Breakfast is considered the important meal of the day. It is a good, nutritional start for the rest of the day. The metabolism of the human body is at its peak from morning to noon. More energy is required during this period. Nutritionists believe that breakfast should be the heaviest meal of the day. And meals should become smaller as the day progresses. Cereal is a good source of carbohydrates -- the body's primary fuel-source. When the body does not get enough carbohydrates, it scavenges muscles for fuel. This leads to a toxic condition known as ketosis.
In this day of hectic time-schedules and careers, a mother's access to a quick and healthy diet is essential. Cold cereals are healthy. They are quick and easy to prepare. They often provide both carbohydrates (from the cereal) and protein (from the milk) -- essential components for the body. Many recent studies have indicated that a bowl of cereal at the end of the day can help reduce temptation for more fatty and higher caloric food. In addition, cereal also forces consumption of milk, which is a very good source of calcium -- an essential ingredient for bones.
The Kellogg Company has been around from 1906. It is headquartered in Battle Creek, Michigan Some of the products marketed by the Kellogg Company are Kellogg's®, Keebler®, Pop-Tarts®, Eggo®, Cheez-It®, Nutri-Grain®, Rice Krispies®, Special K®, Murray®, Austin®, Morningstar Farms®, Famous Amos®, Carr's®, Plantation®, and Kashi®.
Marketing Environment Audit
Microenvironment:
Demographic: The company has sales operations in more than 160 countries in the world. It has 27 manufacturing facilities in the U.S.; and 22 manufacturing facilities outside the U.S. (See Appendix; Table 1) Tony the Tiger ™ is a well-recognized character. It is a widely recognized Kellogg's emblem all over the world by people of ages. [3]
Economic: Kellogg's has utilized integrated business units and compensation incentive systems to increase the accountability of the cash expenditure and improve the functionality of the organization. Products sales have been increasing in the U.S. As well as in other countries. (See Appendix; Table 2) The pricing and availability of the product determines the profitability of a product. Streamlining many of the operations in recent times has helped the Kellogg increase the profit margin. More resources could therefore be spent on the marketing and advertisement of products. In addition, Kellogg's also increased the number and frequency of promotional offers -- more toys and DVD's in cereal boxes, tie-ins with movies and charitable donations to local schools and charities. In 2002, a new strategy of 'Volume to Value' was introduced throughout the company. More value was added to the product sold to the customer rather that decreasing the cost of the product.
Technology: Kellogg's is constantly using new and innovative technologies to improve the production and decrease the environmental impact of the factory on the local ecology at all its manufacturing plants. Many of these new innovations are getting company awards and acclamations in the countries of operation. Kellogg's plant in Queretaro, Mexico was recognized in 2001 with the Clean Industry Award by the National Environmental Ministry ("Certificado do Industria Limpia)." Awards and recognitions have helped the marketing department project a good and wholesome image for the company in the local advertisements. In addition these new technologies have help in increasing the profits for the company and reducing the cost of developing new promotional material for the public. [2]
Political: The advertising and marketing department has to ensure that all promotional and advertisement material are in compliance with the applicable federal, state, and local laws and regulations, including the self-regulatory guidelines of the National Advertising Division (NAD) and Children's Advertising Review Unit (CARU) in the U.S. [4] Marketing strategies should also observe the general code of ethics when preparing and distributing their marketing material.
Cultural: Kellogg also provides advertising that is truthful and not misleading to consumers and to placing its commercials with quality television programming. Kellogg uses the local cultural issues to its advantage. The company also is extensively promoting the brand image of the company in a very brand conscious society in the U.S. The brand image concept is also very strong in Western Europe and is slowly gaining popularity in other countries around the world. In the U.S., where obesity is a problem and where an entire industry devoted to weight loss is being marketed to the public, the "Lose 6 Pounds in Two Weeks" advertisement made a big impact. The program recommended eating cereal for two meals a day over a two-week period. The program...
Product Innovation The Kellogg Company is a producer of cereal and convenience foods with a number of brands. The company is located in Battle Creek, Michigan, and was founded in 1906. Kellogg's posted earnings of almost $13 billion in 2010 and employs about 31,000 people. Facing global sales stagnation and decline, Kellogg promoted Carlos Gutierrez, who had risen in the company from the ground up since 1975, as CEO. Gutierrez believed
In the "question marks" category were introduced the products of the "Specialty channel," as they appeared in 2004 and tried to conquer a relatively new market for the company, that of the non-traditional products. Therefore, this attempt has not been proved to be a real success because, just as in the case of the natural, organic and frozen products, the market of the specialties had been reached by other
The weaknesses of the company are first that it relies on just a few top customers for the majority of its revenue growth and its lack of product quality have at times led to recalls. Opportunities include the growing level of health consciousness in globally, higher levels of product demand in Latin America nations that today have relatively low levels of adoption today and the potential to grow through
KELLOGG Conflict management Role conflict between marketing and production departments Kellogg has insufficient communication between its product development and marketing departments. Increasingly, Americans are trying to eat more healthfully, which includes consuming fresher, sustainable, and unprocessed foods. Kellogg is a noted purveyor of cereals, including sugary cereals. A desire for less carbohydrate and sugar-dense breakfast options and the greater diversification of American tastes in general could mean that the company may face long-term
Kellogg's Marketing Plan Consumer Buying Process Consumer behavior is a complex phenomenon to study the consumer certainly is not as rational as once believed. Marketers used to believe that if you provide the consumer all of the information then they would make a rational decision. However, we have learned that psychological and personality traits also play a large role in the decision making process. Kellogg itself learned this fact the hard way
Kellogg's Case Study Q1.Define communication. Communication is defined as "the transmission of information from a sender to a receiver, via a given medium. Two-way communication involves some kind of feedback from the receiver back to the sender" (Communication 2). Q2.Describe the key stages in the communication process. You can use a diagram to show the process The communications process involves a sender encoding a message and transmitting the message through a particular medium. The
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