Business Case Studies, Restructuring / Turnaround Strategies Case Study, Kraft Foods,Roger K Deromedis Restructuring Strategies

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Restructuring / Turnaround Strategies Case Study

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Case Title:

Kraft Foods in Crisis: Roger K Deromedis Restructuring Strategies

Publication Year : 2006

Authors: R. Muthu Kumar, Srinath Manda

Industry: Retailing

Region:Global

Case Code: RTS0048

Teaching Note: Not Available

Structured Assignment: Not Available

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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.

Pedagogical Objectives:

  • To discuss the restructuring activities adopted by Deromedi to make Kraft competitive
  • To discuss the opportunities and challenges faced by Kraft in the changing food market.

Keywords : Kraft Foods Inc.; Private label brands; Roger K Deromedi; Low price; Low calorie foods; Restructuring / Turnaround Strategies Case Study; Philip Morris Companies (Altria Group); Restructuring; Nabisco Holdings; Food and beverages business; Competitive advantage; Product innovations; Diversification; Oscar Mayer meat brand; Marketing and promotion strategy; Sustainable growth plan

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