...Budgeting and strategy A Kraft Foods UK case study Case study pages • 1: What is a budget? • 2: Kraft´s income and expenses budget • 3: The importance of feedback • 4: Constructing an expense budget • 5: Advantages and disadvantages of expense budgeting • 6: Alternative types of budgeting • 7: Conclusion Read more: http://businesscasestudies.co.uk/kraft-foods-uk/budgeting-and-strategy/conclusion.html#ixzz1nUCFRFJb What is a budget? A budget is a financial plan that sets out, using figures, an organisation's expected future results. For planning purposes, organisations can use many different types of budgets. For example: • Income and expenditure budgets. These show how much an organisation expects to receive and to spend in future periods. • Production budgets. These set out how much an organisation must produce in coming periods of time in order to meet demand. • Profit budgets. These bring together planned sales, costs, and profit figures. By creating budgets, managers can: • set out a clear plan, involving target figures for defined periods of time • communicate their targets clearly • motivate employees to achieve these targets • control performance by monitoring actual outcomes against planned targets • meet the organisation's objectives. This case study illustrates how Kraft Foods uses budgets to enable it to meet business objectives related to financial performance with a view to achieving...
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...facing problems with the allocation of marketing budget she had, but what mix to go with for various marketing programs to use (in- pack premiums, trade promotions or advertising). To make matters complicated the manager was unsure what marketing mix to go with, since all the three mix were important for the brand. The paper will discuss the above issues faced by the company and explain various alternate solutions the manager can take to face competition from Kellogg’s and other brands like Miller general and Quaker oats. Table of contents Page History of the company …………………………………………………… 04 Children’s cereal market in Canada ………………………………...….. 04 Issues faced by the company ……………………………………………. 05 Implementation and alternatives ………………………………………... 06 Recommendations ………………………………………………….……….07 Conclusion ……………………………………………………………….…...08 References ………………………………………………………………...… 09 History of the company: Kraft General Foods was purchased by Philip Morris in the year 1988. It was merged with general foods which Philip Morris already owned to create Kraft General Food Inc. In 1989 Kraft and Generals Canadian operations were merged. Soon after the merger KGFC became the largest packaged goods company in Canada with sales of 1.64 billion and profits of 222 million. The company had a strong brand portfolio and well-established position in its food distribution channels, with an excellent reputation for its food...
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...differentiates our products/services 20 External Environment 21 Industry 21 Economic 22 Technical 22 Societal 23 Legal 23 Competitors 24 Nestle 24 Pepsi 26 Tyson Foods Inc 28 Kewpie 30 Financial Ratio Analysis 31 Growth Strategy 34 Our new Idea 34 Goals & Objectives 34 Description of Growth Strategy 35 Market Selection 37 Segmentation 37 Targeted Customer Segments 38 Positioning 38 Product 39 Goals 39 Product Description 39 Processes 40 Outsourcing 42 Life Cycle Stage 43 Services 43 Place 43 Goals 43 Distribution Plan 44 Channel Responsibilities 45 Supply Chain System 46 Promotion 48 Goals 48 Promotional Blend 49 Web Based Promotion 49 Social Media Promotion 50 Billboard Promotion 50 Promotional Budget 51 Price 51 Value Proposition & Customer price sensitivity 51 Pricing Strategy 52 Breakeven Analysis 53 Expected Financial Analysis 54 Internal/Sustainable Growth Rates 54 Projected Budget 55 Best Case Scenario 58 Worst Case Scenario 59 Situational Analysis 61 Calculated WACC 63 Implementation & Control 65 Project Conclusion 66 Appendix 67 References 75 Executive Summary Kraft-Heinz is a leading global producer of food products. It is the world’s fifth leading food superpower. We own products such as Heinz...
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...Case Study Kraft Foods Implementation of SAP Table of Contents INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …. 3 INNOVATION………………. . . . . . . . . . . . . . . . . . . . . . . . . . . . ………………3-4 PEOPLE……………….. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......5 STRATEGY………………….. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..5-7 SUCCESS………………………. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-8 INTRODUCTION Kraft Foods was founded in 1903 by J.L. Kraft who began by buying cheese at wholesale markets in Chicago and then reselling it to local merchants in the area. Until 2012, Kraft Foods was primarily made up of three major businesses Kraft Foods, General Foods and Nabisco. Each of these businesses had gone through growth and mergers over the years and in 1995 the company was brought under the name of Kraft Foods and consolidated into one company. In 2004, Kraft Foods came to the realization that they needed one Enterprise Resource Planning (ERP) system to consolidate all of their business activities under one system for all locations within North America. Kraft Foods decided to implement SAP, which they had previously chosen for their manufacturing and distribution locations within Europe. SAP is a very popular ERP system that is generally used by large companies who are...
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...[pic] |NesTLÉ REFRIGERATED FOODS: Contadina PIZZA | | | |Case Presentation | | | |MKT 6301 - Fall 2009 | |Prof. Abhi Biswas | | | |submitted by: | | ...
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...I. Situation analysis Kraft foods successful launch of its single serve coffee pod system in Europe has led to the company’s decision to release the same product in North America. Greg Herzog, Product manager of coffee development for Kraft foods Canada will be the ultimate decision maker in the situation. Mr. Herzog will determine whether to launch the product to the Canadian market at the same time as the United States launch or wait results from the Unites States launch to gain more market insight. In order to make an informed decision Mr. Herzog needs to analyze four key components: a suitable branding strategy for Maxwell House and Nabob, wholesale and retail pricing, distribution methods, and an effective advertising and promotional strategy. Lastly, Mr. Herzog must make these decisions within a 1 million dollar budget and determine if he will be able to meet his market share objective of an initial 35% and still breakeven. As a company, Kraft enjoys a worldwide reputation of leading edge innovation and has a stated company mission to achieve leadership in the markets it serves. Currently, Kraft holds a leadership position in market share for coffee sales worldwide as well as in Canada. Kraft sells its coffee in Canada under the brands, Maxwell House and Nabob which enjoy a combined market share in Canada of 32%. Maxwell House holds the largest market share in Canada, with top sales in both roast and ground coffee. Nabob coffee is Canada’s leading premium...
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...------------------------------------------------- Table of Contents Executive Summary 3 Situation Analysis 4-7 Competitors 4-5 Company 5-6 Consumers 6-7 Objectives 8 Budgeting 8 Strategy 9-10 Execution 10-11 Evaluation 11-12 References 12 ------------------------------------------------- Executive Summary The Kool-Aid brand has faded as the market has become flooded with various choices of sodas, waters, energy drinks, packaged and powdered sports drinks, and a myriad of other options. Our goal is to bring back this brand which was once at the heart of teen popular culture. We will focus on bringing two new products to the Kool-Aid lineup: sugar-free premixed and energy drink. The target market for sugar free Kool-Aid is soccer moms who generally have one to three children ages four to fourteen. We believe these moms will like the idea of having an alternative to sugary sports drinks and sodas for their children. The target market for Kool-Aid energy drink is young adults who enjoy sports and gaming. We believe that these people drink energy drinks more often and grew up with Kool-Aid and will be happy to see it return in a form they can drink and still feel like adults. We plan to run full page advertisements in magazines such as Better Homes and Gardens and many gaming and sports magazines. We have allocated 7% of the revenue from Kool-Aid for advertising these new products. Once a sufficient number of advertisements have run, we will survey...
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...create value for its shareholders. Kraft Foods Inc. (KFT) was a processed food company that produced big name brands, such as Oreo, Maxwell House, Honey Maid, among others. In 2012, the company was the second largest processed food company in the world based on revenues, after its main competitor Nestlé. However, slow growth in many critical industry segments meant that the company was unable to increase shareholder value throughout 2011. Additionally, sales were stagnating and revenues were only increasing by raising prices. In order to address these issues, the Board of Directors at KFT announced in 2011 that the company would be restructured to create two new companies by the end of 2012. First, there would be a global snacks business that included all of KFT’s business units in Europe and developing markets, in addition to the United States snack business. This new company would be called Mondelez International (MDLZ) and the Board hoped it would be a high-growth global snacks business. The remaining business units would become Kraft Foods Group (KRFT) and would be a high-margin, slow growth, North American grocery business. The following report begins with assessing the processed food industry as a whole through a PESTEL and Porter’s Five Forces analysis. Second, a SWOT and financial analysis are used to evaluate MDLZ and KRFT. Lastly, final recommendations are made for each of the new companies. II. Industry Analysis The processed foods industry incorporates many different...
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... Marketing Mix Effectiveness – 4 P’s 9 SWOT Analysis OREO 10 Marketing Objectives 11 Strategic Thrust 11 Strategic Objectives 11 Core Strategy 12 Target Markets 12 Competitor Targets 12 Competitive Advantage 12 Marketing Mix Decisions for Poland 13 Product 13 Promotion 13 Price 13 Place 13 Budget 14 Sales and breakeven 14 Promotion expenditure 14 Organisation 14 Implementation 15 Marketing control 15 Action plan (see excel) 15 Reviews 15 Bibliography 16 Executive Summary This report is the marketing plan for the proposed market development of Oreo brand to Poland. The purpose of the plan is to analysis the feasibility and profitability of introducing Oreo brand to Poland market. Oreo brand is one of our leading brands and it constitutes a substantial part of our revenue in the previous years. Oreo is the biggest selling cookies in china in 2006 and it sales reach $1 billion in US in six months. Oreo is a sweet, creamy chocolate with moderate amount of calories and also serve as complementary products. Well packaged and easy to unwrap. We want to extend the product to every home in Poland and our target will be; consumers enjoying Oreo as indulgence, the health and wellness conscious people and the busy customers that needs fast food. In order to grow at a rate that is feasible, considering our strengths and weakness and the prospect Poland market which has few foreign producer presently...
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...in the Kraft Foods offerings. The steak sauce giant “has little competition, substantial sales, and excellent margins” (Kerin & Peterson, 2010). The customers of A.1. are loyal and the market share of over 50% shows this. The problem facing A.1. is that Lawry’s has decided to launch a new steak sauce during the Memorial Day Weekend which is one of the holidays for the steak sauce industry due to the increase in grilling activities that take place. Lawry’s is owned by Unilever and is known for its seasonings and marinades. Lawry’s will launch its new steak sauce which has similar characteristics to the A.l. steak sauce, in both taste and appearance, and charge less per bottle as well as try to take over A.1.’s Memorial Day sales by offering a two-for$5 promotion through the supermarket Publix. This creates a problem for A.1. because the holiday weekend earns approximately 10% of its annual revenue. The question that Kraft Foods faces is how should the company react to the launch of Lawry’s steak sauce? Problem Identification The problem for Kraft Foods is figuring out how to react to the launch of the new Lawry’s steak sauce. The company has focused both time and resources on a marinade line for A.1, spending $10 million on advertising and $5 million on consumer promotion spending. “The marinade line was projected to lose about $7 million in operating profit in 2003, though this was an improvement from a $10 million loss in 2002. The total brand’s 2003 budget called...
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...ahead with introducing its refrigerated pizza? 5 Why should Nestle’ not launch refrigerated pizza? 6 Recommendations 6 Answers to the questions given for the case 7 Calculations: 9 Overview In 1989 after a lot of market research and analysis Nestle’ Refrigerated Foods (NRFC) bought a small company, Lambert, which had competency in manufacturing refrigerated pasta and sauce. Nestle’ rebranded the Lambert pasta as “Contadina pasta”, which was highly appreciated and accepted by the US citizens. Soon the revenue of NRFC jumped from $75 million to $ 150 million in a short span of two years. Taking a cue and inspiration from the success of the pasta, Nestle’ started exploring opportunities to launch its refrigerated pizza. This report will analyse the reasons behind the success of the pasta and conclude whether Nestle’ should diverse into the refrigerated pizza market or not. Introduction Founded in 1866, Nestle by revenue is the worlds’ largest food and beverages company. With its headquarters in Vevey, Switzerland, it has diverse product lines such as: Dairy products, confectionary, refrigerated products, bottled water, pet food etc. Nestle’ through its constant innovation and long term strategy has remained a leader in many segments of the market and has always been on the growth trajectory In 1987 Nestle’ launched its refrigerated pasta, which was a new product in the market and soon Nestle’ became the market leader in this segment and achieved exceptional growth...
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...Promotion Management Final Assignment: Planter’s Peanuts Campaign Table of Contents 1 Purpose 2 2 Situation Analysis 2 2.1 Consumer Behavior and Segmentation 2 2.2 Competitive Analysis 3 2.3 Target Market 5 2.4 Market Positioning 5 3 Communication Objectives 6 3.1 Key Benefits 6 3.2 Marketing Objective 7 4 Creative Development 7 4.1 Vehicles 7 4.1.1 Television 8 4.1.2 Magazine Ad 8 4.1.3 Social Media 11 4.1.4 Discounts 13 4.2 Budget 13 1 Purpose Core Advertising has been contacted to create an integrated marketing communications campaign for Planters Peanuts. We as a firm conducted extensive research and we recommend the following strategic plan for Planters based on our findings. 2 Situation Analysis 2.1 Consumer Behavior and Segmentation Peanuts are widely popular product among consumers of all ages, genders and races. However, those who purchase peanuts can be broken down into specific segments. Consumers ages 25-44 are the largest consumer of peanuts in the US. The average person consumes approximately 6.4 lbs. of peanuts a year. Studies show women are the main consumers of peanuts in the US. Women also tend to be the main purchasers of groceries and are responsible for 85% of all consumer purchases. This can be linked to the fact many moms are purchasing peanuts as a way to introduce a healthy snack to family members. As a result of the poor economy, many consumers are purchasing peanuts as an inexpensive protein substitute for meat. Due to...
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...Table of Contents Executive Summary 3 PEST Analysis 3 Financial Analysis 6 Porter’s Five Forces 8 Market Audit-Space 10 Boston Consulting Group( BCG) 13 Segmentation 15 Critical Success Factors 16 Key Problem Identification 17 Marketing Objectives 21 Other Strategies 22 Marketing Budget 24 Monitoring and Control-Balance Score Card 26 Bibliography 28 EXECUTIVE SUMMARY We are the XYZ Group and our aim is to develop a Global Strategic Marketing Plan for three years for Unilever Company.Unilever is the British/Dutch jointly owned multinational consumer goods manufacturer. The Mission statement is deduced from the case study and stated to give a clear picture and guide to the global marketing plan for Unilever. The paper will assess the changes taking place in the company’s environment and how...
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...MEMORANDUM TO: Chuck Smith FROM: DATE: SUBJECT: A.1. Steak Sauce: Lawry’s Defense A. Situational Overview Kraft foods is one of the largest food companies in the United States with 67 major brands bringing in $100 million in annual sales. A.1. Steak sauce is one of the premier brands for Kraft Foods. It was created in 1830 by Henderson William Brand, who was the chef for England’s King George. When King George tried the sauce he was so happy with it and declared it to be “A1.” It was brought to North America during the early 1900’s, and Kraft Foods later on in the 2000’s acquired Nabisco which also brought along A.1. Steak Sauce. A1 sauce is the leader in the steak sauce category, and it ties into their high awareness with consumers. Although they are the leader in the category and sales have grown over the last couple of years, their unit and volume sales have become flat. They tried to reestablish the brand by broadening outside of just steak sauce. They had a horizontal extension in their product line by launching a line of marinates in 2002, and acquired 10% of the fast growing marinates market. The launching of the new marinate line for A.1. should create a future edge against the mature and slow growing steak market by becoming more diverse and offering a new product for the needs of other customer segments (Chernev, p. 154). During the infancy stage of the A.1. marinate line, the profitability will be limited because the market is not as aware of the product...
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...International Markets Bureau MARKET INDICATOR REPORT | MAY 2011 Pathfinder Report Global Packaged Confectionery Trends Source: Shutterstock Pathfinder Report Global Packaged Confectionery Trends EXECUTIVE SUMMARY Australasia (Australia and New Zealand) and Western Europe were the two biggest regional confectionery markets in 2010, with Australasia‟s sales increasing by almost 25% over 2009 figures. North America, Asia Pacific and Latin America confectionery markets have also maintained increasing sales of these products despite the global economic downturn. The recession has caused many consumers to sacrifice volume rather than quality, and to use confectionery as a reward or as a means to help alleviate stress. However, sugarized gum, milk chocolate tablets and boiled sweets confectionery are all being adversely affected by mounting consumer health concerns. Obesity and diabetes are major health issues that are increasingly affecting both the young and aging populations. In particular, the United States (U.S.), United Kingdom (U.K.), and Japan will stand to benefit the most from reduced calorie and low/no/reduced sugar content. When it comes to “healthy” confectionery, consumers tend to look for products benefiting dental and cardiovascular health, as well as low-calorie products that help assuage guilt over indulgence. We see this trend playing out with sugar-free gum which has been performing well globally, and is predicted to continue, particularly in emerging...
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