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Kraft Foods

Kraft Foods Smart Snacking

sponsored by Kraft Foods

Tony Luciano

Tony Luciano
Director Category Leadership Snacks at Kraft Foods, Inc.
Kraft Foods

Tony brings a broad perspective and proven leadership to Kraft Foods as the Category Director for the $5 billion U.S. Snacks Business. Joining Kraft Foods in 2008, Tony is...more»»

SKU proliferation
Posted by Bethany on March 16, 2010

SKU proliferation is a serious problem and hinders an optimized shelf set. Is Kraft Foods considering reducing the SKUs of its snacks by producing fewer sizes of the same product?

SKU proliferation provides a significant opportunity to reduce the amount of SKUs and brands in a retailer and within an organization. It provides focus and simplifies the entire process from manufacturing to bringing products to the shelf, and allows for an easier shopping experience. We are looking at a number of options, but more importantly we want to deliver products that meet consumer’s needs.

Custom Options
Posted by John from Chicago, IL, US on March 8, 2010

Does Kraft Foods customize its suggested snack planograms for retailers by store size or by store cluster?

We work closely with our retailers’ segmentations to provide the optimal assortment that meets their shoppers’ needs. We provide planograms based upon store clustering and by store size, it really is dependent on the overall assortment strategy that needs to be delivered.

Cross merchandising
Posted by William from Atlanta, GA, US on February 16, 2010

What are some good cross-merchandising suggestions involving your products?

We want to be First to the Table with the best cross-merchandising suggestions. To that end, delivering shopper solutions is a key plank and our first consideration for helping retailers grow baskets, especially if they’re trying to target different types of shopping trips. For example, we have a big cookies and milk program that we do with Oreo which is one of the main brands in that program. When consumers eat cookies, milk tends to be included over 40% of the time. So we’ve developed a program for retailers to promote Oreo or some of our other cookie brands right next to milk. That is a great way to deliver a solution to consumers when they’re on their shopping trip – whether they’re stocking up or just doing a quick trip to go in and grab some milk and are looking for a treat to help reward their family.

We believe in shopper platforms across many fronts – whether it be developing a lunchbox solution or just taking a look at the major seasons for soup. How do you match our Premium brand with a soup brand? During the s ‘more season, we deliver Honey Maid Grahams, Jet-Puffed marshmallows and Hershey’s chocolate in a big s ‘mores program.

So we have many cross-merchandising programs that are really tailored around the insights of what consumers are doing during particular times of the year. They tend to work best when they involve major brands and are supported by a marketing program like the one for cookies and milk.

Blending products on shelves
Posted by Helen from San Diego, CA, US on February 16, 2010

On supermarket shelves, should “healthful” snacks be blended in with traditional snacks, or should they be merchandised in a separate section?

It really varies. Within cookies and crackers, for example, we have our Nabisco 100 Calorie Packs line. We’ve looked at different configurations for placing these products; that is, whether they be integrated with the main brand or on their own. Combining the shopper insights about how they shop with what really is selling, we found that putting the 100 Calorie Packs items together in the center of the cookie and cracker aisle is the best way to present those solutions to consumers within a store.

It has to be determined whether that needs to be done for all categories. If you take a look at reduced-fat items or sugar-free items, you see a mixture of where those items are shelved – with the core brand or in their own section. It really depends on understanding the shopper and how they are shopping. It’s looking at the data and saying – on a case-by-case basis – what is the right way to go about it.

We try to bring ideas and learning to our retailers first so that our category management framework is effective for each category. Retailers may add insights to our insights so that custom solutions and the right presentation can be executed at store level.

Marketing of snacks
Posted by Mike from Chicago, IL, US on February 16, 2010

Is there a difference in the way Kraft Foods markets snacks to specific genders or ethnicities, or is it one size fits all?

There is a difference, and it really varies depending on who the target consumer is. Every brand has its own target consumer. So if you look at our nuts business, we have more of a skew towards men versus other brands that may have more of a skew toward women. We’ll spend a lot of time understanding these consumers and their attitudes, beliefs, etc. The marketing really revolves around that.

We do have a focus on the Hispanic consumer as one of the core consumers of our brands. For example, brands like Oreo and Chips Ahoy do very well with them. Our marketing will be customized around the insights for those consumers.

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