KRAFT FOODS INC.

-Utkarsh Saxena

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.

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).

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,

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 Mondelēz International and Kraft foods in 2012

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. We discuss. We decide. We deliver.

THE 4Ps OF KRAFT FOODS

PRODUCT:

Snacks, beverages, cheese, grocery, convenient meals

PRICE:

varies as per product PLACE:

Retailers, agents PROMOTION:

Advertising, sales promotion

Kraft Foods Inc.

Snacks

Biscuits, salted snacks

and chocolate confection

ery

Beverages

Coffee, packaged

juice drinks,

and powdered beverages

Cheese

Natural, process,

and cream cheeses

Grocery

Spoonable and

pourable dressings, condiment

s, and desserts

Convenient Meals

Frozen pizza,

packaged dinners,

lunch combinatio

ns, and processed

meats

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

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.

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

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.

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

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.

THANK YOU