Kraft Foods Product Launch India

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MARKETING MANAGEMENT MODULE

MBA Assignment
Kraft Foods
Jeremy Tear 10/2/2012

The assignment attached covers the imaginary launch of Philadelphia Cheese in India. There is no doubt that Kraft will do this within the next 3 years as one of the fundamental reasons for the acquisition of Cadburys’ was to access this market effectively. The word count ignoring the title page, and the references and appendix is 4167.

Kraft Foods Inc. is the largest confectionery, food, and Beverage Corporation headquartered in the United States. It markets many brands in more than 160 countries. 11 of its brands annually earn more than $1 Billion worldwide: including, Cadburys’, Philadelphia Cream Cheese and Oreos,. The company, headquartered in Northfield, Illinois, a Chicago suburb, it is listed on the New York Stock Exchange.

In 2009, Kraft Foods launched a hostile bid for Cadbury, the UK-listed chocolate maker. Kraft needed Cadbury to provide scale for the snacks business, especially in emerging markets such as India. A “quick” SWOT analysis on the whole corporation will help in setting some strategic direction for the group defining a potential brand development opportunity for full evaluation. Strengths Scale & Positioning in Key food categories Financial strength and Business Scale Diverse range of leading brands Sales in 160 countries 25% Global revenues from emerging markets Opportunities Operates in many fast growing categories International Markets Cadbury Acquisition opens up new markets New Categories, products (organic, health) Weaknesses Difficulty in Launching Brands Most growth in acquisition or new markets Low growth in the USA Strong Competition from Nestle, Mars, etc

Threats Competition from Nestle, Mars Value in leading brands Lower consumer discretionary spending Volatile resource costs

There is an assumption that a fundamental decision to develop the port folio through the use of existing or newly acquired resources and that this decision has been taken at Group board level based on the simple SWOT analysis above. As such the group strategic policy is set. Strategic planning is also the first stage of marketing planning and defines marketing’s role in the organization. (Kotler et al 1996). The project considered is the brand launch of Philadelphia Cheese into the Indian market, the analysis is focused on the target market of India, the cheese industry in India, the positioning and strength of distribution of Cadburys’ in India, there is some dialogue on the Philadelphia product, but the assumptions around the brand strengths will be outlined simplistically because of the scale of the project and the limitation of word count.

The first phase of this process is the evaluation. This is done through both an Internal Audit and a Pestle plan. These two items together should give the basic backdrop to assessing the strategic circumstances that will influence decision making on the project and allow a formulation of a marketing plan.

For the internal audit Kotler (1996) argues that a structured analysis should be undertaken, one definition of this is as follows: · Diagnosis: The present condition · Prognosis: The present course · Objectives: The future direction · Strategy: The planned route · Tactics: The achievement program · Control: The monitoring system Internal Audit Diagnosis: Philadelphia cheese is distributed in India, in very limited quantities through a grey goods (legal but unauthorised) market of importers catering for the international tastes of the many foreign visitors and the visiting Diaspora of Indians. There is little promotion except through access to international sites e-business or social network activity. The brand has no structured distribution or positioning management. Cadburys’ has a long history of business in India, both manufacturing and distribution in India, and effective relationships with all of the key potential stakeholders in a launch of the Philadelphia brand. The...
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