The American Company Kraft Foods Ltd Marketing Essay

The American Company Kraft Foods Ltd Marketing Essay In the current economic situation, companies are putting all their efforts to keep their customers loyal and present market shares. To attain these objectives they are launching new products, implementing new and more interesting marketing campaigns or releasing loyalty programmes. No matter the industry they activate in, all the companies want to build long lasting relationships with their customers, as it is easier and cheaper to keep existing customers rather than acquire new ones. This paper will focus on the operations of one giant in the food industry, the American company Kraft Foods LTD, and all the attention will be centred on the chocolate confectionery branch of the organisation and on its leading chocolate brand in Europe, Milka. After a thorough analysis of the chocolate confectionery industry in the United Kingdom, the introduction of a new product in the Milka range will be discussed. Corporate Objectives Kraft Foods is the worlds second largest food organisation with revenues over $42 billion as they state in their fact sheet published in 2008. It has operations in many subsectors of the food industry such as: snacks, beverages, cheese, convenient meals and groceries (Datamonitor, 2009a). The companys manufacturing plants are located in 70 countries all around the world and it sells its products in more than 150 countries (Kraft Foods, 2009a). Being such a big company in the industry, it has set well defined long term objectives to help its growth strategies. Firstly, the company is well aware of the new trends in its sector and is aiming to offer consumers healthy products, as people have become more health conscious. Secondly, the issue of conserving the environment is intensively discussed nowadays therefore Kraft Foods has decided to implement projects for sustainability. Also, the company wishes to expand even more and increase its world coverage (Kraft Foods, 2009b). To satisfy this last objective the company is acquiring different companies which are operating in key markets. One example could be the recent acquisition of the British chocolate manufacturer Cadbury, which offers the company to opportunity to consolidate in the UK chocolate market (Mintel Oxygen, 2010). Kraft Foods also wants to expand to Southeast Asia as the countries here present high growth rates in the food industry (Mintel Oxygen, 2008) Furthermore, since 2008 the company has decided to implement a restructuring plan designed to lower its cost structure and optimize capacity without affecting the quality of products (Kraft Foods, 2009a). Market Overview As stated before, this paper will focus on the chocolate confectionery operations of Kraft Foods in the UK market and therefore an overview of this particular market is necessary. Datamonitor (2009b) states that the chocolate confectionery industry accounts for almost 67.5% of the total value of the UK confectionery market, which also includes gums, cereal bars and sugar confectionery (Chart 1). Chart 1: Market segmentation in the UK (Datamonitor,2009b) The UK chocolate confectionery industry has been in a permanent growth from 2003 until 2008, increasing by 11.1%. (Mintel Oxygen, 2008b). This particular segment is characterised by fierce competition as some of the most well known food giants are competing here. The main players in 2007 were Cadbury, with 35.3% market share, Masterfoods, with 30%, Nestle, with 14%, Ferrero, with 4% and Kraft Foods with 1.8% as it can be seen in Chart 2. Mintels 2008b forecast on market growth states that it will grow by 17% until 2012, if the prices of chocolate would have remained at the 2007 value. In real terms and taking into consideration inflation this growth will be of just 2%. Chart 2: Manufacturers value shares in the UK chocolate market 2003-2007 (Mintel. 2008b) The report on chocolate confectionery published by Mintel Oygen (2008b) states that current trends in the market highlight the fact that more healthy foods need to be released on the market, forcing in this way companies to produce healthier chocolates. As childhood obesity is an important issue in the UK, there is an absolute need of healthy products and what now is a trend it will later become a way of living. Also, consumers tend to become more educated on chocolate and soon will demand high quality products. Moreover, the same report shows that consumer preferences have started to change and shortly they will ask for new flavoured chocolates. Marketing Audit: Internal and External After getting a brief insight on the chocolate confectionery sector in the UK, an internal and external marketing audit needs to be done in order to identify which are current problems of the company. Firstly, since it has consumer products the overall marketing mix implemented needs to be analysed. Then, the strengths and opportunities must be identified in order to overcome the companys weaknesses and threats. Also with the help of the PEST model and Porters five forces the chocolate confectionery industry will be further analysed. Marketing Mix Kraft Foods is doing business in the consumer products domain, therefore its marketing mix is specially tailored for its consumers. Its main products are food items such as chocolates, biscuits, different beverages, snacks and convenient meals. Some of the companys products have become leading brands worldwide proving that the company offers qualitative products and also knows what its customers want. The company prefers to buy its raw materials from third parties such as agricultural cooperatives and independent producers to ensure high quality of the final product. (Kraft Foods, 2009a) The pricing policy of any company has to be elaborated in such a way that it retains current customers and also attracts new ones (Brassington and Pettitt , 2006 pg.431 ). The company charges acceptable and affordable prices for its products. However these prices are affected by raises in raw materials, as was the case in 2008 when the company had to raise prices to dairy, coffee, cocoa, wheat or nut products as a result of price increases for the raw materials (Kraft Foods, 2009a) When talking about promotion, Kraft Foods invests important amounts of money into well developed marketing campaigns which are meant mainly to attract new customers but also to consolidate its image in the eyes of present consumers. The company uses some of the tools in the promotional mix such as advertising, sales promotions, public relations. The organisations products have a wide distribution, reaching many markets all around the world. The main places where the products can be fund are supermarket chains, wholesalers, convenience stores, retailers, club stores or mass merchandisers (Kraft Foods, 2009a). SWOT As it has already been stated, Kraft Foods operates in different sectors of the food industry and in many markets in the world, so for each sector the company faces particular threats and has different strengths and weaknesses. In the case of the chocolate confectionery industry in the UK, the following SWOT analysis can be elaborated based on information provided by Datamonitor (2008). Strenghts: Kraft Foods has a strong brand image worldwide Well developed distribution network Manages a variety of brands in UK such as Milka Chocolate, Oreo biscuits, Toblerone, Terrys Chocolate Orange and others; well managed brand portfolio The raw materials used for production are always of high quality Weaknesses: Over the years the company had to recall some products, action which has damaged its image Its margins have constantly decreased causing problems in the implementation of new growth plans Opportunities: The acquisition of the British chocolate manufacturer Cadbury offers access to its expertise, research and information on consumer trends in the UK Permanent growth in the demand for healthy products New technologies and developments in the industry Threats: Fierce competition in the UK Governmental laws regarding alimentation Too much divestment, having a large portfolio of brands worldwide might affect the companys cash flow PEST Kraft Foods is doing business in a constant changing environment and as a result it must always know what is happening in the UK environment. The UK business environment is continuously affected by political/legal, economical, social and technological /environmental factors. Political factors The laws in the UK regarding alimentation are quite tough with for companies, but they work in the benefit of the consumer, demanding more usage of healthy products. Any law imposed by the UK government or by the European Union can affect the companys operations and revenues. Economical factors Currently the UK has not entered the Euro Zone and it is still able to have a stronger currency then the Euro Zone. However, in the context of recession, the UK has reported a drop in GDP and in the third quarter of 2009 the GDP contracted by 0.2%, and remained 5.1% lower than in the same period of 2008 (www.statistics.gov.uk, 2010a). The recession has affected greatly this country and as a result the disposable income has decreased, affecting the populations buying habits. Consequently, companies had to reduce prices and implement different schemes to maintain their customers and lose a small percent of sales. Social factors The UK population is very affected by the recession and many of them have lost their jobs. Unemployment rate has reached 7.8% in November 2009, but however there has been registered a decrease in the number of unemployed people (www.statistics.gov.uk, 2010b). Since unemployment is quite high, not many British people afford to spend money on other things that are not of strict necessity, such as chocolates. Confectionerynews.com (2009a) states that women are more likely to have chocolate due to the fact that when they reach menopause they become more stressed and need to get relieved. Technological factors Technological advances always occur in any industry. Companies in the chocolate confectionery sector have to invest in research and development in order to come up with healthier products as customers demand these intensively. Recently, Kraft Foods and Nestle were accused of using palm oil and indirectly encouraging deforestation in Indonesia (www.confectionerynews.com, 2009b) and as a result both companies had to review operations and decided that from 2010 will use only certified palm oil. Porters 5 Forces Analysis The UK chocolate confectionery industry can also be assessed by using Porters five forces. Threat of new entrants The UK industry is quite fragmented with many companies competing within. Since some of the largest companies are present here such as Nestle, Kraft Foods, Cadbury and Mars Inc. it is very difficult for a smaller company to enter this market. However there are also niches, such as premium chocolates which could still welcome new players. This particular threat is considered to be low as it is difficult to enter the UK market. Competition It is common knowledge that the UK market presents high levels of competition. The worlds food giants are in a continuous quest for market shares and increased sales volumes. This particular force might seriously affect Kraft Food since it still doesnt have a high market share, but because of the new acquisition of Cadbury this might change. This force is considered to be high, as there are important companies battling for supremacy. Buyers bargaining power Nowadays British people choose to spend money just on the necessary products and have eliminated premium products from their daily shopping. As a result, this force is considered to be quite high and have serious impacts on the companies activating in the industry. Suppliers bargaining power Over the years companies have built lasting relationships with their suppliers, as a result suppliers work jointly with buyers to ensure productivity. Due to these relationships the suppliers bargaining power is considered to be medium, as raises in raw materials can occur and affect the final products of the company. Threat of substitutes Chocolate can have many substitutes such as gums, candy or ice cream. As new consumer trends show that there is a serious shift to healthy products chocolate could be seriously affected, unless producing companies launch healthier versions. Consequently this threat can be considered as being medium to high. Current year Competition Five years time (assumption) New entrants Power of buyers Substitutes Power of suppliers Figure 1: Porters five forces (current year and five year prediction) Assumptions The VAT has increased to 17.5% (www.hmrc.gov.uk), automatically causing increases in the prices of all products. A further increase might endanger future plans for launching new products and present product sales might be affected. Also, if the UK decides to join the Euro zone serious price changes might occur and people might think they are paying more for a product then when they were using the sterling pound. It must not be forgotten that consumers are changing their buying patterns and preferences so they might choose to replace chocolate with other sweets. Marketing Objectives and Strategies for new product Growth Strategy As it has been previously presented, Kraft Foods does not have a considerable market share on the UK confectionery industry. It should focus more on its leading European chocolate brand, Milka, and make it a preferred chocolate in the UK too. Milka chocolate is present on the UK market in just six assortments (www.milka.co.uk, 2010) while other chocolate brands have more assortments. The need for a new product has been identified, and the proposed product is Poppin Milka. This new product will be alpine milk chocolate and in the interior it will have a bounty of popping candy. Since it is a new product for the Milka brand, Ansoffs new product existing market growth strategy will be followed (Dobson and Starkey, 2002). Marketing objectives Gain more market share on the UK chocolate market Build a strong brand name and image for the Milka brand Attract new customers, while retaining current ones Identification of Alternative Plans In the worst case scenario the new product could prove to be a failure, even though prior research would show that it should have success. Since the product has already been launched Kraft Foods could enhance it by adding new flavours such as melon, strawberry or cherries, fruit flavours which make a good combination with popping candy. Confectionerynews.com (2009c) shows that nostalgia has helped boost the UK food market, and since popping candy was very popular few years back, it could make a comeback. Also, it should be noted that the new product will be targeting children, but their parents are the ones who have to be convinced to buy the product. If the product does not manage to reach forecasted sales for the first months, the marketing plan should be reviewed and changed where it went wrong. Promotional Programme Objectives of the campaign: the main objective of the campaign will be to draw attention on the new Milka product and promote it throughout the year. Also, through this campaign it is intended to raise Milkas brand awareness and help build a stronger brand image. Target audience: the main target audience is children aged 5-13, but indirect target audience is men and women aged 25-40, who have children aged 5-13, since they are the ones who will buy the products, even though they might not be the users. Message: since the product is mainly targeted to children, the message has to be appealing and funny. It will stress on the fact that it is fun to have popping candy together with chocolate, a soft and creamy chocolate like Milka. Budget: the product launch campaign could be quite expensive, but Kraft has to take the risk and invest approximately  £2 2,5 million, to develop an effective and integrated marketing campaign. Since the company is a world giant it should be able to afford such a campaign especially when aiming to gain market share. The company already has a contract with Ogilvy to make the advertisement for Milka, so it can count on the help of a well known advertising agency. (Mintel Oxygen, 2009) Promotional mix: prior to the actual launch of the product (two weeks ahead), a guerrilla marketing campaign will be conducted such as to raise interest in the new product. Teaser ads would be placed in supermarkets and short TV ads will be played on kids TV networks. After the launch, samples will be given to customers of selected supermarkets such as Tesco or Sainsbury for a period of one month. Then full length ads will be played on kids TV networks for the next three to four months. In conjunction with TV ads billboards will be posted close to supermarkets and playgrounds to make sure the target audience becomes familiar with the product. At celebration times sales promotions will run to encourage and increase the product sales. The tagline used in all the ads will be Poppin the magic with Milka and will feature the Milka symbol, the liliac cow dancing on a popping candy dance floor and in the end the dance floor will explode as fireworks, showing the properties of popping candy. Time frame: the marketing campaign is designed for a period of twelve months commencing January, 2010. Measurement, Review and Control Any marketing campaign has to be evaluated before, during and after implementation (Brassington and Pettitt, 2006). The campaign will be evaluated before implementation through focus groups. During the campaign, sales will be closely followed and on-site interviews will take place. In the end, the campaign will be assessed by evaluating sales volumes and revenues, and check if the marketing objectives have been attained. Conclusion Launching a new product in a market where Kraft does not have high market share might be very difficult, but such actions must be done in order to become known on the market. With a well designed product and marketing campaign the new product should be able to reach expectations. Poppin Milka should be a success since Milka chocolate is a European leading chocolate brand, and British people are familiar to the brand.

child development :: essays research papers

Video Reflection Play v Importance v Indoors Play v Levels of Play v Social Skills v Intellectual Play q Importance: Growing up my mother encouraged her four children to play hard. We were allowed the space to work off or steam by playing dirty in the mud. Or being allowed to jump into a pile of leaves. Her basic motivates and comments to us were always; that the clothing could be washed, we could take a bath but enjoy be a child. In the video â€Å"Play†, it is discussed as a way for children to be allowed to let go of their emotions. In chapter 15, Enhancing Creativity, Play is described a crucial stage in the development of the child. It allows the child to develop their sensor motor skills. q Indoor Play When a child plays indoor, they are in the process of developing a greater since of their physical skills. They can learn hand eye coordination; also, problems solving skills will be enhanced. In chapter 15, Enhancing Creativity, it is important for the children have the ability and space to gain a deeper understand of who they are how they can function indoors. q Levels of Play To watch a child play is to watch a world being created before your eyes. Children have the ability to experience freedom and love at its best. Yet, even the nature has laws and different levels of interaction. There are different forms of play associated with how children will interact. Functional play is when children can explore using sense’s to figure out what they can do. Constructive play is used by children of all ages. In chapter 15, Enhancing Creativity, the different levels of play allow the child to develop a sense of there own personality. q Social Skills As children learn how to play and interact with each other, they learn social skills. They learn how to cooperate with each other, in order to accomplish what they need. Play allows them the ability to release a lot of so cial tension. In chapter 15, Enhancing Creativity, learned social skills are important in the development of the child. These are the first steps that the child will need to take to eventually take their place in the society.

Leadership and morality in The Crucible Essay

â€Å"He has an idea of himself which is that of a leader of a sort, a moral example, perhaps, for others†¦ † Examine the importance of leadership and morality in The Crucible. The ideas of leadership and morality are extremely important in Arthur Miller’s play, The Crucible. The quote by Arthur Miller, â€Å"He has an idea of himself which is that of a leader of a sort, a moral example, perhaps, for others†¦ † could apply to a number of the male characters in the play, and is also applicable to a number of the female characters in the female. Leadership is defined in the dictionary as â€Å"guidance and direction† and morality as â€Å"motivation bases on ideas of right and wrong†. They are both very important in The Crucible, and are commonly emphasized with negative actions and ideas. Several characters in the play show leadership over others, and many undergo immoral actions and activities. Miller says of Parris, â€Å"He has an idea of himself which is that of a leader of a sort, a moral example, perhaps, for others†¦ â€Å". He has authority over the strongly religious town of Salem, yet he uses his power for personal gain, which is not only against his religion but is extremely immoral. He uses his power to condemn innocent men who may threaten his position in the future and who he has a dislike for. For a Reverend he has a severe lack of morality, with his incessant greed and quest for personal gain. John Proctor is most interesting for the moral choice that he has to make, whether to lie and save himself or to tell the truth and save his conscience. Although he has been immoral and sinned by having an affair, he makes the right choice by telling the truth. He knows that he is a sinner and is not worthy of following in Giles and Rebecca Nurse’s footsteps of being a martyr, but he tries to do what he believes to be right and what will be best for his family. The audience feels sympathetic for Proctor as he is hanged, as he has made the correct moral choice and died telling the truth. He asks â€Å"How may I live with my name? † just before tearing up his confession, stating that it is more important to tell the truth and keep his good name than to lie and live with a blackened name. As well as Proctor and Parris, many of the other characters in the play have moral choices to make and chances to show morality, yet many lie for personal gain or to save themselves. Without doubt the least moral person in the play is Abigail Williams. She lies at every possible chance in order to save herself and get revenge on those that she dislikes. She condemns innocent people which ultimately results in their death, yet has no conscience or feelings for those that she has hurt. Although she knows that there has be no actual witchcraft, yet continues with the idea in order to save herself and attack others. She makes a number of allegations against other women, â€Å"I saw Alice Barrows with the devil† being one example of her condemning and innocent person. Elizabeth, Hale, Danforth, Giles Corey and Rebecca Nurse all also have the chance to show their morality, yet only Giles and Rebecca are the only two in the whole play who come out of it as truly good people with excellent morality. They both do not give in by admitting to something that they have done, and both die as martyrs. Corey continues to tell the truth until the moment he dies, as he is crushed to death by his immoral torturers. He says â€Å"more weight† when given the option to confess of to continue with the torture, this being his final heroic act. Rebecca also dies a martyrs death, as she also continues to tell the truth knowing that she is going to die. These are the only two that show true morality and goodness. Although we feel sympathy for Hale when he finally realizes the mistake he has made, his lack of moral courage means that we can not admire or respect him. He is the one that starts the witch hunts, but eventually realises that his original assumptions were incorrect and endeavours to save the innocent townspeople. He tries to persuade them to admit to a crime that they had not done, which in its self is immoral, so that their lives may be spared. Some agree and are spared, but those with moral values continue to tell the truth and die for there beliefs. Elizabeth also has a moral choice, by lying to save her husband or telling the truth and leaving him in trouble. She lies in an attempt to save him, but this backfires as she discovers that he has already confessed to the crime, which ultimately condemns him. Leadership is another key aspect of The Crucible, and Abigail Williams is probably the most significant leader in the play. After discovering that she now has power over others, she exploits it for personal gain and to gain revenge on anyone that she believes has acted against her. She persuades the girls to admit to the crime so that they will not be punished, and to claim that others have been involved with the devil. She also threatens others into following her. John Proctor is a natural born leader, and organises opposition towards the church. He tries to persuade others to do the right thing and stand up against evil and continue to tell the truth, no matter what the consequences are. He realises what he needs to do, to save his own and others moral consciences, and takes a leading role in trying to help others. When Hale arrives he has an heir of authority and sense of leadership. His books are â€Å"weighted with authority† and people listened to what he had to say because of his authority. He then questions his own beliefs when he discovers that everything is not as he first believed. He loses his faith in his religion and the law, as he sees innocent people being executed for crimes that they have not committed. By the end his leaderships qualities are non-existent, and he is not half the man he used to be. Parris is similar to Hale, not just because he is also a Reverend, but because he has authority which makes people believe that what he is saying is the truth and is right. Parris use his leadership over others for personal gain, and only cares about his personal welfare. This may have had something to do with his background, as he used to be a tradesman in Barbados, which may explain his continued quest for personal gain. Danforth is another that has authority and therefore leadership over others. He has the power to sentence people to death, and so people will listen to what he has to say and respect his ideas. The other girls in the play are all easily led, as they follow Abigail’s lead in saving themselves and attacking other innocent people. This is especially true for Mary Warren, as she as good as sentences him to death when he claims that â€Å"there is a black man behind your right shoulder†. In conclusion, leadership and morality are extremely important in The Crucible. They are the basis of the lies that result in the death of 19 innocent people. Many people have moral choices to make, whether to save themselves by lying or telling the truth and facing the possibility of death. Many leaders also appear from the tragic events, with actions as well as negatives. These exciting aspects lead to an ultimately gripping play.

History and Evolution of Composite Materials

When two or more different materials are combined, the result is a composite. The first uses of composites date back to the 1500 B.C. when early Egyptians and Mesopotamian settlers used a mixture of mud and straw to create strong and durable buildings. Straw continued to provide reinforcement to ancient composite products including pottery and boats. Later, in 1200 AD, the Mongols invented the first composite bow. Using a combination of wood, bone, and â€Å"animal glue,† bows were pressed and wrapped with birch bark. These bows were powerful and accurate. Composite Mongolian bows helped to ensure Genghis Khans military dominance.   Birth of the â€Å"Plastics Era† The modern era of composites began when scientists developed plastics. Until then, natural resins derived from plants and animals were the only source of glues and binders. In the early 1900s, plastics such as vinyl, polystyrene, phenolic, and polyester were developed. These new synthetic materials outperformed single resins derived from nature. However, plastics alone could not provide enough strength for some structural applications. Reinforcement was needed to provide additional strength and rigidity. In 1935, Owens Corning introduced the first glass fiber, fiberglass. Fiberglass, when combined with a plastic polymer created an incredibly strong structure that is also lightweight. This is the beginning of the Fiber Reinforced Polymers (FRP) industry. WWII – Driving Early Composites Innovation Many of the greatest advancements in composites were the result of wartime needs. Just as the Mongols developed the composite bow, World War II brought the FRP industry from the laboratory into actual production. Alternative materials were needed for lightweight applications in military aircraft. Engineers soon realized other benefits of composites beyond being lightweight and strong. It was discovered, for example, that fiberglass composites were transparent to radio frequencies, and the material was soon adapted for use in sheltering electronic radar equipment (Radomes). Adapting Composites: â€Å"Space Age† to â€Å"Everyday† By the end of the WWII, a small niche composites industry was in full swing. With lower demand for military products, the few composites innovators were now ambitiously trying to introduce composites into other markets. Boats were one  obvious product that benefited. The first composite commercial boat hull was introduced in 1946. At this time Brandt Goldsworthy often referred to as the â€Å"grandfather of composites,† developed many new manufacturing processes and products, including the first fiberglass surfboard, which revolutionized the sport. Goldsworthy also invented a manufacturing process known as pultrusion, a process that allows dependably strong fiberglass reinforced products. Today, products manufactured from this process include ladder rails, tool handles, pipes, arrow shafts, armor, train floors, and medical devices. Continued Advancement in Composites In the 1970s the composites industry began to mature. Better plastic resins and improved reinforcing fibers were developed. DuPont developed an aramid fiber known as Kevlar, which has become the product of choice in body armor due to its high tensile strength, high density, and lightweight. Carbon fiber was also developed around this time; increasingly, it has replaced parts formerly made of steel. The composites industry is still evolving, with much of the growth now focused around renewable energy. Wind turbine blades, especially,  are constantly pushing the limits on size and require advanced composite materials.   Looking Forward Composite materials research continues. Areas of particular interest are nanomaterials — materials with extremely small molecular structures — and bio-based polymers.