Kellogg's is the world's leading breakfast cereal manufacturer, founded in 1906 by the Kellogg brothers. It manufactures cereals like Corn Flakes and Rice Krispies in 19 countries and sells products in over 160 countries. A SWOT analysis identified strengths in corporate social responsibility but also weaknesses like declining brand awareness and limited scale in fiber products. Opportunities exist in healthy eating trends and expanding into snacks. Threats include growing private label sales and changing consumer tastes. Kellogg's corporate strategy focuses on growing cereal and snacks through sustainable growth and managing for cash.

1. Kellogg’s Cornflake
Company
CASE STUDY ANALYSIS
BY: FLORIND METALLA

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. 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. 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. 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. 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. Corporate Strategy
• Grow Cereal
• Expand Snacks
• Sustainable Growth
• Manage for Cash
• Realistic Targets

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. 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. 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