Marketing Strategy of Kellogg’s – Kellogg’s Marketing Strategy: Established with the help of W.K Kellogg, Kellogg’s initially launched the business as breakfast cereals i.e. cereals that are ready to eat, however during the time, the company expanded to other items beyond breakfast. Its portfolio of products range comprises convenience foods like biscuits, snacks waffles, waffles, pastries, waffles, and crackers.
“Kellogg’s” brand name is well-known worldwide, however, the company has its branding portfolio comprised of brands like Murray, Austin, Famous Amos, Cheez-it, and Keebler.
Kellogg’s At A Glance – Marketing Strategy of Kellogg’s
Company : The Kellogg Company
CEO: Steve Cahillane
Founder: Will Keith Kellogg
Year founded: 19 February 1906, Battle Creek, Michigan, United States
Headquarters: Battle Creek, Michigan, United States
Annual Revenue: US$15.5 billion
Profit | Net income: US$1.76 billion
Number of employees : 34,000
Products & Services: Oats Veggie Nutri Cutlets | Corn Flakes Chana Chaat | Oats Peppy Papaya Drink | Corn Flakes Fruity Yogurt Cup | Oats | Chanadal Payasam | Corn Flakes Oriental Corn Stir-fry | Oats Veggie Nutri Cutlets | Corn Flakes Chana Chaat
Competitors: General Mills | Mondelez International | Ferrero Rocher | J M Smucker | Ingredion | Quaker Oats Company | Nestle | Conagra Foods | Frito-Lay | Cadbury | Quaker Oats | PepsiCo | Danone | Seneca Foods | Tyson Foods | Campbell Soup
Kellogg’s Fun Facts: Kellogg’s has been to the moon! Yep the Apollo 11 astronauts brought a Kellogg cereal to the moon, as part of their breakfasts during the mission.
Marketing Strategy of Kellogg’s
Kellogg’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Kellogg’s? Let us discuss.
Segmentation, Targeting, Positioning – Kellogg’s Marketing Strategy
Kellogg’s employs a mixture of demographic, geographical, and psychographic segmentation to market its 1600 products to 180 countries around the globe.
Differentiating the targeting method is employed by Kellogg to offer its products in various ways.
The largest company in the world for cereal utilizes product/benefit-based positioning strategies to emphasize the advantages of their products to customers.
Kellogg’s Mission Statement
“Nourishing families so they can flourish and thrive.”
Kellogg’s Vision Statement
“Enrich and delight the world through foods and brands that matter”
“Let’s make today great”.
Competitive Advantage – Marketing Strategy of Kellogg’s
Kellogg’s has manufacturing facilities in more than 20 countries which is helping it to make its products available in more than 180 countries globally.
Strong product portfolio:
Being the world’s largest cereal maker and 2nd largest maker of cookies & snacks is helping the company to distribute to more than 160 countries globally.
Kellogg’s spends more than 8% of its revenue brand building exercise which is helping the company is emerging as a powerful brand in some of the developing markets in the world.
BCG Matrix – Kellogg’s Marketing Strategy
Having brands in its portfolios such as Murray, Austin, Famous Amos, Cheez-it and Keebler has helped the company to offer various choices to a customer under the umbrella brand Kellogg’s.
The business segments of Kellogg’s such as Ready to eat cereals and crackers, and frozen foods are stars in the BCG matrix and all others products are question marks in the BCG matrix.
Distribution Strategy – Marketing Strategy of Kellogg’s
Being part of the FMCG industry, Kellogg’s makes its products available to the end customers through different channels such as its distributors, own sales force, convenience stores, e-commerce sites, and chain of supermarkets such as Walmart, Tesco, big bazaar, 99 stores, etc.
Brand equity – Kellogg’s Marketing Strategy
Revamping/ redesigning its old website or engaging in CSR activities or representing the brand by winning various awards and accolades worldwide on various platforms; Kellogg’s in its objective to connect with the next generation of consumers has created High TOMA (top of mind awareness) in the market. Kellogg’s has been associated with many international events like FIFA, the Olympics, and many others to connect with the customers. As has bagged many awards such as Fortune for being the world’s most admired company, Interbrand for being the world’s best global brand, Forbes, and many others.
Competitive Analysis – Marketing Strategy of Kellogg’s
Kellogg’s faces competition from various local, national, and international companies that are dealing in unbranded or private brands. Factors affecting the competition are the cost of raw materials, quality, price, convenience services, and advertising & promotions by the companies.
Market Analysis – Marketing Strategy of Kellogg’s
The market and product in which Kellogg’s deals are overcrowded with a large number of players.
Changes in consumption patterns, changing lifestyles, and migration of people from rural to urban and metro cities in shaping the demand analytics of the ready-to-eat products whether it is cereals, bakeries, pastries, or any other item. The rise in disposable income and literacy level is also affecting the consumption graph as forecasted by the companies in this industry.
Customer Analysis – Kellogg’s Marketing Strategy
Customers of Kellogg’s consist of B2C and B2B. Mainly people from urban or metro regions are the major customer segments that are targeted by Kellogg’s.
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