blogTwo choices.
Error on the side of caution and tradition, content to tweak existing products and services.
or…
Be bold, reshaping and creating things that are completely new.
Each has its rightful place. The tough part is figuring out which to choose. Congratulations Kraft, on knowing when to take the bold path.
Tags: product design, strategy
JK:
It seems to me that the boldest move they made was in the decentralization of brand making:
“Ms. Rosenfeld has been putting more power in the hands of Kraft’s various business units around the globe, telling employees that decisions about Kraft products shouldn’t all be made by people at the Northfield, Ill., headquarters.”
This is the real key here. Cross cultural business expansion’s difficulty is exponentially greater if your local marketing and brand managers are not, at the very least, familiar with local customs, traditions, etc. I’d challenge Kraft to put their money where their mouth is (no pun intended) and actually hire Chinese for management positions, more than just bike-riders and brand-ambassadors.
SAO,
You’ve made an excellent point. Without the initial, gutsy strategic move to decentralize brand decision making the new Oreo would likely have never come to fruition.
However, Kraft could not have succeeded in this endeavour without the experience of Chinese brand managers, like Alan Yuan. I think his example illustrates that Kraft understands it needs bright Chinese managers who are in tune with the local market in order to compete successfully.
Thank you SAO. Your insights are always appreciated.