Kraft Food Essay

Kraft Foods

BUILT-IN COMPANY EVALUATION

Andy Fleming • Laura Hausfeld • Brett Hoerz • Ould - Lyman • Eduardo Saenz

DECEMBER 12-15, 2010

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TABLE OF CONTENTS BUSINESS SUMMARY COMPANY OVERVIEW RIVAL OVERVIEW GLOBAL GROWTH TECHNIQUE - " HITTING OUR SWEET SPOT” OREO IN INDIA: PROMOTING ANALYSIS GOAL SEGMENT SETTING MARKETING MIX (PRODUCT, LOCATION, PROMOTION, PRICING) COMPETITOR RESEARCH 3 three to four 4 4-5 5 6 6-8 almost 8 8 8-9 9 9-11 11 12 13 13 14-15 15 16 18 18 nineteen 19 20 20 21 years old 21 twenty two 23 twenty four 25 dua puluh enam 27 28 29 30-31 31 32 33 thirty four 35 thirty eight 36 thirty seven 37 35 39-40

KRAFT IN INDIA: FUTURE SALES STRATEGIES

NEW PRODUCTS ADVANCEMENT

ACCOUNTING

INCOME STATEMENT RESEARCH BALANCE SHEET RESEARCH

VALUATION CHEAPER CASH FLOW (DCF) ANALYSIS SUMMARY APPENDICES A. NET REVENUE BY OPERATING SEGMENT (2006, 2010) W. HISTORY OF MERGERS, ACQUISITIONS & NAME ADJUSTMENTS C. NET REVENUE SIMPLY BY CONSUMER SECTOR (2006, 2010) D. 10 $1 BILLION ENERGI BRANDS Elizabeth. 54 KRAFT BRANDS Farrenheit. KEY RIVAL ANALYSIS G. HISTORY OF COOL PRODUCT INTRODUCTION (DOMESTIC) H. SWOT ANALYSIS: ENERGI FOODS, INCORPORATION. I. SWOT ANALYSIS: CADBURY J. SWOT ANALYSIS: OREO IN INDIA K. MODEL: OREO IN CHINA M. INCOME STATEMENT: FORECASTING PARAMETERS M. INCOME STATEMENT (2008-2010 REAL, 2011- 2015 FORECASTED) N. KRAFT OPERATING EARNINGS BY SECTION O. "BALANCE SHEET": FORECASTING PARAMETERS P. BALANCE SHEET (2008-2010 ACTUAL, 2011- 2015 FORECASTED) Q. COMPOSITION OF DEBT Ur. HISTORICAL CAPITALIZATION S. LONG TERM AMORTIZATION TABLE T. CAPITAL STRUCTURE SPECIFICS (2008, 2009) U. TRADITIONAL CASH FLOW V. DISCOUNTED EARNINGS MODEL - KRAFT W. CAPITAL COMPOSITION X. EARNINGS PER SHARE (EPS) Con. KEY RATIOS Z. MARKETPLACE CAPITALIZATION SOCIAL MEDIA PACKAGE. KEY COLLATERAL MULTIPLIERS BB. KRAFT PERSONAL DEBT SCHEDULE CLOSED CIRCUIT. NOTES TO WACC COMPUTATION DD. BETA CALCULATION: KRAFT EE. BETA CALCULATION: COMPARABLES FF. BETA CALCULATION: RIVALS

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EXECUTIVE SYNOPSIS With its well-publicized acquisition of Cadbury in Feb . 2010, Kraft gained usage of the Uk confectioners‟ intensive network of distribution stations in producing markets in Africa and Asia. Weak domestic sales and the maturity of American markets makes success overseas of crucial importance to the company‟s foreseeable future. In addition , Energi is concentrating on high perimeter categories including snacks, confectionary and quick meals pertaining to growth. The company‟s long term growth approach is to situation itself being a " global snacks powerhouse. ”1 To be able to accomplish this technique successfully and sustainably, Kraft should:    employ a locally-focused marketing strategy in launching Oreo in India, and be aware of Indian consumers‟ tastes, ordering preferences, and price sensitivity. use success and failures from the Oreo launch to develop best practices to get other considerable product opening paragraphs in expanding markets take care of its significant long-term debt through even more restructuring, and prevent investing activities that would enhance its long-term debt FIRM OVERVIEW Kraft Foods, Incorporation. is the world‟s second largest food business. 2009 profits from its 3 operating segments – Energi Foods America, Kraft Foods Europe, and Kraft Foods Developing Marketplaces - surpass $40. 5 billion. Regarding percentage of total revenues, Kraft is definitely experiencing significant growth in international marketplaces (see Appendix A). The corporation currently features approximately ninety-seven, 000 workers worldwide and sells usana products to buyers in over 160 countries. Domestically, Energi products exist in more than 99% of yankee households. Kraft‟s brands course six buyer sectors: Treats, Beverages, Confectionary, Cheese, Grocery store and Practical Meals. In February 2010, Kraft finalized its $19. 5 billion acquisition of Cadbury, the world‟s largest confectionary company (see Appendix B). While 5 years ago Snacks and Beverages had been Kraft‟s two largest industries, today Confectionary and Snacks are, and generate 51% of the revenues (see Appendix C).

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Energi Foods, Incorporation. Annual Record. 2009. twenty-five February 2010. 3

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