Kelloggs The Worlds Leading Breakfast Food Processing Business Marketing Essay


Kellogg's company shaped in 1906 became world's leading breakfast food production business. Popular for its make of cereals, Kellogg's experienced thirty % (30 %30 %) show of the breakfast time food market on the globe. Kellogg's has its main market in USA, Canada and Australia. Fruits Loops, Frosted Mini-Wheat, Corn Flakes and Corn Pops will be the most popular products by Kellogg's (Kellogg's, 2011).

Marketing strategy can be explained as the plan of actions targeted to a certain group of individuals for whom the merchandise are made, to make an image of the products in the intellects of these people. Usually big companies spend a lot of funds on the marketing research in order to come up with ideas of formulating a marketing plan (Give, 2010).

Kellogg's follow its marketing strategies in a vey clear way. It includes targeted its customers and will try to wthhold the share it includes in the market presently. Kellogg's company has its quest and perspective very clearly explained which it follows in its marketing plan as well (Boyer and Hult, 2005).

Kellogg's Competition

The market for the breakfast food has a oligopolistic dynamics and for that reason there are few number of companies and everything enjoy a big chunk of market share. These businesses include Kellogg's, Basic Mills, Quaker Oats and Post. Due to nature of the market, there is a very less price wars among the companies.

Among these companies only Kellogg's is the one who deals in mere cereals, others have diversified in other styles of food as well. Therefore Kellogg's made its give attention to just the cereals and gained its earnings out it.

Kellogg's SWOT Analysis


One of the largest talents of Kellogg's is that it has existed searching for over hundred years because of which people understand its name and it posesses quite strong brand recall as well as high brand recognition.

Maximum share job in the market of around 42% globally which is nearly thrice of its rivals.

A large range of well monitored products.

An image in the market of "healthy and healthy foods"

Kellogg's has an image of good commercial social organization, because of its recent plan of "talk about your meal with Kellogg's" it has gained a good perception in consumer's mind. This marketing campaign was about showing the breakfast pictures with the business and the business will save money on picture taking with which it will give charity to poor for breakfast time (Rave & Reviews, 2011).


There are low obstacles to entry in the market

The products made by Kellogg's need extensions or changing as a result of facts that they have not launched any new product in last four years anticipated to which all the products are in their maturity stage, soon to enter declining stage.

Soon the costs of development is likely to go high due to the increase in the tool rates because of which the prices should be increase, jeopardizing the marketplace share.

Due to insufficient diversification, it is expected that Kellogg's might loose its market the same way its share is getting low in US market.


Kellogg's can expand and diversify its selection of products by releasing new flavours or changing the packaging style etc.

Kellogg's gets the potential to capture the new marketplaces as well which remain left un exploited.

Kellogg's has a chance to take over the small companies dealing in breakfast food stuff that may profit Kellogg's by increasing its creation capacity.


Because of low barriers new entrants are getting into posing competitive risk to Kellogg's.

Increase in the utilities which in turn are increasing the production cost for Kellogg's.

The price wars between the market giants and the Kellogg's.

Cheaper technology presenting simplicity to new entrants to enter the marketplace.

Kellogg's Competitive Edge

Kellogg's has its competitive border in the market because of its experience of years, it's been on the market since 1906 which makes it more than century in the industry because of which it has best brand identity among all breakfast food sector. Researches prove that folks when asked in regards to a company which will come in their brain on listening the word 'cereal', they replied with Kellogg's. This has helped Kellogg's to gather a wide array of devoted customers who might end up being an asset even if the prices goes up, they will continue to be customers of Kellogg's (Kellogg's Company, 2010).

Kellogg's has another competitive advantage which it utilizes in its functions; it is strategic planning of business. Kellogg's top management as well as the lower personnel is well included through the tactical planning and get well coordinated in their actions because of computer which results in effective and effective operational effects. This not only helps the management to consider right decisions at exact time but also helps them to keep up the relations with the customers effectively (Kellogg's, 2011).

Another competitive benefits that Kellogg's enjoys is that the marketplace for breakfast food comes after Oligopoly idea of economics, there are few players in the market amongst whom Kellogg's has the top position with the highest market talk about both company sensible and the merchandise wise.

Kellogg's Targeting and Positioning

Targeting deals with selecting a certain sections of people and then choosing one or two out of them to cater to the needs of folks belonging to those sections (Applbaum, 2004). Kellogg's has its goal sections into different categories the major two are talked about below.


Kellogg's has targeted its few products for Kids giving the feeling of healthy food choices before starting your day and departing for school. This range to which Kellogg's focus on in Kids category is between 4 years to a decade (Brand Republic, 2002).

Health Conscious People

Kellogg's has always taken care of an image of healthy and nutritious food manufacturers in the market and for that reason its marketplace also incorporates people who are health conscious and want to maintain their weight and shape. To make sure that such image is preserved on the market, Kellogg's started exhibiting its elements and nutritional beliefs on the product's packaging.

Kellogg's Positioning Strategy

Kellogg's has situated itself differently in several countries throughout the world. Inside the places where Kellogg's has a solid market share or has been working for some time has located itself a pricey healthy food, such strategy is used in places like USA and United Kingdom.

In places like India or Taiwan, where Kellogg's is a new brand and is also in the level of getting customers, they have launched itself on relatively lower prices but has looked after the quality of product at the same par (NY Times, 1994).

Kellogg's Marketing Strategy

Kellogg's is following currently many marketing and promotional strategies, many of these promotional strategies are discussed below

Free in the Box

Kellogg's Free in the box offer includes coupons of $3 to $5 fastened on the marked bins of products.


Kellogg's has many internet campaigns currently with a game of sporting cars launched for kids where there is the life span line of Kellogg's and picking up Kellogg's boxes escalates the points of the participant.

Another online promotional technique is that on doing offers and collecting details, winner gets present hampers from Kellogg's including Kellogg's products to catch the attention of the kids towards itself.

Movie Tickets

Another offer valid in Kellogg's products is just to fill the form available at the trunk of the products, mail it to the given P. O Field no and acquire free movie tickets.

Kellogg's has the largest share in the market, but because of the low barriers to get into, Kellogg's might face some troubles retaining such share so Kellogg's is remaining with the choice of focussing on the fourth (4th) 'P' of Marketing Combination.


There is usually an area for improvement and advice in the procedures of your business, therefore a few of the suggestions which Kellogg's can follow and which can bring the right change in their efficiency and email address details are discussed below.

Kellogg's cost has been increasing scheduled to upsurge in energy rates; to cut down its cost it can shift its production herb to country with low labour cost like china.

Kellogg's has potential to fully capture new markets which can be un-exploited still by other competitors as well. This will help it to increase its market talk about as well talk about in the capital.

Kellogg's has had the opportunity to maintain its loyal customers due to its efficient tactical planning but Kellogg's should plan its marketing plan so that their loyal customers should suggest the brand to others too, this needs some research in the marketing office.

Kellogg's has been there in the market for over hundred years but still it should start a marketing campaign of word of mouth through some tactical marketing move, as it is proven by studies that person to person boosts sales.

Kellogg's products have reached their maturity level and needs some kind of upgrading and changes, the market still is high and requirements for cereals and prepared to eat food stuff therefore Kellogg's may take advantage of the actual fact and just by changing the presentation or adding new flavours it can increase its market share and change its product's graph towards developing stage again.

Because of low obstacles to enter into, new entrants are coming into and posing competition to Kellogg's. Kellogg's should take over the few small companies interacting in the same market.

As Kellogg's goals towards children through its products, it should organize such events where the heroes endorsing the Kellogg's products in adverts can play and carry out some fun activities between children and their mothers.

Kellogg's should aim for colleges as well, through in-school marketing, children modify more and put a pressure on their parents to utilize the same product they have seen other friends using at the school.

Kellogg's no subject has been the market leader for a significant time but nonetheless to keep up the same position it should produce services with new creative and progressive ideas.

In some of the countries where culture performs an important role, Kellogg's should target through cultural events and situations.

At enough time of spiritual festivities, there should be some new plans and campaigns like at the time of Holiday for Christians, Eid for Muslims and Easters and Divali for Hindus.

Kellogg's has indirect competition too in like manner overcome that; it should market itself so concerning prevent its customers from shifting to substitutes like indirect challengers.

Kellogg's should bring in toys and fixed for kids with the brand personality of the rabbit and carry characters it shows in the advertisements. This will improve the brand understanding and the youngsters will get emotionally mounted on the individuals in shape of the playthings and would pressurise their parents to make purchase of the same item.

Kellogg's should one per year launch a animation movie including all he character types of its products showing them healthy and in positive light using Kellogg's products. Such advertising techniques have always been successful in the past.

Kellogg's spend a big amount on its advertising, it should use the star endorsements as well because people tend to copy the superstars more rather than the sportsmen that Kellogg's have been demonstrating in its advertising.

Internet marketing through social networking has used a surge out of the blue, Kellogg's should outsource such promotional activities and should focus on it to be able to attract people using these mediums.


Kellogg's has been in the marketplace for more than hundred years. It's very difficult for any company to have the positioning of Kellogg's in the market and for that reason Kellogg's relishes its position yet somehow it deals and manages all the problems that may jeopardise the positioning it holds in the market. Managing the operations in a proper way and planning the marketing tactics in such a way that it keeps the market share and retains its loyal customers by giving them the best and balanced diet, coming up to the goals of the customers.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)