I need some news article (CNN or any), academic source or any articles to suppor
ID: 420251 • Letter: I
Question
I need some news article (CNN or any), academic source or any articles to support questions number 1 and 2. Thanks!
Kraft foods is one of the leading food companies in America today. But a healthier lifestyle is causing some of these companies to rethink their current business plans.
"Tracey Daugherty, a 33-year-old mother from Pitts- burgh, grew up eating Kraft macaroni and cheese. Today, though, Kraft’s marketing strategists have queasy stomachs because Daugherty and others won’t feed it to their own children. “Kraft’s products definitely have a childhood nostalgia,” she says, “so it’s hard to completely give up on them, but they’re not on my shopping list.” When she’s pressed for time, Daugherty is more likely to pull an organic fro- zen dinner out of the freezer than boil up a batch of Kraft Mac and Cheese. On most nights, what’s on her family’s dinner table includes fresh produce and chicken or fish from Whole Foods, the fast-growing American grocery chain that built its reputation on natural and organic foods. To cope with Americans’ growing preference for fresh and natural foods rather than prepackaged and processed ones, the big food companies are hav- ing to rethink their businesses, find new suppliers, and augment their product lines with new, healthier versions of their longstanding best-sellers. Kraft, which owns brands such as Oscar Mayer (hot dogs, with their high animal fat content, are not exactly known as a health food), Jell-O gelatin (mostly sugar, a no-no on today’s low carbohydrate diets), and Nabisco (whose cookies and crackers are laden with both carbs and trans-fats, the latest addition to health experts’ “avoid” lists), has struggled to meet their double-digit growth targets, as consumers increasingly shift their food dollars to healthier fare. As Wharton Marketing Professor Patricia Williams points out, the question for the food giants is: “To what extent is the Atkins diet and the whole low-carb thing a fad, and to what extent is it a genuine shift in consumption patterns that will remain with us for a significant period of time?” It’s a question that Kraft and others in the food industry cannot afford to take lightly."
Questions
1. How can Kraft cope with Americans preference for healthier foods?
2. Will American's quest for healthier foods cause Kraft to lose revenue?
Please use NEWS article like CNN Academic soruces to answer those two questions and copy and paste the link.
Example of articles would be likehttp://ir.kraftheinzcompany.com/news-releases/news-release-details/kraft-heinz-company-announces-successful-completion-merger
https://www.reuters.com/article/us-kraft-macandcheese/kraft-challenged-by-healthier-macaroni-and-cheese-brands-idUSBREA2T09C20140330
Explanation / Answer
1. Kraft food has faced the challenges due to consumer behavior and taste shift to a new dimension in recent days. People are becoming leaner towards a healthier food with organic content. A lot of smaller companies are producing higher quality foods with a healthy tag in their products. According to Dr. Carrie Ruxton, nutrition consultant, and health writer people are more keen towards the food which can optimize their health. Growing cases of obesity across US has also made consumers incline towards more healthy foods. To cope up with this kind of situations the bigger companies operating in remote and small areas need to analyze their customers and their behaviors. As consumer behavior is shifting day-by-day giants like Kraft has to do a proper customer analysis and intune their products according to the requirements. To achieve marketing advantage the establisg=hed players need to adopt new technologies like social media analysis and market basket analysis through the use f machine learning and artificial intelligence platforms to read their customer's mindset. Smaller and newer comapny=ies are adopting more advanced strategies to compete in the market and the bigger players like Kraft have to change their traditional strategy and adopt newer methods of promotion and branding to gain the customer faith. Optimizing operation and supply chain cost would help them to increase the profit. With a creative marketing strategy and newer healthier and customer-centric product can reestablish the position of Kraft as a market leader
Source:-"https://www.theneweconomy.com/business/can-kraft-keep-up-with-its-consumers", "https://www.forbes.com/sites/steveolenski/2018/03/27/kraft-heinz-cracks-open-a-new-brand/#5a826f09109d"
2. Kraft has faced a greater challenge due to a shift in consumer taste in recent years. The company has to take a merger decision with Heinz to support its financial and operational strategy. The company shares fell before the merger to make the company think of their strategy and to cut the costs it had to reduce the employee force. As the new and healthier foods that the Kraft-Heinz inc is trying to make will cost higher as compared to the traditional cheese which the company was making before the profit margin will be less and the company has to lose its revenue in order to compete with new brands coming with smart and health products, People prefer organic products at the same or a little higher price than any unhealthy junk food and Kraft has to take care of both the objective simultaneously which will ultimately make the company lose some of its revenues. New entrants come with a target customer base and bigger companies need to look after that strategy too to gain the market share
Source:"https://www.cnbc.com/2015/03/25/kraft-foods-group-and-hj-heinz-merge-to-create-the-kraft-heinz-co.html"
"https://www.theneweconomy.com/business/can-kraft-keep-up-with-its-consumers"
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