BY JACOB BUNGE, PAUL ZIOBRO AND KRISTIN JONES

NEW YORK—Kraft Foods Inc. announced plans to switch its stock-market listing to Nasdaq OMX Group Inc. from the New York Stock Exchange, lured by the prospect of cost savings and the marketing visibility afforded by Nasdaq’s landmark advertising billboard in New York’s Times Square.

The move by the world’s second-largest food group by revenue marks a huge coup for Nasdaq as it battles to contain the reputational fallout from its botched handling …