Kraft 2003 Annual Report Download - page 6
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Please find page 6 of the 2003 Kraft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.InSeptember,weinitiatedareinvestmentprogramtorestoreourbrandvalue
inthosefocuscategories.Weinvestednearly$200millioninthelastfourmonths
oftheyeartoincreasemarketingandmanageprices,andbyJanuaryof2004,
wewitnessedgoodprogress.Withtheimportantexceptionofcookies,consumption
andsharetrendsimprovedacrosstheotherfocuscategoriesofcheese,coldcuts,
coffeeandcrackers.
Wewereencouraged,butrecognizedweneededtodomorethansimplyreverse
thesedeclines.Wehadtoaddressseveralcriticalrealitiesinachangedoperating
environment:
•Consumersandretailersareincreasinglyvalue-conscious.
•Powerfultrendsarereshapingthefoodbusiness,includinghealthandwellness,
convenience,shiftsinretailchannelsandthegrowthofthemulticultural
populationintheUnitedStates.
•Thecompetitiveneedforglobalscalehasneverbeengreater.
•Costswillcontinuetorise.
Withtheserealitiesinmind,wedecidedtorealignourorganizationalstructure,
reenergizeourperformancewithaSustainableGrowthPlanandsetnew
financialtargets.
Ournewglobalstructurelinksthreeorganizationaldimensions–aGlobalMarketing
&CategoryDevelopmentgrouptocreateglobalcategorystrategiesandnew-
productgrowthplatforms;NorthAmericaCommercialandInternationalCommercial
unitstodrivesalesandmarketingexecutioncountrybycountry;andglobal
functionstofosterbestpracticesaroundtheworldinacost-effectivemanner.
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