Why is Kraft so Successful in Asia?

We’re familiar with this kind of story. This one is in the Wall Street Journal.

“For a long time, Kraft Foods Inc., the second-largest international food company by revenue, struggled to make headway in Asia-Pacific, the world’s most populous region,” and a culturally puzzling region for an American company. An understanding of local cultural preferences made all the difference.

In 2008, Kraft was finally seeing profit in the region, and it continues to grow. Why is this? Pradeep Pant, Asia-Pacific President at Kraft, says that one reason for the shift was giving “people close to the point of action” more decision-making authority. Based on their input, products were modified to appeal to local tastes. “For instance, when Kraft’s research showed that Chinese consumers found Oreo cookies too sweet, ‘we toned down the sugar, whereas the Indonesian version is definitely sweeter than the Chinese product.’ As a result, Pant says, Oreo is now the best-selling packaged cookie in China.”

A little culture went a long way.

Click here to read the full article.

rw-3.com