SLP
ABSTRACT
This paper will show the various analyses of Porter's 5 Forces upon Kraft Foods as well as a PEST
analysis of external factors influencing the company.
Porter's 5 Forces are industry environments: 1. The threat of new entrants to the foods industry (low)
Online grocery shopping is proving to be a formidable threat. (Food Retailing Industry, 02/2/12) 2.
The bargaining power of suppliers (medium to high)
Agriculture has been impoverished by the U. S. drought in 2011–12 causing enormous loss of crops
and animals. This devastation has resulted in less supply and much ... Show more content on
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This has caused much negative public relations. The Cadbury debacle (Chellel, 5/23/11) also
tarnished Kraft's reputation. 2. Economic
Drought has caused raw products prices to rise. Unemployment has caused America's middle class
to shrink from 61% in 1971 to 51% in 2011 (Lempert, P 12/12) 3. Sociocultural
The demand for healthier foods and snacks will cause Kraft to examine methods to provide these.
The change of packaging and marketing will be necessary (Lempert, P. 12/12). 4. Technical
The impact of social networks such as Facebook and Twitter can have devastating effects on Kraft's
reputation (Lempert, P. 12/12). Customers have access to apps that direct them to online grocery
shopping and availability of similar products at lower prices.
Porter's 5 forces and PEST analyses of Kraft Foods In this paper, I will examine the effect of Porter's
5 forces upon Kraft Foods Industry. I will present sources to validate those effects and explain how
those sources are relevant. I will also present a PEST analysis using the information gleaned from
the previous sources. The references will be critiqued.
Porter's 5 forces Threat of New Entrants (low) Food Retailing Industry: Market Research Reports,
Statistics and Analysis http://www.reportlinker.com/ci02212/Food–Retailing.html. This site reports
new trends in the retail food industry. It brings the information down to the customer in the grocery
store
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Business Case Study: Kraft Foods Canada
Problem Definition
Kraft Foods Canada plans on rolling out its flagship product, Kraft Singles, to a new population
segment; Canadian millennial moms. Millennial moms consist of Canadian moms born between
1981 and 2000. The need to reach out to this new segment is informed by two factors, external
factors, and internal factors. Internally, the company has witnessed dwindling overall sales volumes
for the product at about one percent annually. Moreover, the market for processed cheese, which
Kraft Singles is made of, is shrinking. Externally, Kraft Foods Canada is aware of the growing
millennial demographic in Canada. Data from Scott (2015) shows that in 2014, Canadian
millennials made up about thirty–seven percent of the Canadian workforce, the largest share
compared to Generation Xers (individuals born between 1965 and 1980) and Baby Boomers
(individuals born between 1946 and 1964). Like any ambitious corporation, Kraft Foods Canada
wants to establish itself among this growing demographic, to align itself with the growing future
customer base.
In targeting the millennials, Kraft Foods Canada has to overcome three key challenges:
i. How to brand ... Show more content on Helpwriting.net ...
Aggressive online advertising and similar campaigns will be effective in attracting the millennial
generation. Subtle changes to the product shape, logo and symbols will ensure that the traditional
base is not alienated while the millennial generation is brought into the fold. This approach will also
serve to differentiate Kraft Singles from competitors. It will be a product designed for millennials
and the older generation. The implementation of this plan could however prove expensive, up to
double the cost it would take to implement the other alternatives. It could also take quite a while to
develop given the amount of research necessary to develop a campaign for both market
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Comparison of Leadership Styles for Cadbury and Kraft
The pre hostile acquisition of Cadbury by Kraft Foods
Compare and contrast the preferred styles of Irene Rosenfeld and Todd Stitzer in the context of the
pre hostile acquisition of Cadbury by Kraft Foods. You should apply appropriate management and
leadership theories to support your arguments.
Consider first Irene Rosenfeld's leadership Style.
By referring to Hersey's model of situational leadership model – adapted by JE Chamberlain from
Mullins (2007:302) and Hersey et al (2000) followed on from a number of previous writes to
develop the model of situational leadership.
Diagram 1 refers: Situational Leadership Model (JE Chamberlain from Mullins)
Autocratic
Laissez–Faire
Democratic
*See P 32 of workbook and P 9 of Profex ... Show more content on Helpwriting.net ...
The degree of influence exerted often depends on how much time and effort is expended in getting
support. This tends to work best when objectives are shared, but staff are unclear about how the
objective is to be achieved. They know, but are uncertain about the how.
(Profex 44) Authoritarian/directive tells style. Rosenfeld appears authoritarian: making decision and
issuing instructions without apparent consultation in top–down leadership contexts.
* Leadership styles (Belbin) * Solo leader * Rules in an autocratic manner * Is directive – tells
subordinates what to do * Expects compliance from staff and often leads from the front * Effective
in times of crisis * If they fail, can have serious consequences * Mgmt. by objectives – makes it
clear exactly what everyone is supposed to do * Team leader * More participative and structured
manner * Consult * Delegate * Trust * Creates mission – helps clarify the vision which others act on
as they think best
(Profex 44) Strategic leadership style. Rosenfeld arguably adopts the 'strategy' approach (taking
personal responsibility for formulating strategic plans and articulating mission (from Johnson
& Scholes) (15, line 39) 'My slogan was, "lets get growing@. It's not a warm and fuzzy
strategy'.
Rosenfeld arguably adopts the
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Case Study Kraft Foods
Kraft Foods Case Study
Student's Name
Institutional Affiliation
Date of Submission
1.0. Introduction
Kraft Foods Inc. is a company that manufactures and markets food products such as snacks,
beverages, packed grocery products and convenient meals. The company can be found in more than
155 countries around the globe (Pankey, 2004). Normally, it has been ranked second after Nestle. It
has 11 brands which earn the company nearly $1 billion worldwide. Examples of those brands are
Cadbury and Nabisco (Pai & Subramanian, 2014). By December 2010, the company had operations
in more than 75 countries with nearly 233 manufacturing and processing facilities (Pankey, 2004).
Currently, it is an independent public company listed in the New York Stock exchange. This paper is
aimed at analyzing the competitive position of Kraft Foods Inc and its attractiveness together with
possible recommendations for future action.
2.0. Kraft Food Inc's Corporate Strategy
Kraft Food Inc has demonstrated so much that it exhibits a global strategy as it operates in more
than 80 companies with 223 manufacturing and processing facilities and 228 distribution ... Show
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First there is need to recognize that Kraft Foods Inc has a clear strategy that build globally and has
put them in a good competitive position since 2007. The company's divestitures and acquisitions
have also boosted its market share and profit earning (McDaniel, 2006). The ranking of the company
at second position contributes to a long–term attractiveness to the shareholders. Another strong
factor that improves its long–term attractiveness is the strong competitive nature of all industries
that participate in Kraft (McDaniel, 2006). This means that the companies require a strong
distribution and marketing strategy so as to attract consumers' demand and ensure products are
available in the supermarkets (McDaniel,
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Kraft Foods Presentation
The product manager for coffee development at Kraft Canada must decide whether to introduce the
company's new line of single–serve coffee pods or await results from the United States. Key
strategic decisions include which target market to focus on and what value proposition to signal.
Important questions are also raised as to how the new product should be branded, which flavors to
offer, whether Kraft should use traditional distribution channels or direct–to–store delivery, and
what forms of advertising and promotion to use. The case provides a basis for discussing consumer
decision making, and stresses the importance of providing a clear incremental benefit when
introducing a new product in an established category.
Decision ... Show more content on Helpwriting.net ...
Kraft planned to sell pods under Maxwell House label at a lower point than rival brands, retailing a
pack of 18 pods for US$3.99. Folgers charges $3.99 for a pack of 16 This pricing would give
retailers a 25% margin on Maxwell House, and at $0.22 per cup, revenue that was more than four
times the $0.05 per cup from ground coffee Issues arose when deciding to follow the U.S. lead on
pricing: On one hand, low prices could serve to drive sales volume and establish Kraft as market
leader, but this strategy risks eroding brand image. Given the failure rate of new products in Canada,
Herzog suspected that store would be willing to carry one or two brands of coffee pods Herzog was
unsure of the best wholesale and retail selling price to recommend Distribution: Most products were
delivered to retailers via warehouse distribution; which essentially made Kraft responsible for
delivering all merchandise to the customers' warehouses. From there, retailers then distributed the
goods to individual stores Retailers were responsible for stocking products, refilling shelf space,
maintaining inventories, and maintaining displays–services for which Kraft paid in excess of
$200,000 for national listing fees. Their system eliminates the need for Kraft to constantly monitor
and track inventories, distribution, and stock The alternative was to use direct–to–store–delivery
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Case Study On Kraft Foods
Despite industry challenges of rising commodity, labor, and energy costs, CPK was about to
announce near–record quarterly profits of over $6 million. CPK's profit expansion as explained by
strong revenue growth. Given the price drop, the management team had discussed repurchasing
company shares. Financial policy was conservative with interest rates on the rise from historical low
numbers, Collyns was ware of the benefits of moderately levering up CPK's equity. Given CPK's
family–friendly surroundings, excellent ingredients, and inventive offerings, analysts conservatively
estimated the potential for full–service company–owned CPK units at 500. Both the investment
community and management were less certain bout the potential for the company's ... Show more
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Although representing less than 1% of current revenues, the Kraft royalties ad a 95% pretax margin,
one equity analyst estimated. In addition to the high–margin impact on the company's bottom line,
management also highlighted the marketing requirement in its Kraft partnership. Kraft was
obligated to spend 5% of gross sales on marketing the CPK frozen pizza brand, more than the
company often spent on its own arketing. Management believed its success in growing both
domestically and internationally, and through ventures like the Kraft partnership, was due in large
part to its dedication o guest satisfaction and menu innovation and sustainable culture of service. A
creative menu with high–quality ingredients was a top priority at CPK, with the two co–founders till
eading the menu–development teamTo maintain the menu's originality, management reviewed
detailed sales reports twice a year and replaced slow–selling offerings with new tems. Some of the
company's most recent menu additions in 2007 had been developed and tested at the company's
newest restaurant concept, the LA Food Show. Created by Flax nd Rosenfield in 2003, the LA Food
Show offered a more upscale experience and expansive menu than CPK. CPK increased its minority
interest to full ownership of the LA Food how in 2005 and planned to open a second location in
early
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International Case Study: Mondelez International
Mondelez International is an American multinational confectionery that focus on food and beverage
based in America with a total global headcounts of 107,000. In year 2012, The Mondalez has
officially crafted its name by Kraft Foods employees which originally from the words of "world and
delicious" in Roman language.
The company manufacturing plant is located in Deerfield Illinois, Chicago which produces a wide
range of chocolate, biscuits, gums, confectionery, coffee and powdered beverages.
Mondelez international carries a lot of international branding such as Cookies and Crackers which
consist of Oreo, Chips Ahoy, TUC, Belvita, Triscuit, LU, Nabisco, Club Social, Barni and Peek
Freans. Choclate range would be Milk, terry's, Cote d'Or, Toblerone, ... Show more content on
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First of all, flour. Flour is powder made by grinding uncooked cereal grains or other seeds or roots.
Flour usually gained from grains. It comes from the end of the stalks of grains. It is the main
ingredient for producing biscuits. It used to provide structure and texture through the formation of
gluten. Gluten means glue, is a mixture of proteins found in wheat and related grains. To gain the
flour, the factory will first grind up the grains. And also, the factory will straight forward and
purchase flour from the other factory which processing grain into flour. The factory usually
purchased flour in large quantity in order to produce large quantity of biscuit. To maintain the
standard quality of biscuit, the factory always ensures that they are using good quality of
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Porters 5 on Kraft Foods
Revenue 49 billion Second largest company behind nestle Employs 125,000 Its five brands are
divided into 5 main sectors snacks,beverages,grocery,and convient meals Sanja khosia is the
president of kraft His 7 step bussiness model is to drive growth is DISCOVERY: find out what
works STRATEGY: focus through lenses VISION: find a simple hook EXECUTION: clarify and
deligate ORGANIZATION: build collaborative networks METRICS: manage numbers and tell
stories Headquartered in Northfield, Illinois, Kraft Foods (KFT) is the largest food and beverage
company in the U.S., and is the second biggest worldwide. Kraft was founded in 1903 by James L.
Kraft and, after inventing pasteurized processed cheese not requiring refrigeration, would ... Show
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Public companies are listed on the Stock Exchange and their shares are available for the public to
invest in. "make today delicious" Tuesday, September 6, 2011 Kraft Food's Mission Statement
Helping People Around the World to Eat & Live Better Kraft's mission is to provide fun,
healthy food for people to enjoy. Their mission statement informs us that they care about their
consumers. Their values are innovation, quality, safety, respect, integrity, and openness. They strive
as a company to communicate with the world reassuring them they're a trusted company with their
products. Kraft Foods Inc. (KFT) – Financial and Strategic SWOT Analysis Review Summary Kraft
Foods Inc., (Kraft Foods) manufactures and markets snacks, confectionery, and quick meal products
worldwide. Kraft Foods is number 1 US food company and number 2 worldwide. It is principally
engaged in manufacturing and marketing of packaged food and beverages. The various products
offered by the company include cheese, dinners, dressings, coffees, meats, biscuits, cream cheeses,
powdered beverages and chocolates. The company markets its products under the brand names of
Kraft, Maxwell House, Oscar Mayer, Oreo, LU,
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Kraft Food Inc's Hostile Takeover of Cadbury
Introduction A multinational company of Kraft Foods is an American firm doing the business for
food and beverage. It produces belong to a global markets and has many brands that over 170
countries (Kraft Foods, 2011). And its brands are divided into five main sectors: snacks, beverages,
cheese, grocery, and convenient meals. The major competitors of Kraft are Nestlé S.A.; Unilever;
ConAgra Foods, Inc.; Groupe Danone; H.J. Heinz Company; Sara Lee Corporation; etc. One of the
world's fourth biggest suppliers of chocolate and sugar confectionery is Cadbury, which merged
with Schweppes in 1969. One of its products, which is Dairy Milk and it is very successful molded
chocolate in UK. The main products of Cadbury are bars, drinks, ice–cream ... Show more content
on Helpwriting.net ...
Bargaining power of suppliers: There are lots of farm in Brazil and South of American, so that the
bargaining power of suppliers is low in this industry and the buyers can compare and choose the
lower price and quality supplier (International Cocoa Organization, 2012). So, this is positive to the
business. Rivalry among established competitors: There are lots of companies around the world for
the confectionery industry that lead to this industry violent for the competition. So, this is negative
to the business. Bargaining power of buyers: According to the research, it showed that the demand
of chocolate confectionery industry had the potential for increasing, as the chocolate sales rose 28%
in 2008, and dark chocolate sales rose 12% (National confectioner Association, 2009). Thus, this is
positive to the business. Threat of entry: When a company entry to a new industry, a company
require lots of capital. Since the company needs to buy the plants, machines, etc. So, it lead a
company to have a large economic of scale. Moreover, it is difficult to access to supply and
distribution channels. Threat of substitute: In Walmart can find lots of related chocolate products
from different companies, that means there are lots of substitute for the customers (Walmart, 2012)
Potential partners: There are lots of benefits or advantages for the contractual partnership. The four
processes to build contractual partnership are appraising suitable strategic
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Kraft Food Inc
Kraft background description Kraft is the largest branded food and beverage company in North
America and the second largest in the world. It operates in more than 150 countries worldwide.
Kraft Foods markets the world's favorite food and beverage brands in five product sectors namely
the snacks, beverages, cheese and dairy, grocery and convenient meals. Kraft also has 35 major
brands with more than 100 years of remarkable achievements in products such as the Oscar Mayer
meats, Maxwell House coffee, Jell–O gelatin and Milka chocolate. Kraft constantly strives to
continue making historic records with the launch of different new products designed to meet the
ever–changing needs of the consumer. Vision, Mission and Goals Vision Kraft's ... Show more
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Religion: Singapore is a multi–religious country. According to Statistics Singapore, around 51% of
resident Singaporeans (not including significant numbers of visitors and migrant workers) practice
Buddhism and Taoism. About 15%, mostly Chinese and Indians, practice Christianity – a broad
classification including Catholicism, Protestantism and other denominations. Muslims constitute
14%, of whom Malays account for the majority with a substantial number of Indian Muslims.
Smaller minorities practice Sikhism, Hinduism and others, according to the 2000 census. About 15%
of the population declared no specific religious affiliation. Languages: The national language of
Singapore is Malay for historical reasons, and it is used in the national anthem, "Majulah
Singapura". The official languages are English, Mandarin, Malay and Tamil. English has been
promoted as the country's language of administration since independence. The English used is
primarily British English, with some American English influences. The use of English became
widespread in Singapore after it
... Get more on HelpWriting.net ...
Kraft Foods Controversy
The Kraft foods company was founded in 1904, with the organization's origin rooted in Chicago
Illinois. The Kraft company initially set out to sell cheese in the region, where they quickly
expanded their operations to meet the demand caused by World War I. Kraft, famous for producing
the processed cheese Valetta, was a highly desired item in America. In 1924, the company went
international, and by the 1980's the organization was acquiring smaller businesses all over the world
(Mueller & Marion, 2000, p. 177). Today, the company remains one of the top competitors in the
prepared food industry.
International Mode of Entry
Shortly after the completion of World War I, and during the rise of the stock market, Kraft began to
move their business ... Show more content on Helpwriting.net ...
Furthermore, in today's fast–paced environment these strategies still hold true, as smaller companies
have more opportunities to compete internationally, because of newer technologies, like the Internet,
that allow companies to directly and expedition communicate with their targeted audience.
Additionally, understanding the marketplace permits companies to obtain the knowledge to create
future strategies to keep their businesses operational and thriving in a rapidly changing
... Get more on HelpWriting.net ...
Case Study: Kraft Foods
I. Situation Analysis:
Kraft Foods recent success with the sales of its single serve coffee pod system in Europe has
encouraged the company to release single serve coffee pods in North America. Market research has
suggested that the single serve coffee pods will be successful in Canada as well. Currently, the
Canadian market is among the world's leading coffee drinkers consuming 3.5 million cups daily in
2003 and attributing to $600 million in retail sales of instant, ground and whole bean coffee. Kraft
Foods needs to decide whether or not to simultaneously launch the single serve coffee pods in the
Canadian market alongside the planned launch in the North American market. Kraft would need to
capture 35% of the coffee pod market share in order to be ... Show more content on Helpwriting.net
...
Christie's partnership program, versus the $200,000 for the other alternative. The product would be
fresher and a strong relationship with the store vendors can be established.
Promotion/Advertising: Production of a 30–second English–language contest spot, Airtime to run
English–language spot for one week, sponsorship of CityPulse Webtest news contest for one week,
Giveaways, and Promotional execution. Direct marketing, email campaign, merchandising,
coupons, consumer shows, and print advertising. We will saturate the Canadian market to get as
much exposure as possible in the first three years.
V. Target Segments:
Coffee lovers
Between ages 25–54
Well–educated (College degree)
Average household income between $55,000–$91,000 (middle to high income)
... Get more on HelpWriting.net ...
Kraft Foods
KRAFT FOODS Prof. R. Mulholland COMM 5306 Introduction to Marketing 2010 Chao Zhang
(Richard) Laurentian University 2010–12–1 TABLE OF CONTENTS SECTION | CONTENTS |
PAGE | 1 | Executive Summary | 3 | 2 | Problem Statement | 4 | 3 | Situation Analysis | 4 | 3.1 |
Objectives and Goals | 4 | 3.2 | Background | 4 | 3.3 | SWOT Analysis | 5 | 3.4 | Market Analysis | 8 |
3.5 | Financial Analysis | 15 | 3.6 | Keys | 18 | 4 | Alternatives and Analysis | 20 | 5 |
Recommendations | 21 | 6 | Action Plan | 23 | 7 | Contingency | 24 | 1. Executive Summary Kraft (the
company) did very so far in the foods and beverage market in Canada. The company was planning
to launch the new coffee pods. However, the ... Show more content on Helpwriting.net ...
Kraft Foods owned a strong distribution network and a well–earned reputation in the market. In
Canada, Maxwell House and Nabob were two brands of Kraft, which was also the leader in coffee
sales with 32 per cent, much higher than its major competitors. Competition in the Canadian coffee
market was intense. More and more new competitors entered into the market, such as some specialty
retailers. As the leader of the market, Kraft should consider to adjust its current strategy. The
company should not only dominated traditional ground and whole bean coffee segment, but also
invested in other niche market, like coffee pods segment. Although single–serve coffee pod (SSP)
was a concept to Canadians, it still had high growth potential in Canada. According to its features,
SSP would become an important part in daily–life coffee consumption. Many competitors realized
that the potential development of SSP, and began to set strategies for this segment. Kraft targeted to
capture at least 35 per cent of the coffee pod segment, and increased to a 45 per cent market share by
the end of 2006. If Kraft was hesitating to launch immediately, it might lose the opportunity to
defend against its major competitors. Thus, the company would also lose its current market share
and could not hit the goal. In this situation, Kraft had to change its existing strategy to achieve
higher pofit margins and innovative reputation, in order to stay ahead in
... Get more on HelpWriting.net ...
Kraft Foods Analysis
Advanced Finance Intervenant/ Lecturer : Michael PAYTE MSc Audit & Management Control
Academic Year 2012–2013 Gaelle VANHERPE Maxime ROZIER Yao LIU Marion DOMANSKI
TABLE OF CONTENTS GAELLE'S PART PORTER'S 5 + 1 FORCES Competitive Rivalry
within an Industry Very high – Kraft Foods has to face a lot of competition  International: Nestlé
and Danone are the two main competitors. There are present worldwide and exploit the same
segments as Kraft Foods.  National: Companies which are present in only one country but which
propose products such as biscuits, dairy products... Example: Michel & Augustin, St Michel, la
Mère Poulard (France)  Regional: Smaller companies which are present in only few regions and
propose ... Show more content on Helpwriting.net ...
In fact regulations are different in every country in which the company is present. Moreover, the
sector of human consumption's products involves lots of regulations regarding the composition of
the food, production, marketing, trade, tax and environmental matters. For example, the use of
hydrogenated fats or palm oil is no longer accepted in Switzerland, Canada, Denmark and New
York. In France these ingredients are not forbidden but all the products which are made with them
have to be clearly indicated. These hydrogenated fats were used by Kraft Foods in some of its
biscuits and thus the company had to remove and replace them by other ingredient less risky for
customers' health. All these new regulations could increase company's costs and affect its
profitability. In fact company's need to comply with new or revised regulations or their
interpretation and application, including proposed requirements designed to enhance food safety or
to regulate imported ingredients, could materially and adversely affect the company's product sales,
financial condition and results of operations. Threat of New Entrants Low – The threat of new
international entrants is very low because the probability that tomorrow a new company arrives and
becomes one of the main competitors of Kraft Foods is very low, even non–existent. In fact, barriers
at the entrance for a new company are too important because the market is totally saturated. The
threat of new entrants, national
... Get more on HelpWriting.net ...

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Kraft Foods Essay

  • 1. Kraft Foods Essay Wholesalers across the world obtain many vendors and many customers. Associated Wholesale Grocers is owned by their customers who are independent grocers. AWG buys their products from various vendors around the world. The giant wholesaler offers fresh produce, national brands, certified meat, and their private label brand. Vendors that AWG buys from benefit the most because of the large number of sales brought by AWG. Actually, AWG was forced to open a new warehouse in Louisiana to take stress off of their other distribution centers (ZWIEBACH, 2012). One of AWG's main vendors is Kraft Foods which obtains their own website to display competitiveness and advertise the products they sell. After reviewing Kraft's website, it is clear that there is no mention of AWG on their website. However, Kraft's website is genius in the way they display pictures of their products to attract customers. The primary association with AWG that is posted on Kraft's website is that AWG carries and sells ninety percent of the products Kraft offers. Within the warehouses around the world, Kraft products seem to enter the warehouse more than any other vendor AWG buys from to ... Show more content on Helpwriting.net ... To benefit AWG, their customers will have to refill their shelves which means buying more products from their distribution centers. Also, after viewing one of AWG's customers and their webpage, it is evident that this customer is focused on advertising their products more than acknowledging where these products came from. Naturally, AWG's customers should use their websites for advertising purposes anyway. The customer's webpage that is viewed is a store in Kansas City named Constantino's. Constantinos website is extravagant by displaying goods provided by Associated Wholesale Grocers. Obviously, Constantinos can help AWG by giving credit to them for the quality of the good bought from ... Get more on HelpWriting.net ...
  • 2.
  • 3. Case Study Kraft Foods And Vegemite Table of Content: 1.0 Introduction P.1 2.0 Key Issues in the Case P.1­ 2 3.0 Secondary Issues in the Case 4.0 Links with Consumer Behaviour Theories 5.0 Answers to the Questions in the Case 6.0 Conclusions Bibliography P.2 P.3 P.4­ 5 P.6 P.7 Behavior Case Study iSnack 2.0 : It looked good on paper... Introduction In 2009, Kraft foods and Vegemite undertook a product line extension and significant public and interactive campaign to incite consumers to name the new brand of vegemite that was developed under their specifications and preferences. Throughout Australia and New ... Show more content on Helpwriting.net ... Secondary Issues in the Case As stated above, Kraft had a lack of connection to consumers and consumer trends which lead to the decline in sales for isnack 2.0. The lack of connection with consumers came from the poor entrepreneurial drive that kraft offered which therefore lead to the lack innovation of isnack 2.0. Pros and cons of using social media to ask consumers what they want the product named : The campaign "Name me" was not the issue, the issue was how Kraft
  • 4. responded and interpreted the information that was given to them by the public which lead to the decrease in sales. Pros ● Allows for consumers to have a say on new product ● More chance of the consumers liking the product due to their involvement ● Kraft is able to revolve their product more around exactly what consumers want Cons ● Kraft had the possibility to cop a lot of negative comments towards the products 2 ● Potential consumers could just donkey vote for a name, leading Kraft to think that people actually like name that's a bit of a joke Another issue that relates to isnack 2.0 is salience, which means even though they changed the name to cheesy mite consumers will still be under ... Get more on HelpWriting.net ...
  • 5.
  • 6. Processed Cheese and Kraft Foods Kraft Foods 2011 TABLE OF CONTENTS Executive summary(KH) 6 Indroduction(ME) 7 Background/ History of Kraft (ME) 7 Mission Statement(ME) 8 Major Goals(ME) 12 Business(ME) 12 Corporate and Environmental Philosophy(ME) 12 Mission Statement Analysis(ME) 13 Strategic Evolution(KH) 13 Intended Strategies(KH) 14 Emergent Strategies(KH) 16 Stakeholders(CB) 20 Internal(CB) 20 External(CB) 22 Kraft's Organization and Structure (YL) 23 Purpose of the Report(KH) 26 External analysis 26 Industry overview/History(YL) 27 Industry Growth & Profit(YL) 28 Package Foods and Meats Segments (YL) 29 Industry Analysis/Porter's Five Forces (YL) 29 Risk of Entry by Potential Competitors (YL) 30 Entry ... Show more content on Helpwriting.net ... and because of that we have been able to make determinations about the company. Kraft Foods has a rich history of innovation which is evident through there many research and development facilities located throughout the world and their extensive product line. However, the company has some strategic issues that they must rectify to continue the success that they have had throughout the year. Due to the company's acquisition of Cadbury, they have increased their debt level which in turn has lowered their credit rating. Also, the company has failed to take full advantage to the changes in the consumer's interest in healthier products. These issues combined with a struggling economy could pose many issues for the Kraft. In this paper we have examined these issues, and many more. Based off of our research and analysis of the company we were asked to make certain recommendations that may help solve strategic issues. First, Kraft must ... Get more on HelpWriting.net ...
  • 7.
  • 8. MGT 599 SLP 3 Internal Analysis Kraft Foods Essay TUI UNIVERSITY Module 3 SLP MGT 599 Strategic Management Dr. Nanette Metz Business Dictionary defines internal analysis as "a review of an organization's strengths and weaknesses that focus on those factors within its domain" (2014). Conducting an internal analysis allows organizations to adapt and change the way they conduct business in order to remain competitive. Internal analysis obtains information from financials, operational and marketing departments to help management determine strategic planning for future growth. In this paper the author will discuss an internal analysis of Kraft Foods. Tangible Resources Investopedia defines tangible assets as assets having a physical form, ... Show more content on Helpwriting.net ... Additionally Kraft Foods opens their plant facilities to other company's allowing for the "develop of ingredients and applications for their products" (Kraft Foods, 2014). Intellectual Resources Intellectual resources encompass the collective knowledge of the organization that is gained overtime through experience and education (Xaxx, n.d.). Kraft Foods has a very diverse portfolio which includes ownership of numerous patents worldwide which covers basic packaging techniques to processes relating to specific products and the products themselves (Kraft Foods, 2014). These patents protect the unique products of Kraft Foods that distinguish them from their competitors. Goodwill Kraft Foods is a household name that has been around for over 100 years providing consumers with quality products they demand (Kraft Foods, 2014). Conducting research on trends and demands has generated trust, respect and goodwill from their consumers allowing Kraft Foods to become number two in the food industry (Kraft Foods). In addition to goodwill Kraft Foods has developed strategic alliances with extremely powerful customer, i.e. Wal–Mart, which account for 23% of their total net revenues (Kraft Foods Financial Report, 2013). Kraft Foods understands that the loss of these relationships will generate "decreased sales, financial position and operating results" (Kraft ... Get more on HelpWriting.net ...
  • 9.
  • 10. Kraft Foods INTEGRATED COMPANY ANALYSIS Andy Fleming Laura Hausfeld Brett Hoerz Anna Lyman Eduardo Saenz DECEMBER 15, 2010 1 TABLE OF CONTENTS EXECUTIVE SUMMARY COMPANY OVERVIEW COMPETITOR OVERVIEW GLOBAL GROWTH STRATEGY – "HITTING OUR SWEET SPOT" OREO IN INDIA: MARKETING ANALYSIS TARGET SEGMENT POSITIONING MARKETING MIX (PRODUCT, PLACEMENT, PROMOTION, PRICING) COMPETITOR ANALYSIS 3 3–4 4 4–5 5 6 6–8 8 8 8–9 9 9–11 11 12 13 14 14–15 15 16 17 18 19 19 20 20 21 21 22 23 24 25 26 27 28 29 30–31 31 32 33 34 35 36 36 37 37 38 39–40 KRAFT IN INDIA: FUTURE MARKETING STRATEGIES NEW PRODUCTS INNOVATION ACCOUNTING INCOME STATEMENT ANALYSIS BALANCE SHEET ANALYSIS VALUATION DISCOUNTED CASH FLOW (DCF) ANALYSIS CONCLUSION APPENDICES ... Show more content on Helpwriting.net ... Kraft maintains focus on its "unrivaled portfolio of brands people love,"2 as more than 80% of its revenues come from products that hold the number one share position in their respective categories. Kraft‟s capital structure is 64.1% equity and 35.9% debt. Its operating margin is currently 13.69% (EBIT/revenue). Kraft is a high yield dividend–paying company offering 3.70% dividend yield. Its earnings per share ratio (EPS) is currently 2.09. COMPETITOR OVERVIEW Given Kraft‟s large portfolio of brands (see Appendix E) and range of products, it faces competition from domestic and international companies, smaller regional companies, and generic brands. Some of Kraft‟s key competitors are Nestle, Pepsi–co, Coca–Cola, Danone, and Heinz. As Kraft moves forward with its plan to capture market share in developing markets, it must be aware that several of its competitors have similar growth strategies. For example, Coca–Cola has named Mumbai one of the cities most important to its growth and Nestle touts its commitment to Middle East operations after opening a $136 million manufacturing plant in Dubai (see Appendix F). GLOBAL GROWTH STRATEGY –
  • 11. "HITTING OUR SWEET SPOT" Seven months after acquiring Cadbury, Kraft announced a new global growth strategy. Centered on marketing leading consumer brands (see Appendix G) and pursuing growth opportunities consistent with consumer ... Get more on HelpWriting.net ...
  • 12.
  • 13. Kraft Foods, Inc. Case Topic, Setting, and Perspective Kraft Foods, Inc. pursued an aggressive launch of coffee pods in the United States, but had less than a month to decide whether Kraft should proceed with a similar launch in Canada, or await the U.S. results. However, a Canadian launch withholds several decisions. A suitable branding strategy is necessary, wholesale and suggested retail price for coffee pods, choose which flavors to offer, and decide whether Kraft should use traditional distribution channels or direct–to–store (DSD). Also, the development of an effective advertising and promotion strategy on a relatively limited budget is necessary. From a consultant perspective, Kraft has chosen to pursue the Canadian market. Kraft has chosen a Canadian test market because a test market assumes less risk, less cost, and insightful information regarding the purchase of coffee pods in a foreign country. History and background Kraft is an innovative company that started over 100 years ago, in 1903, by a man named James Lewis Kraft. This man decided to get into the cheese business and purchased wholesale cheese. He then began selling this cheese to small stores in Chicago, Illinois. With the help of his brothers, the business grew exponentially and they eventually began manufacturing their own cheese. With its continued expansion and growth, Kraft quickly became a common household name, and by 1926 sales were $36 million. Over the years Kraft expanded its product line to Philadelphia cream ... Get more on HelpWriting.net ...
  • 14.
  • 15. Essay on How Craft Changed Oreo Marketing Strategy in China How Kraft Changed the Oreo and Its Global Marketing Strategy for Success in China Gale Business Insights: Global Case Study Collection Learning Objectives After analyzing this case study, students should be able to do the following: Explain at least three benefits of market research in product development for international and emerging markets Identify traditional and nontraditional strategies for increasing revenue through entering new global markets Appreciate the effect of cultural norms and tastes for firms expanding to new markets Discuss how firms can focus products to local tastes while increasing brand value globally Introduction One of the more popular strategies for firms to increase profits in the 21st century ... Show more content on Helpwriting.net ... Sales had been flat for the first five years of the 2000s and were in decline. "In 2007, Kraft Foods China was an unprofitable, $100 million business that was not growing," noted Sanjay Khosla, Kraft Foods' president of developing markets, in an interview published by the Boston Consulting Group. Kraft was even thinking of pulling the product out of the Chinese market completely, due to poor sales. The company as a whole was performing poorly. This led to a shake–up of executive management in 2006, with Irene B. Rosenfeld installed as chief executive officer (CEO). Rosenfeld had previously worked at Kraft for 22 years before leaving in 2003 to head Frito–Lay North America. In early 2007, Rosenfeld outlined a strategy to turn the company around that included product quality, research and development (R&D), and acquisitions as critical to the future growth of the company. Rosenfeld hired cutting–edge business leaders such as Khosla to help create the strategy that would change the way Kraft Foods Inc. does business. Fewer, but Larger Bets: Growth Through Focus and the 5–10–10 Strategy at Kraft Foods When Sanjay Khosla left Fonterra Group in 2007 to spearhead Kraft Foods' business in developing
  • 16. countries, he was tasked with discovering a way to realize the potential for growth in developing markets that had eluded Kraft and so many other large, successful ... Get more on HelpWriting.net ...
  • 17.
  • 18. Analysis of Kraft Foods [pic] Kraft Food Analysis of Kraft Food Kraft Foods is an American food and beverage multinational company. It produces and markets many brands to more than 170 countries, and 12 of its brands earn more than $1 billion worldwide annually ("Kraft Foods", 2011). Most of the food products which we consume everyday belongs to this company. For instance, some of well–known brands are Jacobs and Maxwell, Milka and Toblerone, Tang and Cipso. It is the successful and popular leading food companies of the world. So, Kraft Foods will be reviewed in terms of values and promises that it communicates with consumers and employees, communication and job satisfaction respectively. Values of the company are shared among its ... Show more content on Helpwriting.net ... Their motto is "We discuss. We decide. We deliver." The company uses variety of internal communication channels. Social and sports activities are among the practices which HR department prefer to use as internal communication channels. Employees can join sports teams and organized social events including a winter ski day, summer golfing day and a winter family fun day during the holidays. Those enjoyable events are organized by the company–subsidized social committee. They make work atmosphere better and improve communication among workers. It also creates a sense of equity, because every employee has equal access to them. In addition to this, employees can have a chance of socializing and increasing interaction with their co–workers by providing richly physical workplace which contains the fitness facility with free membership, employee lounge with foosball and television, quiet room for meditation and reflection, and a nap room for employees who need a quick break during the day, cafeteria with healthy menus and subsidized meals. While those places offer many opportunities for employees, they can facilitate the internal communication at the same time. The company thinks that every people has different ways of absorbing news and information, every people can use different channels, therefore the company must use very different channels to communicate with its employees. The ... Get more on HelpWriting.net ...
  • 19.
  • 20. Kraft Foods Group Inc. ' Kraft foods group Inc. is an equal employment employer and is committed to providing employment opportunities to minorities, females, veterans, and disabled individuals. As an equal opportunity employer, Kraft foods are committed to a diverse and inclusive workforce' (Kraft Foods Group Inc. 2012). The human resource department of Kraft foods has this strong statement which provides a clear and distinctive image of what the company has to offer. This highlights Kraft's foods differences in comparison to other companies in terms of what Kraft foods is willing to offer and aim to achieve for all individuals which include employment opportunities to all despite age, sex and status. Kraft's staffing policy is open and inclusive and has a simple concept. In most cases, managers are hired in their home country, e.g. manager in Greece is Greek nationality, but later on he/she is transferred to another country within the Kraft's operations. Finance: Kraft foods uses budgets to allow the company meet business objectives linked to financial performance with a view to achieving its vision: to become 'the undisputed global food leader'. Kraft has significant objectives associated to its vision that comprise, being the employer of choice, being a food industry high performer, being a responsible organization and a positive force in the communities in which Kraft employees live, work and make its products. The finance team supports and contributes to the work generated by other ... Get more on HelpWriting.net ...
  • 21.
  • 22. The American Biscuit Oreo: Case Study Oreos International Overview In 1898, through the merger of the midwestern American Biscuit Company, eastern New York Biscuit Company, and the United States Baking Company, Nabisco was established. In 1941 the company finally adopted the name Nabisco which was already a popular nickname for the company, before then it was called N.B.C. The chairman of the N.B.C. was Adolphus Green, who emphasized standardized products, all bakeries had the exact same recipes and standards of production. Through this N.B.C. developed products that could be nationally recognized. All the merchandise is marked with a distinct emblem, an oval with two bars across it. Which Green found in a medieval Italian printers' mark catalog, which is said to represent the triumph of good over evil. In 1912 the first Oreo was invented, which looked very similar to the one we enjoy today. How did Oreo get its name? Some say it came from the french word for gold "or' which was the main color of the packaging. Others say it was named from the Greek word for mountains, because of the hill–shaped test version. Others say it was a combination of cream ("re") and chocolate (the two "o"s) creating o–re–o's. In 1975 the company invented a new Oreo, the double stuff Oreo. Nabisco continued creating variations of the Oreo, in 1987 fudge covered Oreos, in 1991 halloween Oreos, and in 1995 Christmas Oreos were invented. Since then over 362 billion Oreo cookies have been sold in the United States. Oreo has become the ... Get more on HelpWriting.net ...
  • 23.
  • 24. Kraft Foods Memo Essay Kraft Foods Memorandum Date: February 1, 2005 To: David Smith, CEO Copy: David Johnson, CEO of North America; Donna King, Investor Relations Director; Jane Houston, General Counsel; Matt Conrad, Advertising and Marketing Director; Michael Mudd, Obesity Strategy Director From: Alex Murray, Communication Director Subject: Advertising campaigns led to increase in child obesity In response to critic about targeting children under 12 in advertising unhealthy food which lead to the increase of childhood obesity, Kraft announced not to advertise products like Kool–Aid beverages, Oreo and Chips Ahoy cookies to children under 12 last month. We also have formed a lobbying group with General Mills and Kellogg to prevent the ... Show more content on Helpwriting.net ... No public policy is in place to encourage marketers to promote healthy lifestyle to children. If Congress starts to regulate food marketing to children, it can impact our ability to promote products, the cost of marketing will increase significantly as we need to hire more lawyers to screen our advertising in compliance to the law. The public, especially parents, may perceive us as a company that does not care about ethics but maximizing profits. McDonald's class–action lawsuit can serve as a benchmark for any similar cases that follows. If Kraft ever get sued because of our advertising practice toward children, the loss can be in multi– million dollars. We have lost an estimated $75 million profit due to the effort to cut advertising on Kool–Aid, Oreo and Chips Ahoy. We cannot afford the government to regulate how we market to children as much more losses will occur. Recommendations Create a YouTube channel to educate children about healthy lifestyle. Using characters we already have created on different food products to promote short cartoons to teach children how to choose a balance diet, exercise daily and other healthy lifestyle choices. Hire consultants like Dr. Ellen Wartella, who is already involved in our Worldwide Health & Wellness Advisory Council and Institute of Medicine, to give us ... Get more on HelpWriting.net ...
  • 25.
  • 26. Analysis of Kraft Foods Inc. Analysis of Kraft Foods Inc. Executive Summary The following report is an evaluation of Kraft Foods Inc. from both an internal and external perspective using fundamental and technical analysis. Kraft Foods Inc. is a worldwide food company operating within the Packaged Foods industry. With annual revenues in excess of $49 billion they are the second largest firm in the industry, controlling 8% of the total market. Fundamental analysis reveals that Kraft is a healthy company with growing revenues, and increasing margins. Technical analysis confirms much of what can be seen from a fundamental perspective but expands on it to show that Kraft is heavily debt financed and operates at a risky level of liquidity, which could be ... Show more content on Helpwriting.net ... Food producers world–wide recognize this need and have great opportunity to ensure the growth of their business is in line with that of the market. Fundamental Analysis USD (000s) | 2007 | % Δ | 2008 | % Δ | 2009 | % Δ | 2010 | % Δ (Overall) | Revenues | 35,858 | 12.92% | 40,492 | –4.29% | 38,754 | 26.97% | 49,207 | 37.22% | Cost of Goods Sold | 23.589 | 14.99% | 27,126 | –8.50% | 24,819 | 26.13% | 31,305 | 32.71% | Net Income | 2,721 | 5.99% | 2.884 | 4.75% | 3,021 | 36.18% | 4,114 | 51.19% | Cash | 567 | 119.00% | 1,244 | 81.18% | 2,254 | 14.86% | 2,598 | 358.00% | Accounts Rec | 5,197 | –9.48% | 4,704 | 9.48% | 5,197 | 25.82% | 6,539 | 25.82% | Inventory | 4,096 | –5.24% | 3,881 | –2.73% | 3,775 | 40.66% | 5.31 | 29.63% | Current Liabilities | 17,086 | –35.36% | 11,044 | 4.04% | 11,491 | 36.28% | 15,66 | –8.34% | Long Term Debt | 12,902 | 47.03% | 18,589 | –3.03% | 18,024 | 49.01% | 26,859 | 108.17% | Before doing any calculations there are many important observations and conclusions that can be drawn from analysing Kraft's financial statements from a fundamental perspective. Kraft has gone through some major changes in the past 4 years with the many acquisitions and divestitures they have undergone and these changes have had major implications on the financial statements. Since 2007 Kraft has been able to maintain high revenues with strong overall growth. The cost of goods sold has also seen an overall ... Get more on HelpWriting.net ...
  • 27.
  • 28. Does Kraft Foods Portfolio Exhibit Good Strategic Fit The Nine –Cell industry attractiveness/business strength matrix will have the industry attractiveness on the vertical axis and the competitive strength will be on the horizontal axis ; to the far left corner will be a large bubble representing U.S. grocery and The U.S. snacks indicating that the U.S. Grocery and the U.S. snacks have both favorable industry attractiveness and competitive strength and thus warrants priority attention . In addition the U.S beverage, U.S. cheese and the U.S. convenient meals seem to huddle in the 3 diagonal cell stretching from the lower left to upper, indicating they merit intermediate attention by the Kraft incorporation, however these segments of the company can be profitable if the company can investigate the possibility of improving consumers demand for beverages, cheese and convenient meals through innovation and by providing the consumers with what they want. Does Kraft Foods ' portfolio exhibit good strategic fit? What value–chain match–ups do you see? In my opinion, Kraft Food s Inc. has good strategic fit. The profitability trend was upward between 2009 and 2011 fiscal year. The company has strategic created segments that would complement their efforts to reduce cost through efficient value supplier chain that is interconnected with each segment of the incorporation. The system in its entirety is facilitated through the Kraft Foods supply chain initiatives management team. The team 's main focuses is improving cash ... Get more on HelpWriting.net ...
  • 29.
  • 30. Company Overview: Kraft Foods Overview of Company– Kraft Foods is an example of a complex and innovative company. It is the largest branded food and beverage company in North America and the second largest globally. It operates in over 150 countries worldwide with a number of the world's preferred food brands. Kraft holds more than 35 major brands with over a century of successful sales: Oscar Mayer, Maxwell House, Jell–O, and Velveeta. In 2011 the company posted revenues of over $54 billion and continues to employee over 125,000 people worldwide (www.kraftfoodsgroup.com). Structure – Kraft operates a diversified product portfolio with five core divisions: snacks, beverages cheeses, groceries and convenience prepared meals. The company is global in operations and has nine brands that exceed $1 billion in revenue. Kraft has over 223 manufacturing and processing plants worldwide, and 236 distribution plants. Conservative values of property and plant equipment top $14 billion. Kraft has just under 130,000 employees globally. As of December 31, 2010, Kraft held total assets of $95 billion dollars worldwide, with $5 billion tied up in inventories. The company has $28 billion in debt, making their actual assets at about $71 billion. Most of Kraft's growth, in fact comes from the developing world and new, emerging markets. (Annual Report). Systems – Kraft realized that there were sliding revenues and share points. Since 2009, the company has pushed R&S by spending almost ½ billion dollars annually. The ... Get more on HelpWriting.net ...
  • 31.
  • 32. Kraft Food : A Subsidiary Of Mondelez International Inc. Kraft Food, originally a subsidiary of Mondelez International Inc., has grown initially through acquisitions, including brands such as Boca Burger, Balance Bar, and the family of Nabisco brands. Kraft Foods Group reports its earnings into five categories; grocery, cheese, beverages, refrigerated meals and international & foodservice. Each of Kraft's divisions markets some of North America's highly popular brands in their categories. Kraft Foods Group product portfolio consists of more than 70 major brands, to name a few, Kraft Cheeses, Maxwell House, Post ready–to–eat Cereals, Oreo Cookies, Ritz Crackers, Lifesavers Candies, Planters Nuts and Snacks, Jell–O Desserts, Kool–Aid Beverages, Philadelphia Cream Cheese, Stove Top Stuffing Mixes and Miracle Whip Salad Dressing. Nearly nine of Kraft's various brands earn more than $500 million in revenue each year and contribute close to 70% to the company's total net revenues. Kraft Foods Group, since its inception, has focused mainly on North America where majority of their sales have originated. Due to Kraft's primary focus on North America, they haven't had to deal with Europe's and Asia's currency fluctuations. At the same time, losing out on the international market. Kraft Foods wanted to create a vision in which it would be recognized as the undisputed leader in the global market for foods, while gradually expanding onward from North America into Europe. In pursuit of its aim, Kraft devised a strategy intended to ensure ... Get more on HelpWriting.net ...
  • 33.
  • 34. Kraft Foods Introduction Expanding a product line into another country can be a very difficult decision. This decision is made harder by the establishment of competitors already in the market place and without proper market testing being done. Ultimately a decision must be made whether to pursue an unfamiliar and competitive market with great force and speed or to step back and wait. Kraft Foods beverage sector already has a strong hand in the Canadian market, with its coffee line of Maxwell and Nabob being number one and number two coffee brands in Canada. With the increasingly popularity of the Single Serve Coffee Pods (SSP) in Europe and the initial introduction planned in the United States very shortly, a move into the Canadian market can be a ... Show more content on Helpwriting.net ... To establish our presence in retail stores this alternative opts to give the necessary 35% margin to the retailer and a 20% to the wholesaler. The wholesaler realizes a lower margin due to them supplying multiple locations, thus having more products pass through their locations. The unit break even volume is slightly higher then what may be achievable at first entrance but, since our marketing promotional mix is quite extensive we should be able to capitalize on gaining consumers that are just entering into the market. This marketing mix will slowly taper off as our products become more popular thus reducing costs and creating a more reasonable unit break–even volume. Our promotional mix includes all the TV sponsorships suggested, all of the consumer shows (utilizing the bigger 10 x 30 foot booth) and the three step merchandising plan. These three big promotions should give us exposure to approximately 1.7 million people reached, not including the merchandising (variable). The total cost of our promotions is $768,677.00. To get the product on the shelves we will use the warehouse distribution method. It will cost more to distribute this way in the short run but in the long run it may prove crucial to eliminating the problem of stocking shelves when SSP gbecomes popular. For the second alternative (Appendix 2) we chose the same price of the competitors again and added 2 more pods. With this alternative we assumed that the retailer wants more than 35% margin and ... Get more on HelpWriting.net ...
  • 35.
  • 36. Kraft Foods Group Mission Statement Kraft Foods Group is a top fortune 100 company founded by James L Kraft in Chicago, Illinois 3 years ago. They specialize in food and beverage products categorized by beverages, frozen and refrigerated meals, dairy products, and other grocery items. Kraft products are known worldwide and can be found in almost every home in the world. Even though Kraft brand has been around for decades Kraft Foods Group is a type of business subsection that adheres separately to each demographic in the world. Since they provide for over 170 countries, they must divide and conquer to stay successful. Although the company has been very successful they face many challenges including broad competition and target markets. Mission Statement Kraft Foods Group produces annual revenues of about $18 billion or more. CEO, John T. Cahillore ensures that "with the spirit of a startup and the soul of a powerhouse, we are on a mission to be the best food and beverage company in North America." Kraft exists around that statement and every decision made for the business should reflect being a powerhouse in food and beverages. So far, this company's strategies have made that statement true. The company may now be known as just Kraft Foods Group but the slogans "make today delicious" and the old statements about healthy enjoyable food still stands true. Just like everything in life, things must adapt and grow with time. So being the best food and beverage company means having healthy and delicious food. ... Get more on HelpWriting.net ...
  • 37.
  • 38. Terracycle: Outsmarting Waste TerraCycle: Outsmarting waste 1. Upon what basis did Szaky make decisions throughout the development of the venture? Tom Szaky is an entrepreneur, known for starting TerraCycle, a company that makes consumer products out of waste. Although the environment and the venture itself changed a lot throughout the development, Szaky always remained true to himself. He believed that a waste management business could make a profit and promote environmental protection at the same time. However, gut instincts and being in the right place at the right time was also an important issue for the former success – commencing with the idea for the startup business when he visited his friends and discovered the fertilizer which they had developed. Shortage ... Show more content on Helpwriting.net ... TerraCyle turned down the money from the capital firm because they were not interested in the environmental benefits of the product and wanted to cut out the rest of the team. A turning point in the startups business was the idea of packaging their product in used plastic bottles – now they could offer a product made from garbage packaged in garbage. The new challenge was getting notable retailers to introduce their unknown and maverick product. They managed to get an order from Walmart for 100.000 bottles which was much more than the average order volume. TerraCycle could fulfil the contract under greatest efforts and proved that eco– capitalism is functioning. The next major step was the defining of a new business model, called sponsored waste. Together with Kraft Foods the startup began to made products from recycled materials. The partnership developed fast and leads to enormous strategic challenges because of the huge amount and storage requirements which involve high costs. TerraCycle still has to work hard to produce a profit and struggles with the wide range of activities and products they offer. 3. What business is TerraCycle actually in? Do you think the company needs to change its business model? Why or why not? The primary business function of TerraCycle was manufacturing and selling compound fertilizer. Related to their ... Get more on HelpWriting.net ...
  • 39.
  • 40. Analysis of the Kraft Food- Cadbury Merger Table of contents I. Introduction 4 II. The case 5 III. Analysis: competitive assessment 6 1) Confectionery sector overview. 7 2) Relevant product market 9 3) Relevant geographic markets 11 4) Unilateral Effects 11 IV. Our results: pro–collusive effects and efficiency gains. 14 V. Conclusions 15 Bibliography 16 I. Introduction Kraft is a worldwide food and beverage company active in more than 150 countries with annual revenues of $48 billion while Cadbury is a worldwide producer and seller of chocolate and sugar confectionery products in over 60 countries. As stated by the European Commission: "Both Kraft and Cadbury are strong players in the chocolate confectionary business in the European Economic Area. With its ... Show more content on Helpwriting.net ... In addition, the parties have a combined aggregate worldwide turnover of more than EUR 5 billion, moreover, each of them has a communitywide turnover in excess of EUR 250 million but none of the two has more than two–third of their aggregate communitywide turnover within one and the same Member State. For these reasons, the case was considered to have a Community dimension and therefore, to be relevant. The commission was not concerned about the entire activity of the two groups, but focused its attention on the chocolate confectionery market and to a lesser extent, on the sugar confectionery and chocolate drinks, where the two parties presented overlapping activities, large market shares, and in some Member States, namely Romania and Poland, the two were brands were regarded as close substitutes and no other similar products were registered in the reference market. The commission based its decision on the results on various economic analysis and market research undertaken with the explicit purpose of assessing the market power of the two group before and after the merger. On 7 December 2009 Kraft Food proposed a first commitment package in order to render the ... Get more on HelpWriting.net ...
  • 41.
  • 42. Kraft's Feeding The World Kraft Feeding the World Meet Kraft Foods The Kraft Foods company is an organization that through acquisitions has added a variety of companies with not only a mix of products, but also an amazing knowledge base. Kraft products are found and manufactured all over the world. As of 2009, the company had 9 brands that exceeded over $1 billion in revenue annually and more than 50 brands with over $100 million (Company Spotlight, 2009). Kraft North America is home to more than 303 distribution centers and there are 13 distribution centers around the world (Company Spotlight, 2009). In 2009 Kraft employed over 98,000 people, of those "2,400 are food scientists, chemists and engineers" (Company Spotlight, 2009, pg. 96). For over 100 years, Kraft has been innovating products to meet the needs of the changing consumer, their ability to remain at a global leader stems from the constant focus on the consumer. Kraft foods has had various names throughout its existence, but the one constant that has always remained is that at Kraft meeting the needs of the people comes first. History The first man to be recognized in the creation of Kraft Foods is James Kraft. At 29 years of age, James Kraft was in a partnership with a cheese company out of New York (Rhoads, 2006). While checking in on a branch located in Chicago, he was informed that his part of the partnership had been dissolved. Stranded in a city that was not his home, with only $65 in his pocket, J.L. Kraft rented a horse ... Get more on HelpWriting.net ...
  • 43.
  • 44. Kraft Foods Inc Kraft Foods Romania Kraft Foods Romania Tudor Corneliu Master Fabiz, An II, Gr. II 12/23/2011 Tudor Corneliu Master Fabiz, An II, Gr. II 12/23/2011 Contents 1. Kraft Foods Int 1 1.1. History 2 1.2. The Business 2 1.3. Sales evolution 3 1.4. MNE characteristics 4 2. The internationalization process of Kraft Foods 5 2.1. Kraft Foods in Romania 5 2.2. 2008/2009 turn around 6 3. Kraft Foods strategic management 7 3.1. Kraft foods mission, vision and values 8 3.2. External analysis 8 3.2.1. Competitors 9 3.2.2. New entrants 9 3.2.3. Substitutes 10 3.2.4. Suppliers 10 3.2.5. Buyers 11 3.3. Internal analysis FCA/CSA Matrix 11 3.4. Oreo Campaign in Romania 12 ... Show more content on Helpwriting.net ... Figure 2 2.3. Sales evolution In the last 4 years Kraft Foods are on a positive trend with most of $49,207 billion of sales in the last year, 2010. The effects of the crisis can be also seen as 2009 is the only position when the trend was disrupted. In spite of this they their net profit continues to skyrocket (Appendix 1). Table 1: Percentage of 2010 Net Revenues by Consumer Sector | Confect– | | | | | | | | Convenient | | Segment | Biscuits(2) | | ionery(2) | | Beverages | | Cheese | | Grocery | | Meals | | Total | Kraft Foods North America: U.S. Beverages – – 36.5% – – – 6.5% U.S. ... Get more on HelpWriting.net ...
  • 45.
  • 46. Kraft Macaroni and Cheese VS generic brand Justin Damato 4/23/14 Micro Econ Writing Project Kraft Macaroni and Cheese Vs. Generic Brand Everyone has his or her own personal preference towards buying generic or name brand products. When shopping in a grocery store does the type of pasta really matter to you? How about the type of macaroni and cheese you reach for? Same ingredients, same directions on how to mix and stir up the final manufactured goods but is it really the "same". To a lot of people it might not make a difference, but like me, a lot of people prefer spending the extra 50 cents on a box of "Kraft Macaroni and Cheese" and it's worth every penny. Is it the taste that you are paying for? Or maybe it's the quality of the product that you're basing it ... Show more content on Helpwriting.net ... The Kraft Company has been around for a long time now. Personally I believe you must have a protective firm, not allowing other companies to steal your ideas and product. This will give the firm advantage over others. Kraft Macaroni and Cheese is dominating the market with almost 1 million boxes sold a day. They have to keep up their revenue by attracting a new fan base. Shapes and designs of pasta are surprisingly essential for Kraft. Over 2000 patents of shaped macaroni and cheese have been officially signed for and used, only about 280 have been obtained by Kraft Macaroni and Cheese. One of their biggest selling characters and patents is SpongeBob Square Pants, a TV show that has been on air for about 12 years now. Kids thrive for the little macaroni shapes of SpongeBob, Sandy, Patrick, and Mr. Crabs. When Kraft came out with these shapes they couldn't produce enough of them for mom's and their kids. Sales rocketed through the roof and Kraft Macaroni and Cheese monopolized the competition with this brand new shape that no one else could use. Knowing exactly what to market at a specific time is huge when it comes to any company that wants to be successful. This is what sets them apart from the rest and has given them that extra economic profit. Macaroni shapes are not the only ingredients that set them apart from the rest. Have you ever ... Get more on HelpWriting.net ...
  • 47.
  • 48. Case Study Of Kraft Foods Name: Naivd Sadeh Student ID: Y1512.130090 Kraft Foods Kraft nourishments Group, inc. Produces including businesses sustenance furthermore refreshment products, including helpful meals, refreshment drinks what's more coffee, cheddar also other grocery items. The organization works its business through six segments: Beverages, Cheese, refrigerated Meals, Meals & Desserts, Enhancers & nuts also Canada. The drinks section incorporates Maxwell House, Gevalia, and Yuban coffees; Tassimo hot drinks system; capri sun and Kool–Aid bundled juice drinks; Crystal Light, Kool–Aid, also country time powdered beverages; Also MiO fluid. Those cheddar fragment incorporates kraft and saltine barrel natural cheeses; philadelphia cream cheese; kraft furthermore ... Show more content on Helpwriting.net ... Kraft organization ought to be animated sufficient over guaranteeing that it progressions with the transforms in the business request. This would help those associations should boost its incomes. Those kraft oversaw economy needs to inspire their groups clinched alongside guaranteeing that they perform great in the association. Inspiration can be in the groundwork from claiming remunerates of the best performing groups. Corporate governance is vital should kraft sustenance likewise it gives the suitableness skeleton that company could successfully attain its objectives also targets. Keeping tabs on the advertising methodologies moreover money related additions might not successfully assistance kraft shares of the organization for achieving its objectives. Those managements ought further bolstering concentrate on guaranteeing corporate social obligation may be enhanced, thus Similarly as on make a great picture to those public eye and the clients. This will help the organization clinched alongside accomplishing a greater amount returns for long–run. Viable inner correspondence furthermore mix plan may be a project that might guarantee legitimate correspondence inside the association Furthermore improve customer's fulfillment. Correspondence is basically essential done an association thereabouts Similarly as to guarantee the accomplishment about objectives also destinations. Should move forward those customer's fulfillment furthermore legitimate client's service, those administrations ought to be taught capably so Likewise to also mentor their laborers great. Kraft Company ought to conjointly make the most of their complete recognition and invest in analysis and development thus on alter their new merchandise and services. this can facilitate in increasing the ... Get more on HelpWriting.net ...
  • 49.
  • 50. Kraft and Cadbury Merger Analysis Essay On February 2, 2010 Kraft and Cadbury, two leading firms in the snack industry finalized their merger decision after five months of negotiation. In this report we will examine why it made strategic sense for the two companies to combine and evaluate the performance of the combined companies since its merger. In particular we will analyze the post–merger financial statements and highlight a few points regarding the accounting. INTRODUCTION OF KRAFT AND CADBURY Kraft Foods Inc. (KFT) is the world's largest food processing company with revenues of $40 billion (fiscal year 2009) which sells its products in more than 150 countries. We are familiar with many of its global brands – Oreo, Philadelphia Cream Cheese, Trident, Nabisco, ... Show more content on Helpwriting.net ... The expenses included in SG&A were, transaction related fees of $2 million for the three months after the acquisition and $217 million in the remaining nine months of the fiscal year, ending Sep 30, 2010. Another $11 million was expensed in the three and nine months ending September 30, 2009. In Addition, Kraft also incurred acquisition financing fees of $96 million in the first quarter of 2010 and recorded this expense in interest and other expenses, net account. As a result, SG&A expenses rose more than 40% in nine months ending September 2010 from 2009. The 2010 increase in general and administrative expenses was predominantly due to acquisition related transaction fees, Integration costs and the impact of Cadbury's corporate charges. PERFORMANCE OF COMBINED FIRMS (3 months) Kraft's consolidated financial statement, indicates that the company is profiting from its core competences. The most significant increases in net revenues and operating income are, form its successful entry into emerging markets and accessing wide ... Get more on HelpWriting.net ...
  • 51.
  • 52. Kraft Foods 1.What is Kraft Foods Inc.'s corporate strategy? How has its corporate strategy evolved since its independence in 2007? Management and business tactic is usually developed to include price towards the organization and also it could be completed by simply arranging and also preventing the business activities which can improve the particular income. For this reason, the corporation provides different types of food and beverage related items throughout North America. In achieving this goal regarding offering the best food and beverages, their tactic incorporates innovation and also venture. This overall performance primarily based way of life is also the particular section of the company tactic that provokes staff to produce a better product to supply the consumers. 2. What is your assessment of the long–term attractiveness and competitive strength of the industries represented in Kraft Foods' business portfolio? Because an organizations stock portfolio contains foodstuff and also beverages in order that it offers long life as much as organization preserves the caliber of products based on the have to have regarding shoppers. The reality is obvious from the overall earnings intended for previous years that have been close to $18. 6 million throughout 2011, $18. 3 million throughout 2012 and also $18. 2 ... Show more content on Helpwriting.net ... It is very good in certain locations however, not incredibly desirable, because organization offers market place reveal regarding close to 2% is actually progress regarding close to 1% towards 25% regarding commercial common. Nonetheless, the particular earning from the organization is usually very good because the organization is usually gaining 400% greater than commercial common as per functioning margin. However, the corporation provides the prospective growing and also overcome competitors, it is often mentioned previously mentioned which how well organization may ... Get more on HelpWriting.net ...
  • 53.
  • 54. Essay about Porter's 5 Forces and Pest Analyses of Kraft... Running head: ANALYSES FOR KRAFT FOODS Porter's 5 forces and PEST analyses of Kraft Foods. MGT 599 Module 2 SLP ABSTRACT This paper will show the various analyses of Porter's 5 Forces upon Kraft Foods as well as a PEST analysis of external factors influencing the company. Porter's 5 Forces are industry environments: 1. The threat of new entrants to the foods industry (low) Online grocery shopping is proving to be a formidable threat. (Food Retailing Industry, 02/2/12) 2. The bargaining power of suppliers (medium to high) Agriculture has been impoverished by the U. S. drought in 2011–12 causing enormous loss of crops and animals. This devastation has resulted in less supply and much ... Show more content on Helpwriting.net ... This has caused much negative public relations. The Cadbury debacle (Chellel, 5/23/11) also tarnished Kraft's reputation. 2. Economic Drought has caused raw products prices to rise. Unemployment has caused America's middle class to shrink from 61% in 1971 to 51% in 2011 (Lempert, P 12/12) 3. Sociocultural The demand for healthier foods and snacks will cause Kraft to examine methods to provide these. The change of packaging and marketing will be necessary (Lempert, P. 12/12). 4. Technical The impact of social networks such as Facebook and Twitter can have devastating effects on Kraft's reputation (Lempert, P. 12/12). Customers have access to apps that direct them to online grocery shopping and availability of similar products at lower prices. Porter's 5 forces and PEST analyses of Kraft Foods In this paper, I will examine the effect of Porter's 5 forces upon Kraft Foods Industry. I will present sources to validate those effects and explain how those sources are relevant. I will also present a PEST analysis using the information gleaned from the previous sources. The references will be critiqued. Porter's 5 forces Threat of New Entrants (low) Food Retailing Industry: Market Research Reports, Statistics and Analysis http://www.reportlinker.com/ci02212/Food–Retailing.html. This site reports new trends in the retail food industry. It brings the information down to the customer in the grocery store ... Get more on HelpWriting.net ...
  • 55.
  • 56. Business Case Study: Kraft Foods Canada Problem Definition Kraft Foods Canada plans on rolling out its flagship product, Kraft Singles, to a new population segment; Canadian millennial moms. Millennial moms consist of Canadian moms born between 1981 and 2000. The need to reach out to this new segment is informed by two factors, external factors, and internal factors. Internally, the company has witnessed dwindling overall sales volumes for the product at about one percent annually. Moreover, the market for processed cheese, which Kraft Singles is made of, is shrinking. Externally, Kraft Foods Canada is aware of the growing millennial demographic in Canada. Data from Scott (2015) shows that in 2014, Canadian millennials made up about thirty–seven percent of the Canadian workforce, the largest share compared to Generation Xers (individuals born between 1965 and 1980) and Baby Boomers (individuals born between 1946 and 1964). Like any ambitious corporation, Kraft Foods Canada wants to establish itself among this growing demographic, to align itself with the growing future customer base. In targeting the millennials, Kraft Foods Canada has to overcome three key challenges: i. How to brand ... Show more content on Helpwriting.net ... Aggressive online advertising and similar campaigns will be effective in attracting the millennial generation. Subtle changes to the product shape, logo and symbols will ensure that the traditional base is not alienated while the millennial generation is brought into the fold. This approach will also serve to differentiate Kraft Singles from competitors. It will be a product designed for millennials and the older generation. The implementation of this plan could however prove expensive, up to double the cost it would take to implement the other alternatives. It could also take quite a while to develop given the amount of research necessary to develop a campaign for both market ... Get more on HelpWriting.net ...
  • 57.
  • 58. Comparison of Leadership Styles for Cadbury and Kraft The pre hostile acquisition of Cadbury by Kraft Foods Compare and contrast the preferred styles of Irene Rosenfeld and Todd Stitzer in the context of the pre hostile acquisition of Cadbury by Kraft Foods. You should apply appropriate management and leadership theories to support your arguments. Consider first Irene Rosenfeld's leadership Style. By referring to Hersey's model of situational leadership model – adapted by JE Chamberlain from Mullins (2007:302) and Hersey et al (2000) followed on from a number of previous writes to develop the model of situational leadership. Diagram 1 refers: Situational Leadership Model (JE Chamberlain from Mullins) Autocratic Laissez–Faire Democratic *See P 32 of workbook and P 9 of Profex ... Show more content on Helpwriting.net ... The degree of influence exerted often depends on how much time and effort is expended in getting support. This tends to work best when objectives are shared, but staff are unclear about how the objective is to be achieved. They know, but are uncertain about the how. (Profex 44) Authoritarian/directive tells style. Rosenfeld appears authoritarian: making decision and issuing instructions without apparent consultation in top–down leadership contexts. * Leadership styles (Belbin) * Solo leader * Rules in an autocratic manner * Is directive – tells subordinates what to do * Expects compliance from staff and often leads from the front * Effective in times of crisis * If they fail, can have serious consequences * Mgmt. by objectives – makes it clear exactly what everyone is supposed to do * Team leader * More participative and structured manner * Consult * Delegate * Trust * Creates mission – helps clarify the vision which others act on as they think best (Profex 44) Strategic leadership style. Rosenfeld arguably adopts the 'strategy' approach (taking personal responsibility for formulating strategic plans and articulating mission (from Johnson & Scholes) (15, line 39) 'My slogan was, "lets get growing@. It's not a warm and fuzzy strategy'. Rosenfeld arguably adopts the ... Get more on HelpWriting.net ...
  • 59.
  • 60. Case Study Kraft Foods Kraft Foods Case Study Student's Name Institutional Affiliation Date of Submission 1.0. Introduction Kraft Foods Inc. is a company that manufactures and markets food products such as snacks, beverages, packed grocery products and convenient meals. The company can be found in more than 155 countries around the globe (Pankey, 2004). Normally, it has been ranked second after Nestle. It has 11 brands which earn the company nearly $1 billion worldwide. Examples of those brands are Cadbury and Nabisco (Pai & Subramanian, 2014). By December 2010, the company had operations in more than 75 countries with nearly 233 manufacturing and processing facilities (Pankey, 2004). Currently, it is an independent public company listed in the New York Stock exchange. This paper is aimed at analyzing the competitive position of Kraft Foods Inc and its attractiveness together with possible recommendations for future action. 2.0. Kraft Food Inc's Corporate Strategy Kraft Food Inc has demonstrated so much that it exhibits a global strategy as it operates in more than 80 companies with 223 manufacturing and processing facilities and 228 distribution ... Show more content on Helpwriting.net ... First there is need to recognize that Kraft Foods Inc has a clear strategy that build globally and has put them in a good competitive position since 2007. The company's divestitures and acquisitions have also boosted its market share and profit earning (McDaniel, 2006). The ranking of the company at second position contributes to a long–term attractiveness to the shareholders. Another strong factor that improves its long–term attractiveness is the strong competitive nature of all industries that participate in Kraft (McDaniel, 2006). This means that the companies require a strong distribution and marketing strategy so as to attract consumers' demand and ensure products are available in the supermarkets (McDaniel, ... Get more on HelpWriting.net ...
  • 61.
  • 62. Kraft Foods Presentation The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single–serve coffee pods or await results from the United States. Key strategic decisions include which target market to focus on and what value proposition to signal. Important questions are also raised as to how the new product should be branded, which flavors to offer, whether Kraft should use traditional distribution channels or direct–to–store delivery, and what forms of advertising and promotion to use. The case provides a basis for discussing consumer decision making, and stresses the importance of providing a clear incremental benefit when introducing a new product in an established category. Decision ... Show more content on Helpwriting.net ... Kraft planned to sell pods under Maxwell House label at a lower point than rival brands, retailing a pack of 18 pods for US$3.99. Folgers charges $3.99 for a pack of 16 This pricing would give retailers a 25% margin on Maxwell House, and at $0.22 per cup, revenue that was more than four times the $0.05 per cup from ground coffee Issues arose when deciding to follow the U.S. lead on pricing: On one hand, low prices could serve to drive sales volume and establish Kraft as market leader, but this strategy risks eroding brand image. Given the failure rate of new products in Canada, Herzog suspected that store would be willing to carry one or two brands of coffee pods Herzog was unsure of the best wholesale and retail selling price to recommend Distribution: Most products were delivered to retailers via warehouse distribution; which essentially made Kraft responsible for delivering all merchandise to the customers' warehouses. From there, retailers then distributed the goods to individual stores Retailers were responsible for stocking products, refilling shelf space, maintaining inventories, and maintaining displays–services for which Kraft paid in excess of $200,000 for national listing fees. Their system eliminates the need for Kraft to constantly monitor and track inventories, distribution, and stock The alternative was to use direct–to–store–delivery ... Get more on HelpWriting.net ...
  • 63.
  • 64. Case Study On Kraft Foods Despite industry challenges of rising commodity, labor, and energy costs, CPK was about to announce near–record quarterly profits of over $6 million. CPK's profit expansion as explained by strong revenue growth. Given the price drop, the management team had discussed repurchasing company shares. Financial policy was conservative with interest rates on the rise from historical low numbers, Collyns was ware of the benefits of moderately levering up CPK's equity. Given CPK's family–friendly surroundings, excellent ingredients, and inventive offerings, analysts conservatively estimated the potential for full–service company–owned CPK units at 500. Both the investment community and management were less certain bout the potential for the company's ... Show more content on Helpwriting.net ... Although representing less than 1% of current revenues, the Kraft royalties ad a 95% pretax margin, one equity analyst estimated. In addition to the high–margin impact on the company's bottom line, management also highlighted the marketing requirement in its Kraft partnership. Kraft was obligated to spend 5% of gross sales on marketing the CPK frozen pizza brand, more than the company often spent on its own arketing. Management believed its success in growing both domestically and internationally, and through ventures like the Kraft partnership, was due in large part to its dedication o guest satisfaction and menu innovation and sustainable culture of service. A creative menu with high–quality ingredients was a top priority at CPK, with the two co–founders till eading the menu–development teamTo maintain the menu's originality, management reviewed detailed sales reports twice a year and replaced slow–selling offerings with new tems. Some of the company's most recent menu additions in 2007 had been developed and tested at the company's newest restaurant concept, the LA Food Show. Created by Flax nd Rosenfield in 2003, the LA Food Show offered a more upscale experience and expansive menu than CPK. CPK increased its minority interest to full ownership of the LA Food how in 2005 and planned to open a second location in early ... Get more on HelpWriting.net ...
  • 65.
  • 66. International Case Study: Mondelez International Mondelez International is an American multinational confectionery that focus on food and beverage based in America with a total global headcounts of 107,000. In year 2012, The Mondalez has officially crafted its name by Kraft Foods employees which originally from the words of "world and delicious" in Roman language. The company manufacturing plant is located in Deerfield Illinois, Chicago which produces a wide range of chocolate, biscuits, gums, confectionery, coffee and powdered beverages. Mondelez international carries a lot of international branding such as Cookies and Crackers which consist of Oreo, Chips Ahoy, TUC, Belvita, Triscuit, LU, Nabisco, Club Social, Barni and Peek Freans. Choclate range would be Milk, terry's, Cote d'Or, Toblerone, ... Show more content on Helpwriting.net ... First of all, flour. Flour is powder made by grinding uncooked cereal grains or other seeds or roots. Flour usually gained from grains. It comes from the end of the stalks of grains. It is the main ingredient for producing biscuits. It used to provide structure and texture through the formation of gluten. Gluten means glue, is a mixture of proteins found in wheat and related grains. To gain the flour, the factory will first grind up the grains. And also, the factory will straight forward and purchase flour from the other factory which processing grain into flour. The factory usually purchased flour in large quantity in order to produce large quantity of biscuit. To maintain the standard quality of biscuit, the factory always ensures that they are using good quality of ... Get more on HelpWriting.net ...
  • 67.
  • 68. Porters 5 on Kraft Foods Revenue 49 billion Second largest company behind nestle Employs 125,000 Its five brands are divided into 5 main sectors snacks,beverages,grocery,and convient meals Sanja khosia is the president of kraft His 7 step bussiness model is to drive growth is DISCOVERY: find out what works STRATEGY: focus through lenses VISION: find a simple hook EXECUTION: clarify and deligate ORGANIZATION: build collaborative networks METRICS: manage numbers and tell stories Headquartered in Northfield, Illinois, Kraft Foods (KFT) is the largest food and beverage company in the U.S., and is the second biggest worldwide. Kraft was founded in 1903 by James L. Kraft and, after inventing pasteurized processed cheese not requiring refrigeration, would ... Show more content on Helpwriting.net ... Public companies are listed on the Stock Exchange and their shares are available for the public to invest in. "make today delicious" Tuesday, September 6, 2011 Kraft Food's Mission Statement Helping People Around the World to Eat & Live Better Kraft's mission is to provide fun, healthy food for people to enjoy. Their mission statement informs us that they care about their consumers. Their values are innovation, quality, safety, respect, integrity, and openness. They strive as a company to communicate with the world reassuring them they're a trusted company with their products. Kraft Foods Inc. (KFT) – Financial and Strategic SWOT Analysis Review Summary Kraft Foods Inc., (Kraft Foods) manufactures and markets snacks, confectionery, and quick meal products worldwide. Kraft Foods is number 1 US food company and number 2 worldwide. It is principally engaged in manufacturing and marketing of packaged food and beverages. The various products offered by the company include cheese, dinners, dressings, coffees, meats, biscuits, cream cheeses, powdered beverages and chocolates. The company markets its products under the brand names of Kraft, Maxwell House, Oscar Mayer, Oreo, LU, ... Get more on HelpWriting.net ...
  • 69.
  • 70. Kraft Food Inc's Hostile Takeover of Cadbury Introduction A multinational company of Kraft Foods is an American firm doing the business for food and beverage. It produces belong to a global markets and has many brands that over 170 countries (Kraft Foods, 2011). And its brands are divided into five main sectors: snacks, beverages, cheese, grocery, and convenient meals. The major competitors of Kraft are Nestlé S.A.; Unilever; ConAgra Foods, Inc.; Groupe Danone; H.J. Heinz Company; Sara Lee Corporation; etc. One of the world's fourth biggest suppliers of chocolate and sugar confectionery is Cadbury, which merged with Schweppes in 1969. One of its products, which is Dairy Milk and it is very successful molded chocolate in UK. The main products of Cadbury are bars, drinks, ice–cream ... Show more content on Helpwriting.net ... Bargaining power of suppliers: There are lots of farm in Brazil and South of American, so that the bargaining power of suppliers is low in this industry and the buyers can compare and choose the lower price and quality supplier (International Cocoa Organization, 2012). So, this is positive to the business. Rivalry among established competitors: There are lots of companies around the world for the confectionery industry that lead to this industry violent for the competition. So, this is negative to the business. Bargaining power of buyers: According to the research, it showed that the demand of chocolate confectionery industry had the potential for increasing, as the chocolate sales rose 28% in 2008, and dark chocolate sales rose 12% (National confectioner Association, 2009). Thus, this is positive to the business. Threat of entry: When a company entry to a new industry, a company require lots of capital. Since the company needs to buy the plants, machines, etc. So, it lead a company to have a large economic of scale. Moreover, it is difficult to access to supply and distribution channels. Threat of substitute: In Walmart can find lots of related chocolate products from different companies, that means there are lots of substitute for the customers (Walmart, 2012) Potential partners: There are lots of benefits or advantages for the contractual partnership. The four processes to build contractual partnership are appraising suitable strategic ... Get more on HelpWriting.net ...
  • 71.
  • 72. Kraft Food Inc Kraft background description Kraft is the largest branded food and beverage company in North America and the second largest in the world. It operates in more than 150 countries worldwide. Kraft Foods markets the world's favorite food and beverage brands in five product sectors namely the snacks, beverages, cheese and dairy, grocery and convenient meals. Kraft also has 35 major brands with more than 100 years of remarkable achievements in products such as the Oscar Mayer meats, Maxwell House coffee, Jell–O gelatin and Milka chocolate. Kraft constantly strives to continue making historic records with the launch of different new products designed to meet the ever–changing needs of the consumer. Vision, Mission and Goals Vision Kraft's ... Show more content on Helpwriting.net ... Religion: Singapore is a multi–religious country. According to Statistics Singapore, around 51% of resident Singaporeans (not including significant numbers of visitors and migrant workers) practice Buddhism and Taoism. About 15%, mostly Chinese and Indians, practice Christianity – a broad classification including Catholicism, Protestantism and other denominations. Muslims constitute 14%, of whom Malays account for the majority with a substantial number of Indian Muslims. Smaller minorities practice Sikhism, Hinduism and others, according to the 2000 census. About 15% of the population declared no specific religious affiliation. Languages: The national language of Singapore is Malay for historical reasons, and it is used in the national anthem, "Majulah Singapura". The official languages are English, Mandarin, Malay and Tamil. English has been promoted as the country's language of administration since independence. The English used is primarily British English, with some American English influences. The use of English became widespread in Singapore after it ... Get more on HelpWriting.net ...
  • 73.
  • 74. Kraft Foods Controversy The Kraft foods company was founded in 1904, with the organization's origin rooted in Chicago Illinois. The Kraft company initially set out to sell cheese in the region, where they quickly expanded their operations to meet the demand caused by World War I. Kraft, famous for producing the processed cheese Valetta, was a highly desired item in America. In 1924, the company went international, and by the 1980's the organization was acquiring smaller businesses all over the world (Mueller & Marion, 2000, p. 177). Today, the company remains one of the top competitors in the prepared food industry. International Mode of Entry Shortly after the completion of World War I, and during the rise of the stock market, Kraft began to move their business ... Show more content on Helpwriting.net ... Furthermore, in today's fast–paced environment these strategies still hold true, as smaller companies have more opportunities to compete internationally, because of newer technologies, like the Internet, that allow companies to directly and expedition communicate with their targeted audience. Additionally, understanding the marketplace permits companies to obtain the knowledge to create future strategies to keep their businesses operational and thriving in a rapidly changing ... Get more on HelpWriting.net ...
  • 75.
  • 76. Case Study: Kraft Foods I. Situation Analysis: Kraft Foods recent success with the sales of its single serve coffee pod system in Europe has encouraged the company to release single serve coffee pods in North America. Market research has suggested that the single serve coffee pods will be successful in Canada as well. Currently, the Canadian market is among the world's leading coffee drinkers consuming 3.5 million cups daily in 2003 and attributing to $600 million in retail sales of instant, ground and whole bean coffee. Kraft Foods needs to decide whether or not to simultaneously launch the single serve coffee pods in the Canadian market alongside the planned launch in the North American market. Kraft would need to capture 35% of the coffee pod market share in order to be ... Show more content on Helpwriting.net ... Christie's partnership program, versus the $200,000 for the other alternative. The product would be fresher and a strong relationship with the store vendors can be established. Promotion/Advertising: Production of a 30–second English–language contest spot, Airtime to run English–language spot for one week, sponsorship of CityPulse Webtest news contest for one week, Giveaways, and Promotional execution. Direct marketing, email campaign, merchandising, coupons, consumer shows, and print advertising. We will saturate the Canadian market to get as much exposure as possible in the first three years. V. Target Segments: Coffee lovers Between ages 25–54 Well–educated (College degree) Average household income between $55,000–$91,000 (middle to high income) ... Get more on HelpWriting.net ...
  • 77.
  • 78. Kraft Foods KRAFT FOODS Prof. R. Mulholland COMM 5306 Introduction to Marketing 2010 Chao Zhang (Richard) Laurentian University 2010–12–1 TABLE OF CONTENTS SECTION | CONTENTS | PAGE | 1 | Executive Summary | 3 | 2 | Problem Statement | 4 | 3 | Situation Analysis | 4 | 3.1 | Objectives and Goals | 4 | 3.2 | Background | 4 | 3.3 | SWOT Analysis | 5 | 3.4 | Market Analysis | 8 | 3.5 | Financial Analysis | 15 | 3.6 | Keys | 18 | 4 | Alternatives and Analysis | 20 | 5 | Recommendations | 21 | 6 | Action Plan | 23 | 7 | Contingency | 24 | 1. Executive Summary Kraft (the company) did very so far in the foods and beverage market in Canada. The company was planning to launch the new coffee pods. However, the ... Show more content on Helpwriting.net ... Kraft Foods owned a strong distribution network and a well–earned reputation in the market. In Canada, Maxwell House and Nabob were two brands of Kraft, which was also the leader in coffee sales with 32 per cent, much higher than its major competitors. Competition in the Canadian coffee market was intense. More and more new competitors entered into the market, such as some specialty retailers. As the leader of the market, Kraft should consider to adjust its current strategy. The company should not only dominated traditional ground and whole bean coffee segment, but also invested in other niche market, like coffee pods segment. Although single–serve coffee pod (SSP) was a concept to Canadians, it still had high growth potential in Canada. According to its features, SSP would become an important part in daily–life coffee consumption. Many competitors realized that the potential development of SSP, and began to set strategies for this segment. Kraft targeted to capture at least 35 per cent of the coffee pod segment, and increased to a 45 per cent market share by the end of 2006. If Kraft was hesitating to launch immediately, it might lose the opportunity to defend against its major competitors. Thus, the company would also lose its current market share and could not hit the goal. In this situation, Kraft had to change its existing strategy to achieve higher pofit margins and innovative reputation, in order to stay ahead in ... Get more on HelpWriting.net ...
  • 79.
  • 80. Kraft Foods Analysis Advanced Finance Intervenant/ Lecturer : Michael PAYTE MSc Audit & Management Control Academic Year 2012–2013 Gaelle VANHERPE Maxime ROZIER Yao LIU Marion DOMANSKI TABLE OF CONTENTS GAELLE'S PART PORTER'S 5 + 1 FORCES Competitive Rivalry within an Industry Very high – Kraft Foods has to face a lot of competition  International: Nestlé and Danone are the two main competitors. There are present worldwide and exploit the same segments as Kraft Foods.  National: Companies which are present in only one country but which propose products such as biscuits, dairy products... Example: Michel & Augustin, St Michel, la Mère Poulard (France)  Regional: Smaller companies which are present in only few regions and propose ... Show more content on Helpwriting.net ... In fact regulations are different in every country in which the company is present. Moreover, the sector of human consumption's products involves lots of regulations regarding the composition of the food, production, marketing, trade, tax and environmental matters. For example, the use of hydrogenated fats or palm oil is no longer accepted in Switzerland, Canada, Denmark and New York. In France these ingredients are not forbidden but all the products which are made with them have to be clearly indicated. These hydrogenated fats were used by Kraft Foods in some of its biscuits and thus the company had to remove and replace them by other ingredient less risky for customers' health. All these new regulations could increase company's costs and affect its profitability. In fact company's need to comply with new or revised regulations or their interpretation and application, including proposed requirements designed to enhance food safety or to regulate imported ingredients, could materially and adversely affect the company's product sales, financial condition and results of operations. Threat of New Entrants Low – The threat of new international entrants is very low because the probability that tomorrow a new company arrives and becomes one of the main competitors of Kraft Foods is very low, even non–existent. In fact, barriers at the entrance for a new company are too important because the market is totally saturated. The threat of new entrants, national ... Get more on HelpWriting.net ...