Organization: Kraft Food’s Group Inc.
Industry: Food
Corporations use an assortment of programs to measure and analyze what is happening in the world of social media. In some cases the information that is obtained from these programs have profound changes in the corporations methods of doing business, marketing products and producing products.
Information giving to corporations such as type of product purchased, where it is purchased and price paid can help corporations decide what they need to do next to change their product, help the return on investment or change their target market.
Kraft has used analytics and metrics to reinvent the company. The analysis pointed out new consumer groups, that consumers where buying more healthy products and pointed out where the consumer was buying the product.
This lead Kraft to make some major changes in the last year not only in product production, where to market the product and how to change the business model to meet the future needs of the corporation and the consumer.
At a presentation for the Consumer Analyst Group of New York Conference CEO Tony Vernon and EVP CFO Teri List-Stoll give a presentation listing out a variety of the changes for how product will be produced to meet the demands of consumers who are making healthier purchases, targeting new consumer markets and changes to the business model. In this presentation using all the analytical tools available Kraft has broken down how and where consumers shop, how television advertising has changed, that consumers want healthier foods, where the new market target is and how it affects the ROI (“Return on Investment”) which has been instrumental in bringing Kraft into the future.
- Q2. “We continue to execute our playbook and are on track to deliver another solid year of growth in earnings and cash flow,” said Kraft CEO Tony Vernon. “However, there’s no question that economic and consumer trends are creating top-line growth challenges for the food and beverage industry, Kraft included. Our focus remains on driving profitable growth through brand renovation, innovation, impactful marketing and total cost management.”
- Q3. “We remain on track to deliver earnings growth consistent with the expectations we laid out at the start of the year, despite a rapidly changing consumer environment,” said Kraft CEO Tony Vernon. “To date, our implementation of commodity-based pricing has been successful. But in other areas, our execution has been mixed. We will continue to apply our playbook, improve our execution, and proactively adapt to drive profitable growth now and in the future.”
Exciting new commercials target new consumer groups and long-term consumers.
At the Back to School conference it was again pointed out how fast things are changing and the need to address consumer needs in this changing environment with Kraft products in 98% of households in North America analytics is helping to set new targets such as
- Hispanics
- Millennials
- Economically-strapped consumers
- Tech savvy consumers
- Nutrition & Well-Being
- Alternative Channels
This also involved reformulation of the product to be more nutritious with less preservatives. They have packed the lunchables snack with more protein
Tony Vernon is leading the New Kraft (as they split in two) since 2012 and is using all the tools necessary to do so.
References:
Food Navigator USA.com – Elaine Watson
Author of this Blog is Terry-Lynn Conway (tconway@gmail.com)
If you have concerns as to the accuracy of anything posted on this site please send your concerns to Peter Carr, Programme Director, Social Media for Business Performance.