case study of kellogs

CASE STUDY OF KELLOGS…

BY;NYLA & TATTVAMASI

INTRODUCTION • Kellogg Company (often referred to as Kellogg or Kellogg's in its

corporate logo, or even more formally as Kellogg's of Battle Creek), with 2008 sales of nearly $13 billion, is the world's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. The company's brands include Kellogg's, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, BearNaked, Morningstar Farms, Famous Amos, Special K, All-Bran, Frosted Mini-Wheats, Club and Kashi. Kellogg products are manufactured in 18 countries and marketed in more than 180 countries around the world.[2] Its global headquarters are in Battle Creek, Michigan, USA. Kellogg trades under the ticker symbol NYSE: K.

• The Kellogg Company holds a Royal Warrant from HM Queen Elizabeth II and the Prince of Wales.

HISTORY• First Kellogg's package• Kellogg's was founded as the Battle Creek Toasted Corn Flake Company on

February 19, 1906, by Will Keith Kellogg as an outgrowth of his work with his brother John Harvey Kellogg at the Battle Creek Sanitarium following practices based on the Seventh-day Adventist Christian denomination. The company produced and marketed the hugely successful Kellogg's Toasted Corn Flakes and was renamed the Kellogg Company in 1922.

• In 1930, the Kellogg Company announced that most of its factories would shift towards 30 hour work weeks, from the usual 40. This practice remained until World War II, and continued briefly after the war, although some departments and factories remained locked into 30 hour work weeks until 1980.[3] From 1969 to 1977, Kellogg's acquired various small businesses including Salad Foods, Fearn International, Mrs. Smith's Pies, Eggo, and Pure Packed Foods;[4] however, it was later criticized for not diversifying further like General Mills and Quaker Oats were.

• [5]

• In March 2001, Kellogg made its largest acquisition, the Keebler Company. Over the years it has also gone on to acquire Morningstar Farms and Kashi divisions or subsidiaries. Kellogg also owns the Bear Naked, Natural Touch, Cheez-It, Murray, Austin, Famous Amos, Gardenburger (acquired 2007) and Plantation brands.

LIST OF PRODUCTS…• All-Bran: All-Bran Original, All-Bran Bran Buds, All-Bran Bran Flakes (UK), All-Bran Extra Fiber, All-Bran

Guardian (Canada)• Apple Jacks• Bran Buds• Bran Flakes• Choco Krispis (Latin America)• Chocos (India,Europe)• Coco Pops (Europe, Australia)• Coco Pops Coco Rocks• Coco Pops Mega Munchers• Coco Pops Moons and Stars• Cocoa Hoots• Cocoa Krispies• Corn Flakes• Complete Wheat Bran Flakes/Bran Flakes• Corn Pops• Country Store• Crunch: Caramel Nut Crunch, Cran-Vanilla Crunch, Toasted Honey Crunch• Crunchy Nut Cornflakes

• Cruncheroos (current only available through food service sales and not retail)• Disney cereals: Disney Hunny B's Honey-Graham, Disney Mickey's Magix, Disney Mud & Bugs, Pirates of the Caribbean,

Disney Princess Cereal• Eggo• Froot Loops: Froot Loops, Froot Loops 1/3 Less Sugar, Marshmallow Froot Loops• Frosted Flakes (Frosties outside of the US/Canada): Kellogg's Frosted Flakes, Kellogg's Frosted Flakes 1/3 Less Sugar, Tony's

Cinnamon Krunchers• Frosted Mini-Wheats (known in the UK as Toppas until the early 1990s, when the name was changed to Frosted Wheats.

The name Toppas is still applied to this product in other parts of Europe, as in Germany and Austria)• Fruit Harvest: Fruit Harvest Apple Cinnamon, Fruit Harvest Peach Strawberry, Fruit Harvest Strawberry Blueberry• Fruit 'n Fibre (not available in US; not related to the Post cereal of the same name sold in the US)• Genmai Flakes (Japan)• Guardian (Australia/NZ), Canada• Honey Loops• Honey Smacks (US)/Smacks (other markets)• Just Right: Just Right Original, Just Right Fruit & Nut, Just Right Just Grains, Just Right Tropical, Just Right Berry & Apple, Just

Right Crunchy Blends – Cranberry, Almond & Sultana (Australia/NZ), Just Right Crunchy Blends – Apple, Date & Saltana (Australia/NZ)

• Krave (UK)• Komplete (Australia)• Low-Fat Granola: Low-Fat Granola, Low-Fat Granola with Raisins• Mini Swirlz

• Mini-Wheats: Mini-Wheats Frosted Original, Mini-Wheats Frosted Bite Size, Mini-Wheats Frosted Maple & Brown Sugar, Mini-Wheats Raisin, Mini-Wheats Strawberry, Mini-Wheats Vanilla Creme, Mini-Wheats Strawberry Delight, Mini-Wheats Blackcurrent

• Mueslix: Mueslix with Raisins, Dates & Almonds• Nutri-Grain• Nut Feast• Oat Bran: Cracklin' Oat Bran• Optivita• Product 19• Raisin Bran/Sultana Bran: Raisin Bran, Raisin Bran Crunch, Sultana Bran (Australia/NZ),

Sultana Bran Crunch (Australia/NZ)• Raisin Wheats• Rice Krispies/Rice Bubbles: Rice Krispies, Rice Krispies Treats, Frosted Rice Krispies,

Cocoa Rice Krispies, Rice Bubbles, LCMs, Rice Crispies Multi-Grain Shapes• Ricicles: Like Rice Krispies, but with the addition of a frosted sugar coating.

• Scooby-Doo cereal: Cinnamon Marshmallow Scooby-Doo! Cereal• Smart Start: Smart Start, Smart Start Soy Protein Cereal• Smorz• Special K: Special K, Special K low carb lifestyle, Special K Red Berries, Special K Vanilla Almond,

Special K Honey & Almond (Australia), Special K Forest Berries (Australia), Special K Light Muesli Mixed Berries & Apple (Australia/NZ), Special K Light Muesli Peach & Mango flavour (Australia/NZ), Special K Dark Chocolate (Belgium), Special K Milk Chocolate (Belgium), Special K Sustain (UK)

• Spider-Man cereal: Spider-Man Spidey-Berry• SpongeBob SquarePants cereal• Start UK• Strawberry Pops (South Africa)• Sustain: Sustain, Sustain Selection• Variety• Vector (Canada only)• Yeast bites with honey• ZimZ!, mini cinamon-flavoured spirals, sold only in Germany and Austria[8][9]

FACTS OF THE CASE

• You can now buy Kellogg’s CornFlakes, the company’s flagship brand, forjust Rs 10.• The company calls it Kpak format.It is the third brand to be added in theKpak range (after Chocos and HoneyLoops).

• The idea is to increase the penetrationof the Kellogg’s’s brands throughaffordability, as breakfast cereals are still a very small

market in India• Low price pointshelp us reach the Tier II and III towns.• The small pack for Kellogg’s’s Corn Flakes was first

test-marketed in Tamil Nadu, and going by the response, we decided to launch it nationally this year.”

• The product positioning has been changed as well: From a breakfast cereal, it is now also a ‘Shaam ka Nashta’ (evening snack).

• The new positioning will help promote out-of-home consumption.

• the company is not looking to hit rural markets yet as it feels there is still a lot of head-room in urban India, considering the low penetration.

• Kellogg’s has a market share of more than 70 per cent value share in the readyto- eat cereal category.

• But competition for Kellogg’s is heating up-major competitors being pepsico & future group.

• But Dutta is unfazed: “More players will only help drive category growth,” he says.

• gives Kellogg’s the first mover advantage-by launching 10rs pack.

• The size of the ready-to-eat breakfast cereal category is around Rs 350-400 crore and is growing at 30 per cent.

• Kellogg’s plans to further expand its distribution network in line with its expansion plans and bring out new introductions.

• Kellogg’s plans to further expand its distribution network in line with its expansion plans and bring out new introductions.

• But at the moment Kellogg’s has no plans to diversify into other categories.

Strategies involved..