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Kellogg's Case Study


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A case study on Kellogg's

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Kellogg's Case Study

  1. 1. Kellogg’s Cornflake Company CASE STUDY ANALYSIS BY: FLORIND METALLA
  2. 2. Who and What is Kellogg's? • Began by the Kellogg brothers in 1906 – who originally ran a sanatorium in Michigan, USA – experimented with different ways to cook cereals without losing the goodness • World’s leading breakfast cereal manufacturer – Since 1938 it has opened manufacturing plants in: • UK, Canada, Australia, Latin America and Asia • manufactures in 19 countries and sells in more than 160 countries • Wide range of cereal products: – Kellogg’s Corn Flakes, Rice Krispies, Special K, Fruit n’ Fibre, as well as the Nutri-Grain cereal bars.
  3. 3. SWOT Analysis • Strengths – Corporate Social Responsibility – Environmentally aware – Computerised warehousing – The general public remains highly aware of All- Brand – The only large very high fibre brand in the marketplace
  4. 4. SWOT Analysis • Weaknesses – Awareness of the brand is declining – The fibre products have limited scale, making it hard to make advertising investment economic – The position that a fibre cereal keeps you regular is less motivating to consumers than in the past. Consumers now more interested in products that promote “inner health”
  5. 5. SWOT Analysis • Opportunities – People are looking to eat more healthy – The rapid growth of non-cereal products that meet inner health needs – In the UK, the number of people over the age of 55 continues to increase – Baby-boomer market – Internet Advertizing
  6. 6. SWOT Analysis • Threats – The sales of private labels fibre cereals are growing – There is a consumer trend towards tastier cereal – General Mills – Kraft • Generates triple the revenues that General Mills and Kellogg produce • Leading segment is snacks which accounts for about $10 billion in revenue
  7. 7. Corporate Strategy • Grow Cereal • Expand Snacks • Sustainable Growth • Manage for Cash • Realistic Targets
  8. 8. Business Strategy • to grow the cereal business – there are now 40 different cereals • to expand the snack business – by diversifying into convenience foods • to engage in specific growth opportunities
  9. 9. Marketing Mix • Product: they manufactures the right products based on research into consumer needs • Price: their focus on cost effective systems ensures its prices are competitive • Place: they manage the distribution channels to place its products in stores • Promotion: they work with retailers to improve promotion of its products
  10. 10. Recommendations • Recruit more Baby-Boomers because their market is growing and they are the most health conscious and wealthiest generation • Increase their advertising towards Generation Z to establish customer loyalty • Expand their snack catalogue so it is marketable to all age groups with all kinds of concerns and preferences