Business Analysis : Kellogg Company

The ready-to-eat (RTE) sector has increased sales and therefore have given the Breakfast cereals market an advantage to have a higher market share of 4.2% in 2013. The emphasis is more to the value and the convenience of cereals rather than the quality. However people are starting to be more heath conscious and are going to the higher nutritional brands which tend to be the well-known ones such as Kellogg 's, Weetabix and Nestle.

External Environmental Analysis We chose Kellogg’s cereal category because Kellogg’s has over 100 years history and we have14 kinds of breakfast cereal products. Our products sell to 180 countries across the world. Our mission is still to provide you and your family with better breakfasts that lead to better days, and now you eat flake corn is the same way W.K. did back in 1898. It just tastes better that way. Kellogg’s cereal provides a variety of nutrition’s cereals that deliver the benefits of grains, and provide important nutrients like iron, B vitamins, zinc and fibre.

The cereal industry is very adamant on using a differentiation strategy to make one’s brand stand out in the minds of certain people. The companies break down the public into different target markets; and then make products that will be attractive to their target markets. Companies make different brands for young kids, teenagers, adults, and people who are health conscience. Currently, there are 387 different brands of cereal sold in the United States and each family is estimated to purchase 17 different brands per year. (O’Connor, Amy) Companies continue to brainstorm for new product ideas to attract the various market segmentations.

The overconsumption of inappropriate foods containing trans-fats and large serving portions has caused many to become obese hence developing heart disease, and diabetes among other preventable disease. Currently over 500 million of the world population is obese and one and half billion people in the world are overweigh”. Every year about 2.5 million deaths are related to obesity (WHO) and children seem to be the most affected. Furthermore, obesity has continued to increase and currently there are more obese people in the world than underweight. Amazingly, the United States a country with ample resources has the higher rate of obese

68.8 percent of people in the United States and 30 percent of the entire global population are obese. “Obesity today is officially an epidemic; it is arguably the most pressing public health problem we face, costing the healthcare system an estimated $90 billion a year.” said Michael Pollan in “The Omnivore’s Dilemma: A Natural History of Four Meals.”

The Kellogg is continuing to innovate a century later, offering cereals that are affordable, convenient to prepare and eat, and tasty. It will also reduce ingredients such as sugar that consumers want less of while increasing fiber, whole grains, vitamins and other nutrients(Kelloggcompany, 2011).

Calories, obesity, epidemic―these words flash through daily conversion like wildfire. The American public today is severely concerned with the nation’s growing health problem, as they should be. Recently, the nation’s school lunches have had major renovations due to the alarming increase in childhood obesity. The National School Lunch Program (NSLP) has set out to fix the problems concerning nutrition in school lunches. Because the National School Lunch Program is required to follow the most current version of the Dietary Guidelines for Americans (DGA), school lunches are undergoing massive reform at the cost of students.

Weakness- A major foreseeable weakness OMG Active Cereal may encounter is that the cereal could be perceived by the public as just another “nutritious cereal”. There are many kinds of nutritious conscious cereals in today’s market produced by several different companies. Each year, a few more of these cereals are created and placed on each and every grocer’s shelves. A weakness for our newly released cereal could be that breakfast-eating consumers will group OMG Active Cereal along with the average nourishing cereals before eating or becoming cognizant of our cereal’s fantastic features other than especially served for the teenagers.

Kellogg’s is highly a profile company which is hugely known not only in the UK but in the world at large. It is one of the largest breakfast companies in the word, not only that but it is also financially it is a stably and well organised company. Kellogg’s profits have been stable if not increasing for the better from what it was 5 years ago.

Kellogg’s cereal provides a variety of nutrition’s cereals that deliver the benefits of grains, and provide important nutrients like iron, B vitamins, zinc and fibre.

Beginning in 1923, Kellogg’s, a cereal company, located in Battle Creek, Michigan, created PEP, a whole wheat cereal. Significantly, Pep cereal became the first cereal to be fortified with vitamins B and D, in the 1930s. As a result, it began the cereal industry’s food fortification or adding of minerals and vitamins to enhance the nutritional value. Numerous advertising-supported brands and helped to increase the popularity of the product to the public. The company focused extensively on advertising and sponsoring in order to continue to sell their unique product until it was discontinued in the late 1970s.

Kellogg’s is a company that produces and sells cereals, fruit flavored snacks, breakfast biscuits, beverage, crackers, toasters pastries,

Special K enabled Kellogg’s to be alert to current consumer trends such as social trends and changes in technology. The research enabled Kellogg’s to identify consumer perceptions of the brand and what developments consumers would favour. Armed with this consumer and market focused knowledge, Kellogg’s was best placed to inject growth into the product life cycle.

Answer: Based on the case study, Kellogg’s main competitors in the ready-to-eat cereals market are General Mills and Kraft Foods and PepsiCo. In the convenience foods market, the main competitors are Frito-Lay unit of PepsiCo which is the largest maker of salty snacks while the Nabisco unit of Kraft Foods which is the largest maker of cookies and crackers. Except from these competitors, Kellogg also has been facing competition with the new entrants or the improved store brand products which intent to get some shares of these two markets. Also, Kellogg’s brand

Obesity is probably the most significant issue facing the McDonald’s Company today. The corporation has been severally blamed for the menace due to its wide range of junk foods. As the world’s largest fast food company, it has become a target of most health related films such as Super Size Me. This is because the public blames the company for failing to give nutritional information concerning the items on its menu (Baron, 2010).