Business Case Studies, Gorwth Strategies Case Study, Kraft Foods, Restructuring

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Case Title:

Kraft Foods : Restructuring for Growth

Publication Year : 2006

Authors: Taranjeet Chawla, Kumar Satyaki Ray

Industry: Food, Diary and Agriculture Products

Region:US

Case Code: GRS0149K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In January 2006, Kraft Foods Inc., the world’s largest branded food and Beverage Company, announced a major restructuring plan as a cost cutting measure. Starting from the early 2000s, the company’s profit margins shrank due to escalating costs and consumer focus on low calorie foods. In order to deal with the situation, Kraft launched a restructuring plan in 2004. While the first plan was underway, the company announced another round of restructuring in 2006 and proposed to close several plants and cut jobs. It also planned to reorganise its product portfolio. This led the analysts to wonder whether the company’s restructuring plans would pay off or the company needed to introduce new products. The case starts with a brief history of Kraft Foods and moves on to the problems faced by the company. It then discusses both the restructuring plans of the company. The concluding section poses a question about how successful these plans would be in steering the company to healthy profits

Pedagogical Objectives:

  • To know the problems faced by Kraft Foods, the second largest food company in the world
  • To analyse the restructuring strategies of Kraft Foods
  • To understand the importance of being in touch with customers
  • To understand the significance of successful new product launches.

Keywords : Kraft Foods; Snacks; Beverages; South Beach Diet; Altria; Convenient meal; Grocery; Growth Strategies Case Study; Nabisco Holdings; Miracle Whip; Velveeta; Oscar Mayer; Cheese and dairy; Digiorno Pizza; Philip Morris; Tassimo

Contents : 
Kraft: AMarketer for Children
Redefining Marketing Strategy in the Anti-Obesity Era
Kraft’s Initiatives to Fight Childhood Obesity
Philip Morris and the Anti-Tobacco Campaign
Kraft’s ‘Sensible Solution’ Initiatives
Kraft’s ‘Advertisement’ Initiatives
Major Brands of Kraft Foods Inc

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