Kellogg's_Group 2


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Kellogg's_Group 2

  1. 1. Evaluation of Strategy Kellogg’s Presented By: Group 2
  2. 2. About Kellogg’s Established in 1906 W.K. Kellogg Creator of the first-ever breakfast cereal Multinational food manufacturing company headquartered in Battle Creek, Michigan, United States Manufactured in 18 countries and marketed in more than 180 countries 42% market share
  3. 3. Vision & MissionVision: To enrich and delight through foods and brands that matterMission: Nourishing families so they can flourish and thrive
  4. 4. Vision & Mission  Goals  To reinforce the importance of a balanced lifestyle so its consumers understand how a balanced diet and exercise can improve their lives.  To demonstrate Corporate Responsibility & develop the business responsibly and in a way that was sensitive to all of Kelloggs consumers needs
  5. 5. Business Level Strategy High Focused Differentiation Differentiation Differentiation Increased Utility or Value Hybrid Price/ Standard Bowman’s Product Strategy Increased Low Price Clock Price/ Low Value Low Value/ Low Price / Standard Low Value Price Low Low Price High
  6. 6. Business Level Strategy Blue Ocean Strategy Create and capture new demand through product innovations Distinct market space: health conscious consumers Constantly increasing market share
  7. 7. Business Level Strategy Product Existing New Market Existing Product Market Penetration Development Segment Market Product New Development Proliferation
  8. 8. Corporate Level StrategyRelated Diversification Horizontal IntegrationCereal Fruit Beverages Waffles, Flavored Pancakes & Bars Snacks Crackers Toaster Syrups Pastries
  9. 9. Corporate Level Strategy Global Strategy Pressure for local Responsiveness Low High International Localization LowPressure for cost Strategy Strategy reduction Global Transnational High Standardization Strategy
  10. 10. Corporate Level StrategyBCG Matrix Invest in new product development Invest in promotions
  11. 11. Strategy Execution  Strategy To widen the consumer base by encouraging consumers to adopt a healthy lifestyle by creating a balance between nutritious food and physical activity thus, capturing a greater market share 3 Years
  12. 12. Strategy Execution • To encourage and support physical activity among allTactic I sectors of the population • Kellogg has supplied a free pedometer through an offer on All-Bran so that individuals can measure their dailyAction 1 steps • Promotion for a free cyclometerAction 2 During 2006 more than 675,000 pedometers were claimed by consumers
  13. 13. Strategy Execution • To use resources to sponsor activities and run physical activity focused community programmes for itsTactic II consumers and the public in general • Became the main sponsor of swimming in BritainAction 1 • Sponsors the ASA Awards Scheme with more than 1.8Action 2 million awards presented to swimmers each year
  14. 14. Strategy Execution • To increase the association between Kellogg andTactic III physical activity • Kelloggs Corn Flakes Great Walk raised more thanAction 1 £1 million pounds for charity • In 2004, 630,000 people took part in the Special KAction 2 10,000 Step Challenge
  15. 15. Strategy Execution • To use the cereal packs to communicate theTactic IV balance message to consumers • Uses cartoon characters of Jack & Aimee toAction 1 emphasise the need to Get the Balance Right‘ • Characters used on the back of cereal packsAction 2
  16. 16. Strategy Execution • To introduce food labelling that would enable consumers to make decisions about the rightTactic V balance of food • Introduced the Kelloggs GDAs to its packaging, showing the recommended Guideline DailyAction 1 Amounts
  17. 17. Strategy Execution • To run community programsTactic VI • Kelloggs Active Living Fund encourages voluntary groups to run physical activity projects for theirAction 1 members • Invested more than £500,000 to help national learning charity ContinYou to develop nationwideAction 2 breakfast clubs • Breakfast Club Plus website, the Kelloggs National BreakfastAction 3 Club Awards and the Breakfast Movers essential guide
  18. 18. Extending Product Life Cycle Nutri Grain•Launched Enjoyedin 1997 Competitors steady Sales were•Gained launched growth till Mid 2004, falling, the50% of similar 2002 – from sales product wascereal bar product – ‘breakfast declined by in declinemarket slowed cereal’ to 15% and losingshare in 2 sales (2003 ‘all day its position.years – 04) snack
  19. 19. The Verdict  Increased awareness amongst consumers  Consumers switched from other breakfast options to cereals  Consumers switched brands to Kellogg’s  Kellogg’s perceived as a healthy and balanced food product  Brand image building: Associated with a balanced lifestyle choice
  20. 20. RecommendationsModify strategy to suit local consumers UK: Cereal consuming population Promote Kellogg’s Emphasize USA: Prefer food on the go or skip importance of meals breakfast Promote India: Other breakfast substitutes consumption of cereal as breakfast
  21. 21. Recommendations  Invest more in suppliers and its employees to support and promote international expansion  Employ better internal communication mechanism to enhance strategy execution  Involve employees in strategic decision making