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Mondelez International Marketing Case Analysis

Essay by   •  October 27, 2012  •  Case Study  •  3,991 Words (16 Pages)  •  22,820 Views

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Table of Contents

ABOUT THE COMPANY 3

SITUATIONAL ANALYSIS 4

EXTERNAL ANALYSIS 4

* MACRO ELEMENTS: PESTEL ANALYSIS 4

* MICRO ELEMENTS: CONSUMER, COMPETITORS, INDUSTRY ANALYSIS 6

INTERNAL ANALYSIS 8

* MISSION STATEMENT 8

* VALUE STATEMENT 8

* VISION STATEMENT 8

* MARKETING STRATEGY & OBJECTIVES 8

* CORE COMPETENCES 10

* PRODUCT PORTFOLIO 10

ANALYSIS CONCLUSION 11

* SWOT ANALYSIS 11

PROBLEM IDENTIFICATION 12

SOLUTION 13

ACTION PLAN 15

REFERENCES 16

About the Company

Kraft Foods is an American Multinational confectionary, a food/beverage conglomerate, headquartered in The United States. It was founded in 1903, when J. L. Kraft started purchasing cheese at Chicago's wholesale market and reselling it to local merchants. Soon after, incorporated J. L. Kraft & Bros. Company acquired cheese factory and began producing processed cheese. J. L Kraft's cheese production was so revolutionary that founder obtained a patent and started supplying cheese in tins for U. S. Government for the forces in WW1. Held by various owners since 1930, Kraft was acquired by Philip Morris and throughout the years the company continued to prosper and expanding by acquiring and merging with other food industry companies.

In 2012, however, company chose to split business into two separate publicly traded companies: a global snack business named Mondelez International and a North American grocery business called Kraft Foods Group.

To begin with a parent Company, Kraft Foods Group is the fourth-largest North American consumer packaged good and beverage Company and its portfolio of brands include Maxwell house, Oscar Mayer, Planters, and JELL-O. Kraft Foods Group has a strong retail presence and significant scale across categories in grocery, cheese, convenient meals, beverages and food service. Company now has three brands with annual net revenues exceeding $1 billion each - Kraft cheeses, dinners and dressings, Oscar Mayer's meats, and Maxwell House coffees - and more than 20 brands with annual revenues between $100 million and $1 billion each. Approximately 80% of Kraft Food Group's revenue ($19 billion (2011)) comes from categories in which the company holds the number 1 or number 2 market positions.

Talking about the target Company, Mondelez International concentrates on snacks categories such as biscuits, chocolate, gum and candy. Company comprises the global snacking and food "powerbrands" of the former Kraft Foods Inc. such as Cadbury and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang beverages, and Trident gum. Mondelez International has annual revenue of approximately $36 billion and operates in more than 80 countries, employing 100,000 people around the world. Company holds first position globally in biscuits, chocolate, candy and beverages as well as the second position in gum and coffee markets.

This case analysis will focus particularly on Mondelez International activities and after the extensive external and internal analysis, the problems will be identified and possible solutions related to the future performance will be presented for a global snack Company - Mondelez International.

Situational Analysis

In this case analysis the situational method is being used in order to analyze both external and internal environment and contributing factors of the chosen company. Situational analysis is performed to describe trends, forces, and conditions, which influence Mondelez International performance and business choices. The following problem identification and possible solutions are based on situational analysis findings.

The situational analysis consists of External factors, which are divided into macro and micro aspects of the environment. The macro tendencies are described as political, economic, social, technological, environmental, and legal factors, whereas micro factors are analyzed with competitors, consumers, and industry measurement tools.

The situational analysis also contains internal analysis of business environment: company's vision, mission, core competences, and marketing strategy depicting the overall performance on the level of industry. After external and internal analysis, the SWOT technique will be used in order to summarize the whole situational analysis findings.

External Analysis

* Macro Elements: PESTEL Analysis

PESTEL analysis is performed in order to investigate political, economic, social, technological, environmental, and legal factors influencing Mondelez International. The analysis is made by comparing European and emerging markets situation. The method is being used in order to investigate possible differences between these two markets, which will be helpful to the further problem identification.

Political Factors.

It is hard to define political factors concerning this company, because Mendelez in a multinational corporation, which operates in many countries with different exposure to political aspects globally. However company is exposed to political risk in European market that proofs to have adverse results on company's profitability. Basically, company focus on European market, so Mondelez International has to deal with European Union regulations concerning food normative. European Union has an extensive food technology and quality standards and regulations. For example, Former Kraft Foods Corporation used to have problems with labeling, and consumer information presented in European union countries.

Furthermore, regarding Company's entrance to developing countries, the political system and tax law regulations are relatively unstable, with quickly changing laws concerning food industry. Company also faces risk such as corruption and prejudicial actions against foreign firms.

Economic Factors.

Starting with European market, the current sovereign debt and Euro zone crisis disrupts

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