Kraft Foods Taget Marketing Paper
Kraft foods have lines that date back to 1767. Throughout the company’s history, it has been shown that the company has made great strides for growth. Mr. James L. Kraft began a wholesale cheese distribution service in 1907; it started by delivering cheese to businesses in Chicago via horse and buggy. Through some ups and downs, the company became incorporated in 1907 and within 7 years, they offered 31 varieties of cheese and became the first to use colored advertisements in national magazines. In 1914, they opened their first cheese factory in Illinois.
Kraft’s growth increased because of new product development, advertising, market research, and later because of the acquisition of other companies. From beginning to end, Kraft has continued its success mainly through new product development; giving the consumers what they want. In 1989, Kraft and General Foods were merged into one unit and was renamed Kraft General Foods. In the beginning, the merger seemed to be an advantage; the consolidations saved them millions and they had increased their purchasing power. The new brand portfolio also gave them influence and bargaining power on their customers. The company’s size began to show that they were slow to respond to new product development and later tensions were growing on the inside between Kraft and General Foods. In 1992, they formed a unit to bridge the gap between different opportunities and coordinate marketing opportunities. In 1993, they restructured again, and began downsizing. In 1995, Kraft General Foods became Kraft Foods, Inc.
There were many problems that were faced by Kraft over the years. There were barriers to entry for both large and small food manufacturing companies. For small companies, marketing and distribution were the most costly, while for the larger companies, the capitol required for the industrial units could be considered excessive, along with the marketing and distribution costs.
In 1916 Kraft developed a revolutionary process, for pasteurizing cheese so that it would exist for long time and to be shipped long distances. In 1919 the company expanded into Canada. Kraft observed a large increase in his business during World War I when the United States government used to provide cheese in tins to their army.
James Lewis Kraft served as the companys president from 1909 to 1953. Kraft introduced and launched many new products and marketed them in an effective way and he brought the company to the position of North Americas top food manufacturing corporation. In 1928 the company introduced Velveeta and Miracle Whip in 1933. James Lewis Kraft was also well-known for his humanitarian.
Intensifying a product line into another country can be a very difficult decision. This decision is made harder by the establishment of competitors already in the market place and without proper market testing being done. Ultimately a decision must be made whether