Arthur Hempen MGMT 1120/ Rumney Introduction to Business July 27, 2015 Following Mondelez International, Inc. from origins in the National Dairy Products Corporation and the original goal to unify the ice cream industry in the early 20th century to its present status as an international giant in the snack food industry is a history lesson in the evolution of business. To report that the company Mondelez International, Inc. (Mondelez International as its employees know it) is a leader in the field of snack and beverage sales is a gross understatement of the company as a whole. The company’s inspiration is found in its unusual mission statement and its core values, which, strangely enough, say nothing about the company’s snack products, traditional …show more content…
One would assume that the customer for Mondelez International would be the actual consumer of any of its wide variety of snacks; however, its customers are considered to be the retail outlets that actually sell the products, and these customers vary widely in their own customers. The products “are sold to supermarket chains, wholesalers, supercenters, club stores, mass merchandizers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets” and then to the actual consumer (“Profile: Mondelez International, Inc.”). It is easy to understand that, through such a variety of customers, the products of Mondelez International ultimately reach an even more widely diverse consumer. The company also experiences low customer defection. It is undeniable that the consumer of the many brands of Mondelez International remain loyal. “It operates as a leading player in the global confectionery space, with 15% share of the chocolate market, 30% of the gum category, and 7% of the candy aisle. In addition, Mondelez holds dominant share of the biscuit category--controlling 18% of the market, far in excess of Kellogg (4%) and Campbell Soup (3%)--as well as leading the powdered beverage arena (16%)” (Lash). Clearly, the consumer base remains loyal which enriches the profitability of …show more content…
Even through years of an economic recession which began in 2008, the company actually performed relatively well. Because consumers were eating more at home and less in restaurants, the company was positioned to take advantage of conservative shoppers. In an interview with USA Today, CEO Rosenfeld commented that, even though the economy had softened worldwide, “We’re seeing (strength in) products that provide obvious value: powdered beverages like Kool-Aid and Crystal Light” (“CEO Forum”). When the global food market began to see recovery, Mondelez International experienced that recovery in its bottom line. “In its results for the third quarter ending September, Mondelez’s net earnings rose 57.1% to $1.02 billion, from $652 million in the same quarter last year” (Khan). The future also looks promising for the company as it continues to focus on emerging markets. “Despite the mixed performance, Mondelez is well positioned for long-term growth in the emerging markets. While it has witnessed revenue declines in China, it still remains the leading player in the biscuits, coffee and gum categories in the country” (Kahn). Throughout any economic global downturn, the company has not strayed from its commitment to diversity, and perhaps this philosophy has eased the effects of the
For this discussion, I have chosen a company that’s a lunchtime favorite in my office—Panera Bread Company, a steadily-growing national restaurant chain headquartered in Sunset Hills, Missouri. Ron Shaich, the creator of Panera Bread, joined with partner Louis Kane, the founder of the bakery-café chain Au Bon Pain Co., Inc. (ABP). In addition to ABP, Mr. Shaich started a “fast casual” sandwich shop that he eventually named Panera Bread, and once ABP was sold in 1999, Mr. Shaich focused on growing the Panera Bread brand. Within the next 15 years, Panera Bread practiced a slow but steady growth pattern and there are now more in 2,300 Paneras in the United States (Panera Bread Company, 2017).
Abstract: The following is a case study discussing Oreo’s 100th birthday campaign. In 1912, Oreo was first sold in Hoboken in USA, since then it has become the best-selling cookie brand for the 21st century. At 100 years old, Oreo seemed younger than ever, so the company launched an outstanding campaign called “Daily Twist”. This case study includes the aim of this campaign, the targeted audience, the strategy used, the outcomes in addition to my personal opinion regarding this campaign.
As I mentioned above, Mondelez was created to fit a need that Kraft Foods Inc. had to increase their growth globally. Kraft Foods Inc. established their name in 2007 when they broke apart from Altria Group. Kraft became the second-largest processed food company in 2012 with annual revenues of more than $54 billion in 2012 (Gamble, 2016). However, significant growth in the company was not much different from that in 2007 when they became independent. It is the belief of the company’s upper management and board that the reason for their stagnation was due to the fact that their corporate strategy was not focused on the growth of the company.
Candy is not yet a “mature” industry in the United States. The compound annual growth rate for candy in the past ten years has been close to 6% a year, a very solid gain in an industry that is supposedly mature. In fact, within the chocolate confectionery subcategory, the United States ranks 11th in the world in per capita consumption and fifth in the world in growth since 1980. Based on current demographics, many analysts believe that there will be further growth for confectioneries. A “baby-boomlet” is on the way, significantly increasing the teenage population. By the time the population bulge peaks in the year 2010, it will top the baby boom in the 1960s in both size and duration. According to government statistics, the percentage of children between the age of 5 and 14 will rise during the 1990s, increasing from 14.2 percent of the population in the 1990 to 14.5 percent in the year 2000. This trend will serve as a strong foundation for increasing consumption of confectionery products through the end of the century. Nevertheless, spending for food and drink as a percentage of all personal consumption is declining in the United States, and most manufacturers recognize that future opportunities lie in using profits from domestic
Cracker Jack is one of the most recognized consumer food brands in the United States. The brand possesses virtually universal awareness, holding steady at 97 percent among persons between the ages of 15 and 60. It also has an enviable 95 percent brand name awareness among heavy users of caramel popcorn. In spite of this gold mine, it is still regarded as traditional, stale, old fashioned, a product from a bygone era and less hip and less contemporary than its major rival, Crunch ‘n Munch. To add to this dilemma, the product diversification strategy that led to the development of several other versions such as Cracker Jack Fat Free, Butter Toffee, and Nutty Deluxe, in the hopes of
As a financial analyst at the H. J. Heinz Company (Heinz) in its North American Consumer Products division, Solomon Sheppard, together with his co-workers, reviewed investment proposals involving a wide range of food products. Most discussions in his office focused on the potential performance of new products and reasonableness of cash flow projections. But as the company finished its 2010 fiscal year at the end of April—with financial markets still in turmoil from the onset of the recession that started at the end of 2007—the central topic of discussion was
According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.
The Pillsbury Cookie Challenge is a case study written by Natalie Mauro under the supervision of Professor Allison Johnson. The case study creates an open discussion about what the marketing manager of the refrigerated baked goods category for Canada General Mills should do to revive his products. Ivan Guillen, the marketing manager, was faced with tough challenges. He was initially “…faced with the challenge of developing a strategy that would lead to improved business performance on his category” (Johnson and Mauro, p.1, 2011). To clarify, Guillen’s category is refrigerated baked goods (RBG), which means, this category is his marketing responsibility. The issue here is that “RBG was GMCC’s fourth largest category, and its performance over the past two years had been less than stellar” (Johnson and Mauro, p.1, 2011). It is important to note that GMCC stands for General Mills Canada Corporation. Pillsbury has enjoyed majority market share in the RBG category in Canada, however, recently, the market was experiencing only moderate growth. Guillen was disappointed that their goal of 5%-7% market growth was not being achieved mainly in the refrigerated cookie dough segment. To be exact, their volume growth for two years was flat and they were having difficulty reaching new households. There was a shift among consumer’s purchases, which Guillen was challenged to figure out why.
End users are those individuals walking in the company stores, ordering a smoothie and a cookie, paying the cashier and then telling her friend how wonderful the ambiance is. This buyer segment does not purchase large amounts of product at one time and likely chooses Jamba because of the quality of the ingredients. With no switching costs and a growing industry offering many options, patrons of smoothie cafés can freely purchase their delightful cool beverage anywhere. According to the U.S. Census Bureau the number of stores within the “snack and nonalcoholic beverage bars” industry grew from 36,036 in 2002 to 49,463 in 2007 [ (U.S. Census Bureau) ]. This trend means that Jamba Juice will have to increase customer loyalty to battle the increased competition.
As marketing manager of the RBG business, Ivan Guillen must propose a solution to repair Pillsbury refrigerated baked goods (RGB)’s business performance. Since the refrigerated-cookie product line consisted of 62% of RBG’s unit sales and over 75% of the company’s profits, Guillen found it appropriate to alter this segment in the market. Proposing this idea to GMCC would require Guillen to consider all the challenges he faces. Guillen will have to discover a strategy to increase household penetration since it has fallen to 24% in the past few years. The lack in market penetration has
Brand building, consumer health and wellness, and advertising and promotions were all critical to success in the industry. Kraft’s ability to compete with lower priced snacks showed its ability to differentiate itself from other lower priced competitors.
Skittles is a well-known, long-standing brand that has pleased consumers for generations. However, it is our contention that the name’s growth is stagnating, and needs to be revitalized based upon a core marketing goal: bring Skittles from simply a candy – something one consumes on a whim and forgets about – to a brand that engenders both value and feeling for consumers. With such a focus, the objective is to influence the seemingly minor consumer choice between confections in vending machines and on store shelves by linking a positive and pleasing emotion to the image of the brand. The intention is to achieve realistic, long-term financial goals, which will be controlled through measuring actual results against initial projections. The
Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.
The case focuses on Kellogg’s Special K brand and considers how the marketing of this has changed over time. Marketing is not static – it must be developed as market conditions and customer expectations change.
Answer: Based on the case study, Kellogg’s main competitors in the ready-to-eat cereals market are General Mills and Kraft Foods and PepsiCo. In the convenience foods market, the main competitors are Frito-Lay unit of PepsiCo which is the largest maker of salty snacks while the Nabisco unit of Kraft Foods which is the largest maker of cookies and crackers. Except from these competitors, Kellogg also has been facing competition with the new entrants or the improved store brand products which intent to get some shares of these two markets. Also, Kellogg’s brand