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Kellogg's_Group 2

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  • 1. Evaluation of Strategy Kellogg’s Presented By: Group 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. Vision & MissionVision: To enrich and delight through foods and brands that matterMission: Nourishing families so they can flourish and thrive
  • 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. 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. 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. Business Level Strategy Product Existing New Market Existing Product Market Penetration Development Segment Market Product New Development Proliferation
  • 8. Corporate Level StrategyRelated Diversification Horizontal IntegrationCereal Fruit Beverages Waffles, Flavored Pancakes & Bars Snacks Crackers Toaster Syrups Pastries
  • 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. Corporate Level StrategyBCG Matrix Invest in new product development Invest in promotions
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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