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Kraft Foods Inc: Product, Sources and Supply, Customers, SWOT - Essay Example

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Kraft Foods is a world renowned food and beverages company, which is headquartered in Illinois. The company became famous in the early 20th century because of its remarkable product offerings of cheese. However the Kraft Cheese is no longer the best product marketed by the company…
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Kraft Foods Inc: Product, Sources and Supply, Customers, SWOT
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"Kraft Foods Inc: Product, Sources and Supply, Customers, SWOT"

Download file to see previous pages Company’s raw material does not come from one source, but actually is recruited from all over the world. Furthermore, Kraft is the primary company of operations but for most products it utilises the services of manufacturers and licensees who are outsourced the job of making the Kraft goods. These locations are all over the world, for example one coffee factory is located in the United Kingdom.
Kraft as a company makes effort to ensure that all its supply chain practices, from the raw material to the final packaged goods shipped to the wholesaler or retailer are made with the highest requirements of sustainability including energy consumption, water usage, transportation and distribution and waste management.
Conversion Manufacture
Some manufacturing facilities for Kraft products are owned by the company; the rest are outsourced; the manufactured goods are marketed and sold by the company.Customers
Kraft Foods has customers all over the world, with America and Europe being the oldest markets for the products. The customers come from all walks of life and different income strata as well; this is because Kraft has a very diverse portfolio of products that appeal to the middle and upper classes, as well as the lower middle classes in some regions. The company’s strategic focus has shifted since 2008 and now Kraft Foods is attempting to establish itself in the emerging economies. However, it is still in the initial phases of educating people about the kind of products marketed by Kraft. Distribution Kraft owns and manages the marketing and operations of all its brands except for certain functions that are outsourced for cost and efficiency purposes. One of these is the distribution of Kraft products. Kraft utilizes the services of some of the most reliable and well connected distributing companies in the world to reach consumers in many countries such as South Africa. However, the distribution channel is still weak because Kraft foods are not available in a lot of regions where there is demand but no proper channel utilized for delivery. For example, the United Arab Emirates represent a very affluent and commercial class that is happy to spend in well packaged, great quality food items (Kraft Foods targets the regions top buyers and distributors); according to the Business Development Manager of the company for emerging markets of the Emirates and Africa, the reason for this demand and supply gap could be “the absence of an agency/distributor, or...no means to source these products”. This is a rather big opportunity being missed. Part Two: Analysis 1. SWOT Strengths Second biggest food company in the world Has leading brands in multiple categories which do not require a lot of hard work by the company as they are already extremely successful Several products of the company are some of the most well-known brands in the world such as Philadelphia, Oreo and Maxwell House, with around twelve brands making over a billion dollars in sales each year. The company is able to offer its products in varied price ranges, mostly targeted at middle income to upper middle income people all over the world. Company has visionary leadership with a very entrepreneurial mindset (Jargon 2008) Financial and business acumen ...Download file to see next pagesRead More
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