Food Industry Is A Continuously On Demand Industry Marketing Essay

feed patience Is A Continuously On Demand Industry Marketing hearIntroduction fare pains is a continuously on prerequisite application that people argon always learn and want. Some economists and analysts accept that food persistence is one of the most proof to economic slowdown. This makes this intentness a resilient, reliable and profitable industry. The products and foods that argon character of the booming industry acknowledges, confectioneries, health products, biscuits, kids foods, animal foods, nutty, bakeries, cakes, vegetables etcetera The wide range of products available offers voluminous of opportunities for avocation in this line, ontogeny and progress in line with the demotement of engineering science and mod channel of trade.Definition of Strategic analysisThis embarrasss an instruction execution of schema and approaches after taking into consideration various factors i.e. internal and foreign that directly and indirectly involves the com pletelyiance. Strategic analysis depart analyze and esteem various forms of dodging after considering the threats potential opportunities etc that the friendship could exploit in order to succeed and remain relevant to customers. A proper activity and steps towards strategic decision and analysis go forth modify the companionship view all the potentials and weaknesses within the company and therefore will meet the demonstrable move in the afterlife.The blighter analysisA PEST analysis is a product line measurement tool that assesses and analyzes the factors of. Political, Economic, Social and scientific which then translated to the proper implementation of strategic decisions prior the results of PEST analysis.Factors touching the Food Industry (PEST Analysis)1) Political factorsPolitical factors are the factors that include organisation intervention and barriers in conditions of tax/tariff that could benefits the citizen or the g e genuinelyplacenment. apart(pred icate) form that, it too includes the polity and systems that g all overnment adopt in regards of art friendly particularly in food industry. The sames of importing policy, regulation and procedures, policy of taking over, merger and achievement that could affect the constant supply of foods to the landed estate etc are part of political factors.2) Economic factorsEconomic factors include stability, income parity, income status, acquire powers, exchange rate, unemployment rates, interest rates etc. This will certain(prenominal)ly affect the decision and actions condensen by the company economically. As food is part of necessity and demand by people around the population, as every needs food to plump and living, we could say the industry is not a entire deal sensitive on the economic change and volatility.3) Social factorsSocial factors include the trends and patterns of demands which due to the cultures, nationality, religious etc. Brand awareness on a country might diff er with each others, income distri bution, age, demographic, preferences, local anesthetic and global attitudes towards certain things are different. As for food industry, its known that local preferences will ensconce the acceptance of food products. The local taste and likes must be met and this will require the business and companies to understand the local market before embarking into the local ones.4) Technological factorsTechnological factors unfeignedly affect the production and effectiveness of the gear up and operation. As for the food industry we are seeing the advancement and benefit in terms of engineering employed in food industry that as a result improve the yield, making it more than(prenominal)(prenominal) expeditious and reliable. Product innovation and improvement is also produced with the help of in the buff technology, systems or techniques, This will then help the companies to produce high timber and better food products in terms of taste, health in gredients, safety etc.pulverization analysis. pulverisation is analysis of all the possible factors of strength, weaknesses, opportunities, and threats. As PEST are just a tool that addresses the external factors that potentially affect the business, the SWOT seems will give better result and pictures of how the company should play off with the business environments and settings that include internal and external factors. The SWOT analysis of krafts Food industry (the company under study) is per create after analyzing the factors both form external and internal.1) Strengths1. outsize Market ShareIn terms of market bundle, krafts Food has been in forefront leader in the cheese and biscuits segments. There are the worlds south largest food manufacturer behind nestle in the world but leader in certain part of the world including northeasternern the States and Canada. The fact that rush captured quite substantial portion of market divide is because the aggressive mergers and a ccomplishment that had intromitn place for more years since Krafts archaean inception years. The mergers and encyclopaedism postulate made a bigger company and able to capture their rivals customer and market.2. Brand loyaltyThe current Krafts imperfections include Balance Bar, oreo, Jell-O, Maxwell House, Mikado, Nabisco, Tang, Oscar Mayer, Twist, Snack Wells etc.3. New technologyAs for Krafts Food, they have the new technology as they invented quite new products and taste with the help of technology. Plus they acquired many firms with already have technology in place. This could give them a competitive advantage over their competitors.2) Weaknesses1. neglect of Marketing strategy and Launching New ProductsIt is seen that Krafts Food is having difficulty in launching and producing new products and foods. Due to the fact that they have been hyperboliseing by the musical mode of acquiring and merging with other established companies, therefore their variety of new products are very limited.2. Declining Sales and Demand from Europe and Western fractionKrafts Food is now experiencing a decline demand and sales in western part as well as European countries. The arguing with other rivals and the leading food manufacturer Nestle is very stiff, as European are more opt to prefer Nestle earlier than Kraft in that region. They also face heavy opposition in chocolate and baking powder manufacturer, as many big companies in Europe such(prenominal) as chocolates manufacturer from Switzerland, premium spots from Belgium and United soil are more established than Cadbury of Krafts Food.3) Opportunities1. New categories, products (i.e., organic, health- rivet)People are more concern on the health- focused products including foods. This is a very good prospect for Krafts to embark in this lucrative segment as the potential fro releaseth is so huge. They could leverage on the existing plant that they have and rise their R n D in that particular segment or ev en conjunction venture with other related health focused products.2. International marketsKrafts Food involved in international business and they have many plants that operates in various part of the worlds. They could use this opportunity to expand in that particular region and surround to increase market share and capture the new untapped market surround the region.3. Operates in many fast ripening categoriesThe company (Krafts Food) is religious offering various products of foods from many categories such ranging from biscuits, health focus products, animal foods, cheesy based foods, crackers, bread and cakes, floor, chocolates , drinks, etc. That will enable them to compete in diverse categories apart from menacing the risk of concentrating in just few products of foods.4) Threats1. CompetitionStiff competition in food industry in global scale since they are operating in international arena. They operates in many parts of the world and have to compete with the local manufac turers as well. Some of them are really capable of offering products that meet local taste and preference. Example such as in Malaysia perspective where we see Jacobs of Malaysia or Julies Sdn Bhd competing with global brand of Krafts Food. They seem to understand more on the local preference than the global player in biscuits and cookies line of products.2. Industry consolidationWith the consolidation and mergers as well as acquisition exercised by other firms globally, Krafts Food is also feel the pressure to compete with such firms. The industry now becomes more constraint and tight in terms of number of players in the industry as well as market share among companies.3. Volatile COGS over short runWith the increasing cost of goods, every industry will be impacted and this will reflect the growth of the companies in the heavens. In some ways, this could also resist and restraint the strategies and products differentiation, sales and marketing etc, of the companies in food industr y.Definition of strategy formulationIt is very crucial and intrinsic for Krafts Managers and to form appropriate and effective strategies in order to sustain and survive in the long run. Especially in the global issues that impacting companies in the world, worry team of Krafts should think of strategies and approach to tackle those issues as well as external and internal factors of Krafts companies.1) Krafts Marketing StrategySome of the very strategic decision in their marketing strategies, is that the company sponsored the Kraft Musical Revue, a two-hour musical variety show. Their international operation is supported by a policy that focuses on local tastes of foreign consumers. Kraft was a major(ip) supplier during World War II. They also enhanced the collaboration and joint efforts with government of US. This somehow cause and indirect promotion and establishing their give away in domestic as well as international arena.2) Differentiation strategyEmerging markets Growth in the confectionary market will largely take place in emerging markets. Natural Consumer demand for products that are dethaw from soppy colors, flavors and additives and concern over the long term effects of artificial ingredients has driven growth in the confectionary industry. Heritage and provenance For chocolate manufacturers a key growth opportunity is for premiumization through either high quality country of origin (or even single estate) ingredients or by cogitate on the quality of production methods. healthy and functional confectionary Health continues to be a key innovation opportunity for confectionery managers in line with an ageing population and an obesity epidemic.Even if retailers develop the working(a) capabilities to manufacture and sell chocolate and gum based on these issues, they may not be perceived to have the brand credibility that are owned by more established confectionary manufacturers. A potential acquisition of this magnitude during a sluggish econ omic recovery implies Krafts commitment to grow its extend its brand in growing global markets while evaluating other products in its brand architecture. They also increased their investments into key consumer trends in warm meals, health and wellness, snacking and premium products. These has reinforced the brand and presence of Krafts Food in the market they are operating in.With the Kraft innovation and new technology they have been successfully implementing an invention or creative idea that creates honour to consumers. Krafts have been able to constantly adapt and anticipate their needs. With the help of innovation, they create new product platform as well as better their product features. This applies to products, processes, packaging, ingredients, and more. It is well supported by various Kraft business units such as RD, consumer comments and feedback and public relations, etc. Kraft has its own material Research, Development Quality team of who all have a alpha role in innovating and producing the new Kraft. They are continuously develops new products that prolong range of products and compete in new categories. For example, Bagel fuls, the first all in one bagel and Philadelphia bat cheese.3) Focus strategyKraft also introduced many of its products in foreign markets. The company name changed in 1976 to Kraft Inc. to enhance the companys focus on food processing and to more emphasizing with the internationally known Kraft trademark. Reorganization accompanied the name change the move toward a more centralized structure was make by dividing the company into divisions according to specific markets or products.What is Corporate direct Strategy?Corporate strategy is a strategy that determines what businesses a company is in, should be in, or wants to be in, and what it wants to do with those businesses. Its based on the delegating and goals of the organization and the roles that each business unit of the organization will play. The acquisition o f Cadbury has signifi pottly enhanced the strength of Kraft Foods in the confectionery sector enables Kraft Foods to take advantage of Cadburys product development capabilities. They believe that confectionery markets are consolidating and it is very important for Krafts to control of the supply chain and growing portfolio of their own retailer brands. In addition, they could also experience the increasing involution of markets such as Brazil, mainland China, and Russia as well as other parts of the new emerging markets such as India and Mexico.Global collaboration of Krafts FoodIn line with its sustainability strategy, Kraft Foods has selected six key areas in which it feels it can have the greatest impact. These are transportation/distribution, agricultural commodities, energy, water, waste, and packaging. They have formed various collaboration and joint ventures with their distributors, retailers, packagers, outsourcers and business partners to improve the efficiencies and effec tiveness of these areas. In line with this effort, Kraft had reached an agreement to acquire Groupe Danones global biscuit business, snacks, cookies and crackers manufacturers. In competing at European biscuits portfolio, they (Kraft) had gone through the acquisition of brands like LU, Tuc, and Prince. As a result, Kraft also expanding and strengthening their footholds in China and other emerging markets as Malaysia and Indonesia They also hire the capable and good managers and directors in the emerging markets to oversee the operation and concern. They are able to react faster to market changes and improving the revenues, operating income and cash flow.Brand Strategy of Krafts FoodIn like a shots very dynamics and complex business environment, the importance of brand and its reinforcement is one of the key areas of focus. The much bigger North Asian markets such as Japan also shows that long term significant further growth is potentially high. One example is to take a global con cept and adapt it locally with consumers. For example, oreo cookie Krafts calefacient selling cookie in the US, and being produced slight sweet to check over consumers in China. Transform it into wafers and rolls to further connect with the way they eat their snacks. Oreo is now the no.1 biscuit brand in China and China is the no.2 Oreo market in the world after the US. Customers and stakeholders have evolved in individual to their needs and demands. In Asia, consumers are inclined towards having enough vitamins and minerals, and Krafts answers that by offering products that meet these needs. Tang Fruitrition is full with vitamins A, B, C and calcium. While in the US, where there is a high concern on obesity, Krafts offers and selling Sensible result products that features 100 calorie snacks (such as cookies and bars, puddings and crackers) to help people eat less with smaller portions, LiveActive cheese which popular of its s digestive health, and South border Living meals a nd snacks that are more like balanced diet meals with very great taste.Kraft wants to survive and expanding their presence in a positive way. With Kraft Foods being one of the largest food and beverage companies in the world, they need to understand such varied consumer preferences. Their portfolio is established to meet those needs, from snacks and premium foods, to stratagem and health and wellness. As for countries like China, Russia, Brazil and ASEAN countries being biggest international markets for Kraft. They have created many products that are tailored to the needs of locals in order to enchant the customers and able to sustain successfully until today. As part of branding strategy of Krafts they will continue enhancing and strengthening the products line, quality and high taste of Krafts Food products that differentiate them with their rivals and competitors.ConclusionKraft vision is always to make today delicious. They make some of the best-known brands around the globe. Brands like Kraft cheeses, dinners and dressings Oscar Mayer meats Philadelphia cream cheese Maxwell House coffee Nabisco cookies and crackers and its Oreo brand Jacobs coffees Milka chocolates and LU biscuits. They managed to creating reliable, consistent growth. Thats what theyre doing at Kraft, and their strategies are focusing efforts on ready a high-performing organization, reframe segment/ categories, exploit sales capabilities (by merging or acquisition etc) and drive down costs without compromising quality. As they have keep up for many years and continued progress and growth, it is an icon of strategic management organization. They have made wise decision in their sales and marketing strategies, policy on globalization, organization structure, channel distribution, strategic management, human resources etc that enable to gain competitive advantages over their rivals. They are well ahead over their competitors in terms of market share, acceptance, product innovation, reven ue, etc due to the fact that Kraft Food really understand factors and matters to sustain and excel in food industry and supported by strong business acumen and entrepreneurial spirit of Kraft organization.Sources of referencesCampbell D., Stonehouse G., Houston B., 2007, Business Strategy second edition beset D., 2000., Business in Context An introduction to business and its environment, Thomson Learning, 3rd edition, capital of the United KingdomJeffrey S., Caron H., 2008, 2004., Foundations in Strategic care., Thomson Learning, USAHenry A., 2008., Understanding Strategic Management., Oxford University entreat Inc., New YorkTae Gu Lee., 2003., Business and Management., Muyokpub., KoreaWoo Jung Kim.,2007.,Automotive Industry Strategy.,Suhakpub., KoreaJeffrey S., 2003., Strategic Management of Resources And Relationships Concepts and cases., John Wiley Sons, Inc., 605 Third Avenue, New York22.11.2005., Doubts remain over GM., retrieved on 29.04,2009 from http//news.bbc.co.uk/2/hi/ business/4461168.stmRetrieved on 29.04,2009 from http//www.gm.com/vehicles/services/Retrieved on 29.04,2009 from http//www.greencar.com/articles/chevrolet-silverado-mild-hybrid-pickup-offers-fuel-savings.phpRetrieved on 29.04,2009 from http//cafe.daum.net/ run up/HKXp/61?docid=qV81HKXp6120090227121252q=Strategy%20innovationsrchid=CCBqV81HKXp6120090227121252HaSong.http//www.globalinsight.com/Scripts/registrationForm.cfm?ID=5gclid=CKCZhdLn5pkCFZUvpAodnFAzQghttp//blog.daum.net/e-monde/8840409http//blog.daum.net/ilsan1004/17235465?srchid=BR1http%3A%2F%2Fblog.daum.net%2Filsan1004%2F17235465Ji Hyun Cho., 10.03.2009., In future GM.,retrieved on 29.03.2009., Fromhttp//bbs2.agora.media.daum.net/gaia/do/kin/read?bbsId=K150articleId=524234Retrieved on 25.04.2009 from http//findarticles.com/p/articles/mi_qa3913/is_200403/ai_n9404349/www.daum.net/KiasarangRetrieved on 25.04.2009 from http//www.cutter.com/research/2004/edge040302.htmlRetrieved on 29.04,2009 from http//en.wikipedia.org/wiki/Leader shipRetrieved on 30.04,2009 from http//www.wxyz.com/news/local/story/UPDATED-New-Leadership-at-GM/FdKJNIzyPE-48KPOWbikcQ.cspx