Archive
Kraft's New Grocery Company Plans Marketing Boost in Search of 'Renaissance'
Mr. Vernon also pledged that the company would become a “lean, horizontal” organization, moving away from a culture at old Kraft that had he characterized as being too reliant on “entitlement.” Part of the reorganization is already underway, including the elimination of 2,000 positions in the past two years, while “layers of management” have been removed, he said. The goal, he said, is to “let our bright, talented people create and innovate without having to look to headquarters for answers and directions at every step.” At company headquarters in suburban Chicago, office walls are being taken down to create a more open environment. “The stately cherry paneling of our previous executive offices will soon be history,” Mr. Vernon said.
Kraft is betting that the split will bring more focus to brands while creating two distinct investment choices for Wall Street. Mondelez is positioned as a high-growth company with penetration in developing markets, such as Brazil and India, while Kraft Foods Group is full of category-dominant meat and cheese brands, which act as cash cows that will generate consistent dividends for investors. When the split is final, Kraft Foods Group will become the fourth-largest food and beverage company in North America, trailing PepsiCo ($36 billion), Nestle ($26 billion and Coca-Cola ($21 billion), according to Kraft.
The trick for Kraft Foods Group will be to differentiate its grocery brands in categories that risk becoming commoditized. Mr. Vernon signaled that marketing will be a key cog in that endeavor. In outlining his priorities, he said that advertising was “dearest to my heart” and suggested that Kraft would spend more to catch up to peers. Kraft Foods Group brand spent 2.9% of its net revenue on advertising in the latest fiscal year, compared to the 4.5% average spent by competitors, including 8.6% by Kellogg Co., 6.4% by Campbell Soup. Co. and 5.5% by General Mills, according to a slide Mr. Vernon showed analysts.
“We can and we must do more to support our brands,” he said
ADVERTISEMENT: CLICK DIGITAL AGENCY…………..Is a Silicon Mountain Mandeville Jamaica based interactive advertising agency offering a full range of advertising and marketing solutions, including display, search and website development, committed and focused on providing SME businesses, owned and operated by Entrepreneurs, experiencing budget constraints, with customizable, on and off line marketing and advertising services at affordable rates and services, offering high levels of convenience and quality. Click for more information.
Why Some CEOs Resist the Concept of Buy-In
The Strategic Importance of Investor Communication and Recommendations for Caribbean Listed Companies
Spur Tree Spices Projects Growth from Product Innovation, Domestic Sales, and E-Commerce Scaling
Businessuite 2023 Top 100 Caribbean Companies – US$ Revenue
Jeffrey Hall Is Set To Be One Of The Most Powerful Men In Corporate Jamaica And The Caribbean. So, Who Is He?
Which Company Has The More Sustainable Business Model….Edufocal or ICREATE and Why?
-
Businessuite Markets1 week ago
The Strategic Importance of Investor Communication and Recommendations for Caribbean Listed Companies
-
Businessuite News242 weeks agoSagicor Group Jamaica Announces Organisational Changes to Support Business Growth
-
Businessuite Markets2 weeks agoSeprod’s Strong 31.9% Revenue Growth Tempered by Higher Finance Costs from Regional Expansion
-
Leadership Conversations4 days agoWhy Some CEOs Resist the Concept of Buy-In
-
Logistics & Transportation2 weeks agoUnilever Caribbean’s Strategic Shift: Embracing Outsourced Logistics for Enhanced Efficiency
-
Businessuite Markets2 weeks agoKingston Properties Reports Robust Q1 Growth in Core Revenues and Net Income
-
Businessuite Markets2 weeks agoUnilever Caribbean’s New Distribution Model Marks Key Strategic Recalibration Amid Market Challenges
-
Businessuite News24 International3 weeks agoUber Introduces Route Share: A New Chapter in Affordable, Shared Mobility