• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discussing food giant Kraft.

Extracts from this document...


Sarah Renfro 6/1/04 Marketing 551 7:05pm section The Wall Street Journal article "Eating Up" (May 21, 2004) discusses how food giant Kraft is responding to changes in the macro-environment and customer demand through various marketing strategies that we have discussed in class. Kraft has enjoyed a long history of growth and success in the food industry; however, they need to recognize and address the changes in the industry to maintain their market position. First, consumer needs and demands for food choices are changing. Currently customers are looking for "healthier, tastier, more sophisticated foods" than what Kraft is offering. There is a growing awareness of food-related health issues that have created new trends in food purchases such as low-carbohydrate diets, natural and organic foods, and gourmet and specialty products. Many of Kraft's products are the antithesis of these trends - high fat snacks (Oreos) and artificial cheese (Velveeta). Additionally, Kraft is facing new pressures in the marketplace. ...read more.


The overall result for Kraft has been a loss of profits and earnings misses. Other big food companies have successfully modified their products to respond to environmental changes. Campbell's Soup Co. has focused on improving its soups while Unilever revamped Slim-Fast and other products to respond to the low-carbohydrate diet trend. Nestle is looking for growth in the intersection of food and pharmaceuticals - "phood." Kraft is reacting to its recent struggles in several ways. They made a leadership change at the top, demoting the co-CEO who was associated with recent losses and elevating a new CEO who moved quickly to adjust strategy. The company is also working to increase the healthiness of existing products and broaden associations with well known companies such as Starbucks Coffee. New CEO Roger Deromedi stresses that they will continue to focus on traditional, core brands, which represent a majority of profit, while broadening products lines to attempt to serve a range of consumer needs. ...read more.


Specialty and gourmet products require a focus on quality that requires more labor and effort. Can Kraft compete against handmade brie with its automated production cheeses? Kraft's experience with Organic Valley highlights potential problems they may have in the organic market. Kraft's values and operations (mechanized food production and highly technical innovations) are in stark contrast to the principles and values of organic food. Many consumers are drawn to organic products because they value the meaning of organic food - healthier for the body and the environment, produced by companies that with strong ethics. Using organic ingredients in highly processed, artificial food products is in conflict with these values. Will the "natural and organic seeker" accept Kraft as a legitimate producer? By using Back to Nature as an entry into this market, they may avoid some negative branding issue as Back to Nature enjoys name recognition already. Kraft must also continue to respond to changing food fads. They have met the low-carbohydrate demand thru repackaging and re-labeling of existing products. The key to continued growth will be to continually scan the macro-environment and use their considerable resources to respond to emerging trends and consumer demands. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Food Technology section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Food Technology essays

  1. Is it legitimate to advertise "junk food" to children and is this the only ...

    It is worth noting the increasing prevalence of programme sponsorship and in-programme product placement that has taken place since the 1980's (Kitchen, 1999). This is just as much part of marketing as is advertising. There is also evidence that the greatest costs of childhood obesity may be psychological.

  2. Describing the Nature of the FAO Report "The State of Food Insecurity in the ...

    As these two different emergencies indicate, even when natural disasters do not reduce aggregate food supplies substantially, they can have a catastrophic impact on certain population groups. Often the poorest and most vulnerable are hardest hit, worsening poverty and malnutrition.


    The cytoplasmic membrane is the primary target of colicins A, E1, K, Ia, and Ib (Hechard and Sahl, 2002). These and other related colicins disrupt transport and induce the leakage of ions, such as potassium and magnesium ions, by forming voltage-dependent channels in phospholipids bilayers, destroying the potential of the cell.

  2. pet food marketing

    Their product range is limited as capacity is small and their main function is the medical treatment of pets, not selling products. 3. Explain how the market has been segmented referencing all information sources both academic and personally researched. Approx.

  1. Should Zambia and other nations accept genetically modified food aid to prevent their populations ...

    The import of genetically modified foods will be, 'a fatal trial and error method of trying to discover the health effects of GM food on the peoples' health' (Wertheim 2000:61). In the absence and poor enforcement of legislation regulating environmental management in developing countries the GM foods will exacerbate the ecological problems already existing in these countries(Lambrecht 2001:123).

  2. Research question: Do the Chinese fast food chains in Hong Kong behave in oligopoly ...

    Caf´┐Ż de Coral Fairwood Maxim Number of outlets 121 90 66 Market Share 43% 33% 20% Table 12market shares of different Chinese fast food chains in Hong Kong Fig 1 Factors determining the market structure When economists discuss about competition, market structure is a focus of the discussion.

  1. Globalisation and regulation of food risks. A theoretical overview.

    In agriculture, poultry production with an enormous range of chicken products is an example of the case. But regarding food production and consumption the changing role of retailers is even more important. Labour practices are reconfigured within retailing and redesigning retail-supply chain interfaces.

  2. Technology : Food : Diets.

    Raw eggs may contain salmonella, so foods containing it, such as home-made mayonnaise, should be avoided. If eggs are to be eaten, they must be cooked thoroughly until the both the white and the yolk are solid to avoid salmonella.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work