2. 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.
3. 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).
4. 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,
5. 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
6. 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.
7. THE 4Ps OF KRAFT FOODS
PRODUCT:
Snacks, beverages, cheese, grocery, convenient
meals
PRICE:
varies as per product
PLACE:
Retailers, agents
PROMOTION:
Advertising, sales promotion
9. 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
10. 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.
11. 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
12. 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.
13. 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
14. 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.