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MKTG/232

IBS Center for Management Research

Kraft Foods’ Mobile Marketing Strategy

This case was written by Syeda Maseeha Qumer, under the direction of Debapratim Purkayastha, IBS Center for

Management Research. It was compiled from published sources, and is intended to be used as a basis for class discussion

rather than to illustrate either effective or ineffective handling of a management situation.

2009, IBS Center for Management Research. All rights reserved.

To order copies, call +91-08417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: [email protected]

www.icmrindia.org

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“Kraft Foods has focused its mobile strategy on one goal: to extend its reach toward any mobile

phone with an Internet connection. The brand’s ambition was to facilitate engagement and help

drive additional engagement on multiple platforms.”1

- A spokesperson, Phonevalley 2, in 2009.

“Kraft made waves late last year with the launch of its phenomenal iFood Assistant iPhone app,

which quickly became one of that platform’s 100 top paid apps and showed the world that

consumers will not only accept branded apps, but will even be happy to pay for them. Now, Kraft

is working with Digitas and PhoneValley to launch a mobile website that offers some of the same

content, but now available on any web-enabled mobile phone.”3

- Rick Mathieson, writer, author, speaker and media commentator, in 2009.

INTRODUCTION

In May 2009, Kraft Foods Inc. (Kraft), the second largest Consumer Packaged Goods (CPG)

company in the world, launched a new mobile website to reach out to more consumers in the US.

The site offered consumers access to a database of recipes based on ingredient or meal category

and was promoted through mobile search and banner ads on Yahoo! Inc‘s4 Web portal. Talking

about the new site, Alexandre Mars (Mars), CEO of Phonevalley, said, ―Mobile is obviously the

perfect media to execute Kraft‘s strategy. Mobile is now in every pocket and Kraft Foods‘ mobile

site gives access to recipes while consumers are in their grocery store or in their kitchen.‖5

Based in Northfield, Illinois, Kraft is the largest food company in North America with sales in

more than 150 countries worldwide. Some of its well-known brands are Kraft cheeses and

dressings, Maxwell House coffees, Oscar Mayer meats, Philadelphia cream cheeses, Nabisco

cookies and crackers, Toblerone and Milka chocolates, and Tang powdered beverages. For the

year 2008, the company reported US$ 42 billion in annual revenues. Since the early 2000s,

marketing through mobile phones had gained in popularity because of the value it delivered to the

end consumers. CPG companies embraced mobile marketing and employed elements such as SMS

alerts, mobile banner ads on targeted sites, mobile coupons, and mobile loyalty programs to

promote their products. At Kraft, the strategy was to demonstrate the values and attributes of

1 ―Kraft Offers Recipes on the Move with Mobile Site,‖ www.phonevalley.com, May 14, 2009.

2 Founded in 2001, Phonevalley is a US-based mobile marketing agency. It is a part of the Paris-based

communication agency the Publicis Groupe. Phonevalley provides a full service offer in mobile marketing

which includes mobile media planning and buying, mobile interactive services (mobile Internet sites,

mobile applications, branded content & promotions), and strategic consultancy. 3 Rick Mathieson, ―Kraft Foods Goes Mobile,‖ http://maverix.typepad.com, May 12, 2009.

4 Yahoo! Inc. is a US-based global Internet services company headquartered in Sunnyvale, California,

USA. It provides a range of products and services that include a web portal, a search engine, the Yahoo!

Directory, Yahoo! Mail, news, and posting. 5 Giselle Tsirulnik, ―Kraft Foods Drives Traffic to New Mobile Site via Banners,‖

www.mobilemarketer.com, May 13, 2009.

http://maverix.typepad.com/brandingunbound/2009/01/krafts-killer-appettite-iphone-app-heralded-as-new-marketing-model.html

http://www.digitas.com/

http://www.phonevalley.com/

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Kraft‘s brands in an interactive way and provide consumers with relevant information such as

recipes and nutrition information. The motive behind mobile marketing was to involve consumers

and help them integrate the company‘s brands into their everyday lives.

In 2008, to respond to a reduction in consumer spending on packaged goods, Kraft adopted interactive marketing and decided to get onto the mobile Web by launching a mobile campaign in Germany in January 2008, to promote the launch of its new instant coffee brand called Jacobs 2in1. This was the first large-scale European product launch to use a mobile sampling campaign. The campaign was integrated with traditional media and allowed customers to request for samples and order products through their mobile phones. This was followed by the launch of a downloadable application for iPhone

6 users called iFood Assistant. Launched in December 2008,

the application allowed customers to search for and download recipes, manage their shopping lists, and locate local stores.

Analysts were of the view that the mobile marketing initiatives adopted by Kraft would serve the purpose of establishing a direct dialogue with customers as the mobile phone was a powerful communications device with respect to mobility, reach, and immediacy. Touted as the next big thing in interactive marketing, mobile phones were a great way to reach the right audience, they said. Some experts, however, said that though preliminary data showed a good response rate for mobile campaigns carried out by Kraft, it remained to be seen whether the company would succeed in attracting customers toward its products through its mobile marketing campaigns on a sustained basis.

BACKGROUND NOTE

The history of Kraft can be traced to three entrepreneurs in the late 19th and early 20

th centuries —

James L. Kraft (James), C.W. Post (Post), and Oscar Mayer.

In 1903, James started a wholesale cheese business in Chicago, Illinois. Later, his four brothers joined him in the business. Together in 1909, they incorporated J.L. Kraft & Bros. By 1914, the company started to manufacture its own cheese and was renamed Kraft Cheese Company. In 1928, Kraft Cheese Company acquired the Phenix Cheese Corporation, maker of Philadelphia cream cheese, and it changed its name to the Kraft-Phenix Cheese Corporation (KPCC). In 1930, KPCC was acquired by National Dairy Products Corporation (NDPC). Though KPCC continued to operate as an independent subsidiary of NDPC for many years, it was eventually absorbed into the operating structure of the parent company, which changed its name to Kraftco Corporation in 1969. Again in 1976, the name of the company was changed to Kraft, Inc. in order to emphasize the company‘s focus on food processing and to identify it with the internationally popular ‗Kraft‘ trademark.

In 1896, C.W. Post incorporated the Postum Cereal Company, Ltd (Postum Company) and sold ‗Postum‘ cereal beverages which were a blend of wheat, bran, and molasses. In 1897, the company introduced one of the first ready-to-eat cold cereals known as Post grape-nuts. In 1911, C.W. Post introduced a refinement of his original product and named it Postum Instant Cereal Beverage. To promote this product, Post indulged in extensive marketing techniques. He advertised and offered coupons and free samples, carried out product demonstrations, organized plant tours, and distributed recipe booklets. In 1925, Postum Company acquired the Jell-O Company

7. This marked

the start of a series of acquisitions. Over the next four years, it acquired over a dozen companies and expanded its product line to more than 60 products. In 1929, Postum Company changed its name to General Foods Corporation (General Foods).

6 The iPhone, designed by Apple Inc, is a smartphone with advanced features such as Internet connectivity,

e-mail facility, camera and multimedia player. An iPhone/iPod touch application is a set of software

applications designed for end users for a particular purpose. 7 The Jell-O Company manufactured gelatin desserts.

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In 1981, General Foods expanded into a new product category as it acquired Oscar Mayer & Co8.,

a leader in the processed meats industry, for US$ 470 million. In 1984, General Foods‘ performance went down as coffee sales dipped, and the Post Cereals unit, too, began to under perform. In November 1985, Philip Morris Companies Inc.

9 (Philip Morris) purchased General

Foods for US$ 5.6 billion. Later in 1988, Philip Morris acquired Kraft, Inc. for US$ 12.9 billion. In 1989, the two food subsidiaries of Philip Morris, General Foods, and Kraft were combined to form Kraft General Foods, Inc. (Kraft General Foods) Analysts considered this as a major push for Philip Morris into the food industry.

In 1990, Kraft General Food acquired Jacobs Suchard AG10

for US$ 4.2 billion. The acquisition gave the company ownership to brands such as Toblerone, Milka and Cote d‘Or chocolates, and Jacobs coffee among other brands. In 1993, Kraft General Foods purchased Terry‘s Group, which included Terry‘s chocolates. Initially, the subsidiary Kraft General Foods was divided into seven major groups.

11In 1995, Kraft General Foods was reorganized into a single entity and was renamed

as Kraft Foods International.

Kraft made some more acquisitions in the late 1990s. In 1996, Kraft acquired the license for the Taco Bell line of Mexican grocery products and in 1998, it entered into a long-term licensing agreement with Starbucks Corporation

12, whereby it marketed and distributed Starbucks whole

bean and ground coffee to grocery, warehouse club, and mass merchandise stores. By 1997, Kraft‘s profit margins had increased by 17%, a significant improvement over the 12% level of 1994. In early 2000, Kraft added two new brands to its fast-growing food sector for about US$ 358 million. These two brands were Balance Bar energy and nutritional snack products and Boca Burger soy-based meat alternative products.

In December 2000, Philip Morris purchased Nabisco Holdings Corp13

for US$18.9 billion and merged it with Kraft. In 2001, Kraft shares were traded on the New York Stock Exchange. The same year, Philip Morris put forward a proposal for a change in name to the Altria Group, Inc. The proposal was accepted and the name was changed in 2003. In March 2007, the Altria Group spun off Kraft and, as a result, Kraft began to trade as a fully independent company. In 2007, Kraft acquired the global biscuit group Danone (Refer to Exhibit I for timeline of Kraft Foods). As of 2008, Kraft had operations in more than 70 countries worldwide and its products were being sold in more than 150 countries. The company owned approximately 180 manufacturing and processing facilities and 11 Research and Development centers. For the year ended 2008, the revenues of Kraft Foods increased by 16.8% to US$ 42.2 billion (Refer to Exhibit II for financials of Kraft Foods).

The company‘s product portfolio comprised more than 70 major brands like Kraft cheeses, Maxwell House and Jacobs coffee, Oscar Mayer meats, Post ready-to-eat cereals, Nabisco cookies and crackers and its Oreo cookie brand, Ritz crackers, Lifesavers candies, Milka chocolates and LU biscuits, Planters nuts and snacks, Jell-O Desserts, Kool-Aid Beverages, Philadelphia Cream Cheese, Tombstone Pizza, Stove Stuffing Mixes, and Miracle Whip Salad Dressing. The company had nine brands

14 whose revenues exceeded US$ 1 billion and more than 50 other brands with

revenues exceeding US$100 million.

8 Oscar Mayer & Co was the largest brand of lunch meat and turkey products in the US.

9 Philip Morris Companies Inc was one of the largest tobacco companies in the world.

10 Jacobs Suchard AG was a Swiss chocolate manufacturer.

11 The seven major groups were General Foods USA, Kraft USA, Kraft General Foods International, Kraft General Foods Canada, Oscar Mayer, Kraft General Foods Frozen Products, and Kraft General Foods Commercial Products.

12 Founded in 1971, Starbucks Corporation is an international coffee chain based in Seattle, Washington, USA. It operates about 16,120 stores in 49 countries as of 2008.

13 Nabisco Holdings Corp was involved in the manufacturing and marketing of cookies and crackers.

14 These nine brands were Kraft Cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream

cheese; Maxwell House and Jacobs coffee; Nabisco cookies and crackers and its Oreo cookie brand;

Milka chocolates and LU biscuits.

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Since 2005, online marketing had played a strategic role in Kraft‘s overall marketing mix. The

company focused on integrating and optimizing the consumer experience across multiple touch

points. Its marketing campaigns emphasized mainly the message rather than the medium and

focused on the three I‘s — insights, ideas, and integration. With the emergence of the mobile

phone as a dominant communications device with respect to mobility, reach, and immediacy, Kraft

decided to use mobile as a medium of advertising. The company felt that through mobile

marketing, it could provide valuable information to its customers any time and anywhere. The

company chose to use the mobile channel as a platform for promoting its brands as it provided an

exciting opportunity to build a dialogue and an ongoing relationship with the consumer, experts

said (Refer to Exhibit III for a note on mobile marketing).

THE 3 IN 1 / 2 IN 1 CAMPAIGN IN GERMANY

In 2008, Kraft Foods Europe with the help of German mobile marketing firm YOC Group15

started

a mobile campaign in Germany to promote the launch of a new instant coffee brand called Jacobs

3in1 and Jacobs 2in1. 16

As the majority of coffee drinkers in Germany preferred filter variants to

instant, getting consumers to try a different instant brand was not an easy task especially when it

was an on-the-go concept. The target audiences for the campaign were young coffee drinkers in

the age group 25 to 45. According to a Global Attitude and Usage Study by Mobile Marketing

Association17

(MMA) of more than 2,500 mobile phone users in Western Europe, 68% of

respondents already used their mobile phones to text, indicating widespread use of SMS as an

application. This made it a suitable platform for mobile marketing campaigns.18

The objective of the campaign was to minimize sampling wastage and associated costs. According to

analysts, the reason behind the campaign was that Kraft Foods was concerned that simply handing out

samples of its new product would not guarantee trial. It sought to distribute samples only to those

people who would be receptive, and not to those who would simply pick up a freebie without realizing

what it was. Hence, the company adopted direct response mobile marketing as it considered this the

appropriate medium to start a dialogue with young consumers and encourage them to request a sample.

―This way it was less likely that the sample would end up in the bin,‖19

said Marco Gottschalk

(Gottschalk), marketing manager for filter and instant coffee products at Kraft.

The campaign which was integrated with traditional media encouraged consumers to request a

sample of its new instant coffee brand product by texting a special short code displayed in print

and online ads through their mobiles. It was launched across print, TV, and mobiles. The company

chose channels and websites popular with the target age group to popularize the campaign.

Television ads with teletext links, press ads, and Internet marketing were used to promote the

campaign. Analysts were of the opinion that promoting the mobile campaign through traditional

media provided users with a direct opportunity to interact with the brand and request a sample

through their mobiles if they were interested in the product. Besides traditional media channels,

banner ads for the campaign were placed on the Vodafone portal on the Nokia, Sat1, Pro7 Mobil

MTV, Viva, and YOC mobi sites.

15

YOC Group is Europe‘s leading full service mobile marketing agency. Headquartered in Berlin, the

agency operates across the UK, France, Austria, Spain, and Germany. Some of its clients are Coca-Cola,

Mercedes Benz, Nike, Kraft Foods, and Walt Disney Studio Motion Pictures etc. 16

Jacobs 3 in 1 and Jacobs 2 in 1 are instant coffee brands with milk and sugar already added. 17

Headquartered in New York, Mobile Marketing Association (MMA) is a global association that strives to

stimulate the growth of mobile marketing and its associated technology. The aim of the group is to

educate the marketplace and establish industry-wide, national, and international best practices and

guidelines for mobile marketing. 18

―MMA Case Study: Kraft Foods/YOC Sampling Campaign,‖ www.mobilemarketingmagazine.co.uk,

January 6, 2009. 19

Sarah Johnson, ―Jacobs Coffee - Kraft Makes Instant Contact,‖ www.brandrepublic.com, December 1, 2008.

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To order a sample of the new product, consumers had to text a given keyword in response to an ad. The keyword helped the company to trace the request back to the ad that prompted it. A response was then sent instantly to the customer asking for his/her mailing address. There was also the option of using a mobile web page to enter a mailing address which was provided as a link instead of a text message. Consumers who participated by texting in were then given a WAP link to the sampling portal. Once they accessed the sampling portal, consumers were asked to key in their personal details in order to receive the sample. All data related to the users was stored to built a customer database for future use. According to Tom Laband, director of mobile marketing at YOC, ―We used a method that only required the first three digits of a street name and the second two digits of a postcode to automatically find a full address. This meant prospects were not put off by having to enter their full mailing address.‖

20 YOC also provided a community of selected and

profiled individuals as part of the target group. This defined target group received text messages inviting them to text their details to a shortcode to receive a product sample by post.

THE iFOOD ASSISTANT

To capitalize on the growing popularity of mobile usage, Kraft decided to develop a unique mobile marketing application. Though the company had done some testing in the past for mobile marketing, it did not find any application that would fulfill the needs of its customers. Talking about the previous efforts of the company, Ed Kaczmarek (Kaczmarek), Director of Innovation for new services at Kraft Foods, said, ―Kraft has done some testing around SMS and text messaging in the past, but we found there were limitations in how we could engage with consumers.‖

21 With the

introduction of the iPhone and its subsequent popularity, Kraft wanted to develop its own mobile cooking application for iPhone users so that it could deliver interactive, consumer-focused content to customers as and when they needed it. Kraft worked with interactive agency Genex

22 to create

the iPhone application and named it iFood Assistant. Commenting on the mobile cooking application, Kaczmarek said, ―We saw an opportunity to deliver a more robust experience through the iPhone platform. iFood Assistant enables consumers to tap into our content and tools any time and anywhere it‘s convenient for them.‖

23

In December 2008, Kraft Foods launched the iFood Assistant, the first mobile cooking application to make use of the iPhone‘s features. The user-friendly application targeted consumers who were on the go looking for recipes to help them shop for and prepare meals using Kraft products. It offered consumers more than 7,000 recipes, a library of instructional cooking videos, full-meal shopping lists, and a store locator. Commenting on the reason behind the launch of the iFood Assistant Kaczmarek said, ―Our goal is to help make consumers‘ lives easier by helping them find the perfect food idea for any occasion, create quick shopping lists, and find the nearest grocery store -- all just a finger-tap away.‖

24

Available for US$ 0.99 at the iTunes store, the iFood Assistant could be downloaded from the Apple App Store

25 for installation on any iPhone or iPod touch. Consumers had to log into their

iTunes26

account to purchase and download the application. To access the Recipe Box and the

20

Sarah Johnson, ―Jacobs Coffee - Kraft Makes Instant Contact,‖ www.brandrepublic.com, December 1, 2008. 21

Mickey Alam Khan, ―Kraft Foods Launches First Downloadable Mobile App,‖

www.mobilemarketer.com, December 23, 2008. 22

Founded in 1995, Genex is part of magazine publisher Meredith Corp. Genex‘s clients include Cessna

Aircraft, Realogy, American Honda Motor Co., ING and Principal Financial Group. 23





The App store is an online service for the iPhone and iPod Touch which allows users to browse and

download applications through iTunes or directly from their cell phones. It was launched in July, 2008. 26

Introduced by Apple, Inc in 2001, iTunes is a digital media player application used for playing and

organizing digital music and video files.

http://www.kraft.com/

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Shopping List areas, they had to sign in either with the kraftfoods.com log-in ID and password or register within the iFood Assistant application. Talking about the value delivered by the iFood Assistant, Kaczmerk said, ―In terms of being paid, we think it‘s a tremendous value for 99 cents. For the price of a song, we‘re delivering a robust offering, and any upgrade with more services and content will be free to the consumer.‖

27

The application, considered as a brand communication strategy of Kraft, was promoted on Apple‘s website and in the App Store featuring video interviews with executives involved in the development of the application. The iFood Assistant was a downloadable application which could be used anytime and anywhere.

28

The iFood Assistant featured step-by-step directions for making dishes, instructional videos showing portion sizes, and a built-in shopping list. The instructional videos were interspersed with Kraft ads. With navigation similar to that in an iPod, users could even build their own mobile recipe box featuring their favorite recipes. The recipes could be browsed based on ingredients, meal type, or preparation time. Most recipes featured Kraft products such as Kraft Grated Parmesan Cheese, or Kraft Light Zesty Italian salad dressing, or Kraft Shredded Mozzarella. Once a user had chosen a recipe on the application, it would then pinpoint the user‘s phone location and provide directions to the nearest grocery store where users could pick out the relevant Kraft items required to prepare the dish. At the store, the application played the instructional video of the selected recipe and also broke down the recipe‘s shopping list according to the aisle in order to speed up the shopping process. Once the user was back in the kitchen, he/she could access the cooking procedure in an alternative horizontal view to follow while cooking. Users of the iFood Assistant could review comments posted on the recipes and share their knowledge with others. The application also offered cooking tips and shortcuts such as ―Dinner Tonight‖ and ―Recipe of the Day‖ that featured daily recipes (Refer to Exhibit IV for a screenshot of the iFood Assistant application).

According to the company, the iFood Assistant, the first downloadable mobile application for any food or CPG company, was a response to an opportunity born out of a challenge for time-bound consumers. ―Our consumers lead increasingly busy lives, and mealtime is a constant challenge. Whether you‘re in the store, in the kitchen, or on the go, iFood Assistant provides the information people need to make food planning and meal preparation quick, easy and delicious, and fun,‖

29

Kaczmarek said.

THE MOBILE WEBSITE

In May 2009, Kraft and Phonevalley, in a bid to extend Kraft‘s reach to consumers in the US, developed a mobile Internet site in partnership with Digitas

30. The new mobile site

m.kraftfoods.com was created to expand Kraft‘s consumer engagement on mobile devices (Refer to Exhibit V for a screenshot of the website). According to industry experts, the reason behind the launch of the site was that Kraft wanted to make grocery shopping and cooking easier for customers and boost its sales in the process. Talking about the new mobile Internet site, Kaczmarek said, ―People are leading increasingly mobile lives and we‘re pleased with this opportunity to provide delicious food ideas to cell phone users anywhere in the U.S. Last year, we introduced iFood Assistant for iPhone and iPod Touch so we see this as yet another way to reach people anytime, anywhere.‖

31

27

Emily Bryson York, ―Kraft Hits on Killer App. for iPhone,‖ www.chicagobusiness.com, January 19,

2009. 28

Emily Bryson York, ―Kraft Hits on Killer App. for iPhone,‖ www.chicagobusiness.com, January 19,

2009. 29



Digitas is a US-based digital marketing agency. 31

―Mobile Advertising Applications: Phonevalley Takes Kraft Food‘s Mobile with Digitas,‖

www.gomonews.com, May 12, 2009.

http://m.kraftfoods.com/

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Through the site, Kraft would be able to reach any mobile phone with an Internet connection. The

site offered consumers recipes, meal ideas, and shopping lists while on the go. With just a few

clicks, users could create their own shopping lists and search for their favorite recipes based on

ingredient or meal category with the help of the company‘s extensive database of recipes. ―The

brand‘s ambition was to facilitate engagement and help drive additional engagement with Kraft

Foods‘ unique award-winning recipe database. The strategy lays in the creation of a community

around Kraft Foods recipes. This mobile site is perfectly well targeted for all cooks on the go,

people willing to prepare great meals and save time,‖32

said Mars.

The site provided consumers easy access to several recipes. When a consumer selected a recipe,

the site automatically added all the ingredients to the online shopping list of the site‘s registered

users. It allowed users to create shopping lists based on Kraft recipes, and access preparation and

cooking times as well as detailed cooking instructions from their mobiles. Users could check off

items as they shopped.

The mobile site offered consumers certain features such as the ―Shopping list‖ to check off

purchased items in-store and the ―Share with a friend‖ so that they could send recipe details to

friends through e-mail. The site allowed users to create their own recipe box and save their favorite

recipes for future reference. The site had a ―Recipe of the day‖ section which was updated daily.

On the site, users‘ accounts were linked to their respective Kraftfoods.com web accounts to help

drive additional engagement with Kraft Foods content. In order to drive more traffic to the site, the

site was promoted through mobile search and banner ads on Yahoo‘s Web portal. According to

Mars, ―The Kraft Foods recipe mobile site stands as a bright example of the new generation of the

mobile footprint. Kraft Foods provides quick access to easy to use recipes and thus delivers great

services to mobile users.‖33

TAKING THE 3 IN 1 / 2 IN 1 CAMPAIGN FORWARD IN GERMANY

The 3in1/ 2in1 campaign for Kraft instant coffee products was followed by a combined in- and

on-pack mobile promotion of Jacobs 3in1, Jacobs 2in1, and Icepresso coffee products for Kraft in

Germany and Austria. The campaign, which started in May 2009, was expected to run until

December 2009. As part of the campaign, unique codes were placed inside or on the pack of the

three coffee products. After sending an SMS with the codes, users would get a direct link to the

mobile campaign portal where they could participate in a prize draw and win 55 Wii consoles.

Besides the consoles, participants would also receive other freebies in the form of attractive mobile

phone content, such as wallpapers and screen savers. Commenting on the campaign, Gottschalk

said, ―This campaign clearly focuses on the new media, putting a special emphasis on mobile

phones. We are convinced that introducing on-pack and poster codes will help us to increase

personal communication with our young target group, thus improving their brand awareness.

Mobile marketing enables us to efficiently enhance and refine our classic communication

channels.34

MOBILE MARKEITNG INITIATIVE IN THE UK

In June 2009, Kraft launched an innovative mobile operation in the UK to increase awareness

about its number one biscuit brand Oreo. The target audiences for the promotion were families

who went to the cinema together. As part of the campaign, Kraft sponsored advanced screenings

32

―Kraft Foods Launches New Mobile Site with Recipes News,‖ www.domain-b.com, May 18, 2009. 33

―Kraft Foods and Phonevalley Partner to Develop Leading-Edge Mobile Application in the US,‖

www.phonevalley.com, May 12, 2009. 34

―YOC Group Develops Mobile Marketing Campaign for Kraft Foods Instant Coffee Products,‖

http://en.group.yoc.com, July 3, 2009.

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of family movies in Vue cinemas35

across the UK. During the promotion which lasted from 26th

June to 19th July 2009, Oreo branded magnetic photo frames were distributed in cinema foyers

which screened movies such as Harry Potter and the Half Blood Prince and Ice Age 3.

To enter the promotion, families who attended the screening of movies at Vue cinema had to take a

photo of their family and friends with the interactive Oreo standee present at the cinema foyer

using their mobile phone and text it to a shortcode or email it through an iPhone or BlackBerry.

Entrants would then receive an SMS confirming their entry, followed by an SMS at a later date to

inform them that their picture has been selected for the Oreo online gallery. The entrants could get

a chance to win several prizes including a family holiday to Universal Studios, Florida. Talking

about the campaign, Mars said, ―This mobile campaign captures the Oreo brand‘s qualities in a

fun, interactive, and engaging way. After our recent mobile campaign for Kraft Foods in the US,

this new initiative in the UK enhances the mobile capabilities to connect consumers and brands in

a genuine and creative mode.‖36

RESULTS

The response for the 3in1/ 2in1 campaign was overwhelming as it received about 500,000 requests

for samples and more than 80,000 users registered their details for future communication with the

brand. According to Gottschalk, the Jacobs 3in1/ 2in1 campaign in Germany was successful, as the

mobile channel allowed them to target the campaign at a specific audience and thereby save

money and reduce time. ―The success of the campaign, especially in the mobile sector, exceeded

our expectations,‖ said Marco Gottschalk, marketing manager at Kraft, Germany, ―The mobile

phone has hereby established itself as promotional tool.‖ 37

The campaign also helped Kraft build a

database of potential customers for marketing its products in the future.

The campaign also received a good response from users of mobile portals. About 650 banners

were placed on selected portals relevant to the target group. These portals achieved a click-though

rate38

of more than 3%. Around 250,000 text messages were sent to the members of the YOC

community who were part of the defined target group. It was reported that about 10.6% members

responded and more than 26,000 samples were distributed to them. About 0.4% of users who were

aware of the campaign through television ads ordered a product sample through their mobile

phone. ―We expected the TV ads to have the biggest response, but all channels were comparable.

We will be using mobile marketing in the future as it has worked better than imagined,‖ 39

Gottschalk said.

Mobile marketing experts were of the opinion that the use of SMS as a call to action was a good strategy to enhance consumer involvement in mobile marketing and to engage customers with a particular brand. The Jacobs 3in1/ 2in1 in Germany was a truly 360° campaign and incorporated sampling via mobile phones created value for the brand, they said. The campaign was awarded the second prize in the Neptun Crossmedia Awards in 2008

40. In October 2008, the campaign was

35

Vue is a cinema company in the UK and Ireland. As of 2008, there are 62 Vue cinemas with 607 screens

in the UK. 36

―Phonevalley Increases Awareness of Kraft Foods‘ Oreo in the UK through a Fun Family Experience on

Mobile,‖ www.phonevalley.com, June 17, 2009. 37

Giselle Tsirulnik, ―Kraft Foods Uses Mobile for New Instant Coffee Brand,‖ www.mobilemarketer.com,

April 27, 2009. 38

Click-through rate (CTR) is a metric which helps in measuring the effectiveness of an online advertising

campaign. CTR is obtained by dividing the number of users who click on an ad on a web page by the

number of times the ad is delivered (impressions). 39

Sarah Johnson, ―Jacobs Coffee - Kraft Makes Instant Contact,‖ www.brandrepublic.com, December 1,

2008. 40

The Neptun Crossmedia Awards are given to the most imaginative, effective, and economic cross-media

campaign in Germany.

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given the MMA‘s Award 41

for the Best Use of Mobile Marketing. Commenting on the achievement, the CEO of the YOC Group, Dirk Kraus, said, ―Mobile offers a high degree of targeting and personalization. These benefits, blended with powerful branding and integration into other media formats such as TV and print advertising were combined here for great effect. We‘re very happy to be recognized by the Mobile Marketing Association for the campaign, which has proven to be one of the largest and most successful launched in Europe.‖

42

Analysts were of the view that the iFood assistant application developed by Kraft had helped it to script a new chapter in mobile marketing for CPG. The application which ‗brings simple, delicious food ideas, anytime and anywhere you go‘ was ranked among iPhone‘s top 100 paid applications, and occupied the third position in the lifestyle category. According to Advertising Age

43 the

application had clearly caught on because it was ―actually useful.‖44

The popularity of the iFood Assistant implied that if a marketer created something useful, consumers would not consider it as only a marketing gimmick;

45 they would in fact, be willing to

pay for it because of its utility and convenience, the agency said.46

Some experts were of the opinion that the price was not too high for a recipe application.

For the first quarter ended March 2009, Kraft‘s revenues declined by 6.5%to US$9.4 billion and operating income increased by 18.8% to US$1,268 million. Commenting on the performance of the company, Irene Rosenfeld (Reosenfled), Chairman and CEO of Kraft Foods, said, ―We‘ve had a very solid start to the year, and we‘re on track to deliver our 2009 commitments. Our business momentum remains strong despite a challenging consumer environment. We are intensely focused on investing our cost savings to build our core brands, improve our product mix, and drive superior retail execution. This will further enhance our profit margins and improve market shares as the year unfolds.‖

47 For the second quarter ended June 2009, the net earnings of Kraft increased by

11% to US$ 827 million even though its revenues slipped 5.9%to US$ 10.16 billion, below analysts‘ predictions of US$ 10.37 billion.

48

SOME INITIAL REACTIONS

According to analysts, the phenomenal growth in the usage of mobile phones had given marketers

a new marketing channel by which they could interact with customers directly. As marketers had

real-time access to more people in more markets, implementing a defined mobile advertising

strategy was an important requirement for them. Several companies were joining the mobile

bandwagon to promote their products by launching mobile websites, iPhone applications, etc.

(Refer to Exhibit VI for some examples of mobile marketing). Experts were of the view that the

aim of Kraft Foods‘ mobile marketing strategy was to deepen customer engagement with its

brands and boost its product sales. According to industry experts, the 3in1/ 2in1 campaign was a

41

The MMA‘s Fourth Annual Global Mobile Marketing Awards were presented at the Annual Global

Awards ceremony on November 13, 2008 in San Diego. 42

―Kraft Foods Direct Response Campaign Nominated for Best Use of Mobile Marketing,‖

http://en.group.yoc.com,October 28, 2008. 43

Advertising Age is a leading source of news for marketing, advertising and media communities. Its

platforms include the weekly newspaper, website, electronic newsletters, events and conferences,

streaming videos, audio podcasts, and blogs. 44

Tom Ryan, ―Retail Wire: Kraft‘s iPhone App Draws Eyeballs, Shopper Insights,‖

www.retailtouchpoints.com, February 5, 2009. 45

Rick Mathieson, ―Kraft‘s Killer App(etite): iPhone App Heralded as New Mobile Marketing Model,‖

http://maverix.typepad.com, January 20, 2009. 46

―Kraft‘s iFood Assistant: Mobile Marketing at its Best,‖ www.ibhat.com January 19, 2009. 47

―Kraft Foods Reports Q1 EPS from Continuing Operations Up 29%, Driven by Strong Operating Gains,‖

www.flex-news-food.com, May 5, 2009. 48

Emily Fredrix, ―Kraft Foods 2Q Profit up 11 Percent,‖ www.businessweek.com, August 4, 2009.

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successful combination of promoting brand awareness and direct response marketing. The

campaign not only capitalized on targeted mobile advertising, but also incorporated an element of

interactivity in the traditional media, they said. Some analysts were of the view that the campaign

had been executed in a simple manner and had clear objectives. The use of cross-media channels

helped the campaign in reaching out to its target audience, they said.

According to Advertising Age, the reviews received by the App Store for the iFood Assistant were

mixed. Some reviewers said that the idea was great and the application had great potential. They

were of the opinion that the iFood Assistant provided consumers with brand experience that was

beyond the product on shelf and highlighted the services and value added content of the Kraft

brands. Some experts were of the opinion that through the mobile application, Kraft was not only

delivering its brand to the target customers but also using it as an advertising platform to drive

revenues from its sales on the App Store. ―The fact that people are willing to pay for the Kraft

application speaks volumes. [iPhone apps] are a great way to connect with customers,‖ 49

said

David Dorf, Director of Technology Strategy, Oracle Retail50

.

According to analysts, the iFood assistant was gaining in popularity as the iPhone was emerging as

one of the leading mobile advertising platforms because of its ability to display rich media

applications. Superior user experience led consumers to download and purchase branded

applications because they did not consider them just as regular ads, they said. According to Eden

Zoller, principal analyst at Ovum51

, ―The popularity of branded iPhone applications suggests that

people do not see them as advertising is one of the ideal outcomes for any type of

advertising…People are in effect paying Kraft to advertise to them, except they do not see it this

way.‖52

Besides earning revenues, the payoff for Kraft from the applications was even greater,

experts said. As users of the iFood Assistant logged in to Kraft before downloading recipes and

shopping lists, information would be sent directly to the company. They were of the opinion that

the company could use the data it collected from the iFood Assistant to understand when and how

consumers shopped, the most popular recipes, widely used ingredients, and food choices of

consumers.

There were also some negative reviews related to the mobile cooking application. Some analysts

felt that Kraft Foods‘ decision to charge for the application had been wrong as charging for an

application would reduce the take rate. ―I guess I‘m not surprised that folks are spending 99 cents

for the app. Kraft has delivered a useful and innovative food and recipe tool for the most popular

touchscreen smartphone. But with my vast experience with consumer behavior (Marketing 101), I

would have thought that Kraft would provide such an advertising vehicle for free (or even coupled

with some coupons). Maybe they‘re using the reverse psychology effect; if they‘re charging for it,

it must not be marketing, right?‖53

said Taylor Thomas, a reviewer. Some analysts were wary

about the performance of the iFood Assistant. According to Cian O‘Sullivan, reporter of Gomo

News, ―I don‘t want you to think that I‘m being derogatory when I say this is the ―mobile Internet

package‖. On the contrary, I think this is probably the right way to go about things. It would be

nice to be able to develop apps for all the major smartphones, and in the future that will almost

49


www.retailtouchpoints.com, February 5, 2009. 50

Oracle Retail is an application developed by the enterprise software company Oracle Corporation. It,

provides innovative and comprehensive software solutions for retailers to drive customer relationships. 51

Ovum is one of the leading global analyst firms specializing in IT, Communications, and

Telecommunications Industries. 52

Tricia Duryee, ―People Pay for Kraft iPhone App—Even Though It‘s An Ad,‖ http://moconews.net, May

6, 2009. 53

Taylor Thomas, ―iFood Assistant is Kraft-y iPhone App,‖ http://iphone-apps.toptenreviews.com, January

20, 2009.

http://www.gomonews.com/vopium-beats-competition-to-become-first-mobile-voip-application-available-on-blackberry-app-world�

http://www.gomonews.com/gomo-buzzwatch-mobile-os-android-will-soon-explode-killing-us-all/

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certainly be necessary. But right now you can hit a truly enormous percentage of the smartphone

market by just targeting iPhone users. As for the search and display ads… there‘s still no real

evidence that search and display actually work on the mobile Web. But, in the absence of anything

better right now, it‘s not a bad way to enter the market.‖54

While some analysts appreciated Kraft Foods‘ idea of a mobile website saying that the mobile site

was a prime example of how powerful a comprehensive mobile marketing campaign could be in

reaching wider consumer segments, others were not quite so satisfied with it. Commenting on the

mobile site, Bena Roberts, Chief Editor and Founder of GoMo News55

and a regular industry

speaker, said, ―Now, it pains me to say this. But for the first time in a very long time, if not ever, I

was slightly disappointed with this mobile site. Looking at the screenshots (home page at the top)

– the site is clean and simple but the vertical search that finds you dinner, lunch, or breakfast

works better than the search box which did return errors. But I also didn‘t like the way in which

users had to sign-up or in to get the content or how to make the food. This hinders uptake. Yes, it‘s

vital to Kraft but mobile isn‘t ready for sign-up only sites.‖ 56

OUTLOOK

In 2008, though Kraft reported strong sales growth, its earnings fell considerably. This, according

to the company, was due to taxes, restructuring costs, and commodity hedges. Despite the drop in

earnings, the company continued to focus on its marketing outlays as it entered the final phase of

its three-year turnaround plan. Rosenfeld emphasized that the company would continue to invest in

its brands. In 2009, the company‘s marketing budget was to be about 8% of sales. In 2008, the

company projected spending at about 7% of its sales, which worked out to about US$ 3 billion.

According to analysts, Kraft‘s marketing investments in core brands had made the company the

market leader in 80% of its portfolio. Talking about the company‘s future marketing plans,,

Rosenfled said, ―Our 2009 advertising and merchandising plans will continue to emphasize the

value proposition of our brands. We have significant cost savings at our back to reinvest in brand

building. Combined with the spike in unemployment and rapid deterioration of consumer

sentiment, it‘s not surprising that branded consumption was down and private label picked up

share.‖57

Some analysts opined that Kraft should come up with more mobile applications in the future to

maintain their relationship with customers. Talking about the development of such applications,

Rachel Magni, director of consumer insights, WD Partners,58

said, ―When will the technology be

prepared to answer ‗in which aisles will I find these items?‘ ‗Which ones are on sale?‘ ‗How much

will it cost me in total to make this meal?‘ What if, better yet, the app could tell you that you can

find all of the items needed to make this Kraft meal on the end cap of aisle 5? Now that‘s

something a customer could get excited about!‖59

54

Cian O‘Sullivan, ―On the Mobile Web Yet? Kraft Foods Gets Mobile Site and iPhone app,‖

www.gomonews.com, May 18, 2009. 55

GoMo News is a leading social media news site for the B2B mobile industry. 56

Bena Roberts, ―Mobile Advertising Applications: Phonevalley Takes Kraft Food‘s Mobile with Digitas,‖

www.gomonews.com, May 12, 2009. 57

Emily Bryson York, ―CEO Irene Rosenfeld Plans to Continue to Invest in Brands,‖ http://adage.com,

February 4, 2009. 58

WD Partners helps retail, restaurant, and CPG brands to innovate through strategy, design, architecture,

and implementation services. 59


www.retailtouchpoints.com, February 5, 2009.

http://www.gomonews.com/mobile-advertising-conference-the-search-for-an-effective-mobile-advertising-business-model/

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According to some analysts, the global economic recession offered a unique opportunity for

marketers to take advantage of the mobile medium and adopt it as part of their channel mix to gain

a competitive edge. In 2009, marketers should explore SMS services that were integrated with

traditional channels to increase the value of traditional media channels, location-based advertising

to target users at the right place and time, and mobile couponing, they said. Lisa Bradner, Senior

Analyst with Forrester Research, Inc.60

said, ―The lesson here for retailers and manufacturers is to

think about in-store relevance in the way consumers move and shop using technology – which may

not always be the same thing as building a network the retailer controls or creating an in store

kiosk only featuring brands that pony up trade promotion dollars.‖61

60

Forrester Research, Inc., is an independent technology and market research firm. 61



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Exhibit I

Timeline of Kraft Foods

Year Event

1895 C.W. Post starts his ready-to-eat cereal company in Battle Creek, Michigan, with the introduction of Postum cereal beverage. The same year, Johann Jacobs in Bremen, Germany, establishes Jacobs Kaffee.

1903 James L. Kraft begins a wholesale cheese business in Chicago, Illinois. By 1914, the company opens its first plant and begins manufacturing its own cheese.

1908 Swiss chocolate maker, Theodore Tobler, introduces the Toblerone chocolate bar.

1916 J.L. Kraft receives the first of many patents for his method of producing process cheese.

1923 The Kenyan Coffee Company in London begins the production of fresh ground coffee known as Kenco.

1924 J.L. Kraft & Bros. Co. changes its name to Kraft Cheese Company, goes public, and has its first shares traded.

1927 Edwin Perkins modifies soft drink syrup called Fruit Smack and changes its name to Kool-Aid.

1928 Kraft Cheese Company acquires the Phenix Cheese Corporation, maker of the Philadelphia Brand cream cheese, and changes its name to Kraft-Phenix Cheese Corporation.

1929 Postum Company, maker of Post cereals, changes its name to General Foods Corporation after acquiring several brands, including Baker‘s, Maxwell House, Minute Tapioca, and Jell-O.

1933 ‗Miracle Whip‘ salad dressing is introduced at the Chicago‘s Century of Progress World‘s Fair.

1937 Kraft Macaroni & Cheese dinner enters national markets with the phrase ―A meal for 4...in 9 minutes‖

1950 Jell-O instant pudding is introduced by General Foods.

1953 General Foods acquires Perkins Products Company, maker of Kool-Aid powdered soft drinks.

1957 General Foods introduces Tang breakfast beverage crystals.

1963 Chips Ahoy! Chocolate chip cookies make their first appearance.

1970 Dong Suh Foods joint venture with General Foods is formed in Korea.

1979 HAG AG of Bremen, Germany is acquired by General Foods.

1981 General Foods acquires Oscar Mayer & Co., Inc.

1982 General Foods introduces Crystal Light powdered drink mix.

1985 Philip Morris Cos. purchases General Foods for US$ 5.6 billion.

1986 Tombstone Pizza Corp., manufacturer of frozen pizza, becomes a part of the Kraft brand portfolio.

1988 Kraft, Inc. becomes a part of Philip Morris Cos. which purchases Kraft for US$ 12.9 billion. The Lunchables line of convenient light meals is introduced in the US.

1989 General Foods and Kraft merge to become Kraft General Foods.

1993 Freia Marabou, the leading confectionery company in Scandinavia, is acquired for US$ 1.3 billion.

1995 Di Giorno, the first frozen crust pizza, is introduced in the US.

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Year Event

2000 Philip Morris Cos. acquires Nabisco Holdings Corp. for US$ 19.2 billion and integrates it into Kraft Foods, giving Kraft ownership of many powerhouse brands.

2001 Shares of Kraft Foods Inc. stock begins to trade on the New York Stock Exchange.

2003 Kraft Foods partners with Rainforest Alliance on sustainable coffee initiative.

Kraft acquires Back to Nature brand cereal and granola business.

2007 Kraft Foods is spun off from parent company Altria Group Inc. and becomes fully independent.

2008 Kraft Foods divests itself of its ‗Post‘ cereal business for US$ 2.6 billion.

Source: 2008 Kraft Fact Sheet.pdf

Exhibit II

Kraft Foods’ Key Financials: 2006-2008

(In US$ millions, except per share and employee data)

Summary of Operations 2008 2007 2006

Net revenues

Cost of sales

Operating income

Operating margin

Interest and other expense, net

41,932

28,088

3,843

9.2%

1,240

35,858

23,656

4,176

11.6%

604

33,018

21,190

4,158

12.6%

510

Earnings from continuing operations before income taxes

Provision for income taxes

Earnings and gain from discontinued operations, net of income taxes

2,603

755

1,045

3,572

1,080

232

3,648

816

233

Net earnings

Non-controlling interests

2,893

9

2,724

3

3,065

5

Net earnings attributable to Kraft Foods

Basic EPS:

Continuing operations

Discontinued operations

2,884

1.22

0.70

2,721

1.56

0.15

3,060

1.70

0.14

Net earnings attributable to Kraft Foods

Diluted EPS:

Continuing operations

Discontinued operations

1.92

1.21

0.69

1.71

1.56

0.14

1.84

1.70

0.14

Net earnings attributable to Kraft Foods 1.90 1.70 1.84

Dividends declared per share 1.12 1.04 0.96

Number of employees 98,000 103,000 90,000

Source: 2008 Kraft Fact Sheet.pdf

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Exhibit III

A Note on Mobile Marketing

Mobile marketing entails communicating with consumers by sending a simple marketing

message through the mobile phone in order to introduce them to a new campaign or to

encourage them to visit a mobile website. Analysts consider mobile marketing more economical

for both the consumer and the marketer than the traditional methods. As the mobile is a

powerful communications device with respect to mobility, reach, and immediacy, it has been

widely adopted as a communications and direct marketing platform for consumer brands.

Mobile search advertising, mobile display advertising and mobile message advertising are

considered the three important pillars driving the growth of the mobile marketing industry. The

important elements of mobile marketing are text messaging, the mobile web, video, live chat

(Refer to Table I-A for some popular mobile marketing trends). Mobile marketing enables one-

on-one communications with a consumer of any age group and helps marketers develop long-

term relationships and have direct dialogues with their customers. In lieu of banner ads,

advertisers are increasingly building mobile applications which keep users connected with the

brand. Mobile marketing provides measurable results with lower overhead compared to its

traditional mass-media counterparts.

Table I-A

Popular Mobile Marketing trends

Search services through SMS such as movie show timings, dictionary definitions,

phone book listings, and product prices, etc

Ringtones, ringback tones of movies, music albums, television shows, etc

Instant news through SMS, RSS feed on the mobile phone

Election campaigns, governance-related surveys and polls

Public service ads, campaigns

Social networking combined with mobile SMSes/WAP

In-game mobile marketing

Location based services

Bluetooth marketing

Source: http://dqindia.ciol.com

According to a study by eMarketer, in 2008, there was a positive growth in global mobile

advertising revenues which increased from US$ 4,586 million in 2008 to US$ 7,375 million in

2009. The revenues were projected to grow up to US$ 19,149 million in 2012.62

It was reported

that by 2011, the value of mobile market would reach US$ 19 billion, including mobile search

and video advertising. In Germany, France and the UK, advertisers from the CPG, automotive,

fashion, beauty, and financial services industry have increased their use of mobile content.

According to a report by Jupiter Research, cell phones have a 76% penetration rate in the US

and offer marketers a highly personalized platform for targeting consumers. It is estimated that

in the US, advertising spending on mobile messaging and display ads would grow from US$1.4

billion in 2006 to US$2.9 billion in 201163

. It was reported that by 2010, an estimated 2.3

62

Shikha Das, ―Marketing to Cell,‖ http://dqindia.ciol.com, January 24, 2009. 63

Sieglinde Friedman, ―Mobile Marketing – All Over the World,‖ www.electronicretailermag.com, October

2007.

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trillion text messages would be sent and delivered globally. The global mobile advertising

market would be valued at over US$16 billion by 2011(Refer to Table I-B for mobile

advertising spending worldwide, 2006-2011).

Table I-B

Mobile Advertising Spending Worldwide, 2006-2011

(in US$ millions) 2006

2007

2008

2009

2010

2011

General mobile ad spending* 1,432

2,496

4,316

6,141

9,006

11,746

Mobile multimedia ad spending** 109

215

421

749

1,295

2,116

Total 1,541

2,710

4,736

6,890

10,300

13,862

Note: numbers may not add up to total due to rounding;

*includes spending on text message promotions and ad-supported voice minutes; **includes spending

on ad placements around mobile video content, mobile music, mobile TV and mobile social networks.

Source: eMarketer, January 2007

However, planning and managing a mobile marketing campaign could be a challenge as there

are several factors which contribute to a successful campaign. According to analysts, different

types of functionality and preloaded applications make mobile marketing a complex platform

for advertising. Moreover, marketers are wary of consumer privacy issues related to use and

release of customer data. Sometimes adaption of content to the mobile media may lead to poor

user experience. In some countries, the reach of mobile marketing campaigns may not be wide

because of lower consumption of mobile content and inadequate penetration of 3G devices. In

addition, the absence of reliable measurement and metrics make it difficult for advertisers to

measure the effectiveness of their mobile campaigns. Analysts are of the view that marketers

need to seek compelling mobile marketing techniques which are not only appealing but also

sustainable.

Compiled from various sources

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Exhibit IV

Screenshot of iFood Assistant

Source: www.kraftfoods.com

Exhibit V

Screenshot of Kraft Foods Mobile Website

Source: www.m.kraftfoods.com

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Exhibit VI

Examples of Mobile Marketing

Companies, particularly those in the retail industry, are increasingly using mobile as a promotional tool to reach customers. Here are some of the examples of companies using mobile as a medium to advertise their products:

Reebok (May 2009)

Sportswear giant Reebok International Limited launched its shoe customization application called ―Your Reebok‖ which allowed users to customize and buy their uniquely designed trainers through their mobile phones. Available at the iPhone App Store, the application allowed users to change up to 23 different areas of the shoe with a choice of 19 colors, four material options, and adding personalized text. The designs could be shared directly from the application.

MasterCard (May 2009)

MasterCard launched a fully integrated mobile payments platform for issuers in the US. Through the new consumer payments platform, users could send and receive funds via SMS, mobile browser, mobile applet, or an Internet-connected PC.

Audi (May 2009)

German carmaker Audi AG launched an iPhone application called ―Truth in 24‖ to reach a new demographic of consumers, particularly youth. The driving application provided an excellent branding opportunity for Audi and was considered as one of the best racing films.

Unilever (March 2009)

Unilever, manufacturer of food, home care, and personal products, launched a mobile marketing campaign ―Axe Hair Crisis Relief‖ in association with MTV Networks to promote its Axe deodorant spray. The campaign included a mobile website, ringtones, text alerts, and an extensive TV ad campaign with SMS calls-to-action. Through the campaign, consumers could access tips on how to solve their hair problems, watch videos clips from the Axe Hair Crisis Relief campaign, sign up to receive text alerts from the Axe Hair Crisis Relief team, download the Hair Crisis Relief anthem ringtone, or send a friend a Wake Up Call.

Arby’s (March 2009)

Fast food chain Arby‘s ran a mobile campaign in Alabama to promote its new sandwich, the Roastburger. By texting the word ―ROASTED‖ to short code, consumers could get a mobile coupon for a free Roastburger.

Nike (March 2009)

Sportswear maker Nike, Inc. extended its Nike Training Club program to mobile to target active women on the go. The idea behind the Nike Training Club iPhone application was to offer customers a personalized training program. Using this application, users could access training videos and a customized training schedule while in the gym. Users could download the Nike Training Club iPhone application from the Apple App Store and customize it to suit their needs

Subway (February 2009)

Fast food chain Subway launched a mobile ordering system in New York called the ―Subway Now program‖ wherein customers could text their orders to a short code and receive a text confirmation specifying the pickup time. This helped customers avoid long queues at the outlets, thereby saving their time.

American Airlines (February 2009)

American Airlines targeted mobile customers with a new service called ―Remember Me‖ to help American Airlines AAdvantage loyalty program customers when they called in for information such as departure gate number and flight times. The service, based on caller ID technology, shortened the response times to such calls by 25 to 30 seconds.

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Cadbury India (April 2008)

Cadbury India launched an interactive mobile marketing campaign called ―Pappu Pass Ho Gaya‖ which means ―Pappu (a nickname given to children in India) has passed in his exams‖. The idea which was executed in association with Reliance India Mobile service allowed students to check their exam results using the mobile service. If the student passed, he/she received a congratulatory SMS ―Pappu pass ho gaya‖ along with the result thereby encouraging him to celebrate the moment with a Cadbury Dairy Milk chocolate.

PepsiCo (October 2007)

PepsiCo used mobile platforms like SMS, WAP, and voice to engage consumers with its Youngistaan campaign in India. The beverage company launched a mobile portal wap.mauj.com/youngistaan and created a community called Youngistaan on SMSGupshup.com to promote the brand.

Source: http://www.mobilemarketer.com

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References & Suggested Readings:

1. Emily Fredrix, ―Kraft Foods 2Q Profit up 11 Percent,‖ www.businessweek.com, August

4, 2009.

2. ―YOC Group Develops Mobile Marketing Campaign for Kraft Foods Instant Coffee

Products,‖ http://en.group.yoc.com, July 3, 2009.

3. ―Phonevalley Increases Awareness of Kraft Foods’ Oreo in the UK through a Fun

Family Experience on Mobile,‖ www.phonevalley.com, June 17, 2009.

4. Cian O‘Sullivan, ―On the Mobile Web Yet? Kraft Foods Gets Mobile Site and iPhone

app,‖ www.gomonews.com, May 18, 2009.

5. ―Kraft Foods Launches New Mobile Site with Recipes News,‖ www.domain-b.com,

May 18, 2009.

6. ―Kraft Offers Recipes on the Move with Mobile Site,‖ www.phonevalley.com, May 14,

2009.

7. Giselle Tsirulnik, ―Kraft Foods Drives Traffic to New Mobile Site via Banners,‖

www.mobilemarketer.com, May 13, 2009.

8. Bena Roberts, ―Mobile Advertising Applications: Phonevalley takes Kraft Food’s

mobile with Digitas,‖ www.gomonews.com, May 12, 2009.

9. ―Kraft Foods and Phonevalley Partner to Develop Leading-Edge Mobile Application

in the US,‖ www.phonevalley.com, May 12, 2009.

10. ―Mobile Advertising Applications: Phonevalley Takes Kraft Food’s Mobile with

Digitas,‖ www.gomonews.com, May 12, 2009.

11. Rick Mathieson, ―Kraft Foods Goes Mobile,‖ http://maverix.typepad.com, May 12, 2009.

12. Tricia Duryee, ―People Pay for Kraft iPhone App—Even Though It’s An Ad,‖

http://moconews.net, May 6, 2009.

13. ―Kraft Foods Reports Q1 EPS from Continuing Operations Up 29%, Driven by

Strong Operating Gains,‖ www.flex-news-food.com, May 5, 2009.

14. Giselle Tsirulnik, ―Kraft Foods Uses Mobile for New Instant Coffee Brand,‖

www.mobilemarketer.com, April 27, 2009.

15. Tom Ryan, ―Retail Wire: Kraft’s iPhone App Draws Eyeballs, Shopper Insights,‖


16. Emily Bryson York, ―CEO Irene Rosenfeld Plans to Continue to Invest in Brands,‖

http://adage.com, February 4, 2009.

17. Shikha Das, ―Marketing to Cell,‖ http://dqindia.ciol.com, January 24, 2009.

18. Rick Mathieson, ―Kraft’s Killer App(etite): iPhone App Heralded as New Mobile

Marketing Model,‖ http://maverix.typepad.com, January 20, 2009.

19. Taylor Thomas, ―iFood Assistant is Kraft-y iPhone App,‖ http://iphone-

apps.toptenreviews.com, January 20, 2009.

20. Emily Bryson York, ―Kraft Hits on Killer App for iPhone,‖ www.chicagobusiness.com,

January 19, 2009.

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21. ―Kraft’s iFood Assistant: Mobile Marketing at its Best,‖ www.ibhat.com January 19,

2009.

22. ―MMA Case Study: Kraft Foods/YOC Sampling Campaign,‖ www.mobilemarketingmagazine.co.uk, January 6, 2009.

23. Mickey Alam Khan, ―Kraft Foods Launches First Downloadable Mobile App,‖

www.mobilemarketer.com, December 23, 2008.

24. Sarah Johnson, ―Jacobs Coffee - Kraft Makes Instant Contact,‖

www.brandrepublic.com, December 1, 2008.

25. ―Kraft Foods Direct Response Campaign Nominated for Best Use of Mobile

Marketing,‖ http://en.group.yoc.com,October 28, 2008.

26. Sieglinde Friedman, ―Mobile Marketing – All Over the World,‖

www.electronicretailermag.com, October 2007.

27. www.kraftfoods.com.

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