kellogs final

8/8/2019 Kellogs Final

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Product Strategies

Product developmentConstant innovation. Introduction of new productto present customers.

Market developmentMaintain global position

DiversificationIntroduction of new products to fit new customersneedsDiscretionary modification


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Advertisement of kellogg s


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Acquisitions1969: Kellogg acquires a tea company, Salada Foods

1970: Kellogg acquires Fearn International

1976: Kellogg acquires Mrs. Smith's Pie Company

1977: Pure Packed Foods is acquired

2 000: Kellogg acquires Kashi Company ; Kellogg reorganizes its operations

into two divisions (USA and International).2 001: Kellogg acquires Keebler Foods .


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Competitors

Kellogg's primary competitors are GeneralMills and Kraft(Post).


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SWOT Analysis

Strengths : healthy finance, strong global based brand, product range

diversity, innovation of new product and explore new market

W eakness : limitation on the growth of product margins and pollutions in

the production lines

Opportunities : further improvements on the channel distributions and

further expansion on the product ranges

T hreats : rising costs of product materials and increase intensity of market

competition


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Product Recall

company voluntarily began to recall about 28million boxes of Apple Jacks, Corn Pops, FrootLoops and Honey Smacks because of anunusual smell and flavor from the packages'liners that could make people ill.


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FAILURE OF KELLOGGS IN THE INDIANMARKET

Despite offering good quality products and being supported by the

technical,managerial and financial resources of its parent, Kellogs

products failed in the Indian market.

Kelloggs knew it will be difficult to get indian customers to acceptits products hence it relied heavily on the quality of its crispy

flakes.

Indians liked to boil their milk and consume it warm or

lukewarm,they also like to add sugar to their milk.

The rice and wheat versions did not do well because sugar could

not easily dissolve in cold milk which made it not sweet enough for

the indians.

Some consumers called the rice flakes, rice corn flakes.


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Reasons for failure

Positioning positioned it as health product

Over confidence and ignorance of cultural aspects

Non understanding of Indian consumer behavior and

habitsPremium Pricing policy

Banked heavily on crispy flakes

kellogs final

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