BCG MATRIX

Kraft foods Inc.

BCG MATRIX

BCG MATRIX of Kraft foods Inc

BUSINESS GROWTH RATE (food processing 9.5%, beverages -5.9%)

STARS

QUESTION MARKS

Oreo biscuit Cadbury dairy milk Oscar Mayer hotdogs Lu biscuit Prince Trident gums
CASH COWS Tang powdered beverages Jacobs coffee A1 steak sauce Philadelphia cream cheese

Homestyle Deluxe Mac & Cheese Corn nut(hot sauce & lemon chips Stride shift gums

DOGS Bulls Eye Barbecue sauces Saimaza natural ground coffee

MARKET COMPETITVE POSITION (SHARE)

Oreo biscuit: Oreo is the chocolate cream sandwich (biscuit). It is an 100 year old brand (started in 1912). It is market leader in many countries as discussed in (regions, pg 5). It holds 31% market share in india,13% shares in china and since it is in food processing industry, it has high growth (9.5%). Growth rate of 2% in USA and 15% in India for next few years. Dairy milk chocolate: Cadbury dairy milk is one of the leading chocolate in the global market. It is a dominant leader with over 70% of the market share in Indian chocolate market and leading chocolate brand with 9% of UK confectionary market share. The industry is expected to grow at 13% p.a uptil 2015.

STARS

Oscar mayer hot dogs: This is the brand under which meat products (hot dogs, sausages and cold cuts) are provided, (primarily in USA). The industry is attractive with growth of around 8% p.a. Oscar Mayers hot dog is tough competitors of Sara lees Ball park, and its share is increasing and currently is around 17-20% of US market.
LU Prince biscuit : LU biscuits are among one of the largest selling brands of Kraft foods inc in biscuits segment. Its product prince is a leader in cream biscuit segment with 32% share. highly competitive in asian market over 30% share in Pakistan biscuit market. Generates sales of 1bn $ annually and also in growing industry (as said in oreo). Trident gums: Trident gums is market leader in European division, 2nd in middle east and NA region. It holds 29% market share in gum category, which is growing at a good pace of 5% appox annually.

CASH COWS
Tang flavored drinks: Tang is a leading power beverage brand in middle east and Asian market, specially in UAE and Pakistan. It has a share of approx 45-50% in Pakistan and therefore is a very competitive product brand. It is among those brands of Kraft foods inc, which generate sales of around 1 bn $ annually. But since, beverage industry is unattractive (-5.9% growth), it is a cash cow. Jacobs coffee : Jacobs is a famous coffee brand in almost all regions of Kraft foods inc specially in African market. It holds a market share of 30.4% in south Africa and thus a competitive brand. Its sales are around 1 bn $ annually so it represents a heavy cash inflow to Kraft foods. It is a cash cow due to low market growth of around 0.7% expected through next five years. Philadelphia cream cheese: Philadelphia cream cheese is the dominating cheese product brand in world. It dominates with a market share of more than 60% in America. It is a leading brand in Europe. Food processing is growing at good pace, but global cheese production (growth) is low, averaging 3.7% p.a from 2005-2010. More than 1 bn $ in sales annually. A1 steak sauce: It is the hot sauce, used mainly for spicy meals and restaurant foods. It has the share of 54% of sauce market, but industry growth is slow, projected around 4% (2012-17). Annual sales of 100 mn$.

QUESTION MARKS
Kraft Homestyle Deluxe Mac & Cheese: This product is launched by Kraft foods in 2010. It is the changed version of old kraft real cheese sauce including, in addition to it, crunchy bread crumb topping (in varities). Kraft mac and cheese has a good brand name, and this product is likely to get succeeded, as kraft mac and cheese market share rose by 0.4 points in the same year. It is in the category of natural cheese, which has good growth prospects as against processed cheese market (Philadelphia, etc).

Corn nut hot sauce & lemon chips: These are the chips under the old name corn nuts, but in hot sauce , limon and original flavors. The market for potato chips is growing at a CAGR of 6% from 201015. So industry is attractive and corn nuts have an established brand name, so these chips may likely become star in future. Stride shift gum: Its a new gum offered recently by Kraft foods under the old name of stride. It is first-ever flavor changing gum (claimed by company). Stride has a 9% market share and is 4th in this growing Category. This new product under the name of stride, is likely to get hold in coming years.

DOGS
Bulls Eye bar b que steak sauces: The sauces industry has already many players including one of the leading brand of Krafts own A1 steak sauces. The industry attractiveness is low (as discuss above) and the Bulls Eye steak sauce is having low share because of established players e.g A1, Heinz, HP etc, thereby posing lower shares. Saimaza natural ground coffee: The coffee industry is a slow growing industry (shown above) and saimaza is operating basically in European market, where it in addition to others, faces competition with Krafts own iconic brands like Maxwell house, Jacobs etc, so its market share is low around 15% .