Kraft food

1. KRAFT FOODS INC.
-Utkarsh
Saxena

2. INTRODUCTION
 Kraft food in 1903 by James kraft
 Initially a cheese wholesaler in Chicago.
 Introduced pasteurized processed cheese and
holds patent rights over the process
 1920 exports to Europe & Canada.

3.  1933 company started to use radio on extensive
scale.
 Also sponsored a one hour weekly musical &
variety show KRAFT MUSICAL REVIEW.
 Varity of products that show innovations of Kraft’s.
 Velvseta (1928), miracle whip salad dressing
(1933), Kraft macaroni & cheese dinner (1937),
parkagnfargarine (1940), sliced processed cheese
(1951) & cheese whiz (1952).

4.  1980 Kraft food was purchased by Philip Morris in
$12.9 billion.
 1989 Kraft merged with general foods.
 After merger company became largest food
company in united states & second largest in
world.
 Philip Morris acquired Nabisco in $14.9 in cash,

5.  December 2000 acquisition of Nabisco was
completed.
 Kraft food was given two main units.
 Kraft food North America, & Kraft food
International.
 acquired Cadbury in 2010 on its third attempt for
$19.5 billion
 Split into two separate entities

6. THE VISION &MISSION
 VISION:
Helping people around the world eat and live
better.
 MISSION:
In order to fulfill this mission Kraft Foods Inc.
focuses on consumers in everything that they do.
The company also understands that actions speak
louder than words, so at Kraft Foods:
 We inspire trust.
 We act like owners.
 We keep it simple.
 We are open and inclusive.
 We tell it like it is.
 We lead from the head and the heart.

7. THE 4Ps OF KRAFT FOODS
 PRODUCT:
Snacks, beverages, cheese, grocery, convenient
meals
 PRICE:
varies as per product
 PLACE:
Retailers, agents
 PROMOTION:
Advertising, sales promotion

8. Kraft Foods
Inc.
Snacks
Biscuits,
salted
snacks and
chocolate
confectioner
y
Beverages
Coffee,
packaged
juice drinks,
and
powdered
beverages
Cheese
Natural,
process,
and cream
cheeses
Grocery
Spoonable
and
pourable
dressings,
condiments,
and
desserts
Convenient
Meals
Frozen pizza,
packaged
dinners, lunch
combinations,
and
processed
meats

9. PORTER’S FIVE FORCES
Threat of new
entrants - LOW
Bargaining power
of buyers -
MEDIUM
Industry competitors
-HIGH
Bargaining power of
suppliers - MEDIUM
Threat of substitutes
-LOW

10. SWOT ANALYSIS
STRENGTHS:

Positive sales in all 5 operating segments;
Snacks, Beverages, Cheese, Grocery, and
Convenient Meals.
 High priority and standards on food safety.
 Diverse range of brands and products
 Strong focus on R&D.
 Strong reputation and perceived value among
customers.

11. WEAKNESS:

High risk of contamination in agricultural products.

Difficulty launching new brands.

Margins depend on commodity prices.
OPPURTUNUTIES:
 Increased demand for packaged and processed foods
around the world due to change in lifestyles
 Chances to launch new products for customers with
health awareness

12.  Increased trends of bottle water and flavoring
consumption
 Opportunities in developing countries
THREATS:
 Increasing rates of obesity world wide and
increase in health awareness among customers
 Customers switching to generic brands
 Increased intensity for market share in European
as well as other global markets.

13. PROBLEMS
 Change in customer dining habits
 Conception among the customers that the
products are cause for health complexities
 Increasing prices of petroleum causing increase in
cost to the company
 Incidents of compromised safety in packaging

14. SUGGESTIONS
 Company can focus on launching nutritious and
healthy products
 Use organic ingredients in current products
 Reduce risk of pesticide contamination from
agricultural products
 Capitalize on the increasing rate of people going out
to restaurants.

15. THANK YOU