Kraft 2007 Annual Report Download - page 11

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Drive down
costs without
compromising
quality
Rewiring the
organization
for growth
Reframe our
categories
Exploit
our sales
capabilities
Our
strategies
for growth
9
—
—
—
Rewiring the organization for growth
Rewiring is our first strategy for a very good reason—because having the right people,
processes and structure is critical to all of our other strategies.
We made terrific progress in 2007 by:
Strengthening our senior talent—three of the nine members of our executive team are new
to Kraft or new to their jobs. We’ve combined exceptional new talent and fresh thinking
with the strongest Kraft veterans.
Tying our annual bonuses and long-term incentive plan more directly to measures that
investors value and our people can control—revenue, operating income and cash flow.
Improving our organizational structure and processes by creating business units that are
more self-contained and have broader accountability for total business results in distinct
product categories or geographies.
Reframe our categories
This strategy has focused our teams on the key consumer trends driving our growth and
has given them the freedom to look at our categories more broadly. We’re creating product
platforms that we can apply across multiple brands or categories. These are big ideas—
most with the potential to be $100 million businesses—such as LiveActive products with
probiotic cultures and prebiotic fiber, Cakesters snack cakes and Oscar Mayer Deli Creations
hot sandwiches.
Exploit our sales capabilities
In the U.S., our Wall-to-Wall initiative is working. Having one sales person covering the
entire store has driven incremental growth.
We also made significant progress in expanding our reach to traditional trade in key
developing markets.
For example, millions of consumers in Mexico and Brazil can now find Kraft products in
more affordable package sizes in the places they like to shop. Our products are now in
40,000 more stores in Brazil and 45,000 additional stores in Mexico.
And our Danone Biscuit acquisition is a quantum leap forward in our efforts to expand our
sales reach in developing markets, such as China, Russia, Indonesia and Malaysia.