Kraft acquired Cadbury in 2010 in order to expand into emerging markets like India and Brazil where Cadbury had a strong presence. However, integrating the two companies proved difficult due to cultural differences, as Cadbury had a long history and tradition in Britain while Kraft was an American company. As a result, many Cadbury executives and managers quit, concerned that Kraft would not maintain Cadbury's culture and values. While Kraft saw some initial revenue increases, it ultimately failed to achieve its revenue targets due in part to challenges integrating Cadbury.
The document discusses KFC's strategy for the Indian market, analyzing their target market, competitors like McDonald's and Domino's Pizza, and conducting a PESTLE, Porter's Five Forces, and competitive matrix analysis. It finds that KFC lags behind competitors in India due to fewer store locations and a less extensive menu. The document recommends KFC expand its store network and customize its menu to local tastes to better compete in the growing Indian fast food market.
1) In 2009, Kraft Foods launched a hostile bid for Cadbury to acquire its global snacks business and emerging market scale, especially in India. However, Cadbury actively resisted the takeover.
2) After months of negotiations and failed counter bids, Kraft increased its offer to £11.7 billion and Cadbury accepted in January 2010.
3) Integrating the two company cultures poses challenges as Kraft values multiculturalism while Cadbury prefers its British heritage. A separation model may be best to preserve Cadbury's identity.
John Cadbury started Cadbury in 1861 in Birmingham, England. It is now the largest confectionery company in the world with over 70,000 employees. Cadbury began operations in India in 1948 and now has 5 manufacturing facilities and 5 sales offices. Cadbury Dairy Milk is considered the "gold standard" of chocolates in India, where Cadbury enjoys a market share of over 70%. The document discusses Cadbury's history, operations in India, vision, objectives, achievements, the 4Ps of marketing, market segmentation, SWOT analysis, and suggestions for the future.
1. The document discusses the 2010 acquisition of British confectionery company Cadbury by American food company Kraft for $11.6 billion.
2. Cadbury was founded in 1824 in Britain and created Dairy Milk chocolate in 1905, while Kraft was founded in Chicago in 1903 and became the world's second largest food company.
3. The takeover allowed Kraft to gain access to Cadbury's confectionery products and growth in emerging markets, but faced challenges in integrating the two companies due to differing cultures and the risk of damaging Cadbury's heritage and brand.
The document provides an overview of Cadbury India including the global and Indian chocolate markets, Cadbury's history and products in India, a SWOT analysis, and a proposed marketing plan targeting different age groups in India. Key points include that the Indian chocolate market is growing at 23% annually, Cadbury India has over 67% value market share led by Cadbury Dairy Milk, and the marketing plan proposes partnerships with schools and Facebook to target children and younger adults respectively.
KFC is the world's largest chicken restaurant chain founded in 1952 by Colonel Harland Sanders in Louisville, Kentucky. It now has over 11,000 outlets across 85 countries serving around 8 million customers daily. KFC emphasizes food safety and quality through practices like Hazard Analysis Critical Control Program, supplier audits, strict temperature control and training programs for employees on food handling. It also conducts regular mystery customer evaluations and inspections to ensure high standards of cleanliness, hospitality, and food quality are maintained across all restaurants.
The document provides an analysis of Cadbury Dairy Milk brand in India. It outlines the objectives of conducting a brand audit of Dairy Milk to understand its strengths in the chocolate segment. The audit covered Dairy Milk's communication strategies, innovative ad campaigns, and emotional connection with customers. It also analyzed Dairy Milk's branding aspects, market segmentation, pricing and distribution strategies, advertising campaigns, product lifecycle, brand portfolio, and SWOT analysis. The document concluded with opportunities for Dairy Milk such as introducing sugar-free products and international flavors.
The document discusses KFC's strategy for the Indian market, analyzing their target market, competitors like McDonald's and Domino's Pizza, and conducting a PESTLE, Porter's Five Forces, and competitive matrix analysis. It finds that KFC lags behind competitors in India due to fewer store locations and a less extensive menu. The document recommends KFC expand its store network and customize its menu to local tastes to better compete in the growing Indian fast food market.
1) In 2009, Kraft Foods launched a hostile bid for Cadbury to acquire its global snacks business and emerging market scale, especially in India. However, Cadbury actively resisted the takeover.
2) After months of negotiations and failed counter bids, Kraft increased its offer to £11.7 billion and Cadbury accepted in January 2010.
3) Integrating the two company cultures poses challenges as Kraft values multiculturalism while Cadbury prefers its British heritage. A separation model may be best to preserve Cadbury's identity.
John Cadbury started Cadbury in 1861 in Birmingham, England. It is now the largest confectionery company in the world with over 70,000 employees. Cadbury began operations in India in 1948 and now has 5 manufacturing facilities and 5 sales offices. Cadbury Dairy Milk is considered the "gold standard" of chocolates in India, where Cadbury enjoys a market share of over 70%. The document discusses Cadbury's history, operations in India, vision, objectives, achievements, the 4Ps of marketing, market segmentation, SWOT analysis, and suggestions for the future.
1. The document discusses the 2010 acquisition of British confectionery company Cadbury by American food company Kraft for $11.6 billion.
2. Cadbury was founded in 1824 in Britain and created Dairy Milk chocolate in 1905, while Kraft was founded in Chicago in 1903 and became the world's second largest food company.
3. The takeover allowed Kraft to gain access to Cadbury's confectionery products and growth in emerging markets, but faced challenges in integrating the two companies due to differing cultures and the risk of damaging Cadbury's heritage and brand.
The document provides an overview of Cadbury India including the global and Indian chocolate markets, Cadbury's history and products in India, a SWOT analysis, and a proposed marketing plan targeting different age groups in India. Key points include that the Indian chocolate market is growing at 23% annually, Cadbury India has over 67% value market share led by Cadbury Dairy Milk, and the marketing plan proposes partnerships with schools and Facebook to target children and younger adults respectively.
KFC is the world's largest chicken restaurant chain founded in 1952 by Colonel Harland Sanders in Louisville, Kentucky. It now has over 11,000 outlets across 85 countries serving around 8 million customers daily. KFC emphasizes food safety and quality through practices like Hazard Analysis Critical Control Program, supplier audits, strict temperature control and training programs for employees on food handling. It also conducts regular mystery customer evaluations and inspections to ensure high standards of cleanliness, hospitality, and food quality are maintained across all restaurants.
The document provides an analysis of Cadbury Dairy Milk brand in India. It outlines the objectives of conducting a brand audit of Dairy Milk to understand its strengths in the chocolate segment. The audit covered Dairy Milk's communication strategies, innovative ad campaigns, and emotional connection with customers. It also analyzed Dairy Milk's branding aspects, market segmentation, pricing and distribution strategies, advertising campaigns, product lifecycle, brand portfolio, and SWOT analysis. The document concluded with opportunities for Dairy Milk such as introducing sugar-free products and international flavors.
1. Cadbury won the exclusive right to use its signature purple color (Pantone 2685C) on packaging over 100 years ago and has kept this color identity.
2. The 1997 "Freebird" commercial conveyed a strong message of freedom and happiness using imagery of a couple freeing caged pigeons while enjoying Cadbury.
3. After worms were found in some Cadbury chocolates in 2003, the brand invested heavily to upgrade packaging and launch a PR campaign featuring Amitabh Bachchan, rebuilding its wholesome image.
KFC aims to be the leading food service provider in Asia. Its vision is to deliver consistent, high-quality products and excellent customer service. KFC targets young consumers and the upper class by focusing on chicken products. It differentiates itself through its secret recipe and emphasis on a positive dining environment. KFC's marketing strategy involves market segmentation, targeting, positioning and differentiation. It uses the four P's of marketing - promoting through various channels, pricing for different segments, placing products directly to consumers, and offering a variety of chicken products.
KFC primarily sells fried chicken pieces, wraps, salads and sandwiches. It uses the 4 P's of marketing - product, price, place and promotion. For product, KFC's specialty is pressure-fried chicken pieces made with its original recipe. It targets upper and middle income families. KFC prices competitively and uses various promotions like advertising to increase awareness of its fried chicken offerings.
The document discusses a marketing presentation about launching a new chocolate syrup product by Cadbury in India. It provides background on Cadbury's operations in India, discusses market research conducted with 50 consumers and 35 retailers to understand factors influencing purchase decisions and preferences for the new product, and recommends that Cadbury launch the chocolate syrup in India as consumers and retailers expressed positive responses.
A Product analysis of Cadbury Dairy Milk Tanushree
Cadbury is a very popular brand in India and globally as well. Even after completion of for more than 100 years, the brand is in the hearts of many people & it also leaves a significant mark amidst all the competition. This report is focused on the product analysis of Cadbury products and their marketing strategies.
This document provides an overview of Oreo's marketing plan. It includes sections on the snack food industry background, key competitors like Keebler and Pepperidge Farm, Mondelez International which owns Oreo, and an analysis of the Oreo brand. Over 100 infographics provide information on the industry, competitors, company and brand. Research was conducted through a 59 question survey of thousands of customers. Customer perceptions, preferences and loyalty were analyzed using Excel to inform marketing strategy conclusions.
KFC Pakistan provides a variety of halal and hygienic chicken products including crispy fried chicken, zingers, twisters, and burgers. It has a vision to be the leading food service group in the ASEAN region with consistent quality and excellent customer service. KFC uses strategies like differentiation, growth, and turnaround. It has competitive advantages like its dominant market share and expertise in chicken. The company follows policies and procedures centered around cleanliness, hospitality, accuracy, maintenance, product quality, and speed of service.
McDonald's entered the Indian market in 1996 by opening its first restaurant in New Delhi. It has since grown its business through a franchise model while adapting to the local market by removing beef from menus and re-engineering menu options to attract vegetarian customers. McDonald's segments its customers in India into families with children, urban customers on the go, teenagers, and older people. It uses the 5 P's of marketing - product, place, price, promotion, and people - to target these segments. Moving forward, opportunities exist for McDonald's to expand into smaller cities in India and introduce breakfast items, while threats include changing tastes and increased competition from other fast food chains.
This document provides an overview of KFC Corporation and its operations. It discusses the history of KFC starting with founder Colonel Sanders in the 1950s. By 1964, KFC had 600 franchises across North America. Today it has over 20,500 restaurants in 125+ countries. The document also examines KFC's products, target markets, competitors, and performs both external and internal analysis of the business environment. It provides details on KFC's marketing mix, product portfolio, pricing, placement, and promotional strategies. Overall recommendations include changing KFC's image from fried to healthy through advertising and differentiating on good service.
KFC targets the upper and middle class segments in India through its outlets located in posh areas and higher prices. It focuses on market segmentation based on demographics, geography, and psychographics. KFC positions itself on quality food and strong brand name. The document discusses KFC's business model, PESTLE analysis, Porter's 5 forces, key success factors, marketing strategies, pricing strategy, and short-term and long-term plans. It also compares KFC and McDonald's on various parameters.
The document provides an overview of McDonald's history and operations. It discusses how McDonald's was founded in 1937 in California and grew to become a global franchise with over 30,000 restaurants serving 53 million customers daily. It also summarizes McDonald's vision, expansion to India in 1996, product offerings and strategies, and organizational structure including training programs.
This document provides information about KFC's operations in India. It discusses KFC's history and founder Colonel Harland Sanders. It also outlines KFC's goals to sell fast food in a friendly environment that appeals to health-conscious consumers. The document analyzes KFC's market segmentation strategies and key factors for success such as extensive menu options, quality standards, and target pricing to middle and upper class consumers.
- KFC was founded in 1930 by Colonel Harland Sanders in Kentucky. He developed his secret recipe of 11 herbs and spices for pressure frying chicken.
- In the 1950s and 1960s, Sanders franchised his chicken recipe and KFC expanded rapidly across North America and internationally.
- Today, KFC is the world's second largest restaurant chain with over 18,000 locations across 118 countries. It is a subsidiary of Yum! Brands and has the largest market share of any fast food chain in China.
McDonald's began in 1940 as a hot dog stand owned by brothers Richard and Maurice McDonald. They realized hamburgers were more profitable and changed their business model. In 1955, Ray Kroc began franchising McDonald's restaurants, which have since grown to over 3,200 locations in 122 countries. McDonald's is now one of the most well-known fast food chains globally and began international expansion in 1967.
its a ppt about hoe mcd adopted various techniques to survive in india.. what were the different challenges faced by mcd in india....
and what are the marketting strategies of mcd...
Kanpur Confectionaries Private Limited (KCPL) is a biscuit manufacturing company that was once successful but is now struggling with increased competition and underproduction. It is considering various options to return to profitability, including accepting a contract manufacturing offer from a competitor or focusing on supplying canteens. The best option is determined to be focusing on canteens as it satisfies the company's objectives of eliminating losses, maintaining brand identity, and adhering to family principles, while also providing opportunity for growth. An action plan is outlined to target premier institutes and increase KCPL's low market share of canteen demand.
This document provides an overview and analysis of KFC as a company. It begins with an introduction to KFC's history and founder Colonel Sanders. It then includes a table of contents and sections on the macro environment using a PESTLE analysis, microenvironment including stakeholders, competition, customers, and suppliers. It analyzes KFC's political, economic, social, technological, legal and environmental factors. It identifies KFC's main stakeholders as owners and franchise owners. Other stakeholders discussed include financial publics, media publics, government publics, citizens groups, local publics, general publics, internal publics and competitors like McDonald's, Burger King, Pizza Hut and Taco Bell. It notes KFC's large
McDonald's restaurant supply chain management presentation discusses McDonald's supply chain in India. [1] McDonald's sources all its requirements from within India from 38 local suppliers. [2] McDonald's introduced cold chain distribution in India to maintain product quality and shelf life, with distribution centers in Noida, Kalamboli, Bangalore and Kolkata. [3] McDonald's centralized distribution system and strict quality standards have helped it leverage its supply chain for competitive advantage in India.
The implications of Kraft-Cadbury takeover: Cultural ChangeAlex Osborne
The document discusses the implications of Kraft's acquisition of Cadbury on organizational culture. It finds that while Kraft aimed to strengthen its brand and control through the takeover, Cadbury's culture emphasizing friendship and community faces risks of damage from Kraft's more performance-driven culture. Successfully implementing change will require strong leadership, communication, and a strategy respecting Cadbury staff to mitigate risks like lower morale, trust issues and weakened brand loyalty.
Kraft Foods acquired Cadbury in 2010 for $19.5 billion after months of negotiations. Some key details:
- Kraft is an American food manufacturer known for brands like Oreo and Cadbury is a British confectioner famous for Dairy Milk chocolate.
- The acquisition gave Kraft access to emerging markets and Cadbury's strong brands. It also aimed to increase economic scale and profitability.
- Kraft initially offered $16.7 billion in August 2009 but Cadbury rejected it as too low. After extensions from the Takeover Panel, Kraft increased its offer and finally secured over 75% of shares to complete the acquisition in February 2010.
- Winners included Cadbury shareholders through
1. Cadbury won the exclusive right to use its signature purple color (Pantone 2685C) on packaging over 100 years ago and has kept this color identity.
2. The 1997 "Freebird" commercial conveyed a strong message of freedom and happiness using imagery of a couple freeing caged pigeons while enjoying Cadbury.
3. After worms were found in some Cadbury chocolates in 2003, the brand invested heavily to upgrade packaging and launch a PR campaign featuring Amitabh Bachchan, rebuilding its wholesome image.
KFC aims to be the leading food service provider in Asia. Its vision is to deliver consistent, high-quality products and excellent customer service. KFC targets young consumers and the upper class by focusing on chicken products. It differentiates itself through its secret recipe and emphasis on a positive dining environment. KFC's marketing strategy involves market segmentation, targeting, positioning and differentiation. It uses the four P's of marketing - promoting through various channels, pricing for different segments, placing products directly to consumers, and offering a variety of chicken products.
KFC primarily sells fried chicken pieces, wraps, salads and sandwiches. It uses the 4 P's of marketing - product, price, place and promotion. For product, KFC's specialty is pressure-fried chicken pieces made with its original recipe. It targets upper and middle income families. KFC prices competitively and uses various promotions like advertising to increase awareness of its fried chicken offerings.
The document discusses a marketing presentation about launching a new chocolate syrup product by Cadbury in India. It provides background on Cadbury's operations in India, discusses market research conducted with 50 consumers and 35 retailers to understand factors influencing purchase decisions and preferences for the new product, and recommends that Cadbury launch the chocolate syrup in India as consumers and retailers expressed positive responses.
A Product analysis of Cadbury Dairy Milk Tanushree
Cadbury is a very popular brand in India and globally as well. Even after completion of for more than 100 years, the brand is in the hearts of many people & it also leaves a significant mark amidst all the competition. This report is focused on the product analysis of Cadbury products and their marketing strategies.
This document provides an overview of Oreo's marketing plan. It includes sections on the snack food industry background, key competitors like Keebler and Pepperidge Farm, Mondelez International which owns Oreo, and an analysis of the Oreo brand. Over 100 infographics provide information on the industry, competitors, company and brand. Research was conducted through a 59 question survey of thousands of customers. Customer perceptions, preferences and loyalty were analyzed using Excel to inform marketing strategy conclusions.
KFC Pakistan provides a variety of halal and hygienic chicken products including crispy fried chicken, zingers, twisters, and burgers. It has a vision to be the leading food service group in the ASEAN region with consistent quality and excellent customer service. KFC uses strategies like differentiation, growth, and turnaround. It has competitive advantages like its dominant market share and expertise in chicken. The company follows policies and procedures centered around cleanliness, hospitality, accuracy, maintenance, product quality, and speed of service.
McDonald's entered the Indian market in 1996 by opening its first restaurant in New Delhi. It has since grown its business through a franchise model while adapting to the local market by removing beef from menus and re-engineering menu options to attract vegetarian customers. McDonald's segments its customers in India into families with children, urban customers on the go, teenagers, and older people. It uses the 5 P's of marketing - product, place, price, promotion, and people - to target these segments. Moving forward, opportunities exist for McDonald's to expand into smaller cities in India and introduce breakfast items, while threats include changing tastes and increased competition from other fast food chains.
This document provides an overview of KFC Corporation and its operations. It discusses the history of KFC starting with founder Colonel Sanders in the 1950s. By 1964, KFC had 600 franchises across North America. Today it has over 20,500 restaurants in 125+ countries. The document also examines KFC's products, target markets, competitors, and performs both external and internal analysis of the business environment. It provides details on KFC's marketing mix, product portfolio, pricing, placement, and promotional strategies. Overall recommendations include changing KFC's image from fried to healthy through advertising and differentiating on good service.
KFC targets the upper and middle class segments in India through its outlets located in posh areas and higher prices. It focuses on market segmentation based on demographics, geography, and psychographics. KFC positions itself on quality food and strong brand name. The document discusses KFC's business model, PESTLE analysis, Porter's 5 forces, key success factors, marketing strategies, pricing strategy, and short-term and long-term plans. It also compares KFC and McDonald's on various parameters.
The document provides an overview of McDonald's history and operations. It discusses how McDonald's was founded in 1937 in California and grew to become a global franchise with over 30,000 restaurants serving 53 million customers daily. It also summarizes McDonald's vision, expansion to India in 1996, product offerings and strategies, and organizational structure including training programs.
This document provides information about KFC's operations in India. It discusses KFC's history and founder Colonel Harland Sanders. It also outlines KFC's goals to sell fast food in a friendly environment that appeals to health-conscious consumers. The document analyzes KFC's market segmentation strategies and key factors for success such as extensive menu options, quality standards, and target pricing to middle and upper class consumers.
- KFC was founded in 1930 by Colonel Harland Sanders in Kentucky. He developed his secret recipe of 11 herbs and spices for pressure frying chicken.
- In the 1950s and 1960s, Sanders franchised his chicken recipe and KFC expanded rapidly across North America and internationally.
- Today, KFC is the world's second largest restaurant chain with over 18,000 locations across 118 countries. It is a subsidiary of Yum! Brands and has the largest market share of any fast food chain in China.
McDonald's began in 1940 as a hot dog stand owned by brothers Richard and Maurice McDonald. They realized hamburgers were more profitable and changed their business model. In 1955, Ray Kroc began franchising McDonald's restaurants, which have since grown to over 3,200 locations in 122 countries. McDonald's is now one of the most well-known fast food chains globally and began international expansion in 1967.
its a ppt about hoe mcd adopted various techniques to survive in india.. what were the different challenges faced by mcd in india....
and what are the marketting strategies of mcd...
Kanpur Confectionaries Private Limited (KCPL) is a biscuit manufacturing company that was once successful but is now struggling with increased competition and underproduction. It is considering various options to return to profitability, including accepting a contract manufacturing offer from a competitor or focusing on supplying canteens. The best option is determined to be focusing on canteens as it satisfies the company's objectives of eliminating losses, maintaining brand identity, and adhering to family principles, while also providing opportunity for growth. An action plan is outlined to target premier institutes and increase KCPL's low market share of canteen demand.
This document provides an overview and analysis of KFC as a company. It begins with an introduction to KFC's history and founder Colonel Sanders. It then includes a table of contents and sections on the macro environment using a PESTLE analysis, microenvironment including stakeholders, competition, customers, and suppliers. It analyzes KFC's political, economic, social, technological, legal and environmental factors. It identifies KFC's main stakeholders as owners and franchise owners. Other stakeholders discussed include financial publics, media publics, government publics, citizens groups, local publics, general publics, internal publics and competitors like McDonald's, Burger King, Pizza Hut and Taco Bell. It notes KFC's large
McDonald's restaurant supply chain management presentation discusses McDonald's supply chain in India. [1] McDonald's sources all its requirements from within India from 38 local suppliers. [2] McDonald's introduced cold chain distribution in India to maintain product quality and shelf life, with distribution centers in Noida, Kalamboli, Bangalore and Kolkata. [3] McDonald's centralized distribution system and strict quality standards have helped it leverage its supply chain for competitive advantage in India.
The implications of Kraft-Cadbury takeover: Cultural ChangeAlex Osborne
The document discusses the implications of Kraft's acquisition of Cadbury on organizational culture. It finds that while Kraft aimed to strengthen its brand and control through the takeover, Cadbury's culture emphasizing friendship and community faces risks of damage from Kraft's more performance-driven culture. Successfully implementing change will require strong leadership, communication, and a strategy respecting Cadbury staff to mitigate risks like lower morale, trust issues and weakened brand loyalty.
Kraft Foods acquired Cadbury in 2010 for $19.5 billion after months of negotiations. Some key details:
- Kraft is an American food manufacturer known for brands like Oreo and Cadbury is a British confectioner famous for Dairy Milk chocolate.
- The acquisition gave Kraft access to emerging markets and Cadbury's strong brands. It also aimed to increase economic scale and profitability.
- Kraft initially offered $16.7 billion in August 2009 but Cadbury rejected it as too low. After extensions from the Takeover Panel, Kraft increased its offer and finally secured over 75% of shares to complete the acquisition in February 2010.
- Winners included Cadbury shareholders through
Mergers and Acquisitions Case: Kraft hostile takeover on Cadbury.
After reviewing operations, finance, marketing, supply chain management, this practical example supported my learning within the legal international frame.
Penultimate presentation carried out within a mostly French group, interesting :)
Kraft Foods acquired Cadbury in 2010 in a $19 billion deal. This allowed Kraft to enter emerging markets like India and China where Cadbury had a strong presence. It also gave Kraft access to Cadbury's distribution network in developing countries. However, integrating the two company's cultures posed challenges due to their different management styles and work environments.
Kraft acquired Cadbury for $19.7 billion in 2010 to become the global leader in confectionery. Cadbury was founded in 1824 in Birmingham, England and Kraft was founded in 1903 in the United States. The acquisition allowed Kraft to enter new emerging markets and gain market share globally. Kraft expected cost savings and synergies from combining the companies' product portfolios and global operations. While some criticized the high price, Kraft executives believed it was necessary to outbid competitors for Cadbury.
This document provides information about target marketing for Cadbury Dairy Milk chocolate in India. It begins with an introduction to target marketing and segmentation. It then discusses Cadbury's target markets in India, which have expanded from kids to include all family members and occasions. The document outlines Cadbury's marketing mix strategies, objectives, and highlights for targeting different consumer groups. It concludes with a questionnaire and bibliography.
Kraft made a hostile takeover bid for Cadbury in 2009. After months of negotiations and Kraft sweetening its offer, Cadbury accepted Kraft's offer of £11.7 billion in January 2010. The takeover faced opposition from Cadbury management who felt the offer undervalued the company. Kraft employed various strategies like increasing the cash component and divesting some of its own brands to gain antitrust approval. Cadbury employed defensive strategies like reaching out to shareholders and highlighting its own growth potential. Integration issues after the takeover included workforce management and tax avoidance strategies by Kraft.
International Project Management: M&A Kraft CadburyKhai Nguyen
Kraft made two offers to acquire Cadbury, a UK confectionery company. The initial offer in November 2009 of £11.7 billion in cash was rejected by Cadbury. In January 2010, Kraft increased its offer to £13.6 billion, which Cadbury accepted. However, the acquisition faced significant opposition from the British public and unions due to concerns over job losses and cultural differences between the American and British companies. While Kraft aimed to expand its brands and markets through the acquisition, the deal highlighted tensions between economic globalization and national identity.
Cadbury has been producing chocolates in India since 1947 and their chocolates are beloved by Indians due to their taste. Cadbury began over 150 years ago in 1824 when John Cadbury started producing chocolate in England. Today, over 250 million Cadbury Dairy Milk bars are produced and consumed every year. Cadbury has grown to be a significant player in India's chocolate market through innovation and associating their brands with emotions.
The presentation covers almost all areas of cadbury business starting from its origin, history, SWOT analysis, HR function, Finance function, Production & Operation, recent news and others.
I hope it will be beneficial to you.
This document provides an overview and analysis of Cadbury India and the chocolate market in India. Some key points:
- Cadbury India controls over 67% of the Indian chocolate market and has established itself as the market leader with brands like Cadbury Dairy Milk.
- The Indian chocolate market is growing rapidly at around 15-23% annually but per capita consumption remains low compared to other countries.
- Cadbury faces competition from other large multinational companies like Nestle but maintains its strong brand and market position through effective marketing, innovation, and maintaining quality/trust in its products.
- A PESTEL, SWOT, and five forces analysis are provided to examine the key external factors,
The group is presenting on Cadbury dairy milk cookies. The new product is two thick baked biscuits with dairy milk chocolate in between. It differs from competitors' biscuits by using rich dairy milk chocolate. The target market is mass marketing since everyone will consume the popular Cadbury brand. It will launch first in Karachi and use emotional advertising highlighting the delicious taste.
The document provides an analysis of Cadbury including its external and internal environments. Models such as PESTEL, Porter's Five Forces, and TOWS matrix are used to analyze factors like the political, economic, social and technological landscape affecting Cadbury as well as its resources, capabilities, and competitive position.
Cadbury's corporate social responsibility efforts are also examined, including activities to support employees, communities, and sustainable practices. The analysis then considers opportunities for Cadbury to expand internationally by assessing conditions in Nigeria using PESTEL and CAGE frameworks.
Key recommendations include developing healthier products to meet consumer demands, expanding product offerings and distribution in growing markets like India, and maintaining competitive prices while upholding Cadbury's trusted
This document provides an economic analysis of Cadbury and Nestle. It discusses Cadbury's history beginning in the 1800s in Birmingham, England. Key events included the Cadbury brothers introducing cocoa pressing technology in 1866 that revolutionized the cocoa industry. It also discusses Cadbury's manufacturing process, products, market share, pricing strategy, and financial performance. The document then provides an overview of Nestle's history, mission, corporate social responsibility efforts, brands, and conclusion.
Cadbury India is the leading confectionary manufacturer in India, enjoying the highest market share. It has been operating in India since 1948 and focuses on several departments including HR, finance, marketing, R&D and production. Cadbury India is part of the Kraft Foods group and markets many popular brands across India. It uses strategies such as product development, promotion, branding, advertising and pricing to maintain its top position in India's confectionary market.
Cadbury is a confectionery company founded in Birmingham, England in 1824. It manufactured the first chocolate bar in 1847 and the first milk chocolate in 1897. Today it has a wide range of products including chocolate bars, candies, gum, and beverages. It is now the largest confectionery company in the world. Some of its iconic brands are Cadbury Dairy Milk, Cadbury Roses, and Cadbury Flake. It faces competition from other major confectionery companies like Mars, Nestle, Ferrero and Kraft Foods. To maintain its leading position, Cadbury needs to focus on brand building, expanding into emerging markets, and forming strategic partnerships.
Cadbury is a confectionery company founded in Birmingham, England in 1824. It is now owned by Kraft Foods and operates globally, manufacturing chocolate and other candy products. Cadbury has manufacturing operations in the UK, Ireland, US, Australia, New Zealand and other countries. In 2010, Kraft Foods acquired Cadbury for $18.9 billion after a hostile takeover bid, raising concerns about job losses in the UK.
Strategic Analysis of Cadbury's MarketingQamaru Dheen
This presentation is leap into the marketing strategies followed by, Mondelez International (formerly known as, Cadbury). The presentation contains different aspects Cadbury's marketing activities which will take you through their STP and Product Mix. I hope you will enjoy this presentation and it will be helpful to you.
Please don't just read and click next. I hope you will share it in your friend circle.
Cadbury products, history and takeoversSadrani Yash
This presentation provides an overview of the history and operations of Cadbury, a British confectionery company. It discusses how John Cadbury began selling chocolate in Birmingham in 1824. It then outlines Cadbury's expansion into cocoa and chocolate production for the wealthy. The presentation notes that Cadbury began operations in India in 1948 through importing chocolates and has undertaken cocoa research there since 1965. Finally, it briefly mentions Kraft Foods' hostile takeover of Cadbury in 2009 and lists some of Cadbury's core brands and products.
Cadbury has a long history starting in the 1800s in Birmingham, UK. John Cadbury started selling drinking chocolate and later expanded into chocolate manufacturing. Cadbury now has global operations and is one of the largest confectionery companies in the world. In India, Cadbury began operations in 1948 and now has several factories and offices across the country. Cadbury enjoys strong brand recognition and market share in India with brands like Cadbury Dairy Milk and Bournvita.
General Mills - History, Evolution, Present and the FutureGreg Thain
A comprehensive background of General Mills containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.
Kellogg's - History, Evolution, Present and the FutureGreg Thain
A comprehensive background of Kellogg's containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.
1) Cadbury was founded in 1824 in Birmingham, England by John Cadbury as a grocer's shop selling tea, coffee, and cocoa. It eventually began producing chocolate and grew into a global confectionery company.
2) The company pioneered innovative production and marketing techniques. In 1866, it introduced a new cocoa pressing technique and marketed the resulting Cocoa Essence as "absolutely pure," fueling the company's growth.
3) Cadbury has a long history of innovation in products, marketing, and social welfare. Iconic products include Dairy Milk chocolate, launched in 1905. The company also built the model village of Bournville for its workers.
The ppt is about Cadburys history and its functions in two different countires i.e India & UK. Cadbury a multidomestic product have different operation, marketing strategy in India & in UK. Even the taste is different when it comes to Uk's cadbury made by hersheys & Mondelez's cadbury in India. It also discusses the worm issue which Cadbury faced and how did they tackle it.
Here are the key details about Cadbury's overall turnover:
- The total confectionery market in India is valued at approximately 41 billion Indian rupees.
- The total annual turnover in terms of tonnage produced is approximately 223,500 tons of confectionery.
- Urban areas account for approximately 73% of the total confectionery market share. Rural areas make up the remaining 27%.
- Given that over 50% of Indians live in rural areas, the rural market remains largely untapped relative to its potential. Tapping further into rural markets could provide significant growth opportunities for confectionery companies like Cadbury.
- Cadbury is a British confectionery company founded in 1824 that was acquired by Kraft in 2010.
- Kraft recognized that future growth would need to come from emerging markets and acquiring Cadbury would allow them to reach these markets quickly.
- In January 2010, Cadbury shareholders accepted Kraft's offer to acquire the company, making Kraft the largest food conglomerate in the world.
AN OVERVIEW ON THE CORPORATE SOCIAL RESPONSIBILITY INITIATIVES BY PROCTOR &GA...VARUN KESAVAN
Procter & Gamble Co. (P&G) is an American multi-national consumer goods corporation headquartered in downtown Cincinnati, Ohio, founded in 1837 by British American William Procter and Irish American James Gamble.[3] It primarily specializes in a wide range of cleaning agents and personal care and hygienics products. Before the sale of Pringles to the Kellogg Company, its product portfolio also included foods, snacks and beverages.[4]
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining the company, dropping and selling off around 100 brands from its product portfolio in order to focus on the remaining 65 brands,[5] which produced 95% of the company's profits. A.G. Lafley—the company's chairman, president, and CEO until October 31, 2015—said the future P&G would be "a much simpler, much less complex company of leading brands that's easier to manage and operate".[6]
Sustainability is integrated into our company’s purpose of touching and improving the lives of consumers now and for generations to come. We define sustainability broadly at P&G to include both environmental sustainability and social responsibility.
This document summarizes the history and competition between Coca-Cola and PepsiCo in the cola industry. It discusses how Coca-Cola was founded in 1886 and PepsiCo in 1893. Throughout the 20th century, the two companies grew significantly and became major competitors in the cola industry. The document also analyzes Porter's Five Forces model and how consolidation among bottlers impacted industry profits. It notes that Coca-Cola and PepsiCo have majority market share in the cola industry but face challenges from health trends moving consumers to non-carbonated drinks.
Procter & Gamble is a large multinational consumer goods company founded in 1837 and headquartered in Cincinnati, Ohio. It employs over 138,000 people worldwide and has a wide range of popular brands such as Tide, Crest, Bounty, Pampers, Gillette, and Olay. P&G has annual revenues of over $83 billion and is one of the largest companies in the world. It began as a partnership between two immigrants, William Procter and James Gamble, and has grown significantly over the past 180 years through brand management, acquisitions, and expansion into international markets.
Hindustan Coca-Cola Beverage Pvt. Ltd is Coca-Cola's bottling arm in India. It was established in 1993 when Coca-Cola re-entered the Indian market after a 16 year absence. Since then, it has grown to include 7,000 local employees, 500 managers, 60 manufacturing locations, and a large bottling and distribution network. Coca-Cola follows the mantra of "Think local, act local" by tailoring its marketing and products to local tastes and contexts in both urban and rural India. This localized approach has helped drive significant growth in India, including a 37% growth rate in rural areas from 2011-2012.
Cadbury is a British confectionery company founded in 1824 that is now owned by Mondelez International. It operates globally and is headquartered in Uxbridge, London. Cadbury is famous for chocolate products like Dairy Milk, Creme Egg, and Roses. It has faced some health controversies over the years from issues like worms found in chocolate and switched to improved packaging as a result. Cadbury has a rich history and is one of the largest confectionery companies in the world.
The document provides guidelines for submitting summer internship reports. It lists 13 sections that should be included in the report such as an introduction to the company, research methodology, data analysis, findings and conclusions. It also provides formatting guidelines such as using A4 paper, 12 point font, double spacing, and spiral bindings for submitting two copies of the report. Presentations related to the report should be a maximum of 15 minutes and 15 slides, focusing on data analysis, findings and conclusions. Students are advised to contact the general form with any clarifications.
The document provides information about ITC Limited, a leading Indian conglomerate. It discusses ITC's history, products, and market share. ITC was incorporated in 1910 as Imperial Tobacco Company of India Limited and has since diversified into various businesses including cigarettes, hotels, packaging, agriculture, food, IT and other FMCG products. It has a market capitalization of over $13 billion and revenue of $3.5 billion. ITC has significant market share in cigarettes, mint candies, hard-boiled candies and other product categories.
Kimberly-Clark - History, Evolution, Present and the FutureGreg Thain
The document traces the history of Kimberly-Clark from its founding in 1872 as a paper mill company to its evolution into a global consumer goods company. Three pivotal events were the invention of Cellucotton wound dressings during WWI, entering the diaper business to compete with Procter & Gamble, and merging with Scott Paper which opened doors for international expansion. These transformed Kimberly-Clark from a paper company into a packaged goods leader with trusted brands like Kleenex and Huggies sold around the world.
Cadbury was founded in 1824 in Birmingham, England by John Cadbury. By the late 1800s, it had expanded into manufacturing milk chocolate. Today it has a wide range of confectionary and cooking products and is the largest confectionary company in the world. It has strengths in its product range, prices, and international business. However, it also faces weaknesses in health concerns and a lack of dietary options. While opportunities exist in expanding into countries like France, threats include not understanding foreign customer preferences and unexpected costs from increased competition.
I need help with this case study. I was hoping someone could give me.pdfallurafashions98
I need help with this case study. I was hoping someone could give me some insight into this
question.
Question: Identify and define PepsiCos corporate business strategies used in each consumer
business segment in the year 2018.
I know this question requires a lot of reading, so if you are willing to answer, I greatly appreciate
the time you have spent helping me.
epsiCo was the world's largest snack and bever- In addition to focusing on strategies designed to
age company, with 2017 net revenues of approxi- deliver revenue and earnings growth, the
company mately $63.5 billion. The company's portfolio maintained an aggressive share
repurchase and diviof businesses in 2018 included Frito-Lay salty snacks, dend policy, with a
planned $7 billion returned to Quaker Chewy granola bars, Pepsi soft-drink products,
shareholders in 2018 through share repurchases of Tropicana orange juice, Lipton Brisk tea,
Gatorade, $2 billion and dividends of approximately $5 billion. Propel, Bubly, Quaker Oatmeal,
Cap'n Crunch, The company bolstered its cash returns through careAquafina, Rice-A-Roni, Aunt
Jemima pancake mix, fully considered capital expenditures and acquisitions and many other
regularly consumed products. The and a focus on operational excellence. Its Performance
company viewed the lineup as highly complemen- with Purpose plan utilized investments in
manufacturtary since most of its products could be consumed ing automation, a rationalized
global manufacturing together. For example, Tropicana orange juice might plan, and
reengineered distribution systems to drive be consumed during breakfast with Quaker Oatmeal,
efficiency. In addition, the company's Performance Stacy's pita chips and Sabra hummus might
make a with Purpose plan was focused on minimizing the nice snack, and Doritos and a
Mountain Dew might company's impact on the environment by lowering be part of someone's
lunch. In 2018, PepsiCo's busi- energy and water consumption and reducing its use ness lineup
included 22$1 billion global brands. of packaging material, providing a safe and inclusive The
company's top managers were focused on workplace for employees, and supporting and
investsustaining the impressive performance through strat- ing in the local communities in which
it operated. For egies keyed to product innovation, close relationships example, PepsiCo had
expanded access to safe water with distribution allies, international expansion, to nearly 16
million people in water-stressed parts and strategic acquisitions. Newly introduced prod- of the
world between 2006 and 2018. In addition, ucts such as Bubly sparkling water, Mountain Dew
Performance with Purpose planned to reduce average Ice, Doritos Blaze tortilla chips, Sweet
Potato Sun sugars, saturated fat, and sodium in its food and beverChips, LIFEWTR functional
waters, Lemon Lemon age portfolio each year through 2025 and saved more sparkling lemonade,
and the 1893 premium line of than $600 million in operating expenses by 2016 . .
Please write a detailed post responding to this question.Question.pdfamarndsons
Please write a detailed post responding to this question.
Question: Examine if PepsiCo's business portfolio exhibits a good strategic fit. Then identify
visible value-chain match-ups, skills transfer, cost-sharing, or brand-sharing opportunities.
epsiCo was the world's largest snack and bever- In addition to focusing on strategies designed to
age company, with 2017 net revenues of approxi- deliver revenue and earnings growth, the
company mately $63.5 billion. The company's portfolio maintained an aggressive share
repurchase and diviof businesses in 2018 included Frito-Lay salty snacks, dend policy, with a
planned $7 billion returned to Quaker Chewy granola bars, Pepsi soft-drink products,
shareholders in 2018 through share repurchases of Tropicana orange juice, Lipton Brisk tea,
Gatorade, $2 billion and dividends of approximately $5 billion. Propel, Bubly, Quaker Oatmeal,
Cap'n Crunch, The company bolstered its cash returns through careAquafina, Rice-A-Roni, Aunt
Jemima pancake mix, fully considered capital expenditures and acquisitions and many other
regularly consumed products. The and a focus on operational excellence. Its Performance
company viewed the lineup as highly complemen- with Purpose plan utilized investments in
manufacturtary since most of its products could be consumed ing automation, a rationalized
global manufacturing together. For example, Tropicana orange juice might plan, and
reengineered distribution systems to drive be consumed during breakfast with Quaker Oatmeal,
efficiency. In addition, the company's Performance Stacy's pita chips and Sabra hummus might
make a with Purpose plan was focused on minimizing the nice snack, and Doritos and a
Mountain Dew might company's impact on the environment by lowering be part of someone's
lunch. In 2018, PepsiCo's busi- energy and water consumption and reducing its use ness lineup
included 22$1 billion global brands. of packaging material, providing a safe and inclusive The
company's top managers were focused on workplace for employees, and supporting and
investsustaining the impressive performance through strat- ing in the local communities in which
it operated. For egies keyed to product innovation, close relationships example, PepsiCo had
expanded access to safe water with distribution allies, international expansion, to nearly 16
million people in water-stressed parts and strategic acquisitions. Newly introduced prod- of the
world between 2006 and 2018. In addition, ucts such as Bubly sparkling water, Mountain Dew
Performance with Purpose planned to reduce average Ice, Doritos Blaze tortilla chips, Sweet
Potato Sun sugars, saturated fat, and sodium in its food and beverChips, LIFEWTR functional
waters, Lemon Lemon age portfolio each year through 2025 and saved more sparkling lemonade,
and the 1893 premium line of than $600 million in operating expenses by 2016 . flavored colas
accounted for 15 to 20 percent of all Even though the company had recorded a new growth in
recent years..
Kraft Foods was founded in 1903 by James Kraft as a cheese wholesaler. It introduced processed cheese and holds the patent for pasteurized processed cheese. In the 1920s, it began exporting to Europe and Canada. Over the decades, Kraft launched many iconic products and acquired other major brands through mergers and acquisitions. It was purchased by Philip Morris in 1980 and merged with General Foods in 1989. Kraft later acquired Cadbury in 2010. The company operates through business units focused on snacks, beverages, cheese, grocery, and convenient meals. It aims to help people eat and live better through trust, ownership, simplicity, inclusion, transparency, and balanced leadership.
Cadbury is a large confectionery company that produces well-known chocolate brands around the world. They have asked me to create a radio advertisement for their Astros product, which are biscuit-filled chocolate balls that were previously sold in the UK but have since been discontinued. The purpose of the ad is to raise awareness of Astros and bring them back to the UK market. The client has requested that the ad be informative but also humorous, and use either light instrumental music or a band playing in the background.
I need help with conducting a 9-cell industry attractiveness and bus.pdfallurafashions98
I need help with conducting a 9-cell industry attractiveness and business strength matrix, and
then I need to explain my findings in detail. epsiCo was the world's largest snack and bever- In
addition to focusing on strategies designed to age company, with 2017 net revenues of approxi-
deliver revenue and earnings growth, the company mately $63.5 billion. The company's portfolio
maintained an aggressive share repurchase and diviof businesses in 2018 included Frito-Lay
salty snacks, dend policy, with a planned $7 billion returned to Quaker Chewy granola bars,
Pepsi soft-drink products, shareholders in 2018 through share repurchases of Tropicana orange
juice, Lipton Brisk tea, Gatorade, $2 billion and dividends of approximately $5 billion. Propel,
Bubly, Quaker Oatmeal, Cap'n Crunch, The company bolstered its cash returns through
careAquafina, Rice-A-Roni, Aunt Jemima pancake mix, fully considered capital expenditures
and acquisitions and many other regularly consumed products. The and a focus on operational
excellence. Its Performance company viewed the lineup as highly complemen- with Purpose
plan utilized investments in manufacturtary since most of its products could be consumed ing
automation, a rationalized global manufacturing together. For example, Tropicana orange juice
might plan, and reengineered distribution systems to drive be consumed during breakfast with
Quaker Oatmeal, efficiency. In addition, the company's Performance Stacy's pita chips and Sabra
hummus might make a with Purpose plan was focused on minimizing the nice snack, and Doritos
and a Mountain Dew might company's impact on the environment by lowering be part of
someone's lunch. In 2018, PepsiCo's busi- energy and water consumption and reducing its use
ness lineup included 22$1 billion global brands. of packaging material, providing a safe and
inclusive The company's top managers were focused on workplace for employees, and
supporting and investsustaining the impressive performance through strat- ing in the local
communities in which it operated. For egies keyed to product innovation, close relationships
example, PepsiCo had expanded access to safe water with distribution allies, international
expansion, to nearly 16 million people in water-stressed parts and strategic acquisitions. Newly
introduced prod- of the world between 2006 and 2018. In addition, ucts such as Bubly sparkling
water, Mountain Dew Performance with Purpose planned to reduce average Ice, Doritos Blaze
tortilla chips, Sweet Potato Sun sugars, saturated fat, and sodium in its food and beverChips,
LIFEWTR functional waters, Lemon Lemon age portfolio each year through 2025 and saved
more sparkling lemonade, and the 1893 premium line of than $600 million in operating expenses
by 2016 . flavored colas accounted for 15 to 20 percent of all Even though the company had
recorded a new growth in recent years. New product innovations number of impressive
achievements over the past that addressed consumer health an.
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This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
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Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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Kraft & Cadbury - Cultural Issue
1. copyright : http://strategicorner.com
Kraft’s Acquisition over Cadbury: Cultural Root Issue
Taking a decision to take over Cadbury, Kraft initially aimed to grow a profitable
growth as a part of its long-term strategy. Kraft is going to broaden the range of products
as their expansion target. Before the take over, Kraft already had many big brands all
around the world; the purchase, at the end of the day, equipped Kraft a big strength on
chocolate area. This seemed really promising as Cadbury has market advantage
especially in India and Brazil (Wikipedia Kraft Foods, 2011).
Everything is good on paper. However, there is still an issue that waits to be
faced: cultural shock. The purchaser is a real American company which was created in
the modern industrial era of the country. Forty of its brands are at least a century old
(Wikipedia Kraft Foods, 2011). On the other hand, Cadbury is so British. Older than
Kraft, it was founded in 17th century in England with so many homeland tradition and
sense-of-ownership (Wikipedia Cadbury, 2011). These two things created a shock in
personality between the parties. Most important aspect inside the companies is also
affected: the workers.
Kraft’s History
Kraft was founded in 1903 which starting to use “Kraft” element in 1909 with
name J.L. Kraft and Bros. Company. The company at that time was a join James L. Kraft
2. with his other four brothers. The company used to sell cheese, until 1915 it invented a
break through of pasteurized processed cheese (Wikipedia Kraft Foods, 2011). This
patent gave many sales to Kraft.
The next phase of the company was starting in 1924 with a new name Kraft
Cheese Company. Kraft started to acquire many dairy companies to strengthen their
position in the market. Kraft bought ensured many sectors that have to do with cheese
was on their reach so that they could be more efficient. In 1927 Kraft started to broaden
the wings internationally. After that, through some strategic partnering, Kraft changed
name twice to Kraft-Phenix Cheese Company in 1928, Kraftco in 1969, Kraft, inc in
1976, and finally Kraft General Foods, Inc in 1989. In the latest year mentioned, Kraft
merged with Philip Morris's General Foods unit after Philip Morris Companies purchased
Kraft for $12.9 billion one year before.
Kraft owns long list of brands which some of them are very popular. Some of
successful brands are Jacobs, Maxwell House, Milka, Nabisco (Oreo), Oscar Mayer,
Philadelphia, Trident, and Tang. In chocolate bar, Kraft already has Toblerone brand
which was acquired in 1990 from Jacobs Suchard. Overall, Kraft divides its brands into
five main sectors: snacks (30.6% of its revenue), beverages (19%), cheese (18%), grocery
(16.6%), and convenient meals (15.8%) (Finding Universe Kraft Foods Inc Company
History, 2011).
Cultural root of Kraft could be tracked back from its history. There are some
unique characteristics of the company that can be seen clearly: Kraft is a company with
ability to participate to the society, but in same time a company still gaining benefit from
it. An experience from world war tells the story. In World War I, Kraft supplied cheese to
3. the US Army. Continued in World War II, Kraft helped to ease wartime shortages in
food. Postwar, their advantage in time of war benefited the company: formula of new
product development and advertising in wartime helped build the company later (Finding
Universe Kraft Foods Inc Company History, 2011). This was ensuring them to still own
their advantage in learning through hard time.
To adapt and to compete by vanishing their competitors are another traits which
Kraft owns. At the record, Kraft (and its embryo), at least, already made 13 acquisitions
and 7 strategic partnering movement just to ensure the position in the market (Finding
Universe Kraft Foods Inc Company History, 2011). All of these movement that Kraft had
made, show a convincing proof that Kraft is a company with great flexibility for
adaptation to any cultures and changes.
- 1916 : Kraft acquired Canadian Cheese company
- 1927 : Kraft acquired A.E. Wright
- 1928 : Kraft acquired Phenix Cheese
- 1928 : Kraft acquired Southern Dairies
- 1928 : Kraft acquired 10 "cheese dealers"
- 1928 : Kraft acquired Henard Mayonnaise Co
- 1929 : Kraft acquired D.J. Easton
- 1929 : Kraft acquired 2 mayonnaise companies
- 1929 : Kraft acquired 10 cheese companies
- 1929 : Kraft acquired International Wood Products
- 1929 : Kraft acquired Gelfand Manufacturing
- 1930 : Kraft is acquired by National Dairy Products (acquired)
- 1953 : General Foods (which later merged with Kraft) acquires Perkins Products
- 1980 : Kraft merges with Dart Industries
- 1981 : General Foods acquires Oscar Mayer & Co.
- 1985 : Philip Morris Companies Inc. acquires General Foods
- 1988 : Kraft is acquired by Phillip Morris
- 1989 : Phillip Morris combined Kraft with General Foods to form Kraft General Foods,
Inc.
- 1995 : Major restructuring melds Kraft and General Foods into Kraft Foods, Inc.
- 2000 : Philip Morris buys Nabisco Holdings for $18.9 billion and combined into Kraft
4. Now Kraft is very strong in the market. Around the globe, in 140 countries, it runs
117,000 employees. With 83.9% ownership of Phillip Morris Companies Inc., it achieves
$49.2 billion revenue in 2010 (Finding Universe Kraft Foods Inc Company History,
2011).
Cadbury’s History
Cadbury began in 1824 together with John Cadbury as a seller in Birmingham. It
is said that from the beginning of the business, Cadbury had a particular motivation.
Believing that alcohol was a main cause of poverty, John hoped his products of (coffee,
tea, drinking chocolate and cocoa) might serve as an alternative (Englishteastore Cadbury
History, 2011). Then John did ‘merger’ with his brother, Benjamin, and they formed
'Cadbury Brothers of Birmingham'; the company start to sell 11 kinds of cocoa and 16
kinds of drinking chocolate.
Taken over by sons, Cadbury grew and was trying to focus on chocolate (cocoa
essence) while stop selling tea. Cadbury manufactured its first milk chocolate in 1897. By
1899, their factory in Bournville employed 2,600 people and Cadbury was incorporated
as a limited company (Englishteastore Cadbury History, 2011).
In 1905, higher proportion milk in chocolate, called Dairy Milk chocolate, was
launched. By 1913, it became the company's best selling product. Fruit and Nut was
introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933
afterwards (Wikipedia Cadbury, 2011).
5. Being big food producer, Cadbury involved itself into World War I participation
supporting their country. Not only supplied food to soldiers, but also it sent more than
2,000 of Cadbury's male employees going to war. In the World War II, Cadbury also
helped the government by converting parts of its factory into workrooms to manufacture
war equipment (Englishteastore Cadbury History, 2011). Cadbury St. John’s Ambulance
unit helped people during air raids as well.
Back to business talk, Cadbury merged with drinks company Schweppes to form
Cadbury Schweppes in 1969 (Wikipedia Cadbury, 2011). Schweppes is a classic
beverage brands which was produced by Schweppes Company (established since 1783 in
Geneva). However in 2007, the company did demerger and split the business into two
units: main chocolate & confectionery market and US drinks business. The US drinks
business, since 2008, has been renamed as Dr Pepper Snapple Group Inc.
The Acquisition Decision: What is the effect?
In order to broaden the position global confectionery leader, especially strengthen
the power in emerging market, Kraft made bids to buy Cadbury. It is an obvious
influence of Kraft’s CEO, Irene Rosenfeld, long term strategy (Wowelle Irene Rosenfelds
Strategy is Packing More Nutrition into Kraft, 2010). Kraft £9.8bn initial takeover bid
was rejected by Cadbury on November 9, 2009. Several months later, on January 2010,
Kraft gave valuation at $19.5 billion (£11.5 billion). Cadbury approved the revised offer.
On the paper, the decision seems ideal. Brand wise, 186-old-years Cadbury is a
very strong and long presence brand in the chocolate industry – a good opportunity for
6. Kraft to develop. Apart from that, with sales of Cadbury growth of 20% and profits
growing at 30% in a competitive market, it is no surprise that one-quarter of Kraft’s $50
billion in sales is coming from emerging markets because of Cadbury. Another thing,
Kraft believed that it could take advantage of the strong Cadbury distribution in India,
Brazil and Mexico.
Sometimes the brightest blue-print also has slight deviation in the
implementation. A general truth is reflected from an analyst’s statement towards Kraft-
Cadbury acquisition: “it will take some time to make these businesses truly combine and
operate as one” (Steuber Kraft, Cadbury not such a sweet deal? 2010). Although Kraft
Q1 revenues soar by 26 percent after Cadbury acquisition (Foodnavigator Kraft Q1
Revenues Soar by 26 Percent after Cadbury Acquisition, 2010), it at the end of the day
failed to achieve the 2011 revenue target (Dailymail Kraft Exodus Cadbury Fears Grow,
2010). Kraft targeted revenue $50 billion in 2010, while Wall Street gave lower $48.27
(Steuber Kraft, Cadbury not such a sweet deal? 2010). Finally, Kraft passes the Wall
Street by achieving $49.2 billion but still fails to pass on its own target.
The biggest issue is on cultural shock especially among their employees. Numbers
of exodus were done by former workers. A total of 120 out of 170 managers and
executives have quit since Kraft took control of the 186-year-old company. Most of them
are ‘brain power’ of the company. They were coming from advertising, creative, design
and marketing specialists (Dailymail Kraft Exodus Cadbury Fears Grow, 2010). One of
the big losses is Mark Reckitt, who was Cadbury’s chief strategy officer and who is the
most senior executive left from the company within Kraft, is leaving in July. Tamara
Minick-Scokalo, a former Cadbury executive who currently heads Kraft’s European
7. chocolate business and Ignasi Ricou, who ran Cadbury’s gum and sweet operation in
Europe, are also leaving the company (Marketing Magazine Two Senior Cadbury
Executives, 2011). Overall, 6 out of 17 seniors’ position in Cadbury have left the
company since the acquisition (FT.com Kraft Hit by Exodus of Cadbury Executives,
2010).
Another reaction was nationalism sentiment. People (and consumers) in UK are
feeling hard to accept the-so-British-company was sold to other people. Some felt such a
humiliation to be bought by other country. Many of them sounded a boycott for Cadbury
under Kraft through street demonstration or cyber social networks. The effect is also
taken place among consumers.
The main problem is emphasized in culture. Both companies are coming from
different root which have different perspective and condition. How they compete and
how they retain consumers are not the same. From the Cadbury workers, Kraft feels so
stiff and bureaucratic. The number of layers and amount of people that have to be
involved to make a decision are many. Beside there is opinion, the CEO, Irene Rosenfeld
acts authoritarian (FT.com People Still Chewing on Kraft Culture, 2011).
8. Theoretical Cultural Comparison & Acculturation Frameworks
A comprehensive summary of both companies combined culture is needed in
order to understand their behavior. Goffee and Jones through their paper explain the
description of a culture. To elaborate what is the culture of Kraft and Cadbury, four
relevant variables of them will be used. Those variables are: networked, mercenary,
fragmented, and communal. Networked is about how the people inside the company
treated. A friendly feel among workers is the indicator. On the other hand, mercenary has
further function; mercenary measures how far the purpose of the relationship.
Both fragmented and communal say a contrast symptoms. Fragmented talks a lot
about individualism- how individual right is recognized. While, communal much talks
about social and communalism of work atmosphere. So, sixteen variables are derived
from those four variables.
Cultures Variables Characteristic Kraft Cadbury
Networked - Flexibility
- Participation
- Informal Approach
Mercenary - Idealistic
- Destroying competition
- Hardwork
- Material reward
Fragmented - Support individual creativity
- Individual environment
- Preserve different culture
Communal - Teamwork
- Loyalty
- Friendship
- Community value
- Family atmosphere
9. Can be summarized that Kraft and Cadbury are in opposite way each other in terms of
character:
1) Kraft people values more multi-culturism, while Cadbury prefer the more
exclusive British heritage. It is aligned consistently with what Kraft or Cadbury
has done along the history.
2) Kraft is fine to destroy its competition by acquiring them; it would force Kraft
to accept many different cultures. In contrast, Cadbury was not familiar with such
approach to compete; therefore Cadbury was still relatively unchanged.
3) In terms of social atmosphere, Cadbury is more family-feel than Kraft. One
another thing is flexibility to work in the company.
4) Kraft is far more bureaucratic than Cadbury.
Based on all elaboration so far, to be strict, separation model is the best model to
adopt for Kraft-Cadbury acculturation. A framework titled Acculturation in Mergers and
Acquisitions (1988) defined separation as a mode of acculturation involves attempting to
preserve one's culture and practices by remaining separate and independent from the
dominant group. Thus, if the mode applied, there will be minimal cultural exchange
between Kraft and Cadbury. Each function is independent.
10. The conclusion to apply separation mode is coming from the characteristics of the
companies involved. From the perspective of acquired company, which is Cadbury,
people inside want to preserve their own culture and them also perceive Kraft as
outsider-buyer. So, separation is theoretically chosen.
11. References
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