kraft – case study

Kraft – Case Study

Bilal

Waqar

Saad

DIFSC, Dubai, 24 – 26 February, 2009 / Dr Ahmet Anbarci - 2

Kraft Foods Overview, 2008


Worldwide headquarters in Northfield, Illinois, U.S.

Sales in more than 155 Countries

Operations in 70 Countries

With approximately 100,000 employees, more than 180 manufacturing and processing facilities

11 global or geographic Research and Development Centers around the world

Kraft Foods Overview, 2008


9 Brands over $1 billion annual revenue

50+ Brands over $100 million

40+ Brands over 100 years old

One of Best Brand Portfolios in Food & Beverage Industry


Eastern Europe, Middle East & Africa Region

Fast FactsFast Facts

Region headquarters: Vienna, Austria Region headquarters: Vienna, Austria

Key markets in the region: Key markets in the region:

Bulgaria, Egypt, Romania, Russia, South Africa, Bulgaria, Egypt, Romania, Russia, South Africa, Turkey, Ukraine and the Gulf Cooperation Council, as Turkey, Ukraine and the Gulf Cooperation Council, as

well as other Middle East & Africa Marketswell as other Middle East & Africa Markets

Some key region brands:Some key region brands:

Kraft cheeses; Tang powdered beverages; Alpen Kraft cheeses; Tang powdered beverages; Alpen GoldGold, , KarunaKaruna, , KoronaKorona and and MilkaMilka chocolates; chocolates; EstrellaEstrella

and and CipsoCipso salted snacks; salted snacks; RascoRasco biscuits; biscuits; Carte NoireCarte Noire, , JacobsJacobs, , MaxwellMaxwell HouseHouse and and Nova BrasiliaNova Brasilia coffees. coffees.


Introduction

• 2nd largest consumer packaged goods company in the world

• Largest in North America

• Launched a new mobile website in May 2009– Promoted through:

•Mobile search•Banner Ads on Yahoo! Inc’s web portal


The mobile website

• A scaled down version of the actual website

• Offers consumers access to a host of recipes


The strategy

• To demonstrate the values and attributes of Kraft’s brands in an interactive way and provide consumers with relevant information such as recipes and nutrition information.

• The motive behind mobile marketing was to involve consumers and help them integrate the company’s brands into their everyday lives


Stepping into Interactive Marketing


Why Interactive Marketing?

• Establishing a direct dialogue with customers

• Mobile phones allowed– Mobility– Reach– Immediacy


The Jacobs 3 in 1/ 2 in 1 campaign

• Kraft Foods Europe & YOC Group

• Geographic Filter: Germany only

• Target Audience:– Young Coffee drinkers– Age: 25-45

• Objective: Minimize sampling and associated costs– Targeted sampling – Samples weren’t distributed, they were requested (People

requested samples using SMS)

• The How: Short code based campaign. SMS the short code to receive free samples


Mediums/Channels

•The shortcode was promoted across – Print– Electronic media

•Websites•Tv•Mobile

– Banner Ads on Vodafone Portal, Nokia, Sat1, Pro 7, Mobil, MTV, Viva and YOC


The How?


The iFood Assistant

• Launched in Dec, 2008

• In collaboration with Interactive Agency Genex

• For iPhone users initially

• Targeted customer “ who were on the go looking for recipes to help them shop for and prepare meals using Kraft product

• Offered more then 7000 recipes

• A library of instructional cooking videos

• Full-meal shopping list

• Store locator


• Available for US$ 0.99 at ITunes – Traditional buying procedure of ITunes– Register with IFood Assistant to access the recipe box

• Ed Kaczmerk, Director of Innovation, said “ in terms of being paid, we think it’s a tremendous value for 99cents for the price of a song, we are delivering a robust offering, and any upgrade with more services and content will be free to the consumer”


Step by step direction

• Recipe could be browsed based on ingredient, meal type or preparation time– Once the user had chosen a recipe on the application it would

then pin point the user phones location and provide the direction to the nearest grocery store

• At the store the application – Broke down the recipes shopping list according to the isle in

order to speed up the shopping procedure

• At home user can use the horizontal view to watch the video while cooking


Response, Comments, Critiques

• http://www.kraftrecipes.com/media/ifood.aspx


The Mobile Website

• Developed in May 2009, by Kraft and phonevalley with partnership of Digitas.

• M.kraftfoods.com• Kaczmarek said “ People are leading increasingly mobile lives

and we are pleased with this opportunity to provide delicious food ideas to cell phone users anywhere in U.S. Last year, we introduced iFood Assistant for iPhone touch so we see this as yet another way to reach people anytime, anywhere


• Mobile site offered

Shopping list • Share with friends• Create own recipe box• Recipe of the day

But all of this after sign up.


Follow up of 3 IN 1 / 2 IN 1

• Started in May 2009 (Germany and Austria)

• Was expected to run till December 2009– Unique codes were placed inside or on the pack of the coffee

product– After sending as SMS with the codes, user would get direct

link to mobile portal– Participate in draw

• win 55 wii consoles

• Also receives the freebies – Wallpaper and screen savers


Mobile Marketing Initiative in the UK

Oreo and UK

• June 2009- launched innovative mobile operations to increase awareness about Oreo

• Time period 26th June to 19th July 2009• Kraft’s sponsored advance screening of family movies

in Vue Cinema • Take a photo of your family with the interactive Oreo

standee present at the cinema • Text it to the short code or email it though iPhone and

BB• Entrants would receive a conformation via SMS• Entrants could get a chance to win several prizes

including a family holiday at universal studios Florida


Results

3in1/2in1 campaign

Overwhelming response received about 500000 requests for samples more then 80000 users registered their details for future

communication with the brand successfully allowed them to target a specific audience and

save money and reduce time allowed them to built a potential customer database for

future marketing

• 3in1/2in1 in Germany was a truly 360' campaign • Incorporated sampling via mobile market• Created value for the brand• Campaign was awarded the second prize in the Neptune

Crossmedia Awards in 2008• MMA award for the best use of Mobile Marketing


Mobile portals

Results

650 banners were placed on selected portals for relevant target group

achieved a click through rate of more than 3% which is considered pretty good around 250000 text messages were sent to the

members of the YOC community who were part of the defined target group

about 10.6% responded and more then 26000 samples were distributed to them

0.4% users who were aware of the campaign through television ads ordered a sample through mobile phone

TV channels were expected to generate the biggest response but all channels were comparable

Since mobile marketing worked better then imagined, they will be using it more in the future


Results

iFood assistant Application

Analysts were of the view that iFood assistant application created a new chapter in mobile market for CPG

Ranked top 100 among iPhone paid applications Occupied 3rd position in the lifestyle category it was actually a utility of convenience instead of

marketing gimmick

According to Advertising Age

The product had caught on since it was "actually useful"


Some Initial Reactions Aim of Kraft Foods mobile marketing strategy was to

deepen customer engagement 3in1/2in1 was as successful combination of promoting

brand awareness and direct response marketing Use of cross-media channels helped the campaign in

reaching out to its target audience iFood app not only delivered brand to its customers but

used advertising platform to drive revenues from its sale on the App store

while some analysts appreciated the Idea of mobile website, showing the power of mobile marketing campaign in reaching wider customer segments

Chief Editor and founder of GoMo News said, that he was slightly disappointed since the site is simple but search function returned errors and users had to sign-up or in to get the content or how to make food


Thank you!

kraft – case study

Documents

dr ahmet anbarci

million40 brands

companys brands

key region brands

mobile marketing

attributes of krafts

annual revenue50 brands

interactive way