• 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. I will look at six existing products which are already available and evaluate how ...

    a ready-made meal which is cheap and is a foreign dish which is appealing. The image that is portrayed by the packaging is that it is healthy, nutritious, and appetising and has an attractive appearance. I think that the packaging allows the consumer to be well informed about what ingredients

  2. Business plan for a new service.

    new product development, I would therefore, have new products such as new flavourings and also my equipment would need to be durable. Better cooking equipment would also be used. Production process (H.R.M) of a takeaway. Kitchen porter - cutting onions, potatoes, prepare vegetables, clean dishes, and help the 2 chefs

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

    continually undergoing reformulation under pressure from its internal contradictions and from the rising efficacy of a multitude of resistance movements (McMichael, 2001, p. 208). Global politics is not reducible to the sum of traditional political categories such as states and transnational companies, but should include new cultural and institutional frameworks (Mol, 2001).8 Held et al.

  2. There has become an increasing demand for single portion food products - I will ...

    Yes no preference 15) How do you cook your single portion food products? Oven Microwave non-cooking products other - please state 14) Do you prefer precooked single portion foods? Yes No No preference 15) Do you like your single portion food product to be packaged in an ovenproof dish/microwavable container?


    lactic acid bacteria continue as the preferred source for food-use bacteriocins, either in the form of purified compounds or growth extracts. However, studies relating to the antibacterial properties of these organisms have been limited and not fully exploited for use.

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

    However, due to increase expectation for higher quality of food from the consumers, many less competitive corporations were kicked out from the market. Currently, the market is now dominated by Caf´┐Ż de Coral, Maxim, and Fairwood, with supermarkets and convenient stores competing for the market share.

  1. Labelling food products.

    * Sometimes foods have made up names e.g. "choclates" which does not give information about what is in them. 2 Weight and volume. The weight or volume of the food must be shown on the label. Comparing the weight with the price of different brands enables consumers to make choices on value for money between brands.

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

    believes, simple but powerful objectives that are agreed by all the world's countries and all the world's leading developing institutions and could be understood and supported by everyone. But at the same time these goals are different in their nature and distinguish from all the previously adopted goals in four

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