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Executive summary
This report looks into the development of Kraft foods company and examines the envisaged future progress of the company. A brief account of the company is at first outlined. The discussion subsequently lays its focus on several advantages as well as limitations of in the modern age. The achievement of Kraft is scrutinized in connection with advertising as its strategic criteria.
Kraft is revolutionizing pitches as there continues to be an improvement of the economy. Nevertheless, it has been realized that consumers still dine at home more frequently now incomparison with three years ago. This has paved way for the giant purveyors to take advantage of the opportunities created for introducing pantry staples to shoppers.
Thus, Kraft comes up with campaign strategies with a theme that aimed at achieving its sole purpose of getting the intended audience. The campaign seeks to put on sale the full set of Cheese and Macaroni but with more emphasis on gourmet cheese. The campaign took a period of two weeks with a commercial all through the eighth-season terminal of the ‘American Idol.’ Besides television advertisements and commercials Kraft uses ads online, print ads, billboards and social media for instance Twitter and facebook.
Conclusions are drawn that further demonstrate the progress in this area in addition to competition from preeminent competitors which will enhance the improvement of the quality of products. It is as well suggested that advertisement will progressively improve and sensitize consumers as well as potential buyers thus the need to incorporate it more.
Table of contents
Executive Summary i
Table of contents ii
Introduction 1
Discussion 2
Conclusion 5
References 6
Introduction
This report seeks to carry out a survey on the existingstate of Kraft Foods Companyalong with giving a brief discussion on the predicted advancements in the production of its products.
Through a careful examination of articles for instance books, journals,magazines that have been published in the recent past together with the internet, this report gives descriptions of the most important varieties of cheese eaten today. It also examines how these types perform on the subject of resolution. The report continues with considering the outcome of further advances in for example advertisement, campaign in addition to deployment of novel strategies needed for the future development of Kraft.
Kraft foods was developed byJ.L.Kraft in 1903 who was later on joined after six years by four of his brothers changing the name of the firm to J.L. Kraft and Bros. Co. Kraft started with purchasing cheese from a wholesale market at Water Street in Chicago. He would later resell it, by the use of a wagon on loan along with a horse called Paddy. In 1914, the company bought their first factory for cheese production in Stockton in the state of Illinois.
A year later they started developing processed cheese using ounce tins of 3-1/2 as well as 7-3/4. The methods used by Kraft to process cheese were termed radical which earned him a exclusive rights for it in 1916. The following year the company started making deliveries of cheese to the U.S. military during the First World War.
His success prompted him to introduce numerous additional products. For instance, Velveeta Process Cheese, Miracle Whip Salad Dressing,Philadelphia Cream Cheese, Kraft Dinner Macaroni plus Cheese, and cheese that is processed in loaves.Kraft came up with a strategic method of advertising his work with the intention ofpromoting his products. Thus, Kraft pioneered sponsorships of radio and television shows.The radio programKraft Music Hall together with Kraft Television Theatre demonstrated how advertising via the new media introduced then was effective.
Their commercials showed hands making recipes with the use of Kraft products. This henceforth turns out to betheir symbol of advertising success. In addition Kraft applied aggressive techniques on sales merchandising which led topromoting the expanding market share of the company in an ever-increasing varied line of manufactured goods.
As the Kraft foods company grew it underwent several changes of names as it continuously merged with other companies. For instance in 1930 it was Kraft-Phenix Cheese Corporation, later obtained by the Corporation for National Dairy Products, later in 1969 to Kraftco Corporation and in 1976 retrieved to its former name Kraft Inc. In the year 1995 the month of January Kraft General Foods developed into Kraft Foods, Inc. The management structure was changed and operated as a single company.
Discussion
The company, Kraft foods, is still growing as it initiates some changes towards meeting the changing needs of its consumers. They achieve this through building on the history of the company, the heritage of its brands that are well known, the natureof its initiators as well as the enthusiasm of its members of staff. The company goes on withdeveloping its past spirit of innovations with fresh products with low or no levels of fat in various categories.
The acquisitions of the company have also gone up including Balance Bar along with Boca Burger in early 2000 and Nabisco brands in the year 2000. The products are rated the finest worldwide with a wide-range of brandsthat exceed seventy. Such are Kraft Cheeses, Nabob Coffee, Maxwell house coffee, Post ready-to-eat cereals, Ritz Crackers, Lifesavers Candies and Oreo Cookies. Others include Planters Nuts plus Nuts, Tombstone Pizza, Kool-Aid beverages and many more (Anonymous, n.d).
Kraft is currently at the verge of launching a range of gourmet cheeses including Blue cheese, Brie, Camembert and others along with their traditional range such as cheddar and Adam. They want to make the market involved in dating relationships buy cheese to serve at dinner parties during dating occasions and other related functions.
Basically, their focus is to make cheese an attractive option on the menu of people. The company aims at increasing cheese consumption in the market for people between the age of twenty eight and forty. These consumers are both male and female. The theme was that every sophisticated person needs good cheese, great coffee and good friends.
Kraft asked for a review order from the Commission of which according to them had violated the FTC[1]Act. Kraft was being accused of misrepresenting information on calcium quantity in their pasteurized products, Singles compared with the calcium in the five-ounce milk as well as the one in imitation cheese pieces. Thus the Commission banned Kraft from making the misrepresentations. On the other hand, Kraft filed the petition for an appraisal.
There are three categories of cheese that compete in the market namely; the food slices of the process cheese, imitation slices, as well as substitute slices. The first category of cheese slices contains natural cheese of approximately 51% according to the federal regulation. It is also called dairy slices. On the contrary imitation sliceshave little or no natural cheese but water, flavoring agents, fortifying agents and vegetable oil.
As a result of lesser expensive imitation slices by other companies that produced equally nutritious Kraft started losing market pushing it to respond to the competition via advertisements jointly identifiedas the “Five Ounces of Milk” campaign. This campaign was launched to inform the consumers and the public that the cost of Kraft singles is more due to the fact that five-ounce milk is used rather than ingredients that are less expensive.
In addition the ads lay focus on calcium content found in Kraft Singles so as to capitalize on the consumer interest, which is ever increasing, in the consumption of calcium. Kraft modified its ads thrice implementing two of the modifications towards the end of the campaign after two years. This prompted the Commission to make its conclusions due to the transferred violations that were transferred to the other Kraft products(Oswald, 2010).
Its direct competitor is Nestl which invests a market capital of 209.98 billion compared to 61.75 billion. Other competitors though do not impose real threat to the company but however are coming to speed with some products that are receiving massive reception by consumers. For instance Tyson Foods Inc. has a market capital of 6.90 billion, ConAgra Foods, Inc. with 10.89 billion market capital and Danone with 44.43 billion market capital(CapitalIQ, 2011).
Conclusion
Though Kraft faces challenges like accusations for failure to label products that are not adequately tested, from competitors and federal laws the company maintains its stand on campaigns for its products. The company insists that advertising is the only way to enable effectiveness the effectiveness of a brand.
References
Anonymous. (n.d). The History of Kraft Foods Inc. Retrieved July 25, 2011, from http://homepage.mac.com/allanmcnyc/textpdfs/kraftfoods.pdf
CapitalIQ. (2011). Kraft Foods Inc. (KFT). Retrieved July 25, 2011, from http://finance.yahoo.com/q/co?s=KFT
Oswald, L. J. (2010). The Law of Marketing. Boston: Cengage Learning.
