Business Report of Kellogg's

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.

In 2006, Kellogg’s launches Special K forest berries and Special K honey almond. A year later, Special K Advantage (fibre) appears in Australia. The last flavor is Special K chocolatey flakes, launched in 2009. The packaging has barely changed since its creation: white background, to represent the purity of the product, and the milk, the big symbol in the middle for the product identity, and some flakes on the right side, for the product representation. There has been an evolution of the nutritional information: now the main compositions are on the front side of the package (sugar, fat, calories). It is part of the strategy to position the product as a partner in weight loss. Te product is considered as a good quality, thanks to its characteristics (benefits for the consumer), and the “Our guarantee to you”, a little section on the left side of the box, explaining that Kellogg has a quality system that assures the highest quality standards to deliver the best product to the consumer. The target of Special K is women, from 20 to 40 years old. Women who try to look and feel good, who are working or raising their children, who want to conciliate their activities with their femininity. Women are represented next to the mention “99% fat free”, and on the back side of the box. Usually they are slim, active and happy. The strategy of Special K is to accompany women all day long, with different products, and to propose them to eat cereals not only for

Sociocultural factors influence and restrict consumption ideas, needs, desires and purchase behavior. People from different countries and different regions have different life patterns and different sociocultures. These differences directly influence the products that industries want to produce because people may even have different attitudes and value toward the same product due to different sociocultural factors. With the rapid development of modern society and the continuous improvement of living standards, the degree of attention paid to health has increased. “Franchise businesses continue to pay close attention to their customers' need for convenience, new flavors and, yes,

Snack foods manufacturers are already reacting introducing new health and diet products such as protein-based crisps, quinoa and kale based products. Keynote forecasts that Health will be a key

Kellogg’s seeks to concentrate on nutrition and physical fitness through product donation for the hungry, as well as programs that educate families about nutrition that nourishing families so they can have a healthy living’(Kelloggcompany, 2011).

Central to Lora Brill’s dilemma of whether to launch “Healthy Berry Crunch” in France is the potential gain from the first-mover advantage by launching the product now versus increased market visibility and certainly by launching the product later after proper market research. Adding to the pressure to make a quick decision is the rumor that Cereal Partners is planning to launch Berry Burst Cheerios in France, a move that could potentially threaten United Cereal’s position as the first mover in the market. In order to make an informed decision on this

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.

Mission: Kellogg is a worldwide business dedicated to construct Long-Term expansion in their bottom-line and to ornament its universal Leadership Position by supplying healthful Food Products of better-quality worth.

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.

Quaker Oats emerged from a turn of the century merger of three milling companies over 130 years ago. It grew to become one of the top companies in the world by providing reliable quality to its first customers. Quaker Oats has been able to build a reputation of offering healthy, wholesome breakfast foods by targeting female supermarket customers. Although advertising has gone from a “warm, healthy breakfast” to delivering messages about “vitamins and minerals essential to a female metabolism” (Standaert, 2003), the target market is the same. Quaker is also hoping to reach nutrition professionals and health-food retailers. According to Indra Nooyi, Chief Executive Officer of Pepsico (parent company of Quaker Oats), they “…do not market to kids under 12…” since they “…do not have a nutritious product…” they feel comfortable marketing to young kids (Farey-Jones, 2010).

In the Kellogg’s diversity and inclusion report the executive said that he give his leadership teams credit for diversity and inclusion in the company, they are the one who set the goals and places for diversity and inclusion in the company. the plans that are set by its leaders are also reviewed by its chairperson and Executive Diversity and Inclusion Council, who not only keep the react of the plans but they also focus on tracing the progress and report of their diversity and inclusion. The Kellogg’s also open the “Kapable” which work with the individuals with the disabilities, in order to help them, also help their supporter and the company also supports them. In future, The Kellogg company is planning to provide the cross Cross-Cultural

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.