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Kellogg's Case Study

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Company Overview

The Kellogg Company, also known as Kellogg's, is an American global food manufacturing corporation based in Battle Creek, Michigan. Kellogg's manufactures cereals and convenience foods, such as crackers and toaster pastries, and sells them under the names Corn Flakes, Frosted Flakes, Pringles, Eggo, and Cheez-It. "Nourishing families so they can develop and thrive," says Kellogg's mission statement.

Kellogg Company is the world's top cereal producer and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavoured snacks, frozen waffles, and vegetable foods, with 2010 sales of more than $12 billion. Kellogg goods are produced in 18 countries and sold in over 180 countries.

Kellogg North America and Kellogg International are the two segments that make up the Kellogg Company. In the United States and Canada, Kellogg North America includes retail cereal, retail snacks, frozen and specialty channel companies. Kellogg International operates in Europe, Latin America, Asia, and Australia (Asia Pacific).

Getting ready to make a strategic shift

All-Bran cereal from Kellogg's has a long and recognized history. However, as with many well-known items, it is necessary to re-energize its life cycle from time to time. While All-Bran is a powerful brand, Kellogg's other high-fibre brands have not received the same promotional attention or sales. By connecting these other fibre products with the Masterbrand All-Bran, Kellogg has attempted to boost them.

In order to develop a power brand structure, Kellogg has created a family of fibre-based cereal brands centred on the All-Bran banner. These bran products are currently sold as a group. Each product has gained greater strength as a result of this. The decision to construct the power brand was a high-level strategic decision. Kellogg's executives were involved in the long-term planning. It also necessitated significant financial and marketing efforts.

Kellogg needed to do research before devoting resources to developing the All-Bran family of products to determine whether a change was worthwhile and what those changes would entail.

This entailed conducting a SWOT and PESTLE analysis to determine:

SWOT ANALYSIS

 Strengths

Universal Presence

Kellogg's goods are produced in 18 countries and sold in more than 180. Kellogg's acquired the Pringles potato crisps brand from Procter & Gamble for $2.7 billion in cash in 2012, making it the world's second-largest snack food company (behind PepsiCo).

Strategic Acquisition

Kellogg's has purchased a number of enterprises throughout the years that have aided in the efficient use of its resources. In 2001, Kellogg's made its largest acquisition, the Keebler Company. It has also acquired Morningstar Farms and Kashi divisions or subsidiaries over the years.

Marketing Awareness

It has positioned itself as a brand that fights hunger, notably as an alternative to breakfast cereal, which has helped the company gain customer share of wallet.

Weaknesses

Marketing Campaigns Are Questionable

Some of Kellogg's marketing has been questioned in the news, triggered by consumer knowledge of the mismatch between marketing messages and products, resulting in unfavourable word of mouth. Due to the high sugar content and use of substances such as high-fructose corn syrup, food bloggers have questioned the marketing strategies employed by cereal manufacturers such as Kellogg's. You should check plagiarism of your case study assignment. 

Slow Innovation

Despite the fact that the cereals market is overloaded with local, national, and worldwide brands, Kellogg has been unable to grab market share in developing nations due to delayed innovation in cereal composition.

Opportunities

Market Penetration

The Company will be able to increase revenues by penetrating further into the present market and exploring other developing areas.

Changing lifestyle

As the urban population grows, so does their hectic and changing lifestyle, and as a result, people are looking for quick and easy meals to satisfy their hunger and save time, which is fuelling the cereal industry's rise.

Targeting Restaurants and Hotels

To increase their company, many FMCG and food companies are partnering with restaurant and hotel chains. Kellogg’s has a huge potential ahead of them if they can capitalise on this rapidly rising market.

Threats

Strong Competition

 One of the key variables affecting the industry as a whole is inter-industry and intra-industry rivalry. Some of the factors that limit the expansion of the cereal sector include ready-made foods, local food outlets, and restaurants in close vicinity.

Government Regulations

Government restrictions governing the contents and substances used in cereals are posing a significant barrier to their development.

Changing Lifestyle

 As the urban population grows, people are finding that they have less time to spend at work, thus they are turning to "Take away outlets" to save time.

Another important opportunity that is associated with the country is the innovation of the products that are associated with it. Global expansion is also one of the major contexts that needs to be taken into account by McDonald in the future.

Threats: The major threat of the company is the risky investment that is conducted by it on various technological initiatives. The company might lose a lot of its revenue with these a risky investment in the future. There is presence of optimum competition in the market which is one of the major threats for the company and the improvement of the overall revenue that is associated with it. There is also present Of Cultural threat as the company operates in a wide range of countries with different cultural backgrounds. There is presence of new business model as well as new trend that is being followed by the competitors which is fast food and the business model that is followed by McDonald is considered to be old school which needs to be changed in the future in order to cope up with the challenges that are currently being faced by the company and also identify the future opportunities that are associated with it. If you are looking for such relevant case study factor. then take help from Allessaywriter.com's expert.

PESTLE ANALYSIS

Political: There is an increase in trade agreement worldwide which affect the overall business of the company. Government guidelines needs to be followed by the company in order to follow the diet as well as health of the consumers that are associated with. The health policies are evolving over the time which is a major political problem for the company in the future.

Economical: There are present of the slow as well as stable growth of economy in different developed countries which is a major opportunity for the company. The Chinese economy has slowed down which is a major threat for the company in the future to increase its profitability. The Rapid growth that is associated with developing countries is also a major opportunity for the company.

Social: The rise in the disposable income is also a major opportunity for the company under the social trade. The busy Lifestyle that is associated in urban environment is useful for the company to provide fast food products. Cultural diversity is increased by global scenario which is both a threat as well as opportunity for the company.

Technological: The company can utilize its research and development activities to introduce innovative products in the market. The company can also increase the business automation which is going to be very much helpful in overcoming all the current challenges that are being faced by it and also increase efficiency in the workplace which is going to improve the overall profitability in the future. There is also an optimum increase in sales with the help of mobile devices.

Legal: Legal aspects such as ensuring the health and safety of the consumers must be followed by the company.

Environmental: Rising interest independent of environmental program is a major opportunity for the company.

 

Other Company Case Study Analysis

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