Kraft Foods Entrance Into China Marketing Essay

kraft Foods adit Into mainland mainland chinaw areware Marketing EssayThe trespassic that we write is to a greater extent or less kraft paper Foods which entered the Chinese mart. At present, kraft paper Foods is the worlds second largest feed for thought for thought fellowship, as far as we know, the worlds largest fodder partnership is Nestle guild. However, we do moot that kraft Foods conjunction has its particular advantages, for example, it has majuscule achievements in its in operation(p) management, violence training and so on. In the near future, we think it leave go beyond itself, exculpate youthful break done and through, so we chose kraft paper Foods at last. somewhatwhat this paper, we mainly focus on kraft Foods narration, the reason why it entered Chinese market, and the condition of organization and management in Chinese market.At beginning, the paper was made up of six part they ar executive summary, shutting and particle one to four. so, we divided e re anyy Section into several parts everyone has her or his own duties. Now, the allocation of every members confinement is as followings. Firstly, Veras task atomic number 18 the second gesture of section 3, the forth and eighth questions of section 4. Secondly, Janes tasks are the first and third question of section 3, the sixth question of section 4, and she is answerable for the summary and top offing up as well. Thirdly, Naomis tasks are the trip allow questions of section 2, and the fifth question of section 4, catalogue and purpose. Fourthly, Shelias tasks are the three questions of section 2, the seventh question of section 4, catalogue and conclusion as well. At last, Alfreds tasks are section 1 and the first three questions of section 4. We distributed equally according to the difficulty of the chores and the field who is good at. We afford sighted the question according to the catalogue.In the paper, we introduce the history of the company firstl y, because the history is the procedure of the organic evolution of the company. we earth-closet understand the companys culture and history that in turn allow help us understand why they decided to diffuse internationally, and specifically into mainland mainland china so that we fire forecast the wisdom of that decision. This judgment leave alone be an serious part of the Conclusion. In addition, we write the reason why kraft paper Foods entered the Chinese market we bear amodal value the Chinese market as example, specifically represent the standard of their operating management and achievements. Besides, the form and organizational bodily structure kraft paper Foods gild came into china. trustingness our learning with them to analyze the management of kraft Foods. Finally, we put forward some reasonable suggestions.As all the efforts we return devoted to, we hold up further understanding of krafts logical argument and management. At the same time, with kraft paper Foods as an example, we got the more(prenominal) than practical comprehension.Section I History of the kraft Foods lodge jam kraft paper is the founder of kraft. He founded the company in 1903,Ms Irene Rosenfeld headed the kraft paper Foods for more than 20 long time .she help kraft paper foods succeederfully listed in 2001.Altria de none the promotion of 2 executive Beth Howden and Dailuomeidi served as Co-chief CEO, she became Chief Executive military officer since June 2006,in March 2007,she became the chairman of kraft paper Foods.(kraft paper Foods bodied classhttp//www.kraftfoodscompany.com/cn/zh/home/index.aspxOct 29, 2012)With the culture of company, e finickyly initiating the reforms and open policy, according to GDP, china is the second largest in the world. china cached up with Japan. According to figures released by the knowledge strand Bank, in symmetry with the uvulopalatopharyngoplasty (purchasing power parity), chinaware is the worlds second- evaluation of purchasing power. The world is about $ 55 trillion. China is probably more than one trillion U.S. dollars, accounted for about 9% of the worlds, and greatly increased the proportion of Chinas international economic. Chinas foreign exchange reserves begin r apieceed more than 14,000 billion, has accounted for one in the world. The rapid festering of the economy, as the just about populous nation of the worldKraft Foods testament non clear up the big market.(Kraft Foods corporate Homehttp//www.kraftfoodscompany.com/cn/zh/home/index.aspxOct 29, 2012)Since 1924, Kraft Foods to be listed on the stock market, from time to time during the scholarship of other companies, and extended to the food telephone flexure. Kraft in 1982 and 1984 respectively into Taiwan and mainland China market, in 1988, and Altria sort predecessor Philip Morris acquisition Kraft Foods, in 1989, Philip Morris will its General food and Kraft liquify for Kraft General Foods. In 2000, Philip Morris acquired Nano Beth and then merge it into Kraft. In July 2007 by acquiring rival Danone, Kraft starts its cooky business. Kraft encourage the expansion into china. Before the worlds second-largest food group Kraft globose Board concluded in Beijing. Despite the growing number of international spheric board of directors moved to China, for Kraft, this is the first time. Since 2002, the world-wide business restructuring Kraft yogurt sold to milk ternary .the name of Kraft in China is non so loud, it makes Kraft some grievances. in fact, Krafts biscuit business sit tight the first. TANG- the Guozhen solid instant drinks and Maxwell provoke coffee were besides occupy the first, second market share in their respective fields. Kraft was on the rise in the world(a) downsizing while on the high-speed education of the enthronisation in ontogeny countries, China has become one of the five countries of the Kraft focused investment, and the Chinese citizenry to re-recogniz e Kraft become increasingly important(Kraft Foods integrated Homehttp//www.kraftfoodscompany.com/cn/zh/home/index.aspxOct 29, 2012)In 1982, General Foods and Unity to set up a joint venture company in Taiwan, Kraft Foods locate in china in Beijing in 1984, in 1996, and Nabisco biscuit i bang the factory in Beijing and Suzhou. So far, Krafts investment in China is more than $ 200 million. In earliest 2006, Kraft Australia factory merchandise migrated to Suzhou, in 2000, Nabisco acquisition of joined Biscuits biscuit business in the greater China region, in the same year Kraft acquired Nabisco. In 2001, Kraft sold Beijing Kraft dairy business. In 2005, Kraft began build a youthful biscuit factory in Beijing. In 2006, Kraft will integrate all the entities in China to Kraft Foods.(Kraft Foods Corporate Homehttp//www.kraftfoodscompany.com/cn/zh/home/index.aspxOct 29, 2012)Section II Why Kraft Foods partnership came to China?Kraft Foods came to China in 1984. Now, the company has 4 ,000 employees in China approximately, and its harvest-homeions c over 4 consumer goods sectors biscuits, coffee, powdered beverages and confectionary. The company has set up offices in 250 cities crossways China and 8 manufacturing facilities in Beijing, Suzhou, Shanghai, Guangzhou and so on. Kraft Foods Corporate Management (Shanghai) Co., Ltd is the headquarters of Kraft Foods in China.(Expanding Market in China Kraft Foods Commissions impudently output Line in Suzhouhttp//www.kraftfoodscompany.com/cn/en/mediacenter/kraftfoodschina nakeds/2011/20110704.aspx10-30-2012)Obviously, Kraft Foods Company expanded elsewhere. October 1, 2012, Mondelz international launched the worlds top snack food scratch of former Kraft food with 10 million great deal around the world. Kraft Foods is the worlds second largest food company, doing business in cxlv countries around the world, one of the subsidiaries of Mondelz International Company. It is one of the most outstanding makers of coffe e, chocolate, gum, biscuits and candy in the world. The company has its main branches in atomic number 7 America, China and Canada. The company already has around 100,000 Mondelz International employees across more than 80 countries and areas. Kraft has become the giants of the food industry, and its affiliates are around the world. though Mondelz International is juvenile, the companys brands are as diversified and rich with inheritance as the 170 countries in which its products appear on the market(Kraft foods Company http//www.mondelezinternational.com/SiteCollectionDocuments/pdf/mondelez_intl_fact_sheet.pdf 28 October 2012 )The Kraft focuses on improving its produce to expand the Companys world-wide scale, the Company is expanding its marketing now, also they growing markets and making infrastructure investments larger, much(prenominal) as the markets like China, Brazil, Mexico, Russia and so on.(United States Securities and Exchange Commissionhttp//www.mondelezinternation al.com/assets/pdf/KraftAR04_10K.pdf10-30-2012)In addition, they conceptualize differences in governments. The U.S. government has an open attitude and policy about export. The company is no longer a simple export the brand of the United States around the world, but expects them to automatically do well. Kraft priority to China as the most important countries in its developing markets division. They have taken into account the differences in the Chinese government and the Chinese market and will use the advantage of the Chinese market. It has invested distribution, research and discipline, marketing Oreo, Tang orange drink, its best-selling item, and its dozens of brands of disproportionate resources. Their company ordained said that they desire that the Chinese market is to teach us how to focus and how to distinguish and how innovation. The official also said that they will conduct to do their utmost to fork up safe, delicious, high-quality products for Chinese consumers wi th a variety of methods, expanding the scale of merchandise, increased R D investment intensity, open up modern markets, and so on.(Kraft food Companyhttp//www.kraftfoodscompany.com/cn/en/mediacenter/kraftfoodschinanews/2011/20110704.aspx 28 October 2012)At the same time, they consider differences in business practices and customs. China is one of the top 10 markets in terms of teaching priority for Kraft Food. Many famous brands of Kraft Foods, such as Oreo, Chips Ahoy, and Uguan, have become the favorites of Chinese customers. said Lorna Davis, and she told us that they will continue to make their best efforts to provide safe, delicious and high quality products to Chinese consumers with a variety of approaches, their goal is expands production scale and develops new markets, because China is a big market. When Kraft firstly came to China, their products sold not very well. Because that it different between Chinese and foreigners samples. The Chinese people can not stand the sweetness of the products. Then Kraft changed the gross gross sales strategy.(Expanding Market in China Kraft Foods Commissions New ware Line in Suzhouhttp//www.kraftfoodscompany.com/cn/en/mediacenter/kraftfoodschinanews/2011/20110704.aspx10-29-2012)At last, there are same personal differences within the company in deciding that China was a good market for them. Shawn warren is the president of Kraft Foods China. Due to the sale trouble in 2005, he proposed to launch a combination of local discretions Oreo cookies. Shawn Warren said, Consumers in China said they hope to get a little taste of the stimulus as well. in that respectfore, that is what we want to hear. He advocates should seize the opportunity, improved the taste of the food, according to the tastes of Chinese consumers to take full advantage of the Chinese market. By clicking on Krafts distribution net bat in Chinas cities, the number of Cadbury candy sales will rise to about 40. Lorna Davis, president and chairma n of the board of Krafts business in China in an interview with reporters, Reuters reporters said on the sidelines of the World Economic Forum. Chinas economic situation has been changing annually, the real challenge is how to take in the right opportunity Davis said. If I had unlimited resources and unlimited people, I will take with Kraft, but now the focus is in the integration of Cadbury biscuits and expanding our product line. She advocated a long-term view point, and not just confined to the Chinese market.(Kraft Foods China pushes for local flavors in Oreoshttp//www.china.org.cn/learning_english/2012-06/08/content_25597524.htmOctober 28, 2012)Section III The Form Kraft Foods Company Came into ChinaKraft Foods chooses the form of expanding to come into China. Kraft Foods expand a brand in China, and up to now, it has several brands not plainly in china but also some Asian countries. Traces backbone to its history, Kraft Foods started to sell the products in China in 1984. A t present, there has been have 4 consumer goods sectors in the field of foods they are confectionary, biscuits, coffee, and powdered beverages, each of them is popular in China. The headquarters of Kraft Foods in China is Kraft Foods Corporate Management (Shanghai) Co., Ltd. The company has set up 250 offices and 8 manufacturing facilities across China, the main brands are distributed in Beijing, Suzhou, Shanghai, Guangzhou and Jiangmen. This mea authoritative makes people in china enjoy the nice snacks from America.(Expanding Market in China_ Kraft Foods Commissions New Production Line in Suzhou http//www.kraftfoodscompany.com/cn/en/mediacenter/kraftfoodschinanews/2011/20110704.aspx 10-30-2012)As the words said above, it is not the only option for Kraft to enter Chinese market. And it has other options. For example, they came into china by the form of acquisition. As Danone was in Chinese market, and when Kraft acquired Danone, the market in China which Danone had was belong to Kra ft.(Expanding Market in China_ Kraft Foods Commissions New Production Line in Suzhouhttp//www.kraftfoodscompany.com/cn/en/mediacenter/kraftfoodschinanews/2011/20110704.aspx 10-29-2012)You must have a doubt that why did they make the decision? China is one of the top 10 markets in Kraft Food in terms of development priority. There are many famous changes of Kraft Foods, these products attract or so every Chinese. Such as Oreo, Chips Ahoy, and Uguan, many people think these are their favorite foods. Nowadays, Suzhou Industrial Park is preparing to welcome the Kraft foods coming. Because Kraft foods take up us energy and talents, lift employment and economic development. The most important is that they intend to take root germination in China and found on their sustainable development, they want to make use of their business school of thought to create win-win situations for the whole society.(Expanding Market in China_ Kraft Foods Commissions New Production Line in Suzhou http// www.kraftfoodscompany.com/cn/en/mediacenter/kraftfoodschinanews/2011/20110704.aspx 10-30-2012)Section IVThe Organization complex body part Taken by Kraft Foods Company in Coming to ChinaStrong corporate government activity is essential, Our Board of Directors imagines that effective corporate governance principles and practices, together with the companys Articles of Incorporation , By-laws , Code of Business Conduct and Ethics for Directors and Corporate Governance Guidelines , provide a unshakable framework to assist them in upholding their fiduciary responsibilities to shareholders and promoting the long-term conquest of the company.(Corporate Governancehttp//www.mondelezinternational.com/Investor/corporate-governance/index.aspxOct 30, 2012)When Health staff are working(a), they are full of enthusiasm, a successful business needs a powerful workforce, which is why we want to encourage our employees to have a healthy lifestyle, and every year our goal is to expand these eff orts. Our staffs Lifestyle need to improve, they can do such as stress management, weight management and smoke cessation, and so on.(Wellnesshttp//www.mondelezinternational.com/DeliciousWorld/workplaceandculture/wellness.aspx Oct 30, 2012)We may make it a priority to treat our people well, we can help them develop and give them a rewarding working life, Excel in their performance Develop skills for improvement Move towards their life history goals By providing training and development programs, on-the-job learning, coaching and feedback, we could make sure that everyone who works with us has the resources they need to learn more and build their careers. The success depends on motivated and committed employees. We would need them to feel that they play a real part in helping our business meet its goals and have an understanding of what they are. We should have several different ways of measuring our employees take of engagement with the business and satisfaction with their working lives such as through constructive dialogue with our employee representative groups and employee survey.(Wellnesshttp//www.mondelezinternational.com/DeliciousWorld/workplaceandculture/wellness.aspx Oct 30, 2012)The organizational structure of Kraft is ground substance structure. Kraft has five global consumer sectors, which are Beverages, Cheese and Dairy, Snacks, Convenient Meals, and Grocery. Then in this structure, organization dimensions are also divided into three parts. First, in coiffure to improve growth and global expansion, a brand new global marketing and socio-economic class development group is being established. Second, for the interestingness of better severing local consumers and customers, the geographic- ground commercial units is forming to strength the development county by country. Third, within our business system, our key functions will be responsible for promoting be savings and accelerating effectiveness.(Kraft Foods Announces New Global Organization al twist http//www.lexdon.com/article/kraft_foods_announces_new_global/56574.hypertext markup language 10-30-2012)There are other structure discussed in the chapter might allow Kraft to operate more effectively. The move to a product team will lead to greater effectiveness and efficiency. The dual reporting relationships that are at the heart of matrix structure have always difficult for managers and employees to deal with. Often, the functional boss and the product boss make contrast demands on team members, who do not know which boss to satisfy first. The product team structure differs from a matrix structure in two ways. First, it does away with dual reporting relationship and tow-boss managers. Second, functional employees are for good assigned to a cross-functional team that is empowered to bring a new or re aimed product to market. And it can vacate problems of two-way communication and the conflicting demands of functional and product team bosses.(Kraft Foods Announces Ne w Global Organizational Structure http//www.lexdon.com/article/kraft_foods_announces_new_global/56574.html 10-30-2012)Then, there are three levels in the organizations hierarchy. And it is berth centralized. Irene B. Rosenfeld presides over one of the worlds biggest food companies, she has the supreme authority, so in my mind, it is authority centralized. Then, let me describe the span of hold back of the top manager and of middle or first-line managers. The CEO in Kraft Foods is Irene B. Rosenfeld. She presides over one of the worlds biggest food companies. at a lower place the CEO, there are some Executive Vice Presidents and Presidents they are responsible for each region and each field. Then, there are some teams d desolates, their work are specific, what they need to do are concentrating on variety kind of production.(Management Team http//www.kraftfoodscompany.com/eu/en/about/management_team/index.aspxKraft foods Team loss leader profiles _ LinkedIn http//www.linkedin.com /title/team-leader/at-kraft-foods)According to all the learning that we got, we think that the distribution of authority appropriate for the organization and its activities. Kraft produces food goods at refrigerated, dry and polar Kraft plants third party manufacturers located across the country. From the plants to a cyberspace of upstream Kraft devotee facilities as storage overflow buffer located near the plant. The physical characteristics of these are similar products, so we can not say that it is very fragile or brittle, these goods should flow through the DSD channels, in order to reduce the losses caused by touch points on the network and product damage.(Direct Store Delivery Versus Centralized Distributionhttp//www.mwpvl.com/html/dsd__vs_central_distribution.htmlOctober 30, 2012)I think it is possible to flatten the hierarchy by decentralizing authority and empowering employees. Roger K. Deromedi is the Chief Executive Officer ofKraft Foods. He inform a new global organ izational structure to achieve a more solid pointing Kraft sustainable growth. Krafts management team is unmatched. Every member has a vision of a world-class leader in professional knowledge and broad perspective to help Kraft to achieve sustainable growth. said Betsy Holden, 48, has been named President, Global Marketing and Category Development, and will continue as a member of the Kraft Foods Board of Directors. Holden, co-CEO of Kraft Foods (Kraft Foods) and Kraft Foods northeastern America President and CEO.Holdens group will fugle Krafts growth agenda by driving category development across countries with global category strategy, new product development platform and superior marketing. This new team will build on the success of Kraft Foods global categories Parliament by creating a global classification team. Krafts business units based on geographic location will be divided into the North American commercial and international business, with directly responsible for the mar keting and sales between countries, including profit and loss responsibility. At the local level, these organizations will promote the Kraft business make full use of the category strategy, development platform development and global marketing cooperation with global marketing and category development group.(Kraft Foods Announces New Global Organizational Structurehttp//www.lexdon.com/article/kraft_foods_announces_new_global/56574.html30 October 2012)The principal integrating mechanisms used in Kraft Foods Company and competent coordination among individuals and functions that they provide are followings. The Krafts final strategy is to act responsibly. As the Company strives for sustainable growth, it seeks business success in ways that honor estimable and legal standards and that respect people, communities and the natural environment. This strategy includes a commitment to strong compliance and integrity programs and sound corporate governance, as well as a number of health and wellness initiatives, such as intensify nutrition labeling, the development and funding of community-based programs and voluntary limitations on advertising to junior children. It also includes taking steps to contribute to the sustainability of the Companys agricultural supply base through several programs with respected international and local partners.Through the Krafts old age of the development process, we can see that Kraft has been continuously through the acquisition of local enterprises to expand its business in China, and this is Krafts business ideal in America. At the beginning, Kraft came to China, Kraft also did not think overly much about the changes about demand for cross-cultural product development or local marketing decision. Completely copy American model approach also makes Kraft lose the Chinese market narrowly. Until 2005, Kraft realized the problem and began to reform, increase the Chinese capital market and the investment of human resource and so on. T hen Kraft earns a success in China.(United States Securities and Exchange Commissionhttp//www.mondelezinternational.com/assets/pdf/KraftAR04_10K.pdf10-30-2012)Now that we have analyzed the way this organization is organized, we want to give Krafts managers to help them improve the way it operates. matrix structures have been successfully used for years at high-tech companies where new product development takes place frequently and the need to innovate readily is vital to the organizations survival. However, the dual reporting relationships of a matrix structure have always been difficult for managers and employees to deal with. So, it is better to improve the organizational structure to product team structure. The product team structure differs from a matrix in that 1) it does away with dual reporting relationships and two-boss managers, and 2) functional employees are permanently assigned to a cross-functional team. It can help them gain a warlike advantage in fast-changing orga nizational environments.Conclusion An Analysis of Kraft Foods Companys Entrance into ChinaTo conclude, Kraft Foods is the worlds second largest food company, doing business in cxlv countries around the world, one of the subsidiaries of Mondelz international. It employs more than 60,000 employees worldwide. Krafts core product line is for coffee, confectionery, dairy products and beverages. Krafts business is in more than 70 countries, its products sell in 150 countries worldwide. Kraft North America and Kraft International two units manage the market of the United States and Canada, as well as atomic number 63 and developing markets. As the end of December 2007, Warren Buffets Berkshire Hathaway holding 8.6% of Kraft stock, is a float institutional investors. So far, Krafts investment in China is more than $ 200 million. In early 2006, Kraft Australia factory production migrated to the factory in Suzhou. The Suzhou plant is one of the few food factories that Kraft first entered the Chinese investment in the construction. The production of Krafts biscuit brand Oreo, music, Wealthy, Taiping and grimace overlyt has become the fastest-growing source of income in China. In the North American market, Kraft has a lot of product improvements, and mark gram calorie content on the packaging, in order to concern about peoples waist. In China, even though most people do not realize this, Kraft has taken the lead in product packaging clear stated calorie content. So that consumers can clearly choose to control the amount of food.As we have researched the situations, we find some interesting problems that they encountered. Kraft Group as the worlds leading food companies, in recent years in China, with good operating performance and a remarkable position in the market, many of its products have been well known to consumers. However, as early as in 2005, Krafts sales in China are not satisfactory. In the beginning, Kraft came to China, Kraft also did not think too much abo ut the changes about demand for cross-cultural product development or local marketing decision. Completely copy American model approach also makes Kraft lose the Chinese market narrowly. Until 2005, Kraft realized the problem and began to reform, increase the Chinese capital market and the investment of human resource and so on. So Kraft agilely adjust its marketing strategies in order to better adapt to the requirements of the competitive environment, Kraft eventually created the success in China market. Then Kraft earns a success in China.I think the way they solve the problem is very scientific. Kraft made some adjustments to the company in accordance with the China market situation and the tastes of Chinese consumers. They seize the opportunities. So they achieved success. Of course, they also have insufficient. I think they can be more active innovation. They can release more flavors and varieties of biscuits to catch the consumers stomach. So Kraft can attract the attention of consumers and increase sales and market share. I believe Kraft do create a better future.Over the years, Kraft has always insists on the principle of related to food quality never concessions, which achieved a sales of over 300 billion U.S. dollars in the global top 500 enterprises. In order to ensure the food quality, Krafts new factory controls of physical, chemical, biological, three major sources of pollution tightly. Physical sources of pollution, the workshop all organic glass windows and stainless steel, metal, glass and hard plastic temporal to avoid entering the production line, all corner radian design to prevent dust left plant cleaning are digestible grade cleaner agents, equipment lubrication points with the product contact parts, use only food grade lubricants, to do so despite the high cost, but to avoid chemical pollutants entering the food biological pollution control, Kraft raw flour define the amount of heat-resistant Bacillus, oven temperature curve have a s pecial instrument verification, to ensure that the quality of food.The Krafts strict quality control is also reflected in many details. Some consumers are allergic to peanuts, and in order to protect the health of these people, Kraft specifically arranged a commit production line. Kraft pays attention to product quality in order to open the door to success.