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

    They think that the food now provided is too oily, and too much meat. The quality of the food 79% people think that it is an important factor, and will critically affect their preference to Chinese fast food chains. The quality of food does not only mean the taste of the food, but also the cleanliness.

  2. A healthy diet when Pregnant.

    Gently stir in the chopped fresh tarragon or dill and the salmon. 7. Serve with Parmesan shavings. Pregnancy Questionnaire If you strongly disagree circle 1. Generally disagree circle 2. Generally agree circle 4 Strongly agree circle 5 If you are unsure circle 3.

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

    The region will need to step up the pace dramatically to reach the MDG target6. Further information about the other regions in the world is provided in the table 1. Changes in the progress towards achieving the MDG targets at the national level are illustrated by the ratio of the


    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.

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

    Many parents object strongly to the influence this has over their own children. Many nutritionists argue that the type of high fat, low fibre diet promoted by McDonalds is linked to obesity and other serious diseases. The sort of diseases that are now responsible for nearly three-quarters of premature deaths in the western world.

  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. Fast-food Industry Analysis

    The Wendy's franchise is the third largest quick-service hamburger restaurant chain in the world, with more than 8,811 restaurants open in the United States, Canada, and other international markets (www.wendys.com). Wendy's systemwide sales totaled 9.4 billion in 2002 and currently controls 13.1% market share in the quick-service restaurant industry, while

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

    are non retrievable and maybe permanent, therefore the expansion of these foods to developing countries maybe unwise and undesirable' (Wertheim 2000:64). Although the ecological risks issue received some discussion in government ,international and scientific circles ,discussions have often been pursed from a narrow perspective that has downplayed the seriousness of

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