This report will list out Kraft Foods’ perceived strengths and weaknesses. Some of the sources used in this report were taken from Kraft Foods 2012 annual report, government data, and other news agencies. Kraft does not willing list its own strengths and weaknesses for the general public to see. Some of the information in this report is inferred upon the results of various financial articles. From the information available, Kraft has more strengths than weaknesses and has the capacity to turn many of its weaknesses into strengths provided some guidelines are followed.
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Each of these news brands has become a $100 million platform. (Goudreau, 2013) Due to the recent success that Kraft has had in regards to innovation, it would be safe to assume that their new process for innovation has become one of their strengths.
Recognition: Kraft Foods offers a wide variety of products through their different brand names. Of some of the hundreds of brands they own, some such as Kraft Macaroni and Cheese, Nabisco, Oscar Meyer, and Kool Aid are internationally recognized. (Anonymous, 2013) By associating the name Kraft to a product or simply introducing a new product through an existing brand, Kraft automatically occupies a certain mindshare inside the customer’s cognitive process. In the same way that people associate Apple products with being cutting edge and popular, Kraft uses its mindshare to associate its products with quality and eating in a family environment. Having that instant name brand recognition is a good strength for Kraft Foods to possess.
Quality and Safety: Some consumers have doubts when it comes to generic name brand foods. It is easy to think one is getting a great deal when it comes to purchasing generic items instead of brand name ones, but it is also easy to forget that can come at the expense of quality and even one’s safety and health. (Krasny, 2011) Kraft prides itself on the quality that it produces in it many different food products. To prove this fact they came up with a company code of conduct called Our Way of Doing Business. The first rule in their code of conduct is make food that is safe to eat. (Anonymous, Our Way of Doing Business, 2009) Through this code of conduct and other measures, Kraft is ensuring their customers that they feel responsible and take pride in the quality of their products. This campaign to show people that they are concerned about the quality and safety of their products has done well for Kraft. It is partly because of this endeavor that Kraft has been able to maintain one of the top most positions in the food and beverage industry.
Market Share: One of Kraft’s biggest weaknesses is its market share. Of the $521 billion brought in through grocery stores in 2012, Kraft managed to bring in a little over $18 billion. (Anonymous, Wholesale and Retail Trade, 2012) Doing the math, that’s roughly only 4% of all grocery sales. Kraft started to expand its horizons by acquiring Cadbury in 2010. By incorporating Cadbury into its business model, Kraft hopes to reach out to other emerging markets. (Jones, 2010) Another weakness that involves market share is the concentration of Kraft’s market. Over half of Kraft’s annual sales derive from the North American Market. (Jones, 2010) In a global economy that is always competing for market share, Kraft has to push harder to work their edge into those foreign markets.
Competition: By no means has Kraft crushed the competition and taken the total market share in its respective brands. Over...