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International marketing kellogs case


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International marketing kellogs case

  1. 1. International Strategy of Kellogg’s Comparison Between UK and Taiwan
  2. 2. Kellogg’s Profile Founded in 1906 in US An American multinational producer of breakfast foods Marketed in 180 countries around the world ‘Ready to eat’ cereal dominates the market In 2006, sales revenue reached 10.6 billion dollars In 2007, they extend business to East Asia Investing heavily in its advertising
  3. 3. Countries Profile UK Taiwan 60,943,912 22,920,946 Population (July 2008 est.) (July 2008 est.) white 92.1%, black Taiwanese (including 2%, Ethnic Hakka) 84%, mainland other 5.6% (2001 group Chinese 14%, census) indigenous 2% Christian 71.6%, mixture of Buddhist and Muslim 2.7%, Hindu Taoist 93%, Christian 1%, other 1.6%, 4.5%, other 2.5% unspecified or none Religions 23.1% (2001 census)rces: CIA Worldfact
  4. 4. Countries Profile UK Taiwan constitutional Government multiparty democracy monarchy Developed, service Developed, import & industry plays Economy export is important important role GDP $35,300 (2007 est.) $29,800 (2007 est.) -per capita cereals, oilseed, rice, corn, vegetables, potatoes, Agriculture fruit, tea; pigs, poultry, vegetables; cattle, beef, milk; fish sheep, poultry; fishSources: CIA Worldfact
  5. 5. Situation Analysis – InternalFirm’s Competencies (Kellogg’s as a whole)Corporate Level: Senior management vision is to be the market leader Strategic: to serve the need of the consumers and customers through the power of their employees and brands Long experience in global coordination and supply chain management Skilled staff, lots of training and promotional opportunities
  6. 6. Situation Analysis – External PEST Analysis UK Taiwan Political/Legal Stable Political Environment with Strict Law Stable Political Environment with Less Strict Law Private enterprise Foreign investment is encouraged welcomed Western Life-style Eastern Life-style Socio-Cultural Have a tradition of eating No such tradition, thus need Environment cereals as breakfast to be persuaded by mass marketing campaign Economy is growing, but Economy is growing, with a Economic facing a downturn good future outlook Good infrastructure and well Good infrastructure and well Technological established channels of established channels of distributions distributionsSources: CIA Worldfact
  7. 7. Situation Analysis – External Industrial Analysis- Porter’s Five Forces Analysis UK Taiwan Power of Buyers High Medium Power of Suppliers Low Low Low Threat of New High Market is already very Entrants competitive New marketThreat of Substitute Relatively low Relatively high Products Intensity of Rivalry High MediumSources: CIA Worldfact
  8. 8. SEGMENTATION and TARGETING (UK) (Taiwan) Ready to eat Product Ready to eat Cereals Cereals Demographic Adults, Children, Pre-school Children, (Age, sex, income Elderly, Men, Women Teenagers, group) Middle-High income Middle-high income Convenient, healthy Nutritional, healthy, Behavioral breakfast Light snack
  9. 9. POSITIONING UK Taiwan Healthy, convenient  Healthy and nutritional breakfast food for the whole family western style breakfast for adults Low calorie breakfast food or snack food  Healthy and nutritious breakfast food for children
  10. 10. POSITIONING (Taiwan) High Price Q K G C Low Quality V High Quality G - General Mills K - Kelloggs C - Cereal V - Vita Low Price Q - QuakerSource from:
  11. 11. POSITIONING (UK) High Price K N A Low Quality High Quality DC w K - Kellogg’s N – Nestle A – Alpen DC – Dorset cereals W – Weetabix Low PriceSource from:
  12. 12. Branding Strategies UK Taiwan Branding Corporate Branding Corporate Branding strategySource: Kelloggs UK Kelloggs Taiwan
  13. 13. Price StrategyTaiwan UK Price reflects quality  Price reflects different Payment: cash value  Payment: credit cards
  14. 14. Product Strategies Product development • Introduction of new product through innovation. Market development • Maintain global position Diversification • Introduction of new products to fit new customers needs • Discretionary modificationSources: Kellogg Annual Report 2007
  15. 15. UK  Over 40 different types  Covers most types of consumers  Large packaging  More focus on healthy diet in recent yearsSource: Kelloggs UK
  16. 16. Taiwan A new market for the company Only 5 types of product currently More focus on children and office workers  Source: Kelloggs Taiwan
  17. 17. Products Differences between UK & Taiwan UK Taiwanlong Enter time shortOver 40 Types of Only 5 productAll ages, but more Target Children and officeon healthy care customers peopleSpecial K Special Black-Sesame product
  18. 18. According to Hofstede, UK and TW are culturally DiametricPDI Power Distance IndexIDV IndividualismMAS MasculinityUAI Uncertainty Avoidance IndexLTO Long-Term OrientationKelloggs has adopted different approaches to market its products Differences: Marketing Strategies and Marketing Mix Similarities: Channel of Distribution Recommendation: Marketing Strategies are successful but need further improvement
  19. 19. Marketing Communication UK Kellogg’s TAIWAN Kellogg’sPromoting Campaigns Promotion Campaigns•Dropa dress size promotion •Sponsor baseball association•Swimming coupons for children •Cartoon character ‘Donny’ •Free spa products with bulkTV Advertising order•Focus on the health benefits ofcereals for breakfast TV Advertising •Colourful, fun and memorable toOnline Special Offer children•Free baseball cap Online Game •Obtain free cerealSource: Kelloggs UK Kelloggs Taiwan
  20. 20. Marketing Communication UK Kellogg’s TAIWAN Kellogg’sSponsorship Package•Kelloggs sponsors the •Carton characterAmateur Swimming Association Product FlavourProduct Diversification •Grain-black sesame•Dried fruit bagsSource: Kelloggs UK Kelloggs Taiwan
  21. 21. UK and Taiwan Promotion Campaign: Weight LossPlease watch the following TV commercialUK:
  22. 22. UK Promotion Campaign: Swimmingcoupons for childrenSources: Kellogg’s UK
  23. 23. UK Online Promotion • Collect 5 Coupons to receive free Baseball Cap Taiwan Online Game • Obtain free cerealSource: Kelloggs UK Kelloggs Taiwan