Kellogg's Case Study
-
Upload
florind-metalla -
Category
Business
-
view
18.209 -
download
13
description
Transcript of Kellogg's Case Study
Kellogg’s Cornflake Company
CASE STUDY ANALYSISBY: FLORIND METALLA
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.
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
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”
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
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
Corporate Strategy• Grow Cereal• Expand Snacks• Sustainable Growth• Manage for Cash• Realistic Targets
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
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
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