kellogg's case study
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A case study on Kellogg'sTRANSCRIPT
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Kellogg’s Cornflake Company
CASE STUDY ANALYSISBY: FLORIND METALLA
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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.
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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
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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”
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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
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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
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Corporate Strategy• Grow Cereal• Expand Snacks• Sustainable Growth• Manage for Cash• Realistic Targets
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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
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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
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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