The Sweet Success of Oreo in India Word Count: 2989 March 12, 2012 IESE Business School Avenida Pearson, 21 Barcelona, 08034 (+34) 93 253 42 00 Web: www.iese.edu 2 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 …show more content…
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
The premium chocolate industry is a large market in the United States and continues to grow around 10% annually. It is also populated with very strong
While Europe and the United States account for most chocolate consumption, the confection is growing in popularity in Asia and market forecasts are optimistic about the prospects in China and India (Nieburg, 2013, para 9). According to the CNN Freedom Project, the chocolate industry rakes in $83 billion a year, surpassing the Gross Domestic Product of over a hundred nations (“Who consumes the most chocolate,” 2012, para 3).
One of Trader Joe’s competitive assets is their business model. They open small stores that give their customers a neighborhood feel. Analysts have found that the chain sells almost twice as much per square foot as its main competitor, Whole Foods (INVESTPOEDIA, 2016). This unique strategy allows consumers to view and choose more products in a given area, therefore making them more likely to find what they are searching for. This strategy is sustainable if Trader Joe’s continues to operate in this manner.
The Regional Food Manager for Ye Olde FoodKing Company has retained Mark Craig of Blue Steel Consulting to perform a regression analysis to forecast demand of your product. The four characteristics readily available included price, competitors’ price, average income, and market population. The results of each regression analysis are presented at the end of this memo. The remainder of this memo describes the regression analysis used and limitations to the data available. Running a regression provides a statistical procedure to estimate the liner dependency of one or more
In 2015, Alabama rated at least 35.6 percent of its population obese. The obesity rate is the 2nd highest within the 51 states included in the United States. Researchers have found that over the past four decades, the consumption of food eaten away from home has also ascended critically. It is well known that eating excessive amount of fast food may lead to large amounts of calorie consumption and strengthens the encounter of obesity because of ample portion sizes and increased energy mass of the fast food items. Fast foods are typically high in calories, fat, simple carbohydrates, sodium (salt). Fast-food consumption costs were nearly
Candy is not yet a “mature” industry in the United States. The compound annual growth rate for candy in the past ten years has been close to 6% a year, a very solid gain in an industry that is supposedly mature. In fact, within the chocolate confectionery subcategory, the United States ranks 11th in the world in per capita consumption and fifth in the world in growth since 1980. Based on current demographics, many analysts believe that there will be further growth for confectioneries. A “baby-boomlet” is on the way, significantly increasing the teenage population. By the time the population bulge peaks in the year 2010, it will top the baby boom in the 1960s in both size and duration. According to government statistics, the percentage of children between the age of 5 and 14 will rise during the 1990s, increasing from 14.2 percent of the population in the 1990 to 14.5 percent in the year 2000. This trend will serve as a strong foundation for increasing consumption of confectionery products through the end of the century. Nevertheless, spending for food and drink as a percentage of all personal consumption is declining in the United States, and most manufacturers recognize that future opportunities lie in using profits from domestic
. . by comparison, George Naylor will see only $0.04 of every dollar spent on corn sweeteners” (95). So ultimately, the increase in processed foods have to do with its easy and cheap ingredients.
Putting our health into the hands of agribusiness and food corporations is one of many reasons our nation’s health is depleting and losing a battle against obesity. Food corporations target the poor, the time constricted, and the uneducated as a way to sell their product. All of these limitations are related to one another in some form or fashion. A high school dropout, making 19,000 dollars a year, who is a mother, has a higher probability of being obese than a woman the same age who is attending college. Convenience started with the introduction of Swanson’s T.V. dinner. Combined with a large advertising budget and a trusted name, processed foods entered the homes of Americans after the Second World War, selling over 13 million within its first year (Ganzel). The convenience of having a meal prepared for your family with minimal clean-up was sweeping the nation and other companies soon followed suit to keep up with consumer demand.
The main competitor of Whole Foods Market is Kroger Co. and Sprouts Farmers Market. These two companies are also providing organic foods of high quality.
The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline
Kraft Foods Inc. is the leading foods and Beverage Company in US and the world second largest business after Nestle. Kraft has been offered consumers delightful and wholesome foods for more than 100 years. Kraft Foods headquarter is in North America. Kraft Foods has many of the best-known brands in the world with operations in 72 countries and sales in 155 countries. Kraft Foods has 140,000 diverse employees around the world and this is one of the reasons why they can succeed.
According to Kraft, “because political conflict is endemic to policymaking, almost all policies represent a compromise on the goals being sought as well as the policy tools proposed to achieve them” (Kraft, 2015).
Over the past 10 years, Barry's Cookies became the leading cookie company in the United States. The value of the company
The objectives that Montreaux USA wants to achieve in the coming 3 years are national distribution of the new Montreaux product line, $15 million in annual sales, and to be within the top 25 in revenue. Accounting for 52.6% of the market, chocolate is the most profitable segment of the confectionary industry. In 2011, Europe captured the largest regional share of the global confectionary market at 45.2%, with the Americas following at
Traditionally, the fast food industry has been associated with the cause of this health-related issue (Boyle 2004). Major fast food companies have been called to Federal Government summits to improve the quality of junk food (Wright 2007). While most of these major companies have now taken