MARKETING PRINCIPLES AND BUSINESS PRACTICE

Marketing Principles and Business Practice

Executive Summary

Marketing plan is a comprehensive database which outlines the marketing efforts and marketing environment of the business. Kraft Food is the second largest consumer food and beverage in the world and largest in the North America. They have planned to reform the production and open more production units. They have distribution channels which reach out in more than 170 countries, capturing the market and targeting the customers. They are socially responsible and cater the health issues by adding healthy vitamins and nutritious elements in the ingredients of the products.

Marketing Principles and Business Practices

Company Description

The vision of Kraft Food is to achieve customer loyalty and maximum market share by providing high quality products and distributing it worldwide. Furthermore, for the year 2012, they have a vision of creating diversity in their workforce, production and products. There, workforce is already diversified with 47.8% multinational employees, and they are honored in “Top 50 Diversified Companies” of the world (Fennell, 2011).

To achieve this vision, they have planned certain strategies and a mission statement. Their mission statement highlights the core strategies and marketing dominance tactics. They have planned to reform the production and open more production units. This will be done to capture pristine areas and facilitating the markets with their products in surplus so that the customer could get whatever they want. In this way, they will attain more customers and retain existing ones, create customer awareness and achieve customer loyalty.

Markets and Competitors

Kraft Food delivers quality with quantity and provides customers with diversified and abundant consumer goods. It has a strong product portfolio consisting of crackers, cookies, beverages, dairy products and many others (www.americanbar.org, 2010). Simultaneously, they have established distribution channels for efficient marketing and appropriate raw material delivery. This is done in order to ensure quality and being cost effective at the same time. They have an impregnable structure and cut down the unprofitable segments, ensuring revenues so that they could expand further and satisfy shareholders (Food Marketing Analysis, 2010).

Kraft Foods Inc operates in the consumer packaged goods industry, generally classified as Beverages or Branded Foods and Beverages. This is the most diversified industry under which a variety of firms operate and the industry have the most liquid entrance. Out of many some of the firms which give Kraft Food competition include Nestle, Campbell, General Mills, Hershey, Unilever and Kellogg. These firms are chosen to critically analyze as these firms have market capitalizations in excess of $10 billion.

These firms operate both in U.S and internationally, because of their large capitalization. Customers in this industry have low switching cost and their decision is based on the tradeoff between the price and quality between companies and products. However, the world's largest dealer and the main competitor of Kraft Food is Nestle. Therefore, in order to retain and acquire customers, companies typically in this industry have to maintain market share by providing brand quality at affordable and economical prices ...