Internal Audit For Cheerios

U.S. market consumed 2.82 billion pounds of cereal, grossing nearly $8 billion in sales for breakfast

This report examines the UK market for Breakfast Cereals. The market has grown substantially in the last 5 years with a high demand for quick meals in the morning due to busy lifestyles. This has had an advantage to the sales of the market.

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

Altogether, the ad’s effectiveness covers every factor of persuasion well. The enticement of the Cheerios commercial relies on factual evidence, professional reputation, and touching emotional scenes to appeal and relate to a variation of audiences. By utilizing reliable credentials and appealing to the viewers feelings and rationale, Cheerios is able to successfully persuade the audience that what they use for ingredients in their cereal is just as important as keeping you and your family

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).

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.

| 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.

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.

giant multinational breakfast foods company United Cereal, portrays the background of a launch decision for a new cereal product, the ‘Healthy Berry Crunch’.

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

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