Kraft Food's Case Study

Problem Definition Kraft Foods Canada plans on rolling out its flagship product, Kraft Singles, to a new population segment; Canadian millennial moms. Millennial moms consist of Canadian moms born between 1981 and 2000. The need to reach out to this new segment is informed by two factors, external factors, and internal factors. Internally, the company has witnessed dwindling overall sales volumes for the product at about one percent annually. Moreover, the market for processed cheese, which Kraft Singles is made of, is shrinking.

Kraft Heinz Company is currently the fifth largest food and beverage company in the world and the third largest in North America. It operates globally in producing high quality foods and beverages for consumers in more than 200 countries (Kraft Heinz Company, 2017). With its co-headquarter in Pittsburgh and Chicago, USA, the company has divided 4 big regions under the global team, which are AMEA (Asia, Middle East, Australia and New Zealand), NA (North America), LATAM (Latin America), and Europe. As it operates in the packing food industry, the company has a characteristic of having low profit margin with high volume.

Kraft Foods Inc. is a company which has different origins and originators. The three most successful food entrepreneurs are J.L. Kraft, who started his Chinese business in 1930; C.W. Post, who founded Postum Cereal Company in 1895; and Oscar Mayer, who began his meat

“Our mission is to produce and market trusted quality food products that fit today's changing lifestyles. We are blessed to have the best agricultural team and employees in the food industry. As a leading food manufacturer we value our customers and their health needs. We strive to be the world's first choice for protein solutions while maximizing shareholder value, living our Core Values and fostering a fun work environment.”

According to Exploring Management, there are six must have managerial skills. These six skills include, teamwork, self-management, leadership, critical thinking, professionalism, and communication. Trader Joe’s represents all aspects of the six skills discussed within the text, but there are few more identifiable than others.

Kraft Foods has several strategies for long-term success: building superior brand value, transforming their portfolio, expanding the global scale of the business, and driving out cost and assets. More product benefits means innovative packaging, consistent high quality, wide availability, and strong brand images. This way they can shift their product portfolio accordingly. In terms of global expansion, Kraft Foods is developing business in many international markets while concentrating especially on the fastest growing developing market around the world.

Kraft maintains focus on its “unrivaled portfolio of brands people love,”2 as more than 80% of its revenues come from products that hold the number one share position in their respective categories. Kraft‟s capital structure is 64.1% equity and 35.9% debt. Its operating margin is currently 13.69% (EBIT/revenue). Kraft is a high yield dividend-paying company offering 3.70% dividend yield. Its earnings per share ratio (EPS) is currently 2.09. COMPETITOR OVERVIEW Given Kraft‟s large portfolio of brands (see Appendix E) and range of products, it faces competition from domestic and international companies, smaller regional companies, and generic brands. Some of Kraft‟s key competitors are Nestle, Pepsi-co, Coca-Cola, Danone, and Heinz. As Kraft moves forward with its plan to capture market share in developing markets, it must be aware that several of its competitors have similar growth strategies. For example, Coca-Cola has named Mumbai one of the cities most important to its growth and Nestle touts its commitment to Middle East operations after opening a $136 million manufacturing plant in Dubai (see Appendix F). GLOBAL GROWTH STRATEGY - “HITTING OUR SWEET SPOT” Seven months after acquiring Cadbury, Kraft announced a new global growth strategy. Centered on marketing leading consumer brands (see Appendix G) and pursuing growth opportunities consistent with consumer

Kraft Foods is an American food and beverage multinational company. It produces and markets many brands to more than 170 countries, and 12 of its brands earn more than $1 billion worldwide annually (“Kraft Foods”, 2011). Most of the food products which we consume everyday belongs to this company. For instance, some of well-known brands are Jacobs and Maxwell, Milka and Toblerone, Tang and Cipso. It is the successful and popular leading food companies of the world. So, Kraft Foods will be reviewed in terms of values and promises that it communicates with consumers and employees, communication and job satisfaction respectively.

Kraft & Brothers Company in 1909. They started to produce their own processed cheese in 1915. This method was eventually patented in 1916. This business continued to thrive, and in 1930, National Dairy Products Corporation acquired it.

Kraft is an innovative company that started over 100 years ago, in 1903, by a man named James Lewis Kraft. This man decided to get into the cheese business and purchased wholesale cheese. He then began selling this cheese to small stores in Chicago, Illinois. With the help of his brothers, the business grew exponentially and they eventually began manufacturing their own cheese. With its continued expansion and growth, Kraft quickly became a common household name, and by 1926 sales were $36 million. Over the years Kraft expanded its product line to Philadelphia cream

 National: Companies which are present in only one country but which propose products such as biscuits, dairy products… Example: Michel & Augustin, St Michel, la Mère Poulard (France)  Regional: Smaller companies which are present in only few regions and propose

1960 There have total 190 KFC franchisees and 400 franchise units in the U.S. and Canada.

More than ever before people want a lifestyle in which the food they eat and the activities they take part in contribute equally to keeping them healthy. Research undertaken for Kellogg, as well as comprehensive news coverage and growing public awareness, helped its decision-takers to understand the concerns of its consumers. In order to meet these concerns, managers realised it was essential that Kellogg was part of the debate about health and lifestyle. It needed to promote the message 'Get the Balance Right'. Decision-takers also wanted to demonstrate Corporate Responsibility (CR). This means that they wanted to develop the business responsibly and in a way that was sensitive to all of Kellogg’s consumers’ needs, particularly with regard to health issues. This is more than the law relating to food issues requires. It shows how Kellogg informs and supports its consumers fully about lifestyle issues. Any action within a large organisation needs to support a business direction. This direction is shown in the form of a broad statement of intent or aim, which everybody in the organisation can follow. An aim also helps those outside the organisation to understand the beliefs and principles of that business. Kellogg’s aim was to reinforce the importance of a balanced lifestyle so its consumers understand how a balanced diet and exercise can improve

Kellogg is $14.2 billion American multinational food manufacturing organization based in Battle Creek, Michigan, USA. The food manufacturing giant has production units in 18 countries and it markets more than 1,500 products in over 180 countries all over the world. Over the time Kellogg has come out as a successful brand known for its packaged breakfast food items.

Step 1: Identify the firm’s existing vision, mission, objectives and strategies. Kraft Foods Vision Statement • “Helping People Around the World Eat and Live Better." • “Make Today Delicious”   The following core values guide Kraft Foods actions as they strive to ac...