Kraft Foods Group Chief Marketing Officer Deanie Elsner is leaving the company at the end of the month because of a change of marketing tactics.
When the new CEO, John Cahill, stepped into his role in late December he immediately started making changes. Analysts have speculated that the surprise CEO change could signal that Kraft might put less emphasis on marketing and focus more on cost-cutting.
Kraft said “marketing remains critically important to the company and will move closer to the business operations, in order to sharpen focus and more effectively ignite brand rejuvenation.” But on an earnings call on Thursday afternoon, Mr. Cahill suggested Kraft would make major changes in how it evaluates marketing spending, taking a more disciplined approach that puts a premium on return-on-investment analysis. “My view is that marketing remains paramount in its importance at Kraft,” he said. “We would like to spend more money but we need to do it in an intelligent way.” He foreshadowed a more “fact-based” approach, saying that “we can’t continue to spend without adequate returns.”
Why it’s Hot: We have been noticing brands putting a heavier emphasis on marketing. In this case, we see Kraft (one of the leading 25 Fast Moving Consumer Goods (FMCG) companies worldwide) doing the opposite as marketing won’t be as major as cutting costs. It will be interesting to see how it works out.