Consumer Business Review: Kraft’s Developing MARKET, Starbucks’ CHINA Model
Delta Air Lines, Inc. (NYSE:DAL) intends to transport oil from North Dakota to its recently-purchased Pennsylvania refinery. At current prices the oil is less expensive than the imported product, and thus could affford savings for the carrier so long as conditions hold.
Kraft Foods Inc.’s (NYSE:KFT) stand-alone company Mondelez planes to target developing markets such as India, China, and Brazil in which to sell its huge array of snack foods. Chief Executive Irene Rosenfeld foresees the brands becoming more popular in these markets, with consumers adapting to the snacking on-the-go idea. Moreover, Kraft expects that Mondelez will show strong results over the long term
Starbucks Corporation (NASDAQ:SBUX) is employing strategic tactics as it moves more into less urban areas in China, by adopting styles that make stores resemble local courtyards than the trademark outlets which abound in the United States. The challenge for Starbucks and other domestic retailers who harbor major growth plans for China, is how to appeal to consumers who are endemic savers and are also mostly indifferent to pop culture.
The Coca-Cola Company (NYSE:KO) will exploit the growing flavored water trend with a new product called Dasani Drops, which it will sell for about $4 in supermarkets and outlets in which its Dasani water is sold. The bottled water segment outstripped soda in the second quarter, and Coca-Cola executives are taking notice.
The new Best Buy Co. (NYSE:BBY) Chief Executive Hubert Joly sees employee training as crucial to keeping the company’s sales from sliding further. Joly’s quite sensible scheme in part is to push the human factor with consumers, making Best Buy to be perceived as the ultimate point of reference for consumer electronics.
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