Speech Summaries

Kathleen Olvany Riordan Vice President, Internet and E-Marketing, E-Commerce Kraft Foods

Targeting The Right Consumers: The Kraft Perspective

Kathleen Olvany Riordan, Vice President of Internet and E-Marketing, E-Commerce, Kraft Foods, talked about the challenge to get consumers to view "old" brands as robust and alive. This requires "world-class marketing," which builds brands, brand equity, consumer loyalty, and reduces inefficiency and waste while delivering profits.

The Internet is a strategic imperative that is innovating and transforming consumer marketing practices -- helping to build better products and services. It creates new ways for us to make connections with the brands, but there are no definite answers. Finding these answers is the challenge. It requires "path-breaking" thinking -- decisions without hard numbers.

Using examples of numerous Kraft online success stories, Ms. Riordan outlined seven strategic best practices: 1) Make smart bets; 2) Exceed consumer expectations; 3) Focus on how technology can help your brands to deepen or enhance consumer relationships; 4) Understand what you want to achieve with these new technologies; 5) Identify your highest impact options and pursue them first; 6) Collaborate with your trading partners; and 7) Expect to correct your course as needed.

Questions And Answers

Q: What's the No. 1 thing you’d like your grocery partners to do?
A: Make use of our eSolutions integrator, including syndicated content for the retailer. We'd like them to build relationships with consumers by delivering our food ideas in their environment. We are currently doing this with Albertson's and Peapod.

Q: Our survey data shows that you are the number one brand site that consumers would like to buy from online. What do you think, and are you planning to sell directly online?
A: That is awesome and speaks directly to our brand. If we sell online it would probably be around specialty items or events. While we are not currently selling directly now and have no imminent plans, we may in the future think about offering links to online grocers, such as Peapod, through our site.

Q: If the Internet is imperative, why do you think that CPG companies have devoted such a small amount on initiatives?
A: At Kraft, we spend in line with the opportunity. As consumers' interest grows, so will our investment. At the same time, we rely on traditional marketing as well. Again, we need path-breaking thinking and need to make decisions without hard data. Our strong management support and understanding enables us to do this. At Kraft, every major event does need to have an online component.