Product details

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Abstract

Kraft Foods Inc is a leading confectionery, food and beverage company. Since 2001, it has been losing out to cheaper store brands, private label brands and competitors, due to consumer preference towards low priced and low calorie foods. A lack of new products, the exit of top executives and a failure to supply what retailers wanted were also troubling the company. The parent company, Philip Morris, began pressurising Kraft Foods for a possible spin-off. In January 2004, Chief Executive Officer Roger K Deromedi announced a restructuring plan aimed at trimming non-core brands, focusing only on blockbuster brands and re-fashioning the product line up. This case discusses the restructuring activities adopted by Deromedi to make Kraft competitive. It also offers scope for a discussion on the opportunities and challenges faced by Kraft in the changing food market.
Location:
Size:
USD31 billion (2003 revenues)
Other setting(s):
2001-2004

About

Abstract

Kraft Foods Inc is a leading confectionery, food and beverage company. Since 2001, it has been losing out to cheaper store brands, private label brands and competitors, due to consumer preference towards low priced and low calorie foods. A lack of new products, the exit of top executives and a failure to supply what retailers wanted were also troubling the company. The parent company, Philip Morris, began pressurising Kraft Foods for a possible spin-off. In January 2004, Chief Executive Officer Roger K Deromedi announced a restructuring plan aimed at trimming non-core brands, focusing only on blockbuster brands and re-fashioning the product line up. This case discusses the restructuring activities adopted by Deromedi to make Kraft competitive. It also offers scope for a discussion on the opportunities and challenges faced by Kraft in the changing food market.

Settings

Location:
Size:
USD31 billion (2003 revenues)
Other setting(s):
2001-2004

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