EXTERNAL ANALYSIS FOR KRAFT FOODS
CHAPTER 1
1.0 INTRODUCTION
Kraft Foods or Kraft Foods Inc. (NYSE:KFT) specializes in the manufacturing and marketing of food products, including snacks, beverages, cheese, convenient meals and various packaged grocery products. (US SEC, 2010). The company operates in more than 155 countries across the globe. It has three main segments: Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets. Kraft Foods is the second largest food and beverage company in the world after Nestle. Its portfolio consisted of 11 brands which earn Kraft foods more than $ 1 billion worldwide. The brands includes: Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacob
…show more content…
Cadbury is a major player in the developing countries and earns billions of revenues from its customers in India, China and other Asian countries. Kraft foods can use Cadbury’s brand equity to offer new products in these markets to explore these markets and opportunities present there further. Secondly, Kraft Foods can reposition itself in the existing markets with more unique and health centered products. There is an increasing trend among the customers that they like to buy fresh, original and organic products. The company can reposition itself in the market as a provider of farm fresh products to gain the customer attention.
2.1.4 THREATS
The main issue currently faced by Kraft Foods Inc. is the Cadbury purchase related issues. After the purchase of Cadbury, there was lot of protest among the British nationals against this acquisition. The profit margins of the company dropped subsequently during this. The customers stopped purchasing the products offered by Kraft Foods, thus, hurting the market position of the company badly (YouGove SixthsSense, 2011). The acquisition brought no changes to the company as they failed to properly utilize the resources of Cadbury and failed to implement the proper positioning structure in the markets. There are chances that this acquisition can lead to the customer walk outs from Kraft products as a reaction to the
Looking at GIS’s revenue exposure, there is little political and sovereign risk as most of their income is sourced from developed economies with stable governments. Political instability or social unrest is not a major concern for GIS. As of 2017, a majority of GIS’s revenue comes from developed countries, with 79.2% of revenue coming from the Americas. 71.5% of total revenue is from the US, followed by 5.8% from Canada and 4.1% from Mainland China. Significant growth was seen in Asia with revenue from China increasing 53.5% year-over-year. Canada’s economy is growing slowly at 1.7% for the third quarter of 2017 and unemployment has dropped below 6% for the first time since 2008. China saw 6.8% GDP growth for the third quarter as
This changed in 2012 when Kraft teamed up with Mondelez International Inc. “Mondelez International’s strategy was directed at exploiting its powerful brands of snack foods across the 165 country markets where its products were sold.” (Gamble, 2016) The company aimed to fulfill their strategy by expanding the company’s product line to include cookies, chocolates, candy, gum, and
2. Kraft’s marketing strategy will benefit significantly from buying Cadbury in two different ways. Firstly, when we look at the brand portfolio of Kraft, which is the world’s second biggest food company. It is clear that there are plenty of old-timer cash cows, such as cheese, Nabisco and Suchard, but there are only very few rising stars. According to the Boston Matrix, cash cow means a product with a high share of a slow growth market, which can generate a stable
The strategic issue facing Roger’s Chocolate is how to grow the company by being able to gain new customers and
After watching the movie, Food Inc, my beliefs have only strengthened regarding the importance of having a healthy food system. Throughout the film, acts such as retaining animals in bleak living domains, food engineering, and forcing feeding animals are constant. As a result of these operations, the food we consume from factory farms becomes contaminated, putting ourselves at risk of disease. However, there are countless ways to steer ourselves away from this hazard. The simplest way to start off is locally, right here in Boulder, by requesting/buying organic foods at the grocery stores or local farms. Having such system matters because It stresses and reinforces the ideal of trust between consumer and manufacturer. Thereby making a system
Food Inc. is a documentary that tries to teach the viewer about America’s food chain and how it came to exist in its current forum. The film uses a mix of facts and opinions from people who work in the food production industry. Food Inc. does interview workers who are both for and against the current method of food production but not for the purposes of portraying an unbiased film, it comes across as an insincere attempt. During the course of the film we are shown current methods and past practices of food production dealing with meat and vegetables.
I was sitting in my AP Environmental Science class during my sophomore year. The lights were dimmed, the projector beeped on, and the documentary began. Then the title flashed across the screen reading “Food, Inc.” Though beforehand I thought little of what the film would be about, it would have me thinking to this day.
The Kraft Heinz Company is working with organizations such as Rise Against Hunger, Feeding America, Boys & Girls Clubs of America and the Red Cross to eliminate global hunger. Additionally, they are supporting hunger prevention initiatives like the National Produce
Kraft is clearly a strong competitor, as they remain one of the top contenders in each of their industries. They are able to strongly differentiate their products from those of other companies to capture a large share of the markets they participate in. They have a wide array of products that can serve as subsituties for each other to keep consumers within their brands, but give them options on which products to consume.
According to the financial report given, General Mills is an insolvent business. This is because even after making sum purchases and general expenses; it is still able to settle for them through its everyday operation. The various sources of money are also evidenced from the financial report.
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.
Merger proves to be beneficial for both the companies as Heinz 61% sales from outside North America and on the other hand Kraft Foods sales is covered by 98% from North America for the revenues in the fiscal year 2014. This gives a big boost for the Kraft Food to enter and tap the international emerging markets for its strong growth also. As
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
We begin with a background for both Kraft and Heinz and look at their current position. We examine both the companies through an internal and external assessment to evaluate their current positioning
Nestle is a swiss multinational food and beverages company. Its headquarters is located at vevey, Switzerland. In terms of revenue it is largest food company in world. Nestle produces the portified products such as baby food ,bottled water ,breakfast cereals ,coffee ,tea ,dairy products ,ice cream ,frozen food ,pet foods ,and snacks .Nestle provided 167 billion servings of fortified products .Among them 29 brands of Nestle are getting turnover of $US1.1 billions. Nestle is one of main shareholders of L’OREAL company, the worlds largest cosmetic company.