Kellogg's Essay

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 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).

In the RTE cereal industry, there were three large manufacturers, General Mills, Kellogg and Philip Morris that had a strong presence in the market. They were extremely profitable with pricing power and dominated the whole market with great market share; all this made it unattractive

OMG Active Cereal has two major competitors- Uncle Tobys and Kellogg’s. Accounting to an online research

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.

My short-term (within 5 years) goal is to become Country-Head / CEO of Morningstar’s international business unit in Asia or Latin America, and build it into a profitable and sustainable organization. My long-term (within 10 years) goal is to become a CEO of Morningstar’s international business globally. Personally, I am passionate about teaching, acting, adventure sports and fitness. My personal goals are to run a marathon and to set-up a nonprofit organization in the field of education.

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.

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.

The case focuses on Kellogg’s Special K brand and considers how the marketing of this has changed over time. Marketing is not static – it must be developed as market conditions and customer expectations change.

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.

Kellogg’s Special K with strawberries is the only competitor in the market currently offering healthy cereal to the consumers.

Variants in the traditional chocolate bar first appeared in 1996 when "Kit Kat Orange", the first flavour variant, was introduced in the United Kingdom. Its success was followed by several varieties including mint and caramel, and in 1999 "Kit Kat Chunky" was launched and received favourably by international consumers. Variations on the traditional "Kit Kat" have continued to develop throughout the 2000s. In 2000 Nestlé acquired Fujiya’s share of the brand in Japan, and also expanded its marketplace in Japan, Russia, Turkey and Venezuela, in addition to markets in Eastern and Central Europe.[2] Throughout the decade 'Kit Kat' has introduced dozens of flavours and line extensions within specific consumer markets, and celebrated its 75th anniversary on 10th October 2009.

This is because biscuit comes under FMCG products, which makes it a low involvement product. Thus, the customers preferences changes within a short span of time and even the buying behaviour is effected.. If the customer preference biscuit is not available then the customer can immediately think of other product or brand as there is no brand loyalty or fixed taste in case of FMCG products. Thus, a firm needs to have strong distribution channel so that the product is readily available for the customer and finds place in the shelf of the retailers so that it is visible to the customers and they have their preference of the firm over its