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Kraft Foods

Direct Marketing
by

corine reed

on 28 April 2011

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Transcript of Kraft Foods

History
S.W.O.T. Analysis
Strengths Weaknesses opportunities threats Number one food company in America
It owns over 100 brands NationWide
Just purchased Cadbury Company
Focus on research and development
Strong distribution network Unfunded employee post retirement benefits Increasing labor costs
Economic strain
Competition from other companies
Recalls Ease of expansion to other countries
job opportunities
aquisition opportunities
Growing demand for 'health and wellness' products and services To encourage our target market to buy our Kraft products.
At select stores you can buy 5 Kraft products and be eligable to redeem a coupon for $5 off of your next purchase.
Post a video to our Facebook fan page explaining why you like our products, and you could enter a drawing to win a free Ipad. Young Adults
Moms
Age range 18-40 years old BUDGET Total Budget: Creative development: Production: Direct and E-Mail Lists: Business Reply charges: $ 515,000,000 $ 1,000,000,000 $ 185,000,000 $ 300,000,000 $ 2,000,000,000 Expected Outcome We are Kraft Foods
We provide delicious and nutritious foods you can enjoy for a healthy lifestyle... Whether you're at home or on the go. Fullfillment is our priority, our happy customers are our most loyal customers. OFFERS Direct Mail Objective Target Audience Our Core Message: Completion Dates
Channel selection:
Direct mailers, coupons, television and social media websites
Obtained through online databases like Nextmark and information given out throgh surveys
NCOA process Compiled
Responsive Customer List Customer Segments Moms on the go-Elementary School Students
Busy moms with children 6-11 years old
Alloy Media + Marketing College Student Mailing List
Most comprehensive database of college students Channels - best fit target market Electronic - College Students
Moms - Direct Mail Project Plan Kraft is the #1 Company in the food and beverage industry in America and # 2 in the world.
11 of its brands annually earned more than $1 billion world wide. 40 of its brands are at least 100 years old
Results Measured Social Media Internet True Benchmark
Coupons
Fan Page
Click rates

Effectively meeting the objective
Post a video

Company Layout Cost per response:

$2 billion/100,000,000= $20

Cost Per View :

$500 million/700 million= $.71



Gross sales: $12 billion

Less COGS (25%): -$3 billion

Gross Margin: $9 billion

Less promo: - $2 billion

Net profit: $7 billion

ROI =net profit/promo X 100

ROI = $7 billion/$2 billion=3.5= 35% Reach our target Mailing list
E-mail list
Magazine list
Newspaper list Productivity Measures 2 Test Metrics 1.Test and learn approach
Graphics
Interactive device
Elements
Audience
Recency and Frequency
Product
Channels 2. Break-even Analysis
Break-even number of sales= Promotional cost/ unit margin per sale Questions?
Full transcript