In this article:
- Kraft Heinz will work with Google to create its own data platform, the Kraft-O-Matic.
- The company hopes the Kraft-O-Matic’s data will help them create new products and flavors.
- The partnership is part of Kraft Heinz’s larger strategic plan to shed costs.
Kraft Heinz taking a bite out of the consumer data trend.
The maker of consumer products such as Kraft Macaroni-n-Cheese, Velveeta, Jell-O, and more, announced that it’s partnering with Google over the course of several years to create a customer data platform. The platform, which will be called the Kraft-O-Matic, will rely on Google’s artificial intelligence (AI) and machine learning (ML). The objective of the platform is to give Kraft Heinz more consumer data and help them improve the ads they launch via Google Ads.
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As part of the partnership, Kraft Heinz intends to use Google’s AI and ML to get greater insight into what their customers love and what they want to see more of in the company’s products. Kraft Heinz also hopes to use the technology to create new flavors, formulations, and products. Kraft-O-Matic will also use the Google Cloud to harvest first-party data from call centers and stores, while still protecting customer privacy.
This partnership is also an attempt by Kraft Heinz to improve its advertising and content creation. In 2021, Kraft Heinz built a digital platform called What’s Cooking?, where content creators who work with food can create, collaborate, and more.
Collaborating with Google for Kraft-O-Matic is part of Kraft Heinz’s larger Strategic Outlook Plan, which the company announced in September 2020. At the time, Kraft Heinz promised that it would reduce its costs by $2 billion by 2024, and invest some of those savings in its marketing. The consumer goods maker also said it planned to increase long-term sales by 1% to 2%, and earnings per share by 4% to 6%.
Before the pandemic, the company’s sales fell as shoppers turned to fresh products. But throughout the pandemic, shoppers flocked to Kraft Heinz’s shelf-stable foods. Kraft Heinz’s household penetration rose 70% between March and September 2020.
The Kraft-O-Matic is just one tool that Kraft Heinz is using to improve its marketing, and combat the supply chain issues and inflation that could hurt its sales. By knowing their customers and finding out what their customers want to see on shelves, Kraft Heinz hopes to increase the growth it’s seen since the start of the pandemic.