Kellogg's was established in 1906 and produces cereal and convenience foods that are sold in over 180 countries worldwide. It uses all aspects of the marketing mix, including product, price, place, and promotion strategies. Kellogg's segments its markets into categories like "Tasty Start" cereals, "Simply Wholesome" healthier options, and brands for children or weight management. Porter's Five Forces analysis shows that while rivalry with General Mills is strong and buyer power resides with retailers, barriers to entry remain moderate and substitutes exist. The company failed previously in India due to overconfidence, ignoring cultural differences, and misunderstanding local consumer behavior and pricing expectations.

1. SUBMITTED BY-Zoya
Maqsood
MBA CORE-B
Roll No.-013046

2. FACTS OF COMPANY
 ESTABLISHED IN 1906 & FOUNDED BY “WILL
KEITH KELLOGG”
 PRODUCT IS MANUFACTURED IN 18 COUNTRIES &
MARKETED IN MORE THAN 180 COUNTRIES
AROUND THE WORLD.
 IT IS THE WORLD’S LEADING PRODUCER OF
CEREAL & LEADING PRODUCER OF CONVENIENCE
FOODS IN WHICH INCLUDES COOKIES, CRACKERS,
TOSTER, PASTRIES, CEREAL BARS, FRUIT
FLOVOUR, SNACKS, FROZEN WAFFLES &
VEGETARIAN FOODS.

3. MARKETING MIX
 Product: This element relates to how the company
offers meets the changing needs and wants of
customers. The growth in healthier lifestyles creates
opportunities for Kellogg's to increase the number of
products for this segment.
 Price: The amount a company charges for its product is
important in determining sales. Super brands like
Kellogg's can charge a premium because of the strength
of the brand and product quality.
 Place: Where customers can purchase the product is
also an important factor in determining sales. If a brand
like Special K is not stocked in supermarkets where
most purchases are made, sales will be lost.
 Promotion: Communicating the availability of a product
is essential. Kellogg's uses promotional media like TV
advertising & promotion like sampling.

4. ANSOFF’S MODEL

5. MARKETING
SEMENTATION
Markets are divided into market segments and there are six
key segments to the Kellogg market, as shown: -
 Tasty Start - the cereals that most people will eat to begin their
day. Kellogg's brands include Kellogg's Corn Flakes and
variations, such as Kellogg's Crunchy Nut.
 Simply Wholesome . These are 'good for you' brands, such as
Kellogg's Fruit 'n' Fiber
 Shape Management . Brands that can enable customers to
manage their weight or shape, such as Kellogg's Special K.
 Mum Approved . Those that mothers see as being good for
their children, such as Kellogg's wheat flaks.
 Kid Preferred . The brands that children themselves prefer,
such as Kellogg's Frosties, Kellogg's Chocó's and Honey
Loops.
 Inner Health . These are the brands that help people with
digestion, such as Kellogg's All-Bran and Kellogg's Heart to
Heart Oats.

6. PORTER’S 5 FORCES
 Applied to Kellogg’s Michael Porter’s theory of an industry
being influenced by 5 forces, which include Supplier Power,
Barriers to Entry, Buyer Power, Threat of Substitutes, and
Degree of Rivalry.
 Kellogg’s and Supplier Power- Kellogg’s posesses only
medium power when buying from suppliers. Wheat for example
will vary in price because of extensive forces and that cost will
be passed onto customers of Kellogg’s.
 Buyer Power and Kellogg’s -Buyer’s of Kellogg’s are mostly
grocery stores and supermarkets. They hold the power because
they set the price. They ultimately hold the power of the industry
in its hands.
 Substitutes and Kellogg’s -Kellogg’s is basically a breakfast
company therefore anything that is popular to consume at
breakfast time is a substitute to Kellogg’s. This includes fruit,
bars, doughnuts, toast, etc. Private labelling brands pose a
threat as well.

7. PORTER’S 5 FORCES
 Barriers to Entry and Kellogg’s -The Barriers to Enter into
the Breakfast Cereal is medium at the moment. While a
startup company would find trouble getting in, there are two
companies that at anytime could strike and take away a large
amount of market share from both Kellogg’s and General
Mills. PepsiCo and Kraft are also in the Cereal business and
have the money to aggressively strike at anytime to wreck
havoc on the breakfast cereal industry.
 Degree of Rivalry and Kellogg’s -At the moment Kellogg’s
is at a dead heat with rival General Mills. The companies are
both in the mature stage as is most their product.

8. REASONS OF FAILURE’S
 OVER CONFIDENCE & IGNORANCE OF
CULTURAL ASPECTS.
 LACK OF UNDERSTANDING OF INDIAN
CONSUMER BEHAVIOUR & HABITS.
 PREMIUM PRICING POLICY.