Essay about Cpw Cereal Case Study

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 market is a booming industry. It has been around for over one hundred years and continues to attract millions of customers’ everyday. The market structure of the cereal industry is an Oligopoly. This is because there are four large firms, Kellogg, General Mills, Post, and Quaker Oats, which dominate the industry.

The threat of customers finding substitute products from other manufacturers in the food industry is high. In the ready-to-eat breakfast cereals segment, General Mills’ primary business focus, there are a variety of similar products being

Fast food popularity has grown tremendously over the years. People spend more time trying to save time in today’s world and in

General Mills (NYSE:GIS), our company, is a global consumer foods company. We develop distinctive value-added food products and market with our unique brand names. We work continuously to improve our established products and to create new products that meet our customers’ potential needs and preferences. Our company has $14.88 billion in sales last year. Our sales has grown substantially throughout the years due in large part to our popular brand names, this however is only part of the reason that we has been so successful. We markets global brands such as Green Giant, Old El Paso, Häagen-Dazs, Yoplait, Cheerios, Betty

| Social: * Because of women are busy with their career now, we need to produce new type of cereal for those have no time to eat breakfast at table but they can eat in the car. The new product will have milk package on the top and cereal on the bottom cup, they need to use straw to push down so the milk will fill in the bottom cereal, then people can enjoy their breakfast in the car. * Meanwhile, we will put promotion in the cereal package for teenage to purchase. For instant, if you buy a box cereal, you will find one pin, this pin allow you download songs, and Hockey ticket coupon for the upcoming events, also scratch to win an Ipad or IPhone when you buy any Kellogg’s cereal.

General Mills competes in a dynamic environment. Some of their competitors are Kellogg’s in the cereal segment. Cereal was a product that used to be the number one election for breakfast in American. As time and new knowledge evolved, consciousness about products with less sugar or gluten free arose making the cereal industry tumble. Products like protein bars, Greek yogurts, and even fast food are the new options to start the date, gaining market share over the cereal industry.

Competitive advantage is the point of power for any organization as it is the point from which an organization can maximize it's profits if it's been planned for it well .

Sales of private label cereal grew 50% from 1991-1994 in the Ready-to-Eat breakfast cereal industry. Some of the factors that contributed to the entry of private label cereal manufacturers and their subsequent growth include - lower costs related to manufacturing, packaging, marketing, R&D compared to the Big 3 cereal companies, product quality approaching that of branded products, higher margins for grocers, lower priced products. Some observers blamed higher prices and elaborate expenditure on coupon printing, distribution, redemption and reimbursement of grocer's handling fee for market share gains made by private label cereal products. The policy of "price up and spend back" seemed to hurt the Big 3 firms.

United Cereal is a diversified company established in 1910 by Jed Thomas. The company produces snack foods, dairy products, beverages, frozen foods, baked goods, and cereals. The cereal industry generates one third of United Cereals revenue. United Cereal focuses on “commitment, diligence, and loyalty” which attracted many people to work for the company. Jed expected his Managers to adhere to a strong set of values and wanted committed Managers that would uphold his philosophy of the “The UC Way” to its customers. In addition, the company focused on listening to its customers and spotting current trends to make the market part of their core value. United Cereal was well known as an

The authors of the book 'Blue Ocean Strategy' are two friends who dedicated the book to their friendship, loyalty and belief in one another. They are: W. Chan Kim and Renée Mauborgne. They met twenty years before publishing the book, in a classroom – one as a professor, the other as a student. And since that time they have been working together seeing themselves like two wet rats in a drain.

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

This strategy seem challenging since this strategy focus on capture new market and new demand, which it’s required extra efforts in term of innovation of products and promotion in order to make customers realize about their product. Even there are some discussions about the blue ocean strategies; however, based on my review on customers comment said that the practical guidance on how to create them is limited. Therefore, without usual analytic framework which can be used as guidelines to create blue oceans as well as effective principles to manage risk, creating blue oceans viewed as too risky for managers to pursue as strategy for their company.

General Mills, as one of the Big Three companies that focused on diversification of consumer goods on cereal division, restaurant chains and packaged consumer foods. In 1994, the cereal industry was profitable and had been one of the most concentrated industries overall historically, and the big Three company had a dominant position in this industry. However, the problem was although the high profitability attracted fewer entry company due to the high entry barrier restrained by joint monopoly of the Big Three, they were facing the threat of private label companies which grew fast in market share by sales and volume. Therefore, what is General Mills strategy to increase revenue while dealing with the threat of private labels. This is a critical issue because General Mills need measure the trade-offs among strategies, and this determines whether General Mills would still be one of the top players in terms of market shares in the industry.

There are some tool produce to help implement blue ocean strategy. The Eliminate-Reduce-Raise-Create (ERRC) Grid is the matrix that help execute blue ocean strategy with the four action framework: eliminating, reducing, aising and creating. ERRC Grid help company to remain on their competitive factors. Eliminating and reduce the factor that the transitional industry take it for granted can help the new strategy to remain unique from the transitional market. Nevertheless, raising and creating some unique competitive factor the transitional market never or seldom offered that is above the industry standard. With all these “Four Actions Framework” the company can escape the transitional red ocean market by activate a new blue ocean market and create a new value curve. (Kim & Mauborgne, 2005)