KRAFT FOODS

Essay Two- Kraft Foods



Essay Two- Kraft Foods

Introduction

Kraft Foods have enjoyed a formidable position in the food and confectionary sector, being the leader, and committed to provide top quality edible products to its customers. Since its inception in 1903, Kraft Foods has practiced its core values of providing standardised food to their customers not only locally but also on the international scale. The Company, since its establishment by James L. Kraft in Chicago in 1903 is one of the major players in food business. In 2000, Kraft had its business around the world except Europe.

In September 2006, Kraft Foods acquired the European business of United Biscuits, and the rights to key Nabisco trademarks in Europe, Middle East and Africa, including Oreo, Ritz and Chips Ahoy. Kraft Foods is an independent company. The company is a member of the Dow Jones Sustainability Index, and the Ethibel Sustainability Index. Today, Kraft Foods has about 90,000 employees and is one of the largest food and beverage companies in the world, with annual revenues of more than 34,000 million dollars, and a broad portfolio of iconic brands marketed in 155 countries. Kraft food is has planned to invest more in the emerging markets such as Brazil, Turkey, South Korea, South Africa, Russia, Poland, Philippines, Mexico, Indonesia, India, Egypt, and China.

International Strategy

Point of Difference

On of the most significant part of Kraft Food's international strategy is its point of difference. The point of difference for the products of Kraft Foods is delineated by the fact that they are better in taste, quality as well as packaging. This unit focuses on enterprise outcomes by supplying buyers with believable, scientifically sound nutrition goods and services. Kraft Foods offers quality taste in attractive packaging, which makes the sales of Kraft Foods to rise comparatively faster than those of its competitors.

Decision Making and Strategy

The decision making tool and system are also part of its international strategy. It allows the company to take proper decisions in the international market. For instance, what affect does one promotion has on other products produced at the same plant? Or, what happens if the dates on the promotion are altered slightly, to move the incremental sales to other weeks? Also, is the promotion running simultaneously with a promotion run by another division or segment of the company? As managers begin to analyze the impact of marketing decisions on the entire supply chain, these decisions become part of the overall product strategy for Kraft Foods.

The concerned personnel of Kraft Foods have a well devised plan for the distributional strategies. The products are not one that the Kraft Foods can sell directly to customers. As a result, the only option that the company has is to ensure that the distribution network for the product is strong and ensures adequate distribution.

Pricing

Price setting is an issue of crucial relevance to Kraft food in its international market strategy. Therefore, the price for this product is established in a manner so that the availability of the product to the ...