A case study on Kellogg's

1. Kellogg’s Cornflake
Company
CASE STUDY ANALYSIS
BY: FLORIND METALLA

2. Who and What is Kellogg's?
• Began by the Kellogg brothers in 1906
– who originally ran a sanatorium in Michigan, USA
– experimented with different ways to cook cereals
without losing the goodness
• World’s leading breakfast cereal manufacturer
– Since 1938 it has opened manufacturing plants in:
• UK, Canada, Australia, Latin America and Asia
• manufactures in 19 countries and sells in more than 160
countries
• Wide range of cereal products:
– Kellogg’s Corn Flakes, Rice Krispies, Special K, Fruit n’
Fibre, as well as the Nutri-Grain cereal bars.

3. SWOT Analysis
• Strengths
– Corporate Social Responsibility
– Environmentally aware
– Computerised warehousing
– The general public remains highly aware of All-
Brand
– The only large very high fibre brand in the
marketplace

4. SWOT Analysis
• Weaknesses
– Awareness of the brand is declining
– The fibre products have limited scale, making it hard
to make advertising investment economic
– The position that a fibre cereal keeps you regular is
less motivating to consumers than in the past.
Consumers now more interested in products that
promote “inner health”

5. SWOT Analysis
• Opportunities
– People are looking to eat more healthy
– The rapid growth of non-cereal products that meet
inner health needs
– In the UK, the number of people over the age of 55
continues to increase
– Baby-boomer market
– Internet Advertizing

6. SWOT Analysis
• Threats
– The sales of private labels fibre cereals are growing
– There is a consumer trend towards tastier cereal
– General Mills
– Kraft
• Generates triple the revenues that General Mills and
Kellogg produce
• Leading segment is snacks which accounts for about $10
billion in revenue

7. Corporate Strategy
• Grow Cereal
• Expand Snacks
• Sustainable Growth
• Manage for Cash
• Realistic Targets

8. Business Strategy
• to grow the cereal business – there are now 40
different cereals
• to expand the snack business – by diversifying
into convenience foods
• to engage in specific growth opportunities

9. Marketing Mix
• Product: they manufactures the right products
based on research into consumer needs
• Price: their focus on cost effective systems
ensures its prices are competitive
• Place: they manage the distribution channels to
place its products in stores
• Promotion: they work with retailers to improve
promotion of its products

10. Recommendations
• Recruit more Baby-Boomers because their
market is growing and they are the most health
conscious and wealthiest generation
• Increase their advertising towards Generation
Z to establish customer loyalty
• Expand their snack catalogue so it is
marketable to all age groups with all kinds of
concerns and preferences