Kellogg’s is a company that I have been with since childhood and I thought it would be very interesting to do a case analysis on it. Currently, the company stands in a good healthy position of steady sales growth because of constant new products. However, current corporate management is facing some tough issues such as the rebranding of its famous marketing character Tony The Tiger, appealing to the new generation, and competing with the new cereals induced with fiber that are increasing market share every year.
Kellogg strategic analysis can be broken down into two different segments, corporate and business. While many may argue that these two need to be the same thing, they are different because corporate deals with long term while business strategy can change quarterly. Its corporate strategy is very simple composed of solid reasoning which includes setting realistic targets and having a sustainable growth. On top of that, their top three main focuses include growing cereal brand, expanding its snack line, and managing proper cash flow. Kellogg business strategy is more focused on beating last year’s sales, improving product shelf life, and creating a smoother transition from the minute a bag of Kellogg cereal is packed to the minute the customer eats it.
Kellogg is in the business of snacks and cereals with limited products in the drinks category. Although some may argue that a drink alone can be a snack. Their vision is to enrich and delight the world through foods and brands that matter. This shows that Kellogg is a brand focused company and it spends millions of dollars to get that brand in the consumers mind. The top competitor for Kellogg’s is General Mills, who has a leading product for every product that Kellogg has. Other competitors include the new health focused products such as fiber rich cereals, protein shakes, and kashi snack bars that are looking to replace the sugary breakfast that Kellogg is so accustomed to selling.
Kellogg competes with other companies through innovative marketing, competitive pricing, and excellent placement in retail stores. It innovative marketing includes things such as placing ads in tv at 4pm roughly time right after kids get out of school and turn on the tv with their stomachs growling for a snack. With competitive prices, consumers who have no brand loyalty will be willing to try a Kellogg product because they have nothing to lose. Finally, product placement in retail stores is a big key to success over its competitors because if you walk into any big retail store such as Target or Wal-Mart you will see that at eye level, which is considered the premium spot, a Kellogg brand. This is because Kellogg offers many incentives to its retailers for this prime location.
Competitive Analysis (1 – 2 pages)
Based on what you have learned from the assignment’s readings and other information you have gathered from your own research, provide a brief SWOT analysis of the company. Additionally, you should present an analysis of the company’s competitive position in the industry using Michael Porter’s Five Industry Forces model. These analyses do not need to be exhaustive but should demonstrate your