Kellogg Corporation Case Study
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Kellogg Corporation is the leader in the United States cereal market. Overall, Kellogg produces twelve of the fifteen top cereals in the world. When looking at this and comparing it to the market it is in, that is a very big share to have. Kellogg is not just a company that is focused solely on cereal; Kellogg also produces:
- Cereal bars
- Frozen waffles
The name Kellogg is synonymous with good product, which allows the company to venture into new markets with confidence. As can be shown by the products offered by Kellogg, the company mainly sticks to breakfast type foods, or foods that are recognized as a Kellogg product, such as Rice Krispies Treats.
Marketing and Advertising Strategy
A large part of Kellogg’s success can be contributed to their well-targeted markets and their advertising strategy. It does help that they offer a good product, but so do all the other top cereal manufactures. What sets Kellogg apart from the competition is its marketing plan? The products that Kellogg offers are very broad, from Rice Krispies to All Bran. The wide breadth of the products that Kellogg offers helps to keep them available to all ages. Where each cereal may have a certain target market, Kellogg as a company targets the world.
Another important aspect of any marketing mix is prices. On average Kellogg’s is very competitive with the other large brands with their price. The three main cereal companies Post, General Mills and Kellogg offer products at a similar price. Even though Post did run commercials to reveal a reduction in price of its cereal, the overall effect was for the other companies to compensate, thus making Post’s attempt to gain more of the market fail. The three main cereals operate on a high end pricing structure, while store brands produce a lower price product to offer to the customer. Kellogg does not advertise as a low priced cereal, instead the company focuses more on quality of the product it sells and it's Kellogg charity fund raising.