It would appear the answer to that question is Yes! And yet the reason may very well be a marketing challenge that dates back over 50 years ago. The opportunity exists for the blue chip CPG companies to segment their brands due to being unable to react to rapidly changing marketing conditions. Why? Because companies such as Kraft were unable to react due the size and scope of their brands…namely the Cadbury integration. And also because the collections of global brands had become so big and commoditized.
Kraft has an earned reputation as a leader in testing marketing changes. Even though opinions expressed in the above article have labelled the decision by Kraft to split its two units financially motivated. Primarily because when “you promise Wall Street something and have a tough time delivering,” you change the game.
Oh it is noble alright, yet financial motivation is certainly reasonable.
While it remains to be seen if Kraft can accelerate such a nimble approach for its Global snack unit or will this market strategy to split encourage other blue chips to adopt a similar direction. For sure, all of us are watching. What about you? Is this a blue print for blue chips that are multinational in scope? What is your take on this game changing alignment? I welcome your comments, suggestions, ideas.