SWOT Kelloggs Brand
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SWOT Kellogg\’s Brand
Market analysis is one of the common strategies that companies adopt to understand their market for better performance. Various tools such as SWOT and PESTLE analyses have been employed in these market analyses (MBA Skool Team, 2021). Using a practical case study has always been adopted by students when applying these tools to facilitate understanding. This study takes the example of Kellogg’s to assess its history, SWOT, and develop a marketing plan for one of its products.
The Kellogg Company, also referred to as Kellogg’s, is a global food manufacturing corporation based in Michigan, United States. Kellogg’s is one of the leading companies in the Food processing industry (MBA Skool Team, 2021). It produces ready-to-eat cereals and other food products, particularly its earliest product breakfast cereals. It manufactures crackers and toaster pastries sold under brands such as Rice Krispies, Corn Flakes, Coco Pops, Frosted Flakes, Eggo, Pringles, and Cheez-It (Britannica, T. Editors of Encyclopedia, 2022). Among its major competitors are, Nestle, Cadbury, General Mills, Quaker Oats, PepsiCo, Danone, and ConAgra Foods.
Kellogg’s was founded in 1906 by W. K. Kellogg after breaking out with his brother, John Harvey Kellogg, and abandoning their previous family company, the Battle Creek Sanitarium. In the beginning, it was referred to as the Battle Creek Toasted Corn Flake Company and later changed to the Kellogg Toasted Corn Flake Company in 1909, and finally took the current name, the Kellogg Company in 1922 (MBA Skool Team, 2021). The company has been gradually progressing and developing new products to widen its market reach. From the original cornflake, it moved to cereals (1922), tea and desserts (1967), soups, sauces, and other foods (1970), and nondairy frozen foods (1977) (Britannica, T. Editors of Encyclopedia, 2022). In the 21st century, the company further diversified into ready-to-eat cereals; convenience and snack foods such as granola bars; cookies, cracker products, and frozen breakfast foods following the purchase of Keebler Foods in 2001 (MBA Skool Team, 2021). It currently manufactures its products in 18 countries and sells them in over 180 countries in North America, Europe, Latin America, Asia, and Australia.
SWOT Analysis
SWOT Analysis will analyze the strengths, weaknesses, opportunities, and threats of Kellogg’s.
Among Kellogg’s strengths are its global presence in over 180 countries in North America, Europe, Latin America, Asia, and Australia which gives it a huge market share. It has multiple variants including Honey loops, Frosted Flakes, Choco, Happy Inside, Krave, Rice Krispies, Frosted Mini-Wheats, Raisin Bran, Eggo, Pop-tarts, Special K, and so on to meet varying customer tastes and preferences (MBA Skool Team, 2021). It has a global brand as the most formidable breakfast cereal worldwide. It has a strong positioning in customers’ minds, commitment to nutrition, and emphasis on sustainability. Among its weaknesses, Kellogg’s lacks segmentation in the product portfolio, only popular as breakfast cereals, overreliance on the North American market, and limiting R&D sectors to certain regions (MBA Skool Team, 2021). It faces competition from other brands and Controversies regarding products recall.
Its opportunities include emerging markets like Africa, expansion of product portfolio, more growth in the ready-to-eat cereal category, and venturing into digital marketing. It can target restaurants and hotels, and exploit the changing lifestyle (MBA Skool Team, 2021). Among its threats are intense competition, government regulations, and customers’ changing perceptions about processed food and breakfast (MBA Skool Team, 2021). It also faces the threat of counterfeit products that can ruin its reputation.
Kellogg’s Marketing Plan
In this study, I will develop a marketing plan for a new Nutri-Grain product recently developed by Kellogg’s. This product has incorporated two new fruit and vegetable breakfast bars and new “Bites” and needs to be popularized to expand its market outreach (Schroeder, 2022). Kellogg’s has a huge market base and a formidable brand that can easily be used to sell the new product across all market segments. Nutri-Grain forms one of Kellogg’s core products that include cereal breakfast, corn flakes, frosted flakes, Eggo, and all-brans (Schroeder, 2022).
Kellogg’s brand name will form part of the extended products because it is used in adverts, printed on cloth and containers to help sell the product. This is the product concept that will be adopted where an established brand name like that of Kellogg’s is used a popularized a new product. An established brand name makes it easy to sell new products (Thompsom, 2018).
Kellogg’s has managed to keep abreast with the competition through diversification and innovation. It creates new and unique products to meet the ever-changing customers’ preferences and market opportunities (Thompsom, 2018). Diversification enables the company to satisfy the diverse tastes of its huge customer demographics. Kellogg has perfected this strategy via strategic acquisitions and research and development (Britannica, T. Editors of Encyclopedia, 2022). It packages its products in packets with appealing images and Kellogg names to attract customers and remind them of Kellogg’s reputation (Schroeder, 2022).
Kellogg’s is an indispensable brand in the food manufacturing industry. With more than a century of existence, Kellogg’s has accumulated enough experience and knowledge of how to survive in the field. Established and new entrants in the market should learn about Kellogg’s and borrow from it. Analysis of its history, SWOT, and marketing strategy gives a potent starting point for understanding Kellogg’s and the food processing market dynamics.
References
Britannica, T. Editors of Encyclopedia. (2022). Kellogg’s. Encyclopedia Britannica. https://www.britannica.com/topic/Kellogg-Company
MBA Skool Team. (2021). Kellogg’s SWOT Analysis, Competitors & USP. mbaSKOOL. https://www.mbaskool.com/brandguide/food-and-beverages/3217-kelloggs.html
Schroeder, E. (2022). Kellogg launches new Nutri-Grain products. BAKINGBUSINESS. https://www.bakingbusiness.com/articles/55459-kellogg-launches-new-nutri-grain-products
Thompsom, J. (2018). What is Brand Extension? bizfluent. https://bizfluent.com/13709421/what-is-brand-extension