Kraft Competitive Strategy

2604 Words Mar 5th, 2013 11 Pages
The Sweet Success of Oreo in India

Word Count: 2989
March 12, 2012

IESE Business School
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Web: www.iese.edu

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COMPANY OVERVIEW1
Kraft Foods, Inc. is an American multinational confectionary, food and beverage conglomerate. Kraft is the second largest food company in the world with 2011 revenues of $54,365 million. Approximately 60% of Kraft’s revenues are generated from outside of the US, with the developing markets playing an increasingly important role towards the overall growth of the organization. The company sells its products in approximately 170 countries and its product portfolio contains 11 iconic brands that generate $1 billion or more in annual
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It is expected that the burgeoning middle-class will drive growth in India through increased discretionary spending.5 Income per capita is expected to grow at a CAGR of 14%.6
In addition to the increasing wealth of the nation, the country is also experiencing a change in consumer preferences to more Westernized tastes. The working population in
India is expected to grow to 65% by 2030.7 This trend results in the increased consumption of processed food, particularly snacks, as compared to total food from the 38% in 2010 to
50% in 2012.8
Biscuit Segment –
The $2.5 billion9 Indian biscuit market is growing 14% annually and is expected to grow approximately at 240% over the next 10 years10. The functional biscuit segment, which includes glucose and digestives biscuits, has dominated the Indian market with steady growth of 8% per annum. However, the smaller indulgence segment, comprising crème, chocolate biscuits, and cookies is growing at an annual rate of 25% to 30% thanks to rising
disposable
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