Saturday, February 6, 2010

Kraft Foods :- The New Entry in Indian Market

After a lot of struggle and hitting more 4s and sixes, Kraft finally able to win the test match with Cadbury, but the target for winning the match is very huge. In a simple sense we want to just say that the company paid much more amount for the acuisition of the British major Cadbury. Earlier, the US based company Kraft offered $10.76bn for the acquisition of the company. But Cadbury denied the deal and refused to sell their shares to Kraft. But the world leading company of confectionery, Kraft food gives a final touch to the deal by offering Cadbury the amount more than $11bn.

Presently each shareholders of cadbury will be gained 500pence for a share and 0.29 share of Cadbury. it is a very helpful and profitable offer for the shareholders of Cadbury. Now all the doors are open for the Kraft for expend their business to the countries of south asia specially in India.

Now it is a bigger opportunity as well as a huge challenge for Kraft for giving best performance in these untapped markets. the success in these market can make Kraft the world leader in confectionery.

The Strength of Kraft Foods in Asian markets:-
1. Established brand.
2. Best product line.
3. Goodwill in world market.
4. Market Leader in food and beverages.

1. High price products which are not suitable as according to Asian market.
2. Company is at a decline stage in US market.

1. Untapped Asian market.
2. Acquisition of an established and top brand of confectionery (Cadbury).
3. Very few competitor.
4. The changing of buying habits of customers.

Threats :-
1. Existing competitor (Nestle)
2. A very new and different market from US and Europe.

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