3. Kraft Foods
• Type :Public
• Industry :Food
• Founded :Chicago, Illinois (1903)
• Headquarters :Northfield, Illinois, U.S.
• Key people: Irene Rosenfeld(Chairman & CEO)
• Revenue :US$ 49.207 billion (2010)
• Operating income: US$ 5.666 billion (2010)
• Net income :US$ 4.139 billion (2010)
• Total assets :US$ 95.289 billion (2010)
• Total equity: US$ 35.942 billion (2010)
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4. Vision
raft’s company vision is to lend a helping hand to the people around them to have
a better life and a healthy life-style.
Mission
For Kraft to remain successful in the long-run, they have to ensure that they
constantly re-strategize their products categories to suit the needs of the
consumers. Seize the opportunity to exploit its sales capabilities by coming up
with different marketing strategies.
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5. Overview of Kraft Foods
• Kraft Foods manufactures and markets packaged food products, including
biscuits, confectionery, beverages, cheese, convenient meals and various
packaged grocery products
• The Company sells its products to consumers in approximately 170 countries.
• Kraft Foods operates in three segments
• Operations in more than 75 countries and made its products at 223
manufacturing and processing facilities worldwide : December 31, 2010
• portfolio included 11 brands : December 31, 2010
• Acquired the control of Cadbury:2 February 2010
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6. Brand Expression
Old Logo
• Big & bold
• Colors not attractive
• Customers associate this logo with unhealthy, heavy food.
New Logo
• Lighter and softer
• Different font & color
• Tagline: Make today delicious.
• Red line represent smile.
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7. Kraft Foods Spain
• Starts in Spain in 1968.
• 10th largest food company in Spain.
• Leaders in the segments of cookies, desserts, candy, nougat and cheese
• Headquarters are in Madrid and Barcelona.
• 6 total factories in Spain, producing cookies beverages snacks etc.
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8. Chocolate History
• Fifteen hundred years ago in the Central American rain forests. The Cacao Tree
was worshipped by the Mayan civilization of Central America and Southern
Mexico
• The first chocolate factories opened in Spain
• Chocolate was drinked never used in bar, till 1800 when technology was created.
• 25 billion Euros were spend in European countries on the chocolates in 2010.
• Different taste of chocolate in European countries, varies
• Spain is the difficult market
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9. Little About Swiss Chocolate
• Toblerone is unique in many ways from its manufacturing, recipe, shape, logo and
even licensing.
• Manufactured exclusively in Bern, Switzerland.
• Production center is constantly being updated
• The recipe for Toblerone includes the finest quality cocoa beans, milk, and sugar,
honey and almonds.
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10. Idea Of Triangle chocolate
• Toblerone originates from the chocolatier's family name "Tobler" combined with
"torrone", the Italian word for nougat.
• Believed that Theodor Tobler took his inspiration from his mountainous
homeland
• According to Theodor’s sons, the Toblerone bar was modeled on some dance
steps by dancers in a bar in Paris.
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11. History Toblerone
• 1867-Jean Tobler opens his first store in Bern
• 1899- opens his own chocolate factory
• 1908-chocolate was named Toblerone.
• 1909-The Toblerone brand was orally registered in Bern.
• 1920-The image of a bear replaces the eagle on the package.
• 1930- The eagle returns this time carrying red flag in the hand.
• 1969- Dark chocolate flavor was available.
• 1973- White chocolate flavor
• 1990- Acquired by Kraft foods
• 1995-1997-Toblerone Minies, Blue Toblerone & Pralinés was available-
successful
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13. The Geographical Market
• Biggest company in USA
• Second Largest in world-Nestle
• 97000 employees-2009
• 147000 employees-2010
• Operates in 3 main segments
– Kraft North America
– Kraft Food Europe
– Kraft Foods Developing Market
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15. Political and Legal Factors
• Spain enjoys political and social stability
• Kraft Foods are not facing any political influences on its business or the political
issues
• Change of Govt.
• Prices of milk and other product purchases are influenced by government
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16. Economical Factors
• Range of economic factors
• Economic growth has been declining
• Significant cost item in chocolate products is cocoa, which is purchased in world
markets, and the price of which is affected by the quality and availability of
supply and changes in the value of US $ relative to certain other currencies
• Price volatility increased.
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17. Social and Cultural Factors
• Direct influence
• Codex recommendations.
• Follow good corporate social responsibility practices
• Sustainability
• Fair trade
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18. Technological Factors
• Rise to new products and market opportunities
• A great impact on the competition
• Greatest technology in Spain
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23. Geographical Segmentation.
• Kraft Foods North America: highest percentage of convenient meals that is 39.4%
• Kraft Food Europe: highest percentage of snacks that is 31.8%
• Kraft Foods Developing Market: highest percentage of beverages that is 28.8%
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24. Behavioral Segmentation
• Decision role
• Benefit
• Occasions
• User Status
• Usage rate
• Attitude
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26. Potential Competitors
• Kraft foods compete on the basis of loyalty, quality, brand
recognition, brand loyalty, services, marketing , advertisement and
price
• The company's principal competitors include PepsiCo (PEP),
General Mills (GIS) , and Nestlé SA.
• Competitors’ of Toblerone are Ferrero Rochers by Feraro (origin
Italy) , lindit by Lindt & Sprüngli AG(origin Switzerland) and
Ghirardelli by The Ghirardelli Chocolate Company (origin US).
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27. Positioning
• Kraft Foods chose for the first type of positioning prompt namely bringing the
quality of its products forward, because building a strong impression creates a
strong brand.
• Strong safety and quality system
• TV commercials, advertisements, billboards, websites with video games and
more, all of these advertising tools are used by Kraft Foods to promote its brands
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28. Import & Export
• Prohibit alot of things in Spain during importing
• Tariff system
• Toblerone is being Imported into Spain from Switzerland
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31. Toblerone
• Toblerone International Products: Toblerone milk chocolate, Toblerone fruit &
nuts chocolate, Toblerone dark chocolate, Toblerone white chocolate, Toblerone
milk chocolate valentine rose, Toblerone one by one, Toblerone mini purse,
Toblerone milk chocolate, holiday multiple pack, Toblerone snow top chocolate,
Toblerone fruit and nuts, Toblerone honey comb crispy, Toblerone Pralines ,
Toblerone Berner Bar.
• Toblerone Available in Spain: Plain milk chocolate & dark chocolate, Toblerone
fruit and nuts, Toblerone honey comb crispy, Toblerone Pralines , Toblerone
Berner Bar. Toblerone Snow-Capped , Toblerone white chocolate.
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32. Product Specifications
• Features
– Include nougat, almonds & honey
– Hidden bear
– Suitable for vegetarians
– Selection of cocoa beans from different parts of the world’s
– Taste and quality is maintained
• Product Variation
– Plain milk chocolate & dark chocolate
– Snow-Capped
– Filled Edition
– One by one
– Toblerone Pralines
– Fruits & nuts
– Honeycomb crisp
– Berner bar
• Identifying new Product Ideas
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33. Packaging
• Example of unique branding
• Distinguished by its triangular peaks.
• Toblerone becoming the first chocolate product to be
patented.1906.
• Tiny Toblerone has won four Flexible Packaging
Association (FPA) awards
• Significant quantities of plastic foil paper and
cardboard are used to package the product.
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34. Product Labeling
• Since 2007, provided nutrition labeling on products worldwide
• Nutritional value on the package- depending upon the local regulations.
Product Warranties
• Product expiration date depending on the type of the product
• Toblerone expiration 2 yrs.
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35. Price
• With the cost of getting products onto the shelves rising higher and higher, some
suppliers are reducing the size of their wares while maintaining the same retail
price.
• Small low-priced packages are the way to give consumers the opportunity to
purchase while still maintaining profit margins.
Pricing Strategy
• Kraft’s pricing strategy that is focused on reducing, discounting and solidifying
pricing power in the face of competition from low priced private label.
• Price Penetration
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36. List Prices Of Toblerone
• Dark Toblerone: D. Toblerone Single Bar; Price:$2.69, D. Toblerone 6 Bar: Price:
$14.95, D.Toblerone12-Bar; Price:$27.95.
• White Toblerone: W. Toblerone Single Bar; Price:$2.69, W. Toblerone 6 Bar: Price:
$14.95, W.Toblerone12-Bar; Price:$27.95.
• Milk Toblerone: M. Toblerone Single Bar; Price:$2.69, M. Toblerone 6 Bar: Price:
$14.95, M.Toblerone12-Bar; Price:$27.95.
• Fruit and Nuts & Honeycomb crisp: Single Bar; price $ 2.49.
• Snow capped: Single Bar; price $ 2.49.
• One by One: one triangle 1$
Discounts
Toblerone offers a lot of discounted packages
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37. Placement
• Products are generally sold to supermarket chains, wholesalers, club stores, mass
merchandisers, distributors, convenience stores, gasoline stations, drug stores,
value stores and other retailer outlets
• Toblerone is available at stores/groceries and mall, supermarkets, coffee shops,
airports, movie houses.
Kraft food working with supply chains
• Main Markets of Toblerone:UK, Switzerland, Germany, Spain , France., Italy.
• Customer orders are met and that the product is always available in store
• Sales predictions are constantly reviewed in the light of changing conditions to
ensure their accuracy as the year progresses
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38. Promotion
• KF offer a Tobelle-branded sampling table as well as other Point of sale material
such as roll-up banners to ensure strong brand visibility at the point of sale.
• Billboards, TV, rotaries, roll up banners, Magazines etc
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39. Promotional activities
• Toblerone runs ‘Play it, Forward it, Share the Gratitude' mobile campaign
• Toblerone has implemented an aggressive Father’s Day product strategy
• Toblerone held the world “Thank you Day”
• Share & win
• Travel with Toblerone
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43. Conclusion
• Kraft is the second largest producer of consumer food products
• Kraft’s portfolio contains a host of well established brands
• Both developed and undeveloped markets, industry is characterized by intense
competition on both price and quality
• Company applies all aspects needed to build a successful brand such as the
importance of name and positioning and how to expand its product range.
• Company listens, watches and learns from its customers
• Company communicates with its customers
• By using this 360 degree marketing, Kraft Foods is able to build a perfect media
mix.
• Kraft Foods tries to attract media
• Showing its products in cooking programs- gain attention
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