Kraft – Case Study

1. Kraft – Case Study Bilal Waqar Saad

2. Kraft Foods Overview, 2008

3. 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

4. One of Best Brand Portfolios in Food & Beverage Industry 9 Brands over $1 billion annual revenue 50+ Brands over $100 million 40+ Brands over 100 years old

5. Eastern Europe, Middle East & Africa Region Fast Facts Region headquarters: Vienna, Austria Key markets in the region: Bulgaria, Egypt, Romania, Russia, South Africa, Turkey, Ukraine and the Gulf Cooperation Council, as well as other Middle East & Africa Markets Some key region brands: Kraft cheeses; Tang powdered beverages; Alpen Gold, Karuna, Korona and Milka chocolates; Estrella and Cipso salted snacks; Rasco biscuits; Carte Noire, Jacobs, MaxwellHouse and Nova Brasilia coffees.

7. 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

8. The mobile website • A scaled down version of the actual website • Offers consumers access to a host of recipes

9. 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

10. Stepping into Interactive Marketing

11. Why Interactive Marketing? • Establishing a direct dialogue with customers • Mobile phones allowed • Mobility • Reach • Immediacy

12. 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

13. 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

14. The How?

16. 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

17. 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”

18. 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

19. Response, Comments, Critiques • http://www.kraftrecipes.com/media/ifood.aspx

20. 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

21. Shopping list • Share with friends • Create own recipe box • Recipe of the day • But all of this after sign up. • Mobile site offered

22. 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

23. Mobile Marketing Initiative in the UKOreo 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

24. 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

25. Results Mobile portals • 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

26. 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"

27. 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

28. Thank you!