Kelloggs

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 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

Special K is a successful brand, with a good level of innovation and communication. It has reached many consumers; especially women aged 20 to 40 yearsold, focusing on key elements such as beauty, shape, and weight loss. People are ready to pay more for Special K cereals, positioned as high quality products, with higher prices as competitors’. As the

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).

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 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.

Brand building, consumer health and wellness, and advertising and promotions were all critical to success in the industry. Kraft’s ability to compete with lower priced snacks showed its ability to differentiate itself from other lower priced competitors.

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

The Krispy Kreme Doughnuts case study solution solves the case on financial statement analysis.  The structure of the solution is outlined below and answers the questions included in the outline

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.

They can implement the aggressive pricing strategy to strike the new entrants at anytime as they’ve got the large share of the market. Therefore, the threat of new entrants is low. For Threat of Substitutes, Kellogg is the largest cereal producer in this market and it has the long history and strong brand in the market. So they’ve had a large base of loyal customers who are hardly shift to other substitutes. But on the other hands, Kellogg’s cereal product is mainly to serve for breakfast. So, anything that is popular at breakfast time such as fruits, sandwiches, congee, or other healthy foods may be the potential threat of Kellogg. Therefore, the Treat of substitutes is Medium. For Suppliers power, the raw materials of Kellogg products include sugar, flour, food grain, which the market has many suppliers for providing it. Kellogg can switch to other suppliers easily and Kellogg has better control on the cost and has more bargaining power to deal with the supplier as Kellogg has a large market share of the market. Therefore, the bargaining power of supplier is low. For Buyers Power, Kellogg has done a series of marketing activities to educate the consumers and create product awareness in order to capture customers. Due to the consumer awareness, Kellogg can provide pressure to their