Elasticity gives us a way to measure how people react to price changes or to changes. The price elasticity of demand measures how much consumers respond to changes in price by change the quantity demand. The price elasticity for Kellogg’s cornflakes has gone down about 5%.( n.d) Overall grain production is down if it’s compared to all type of cereal. According to Kellogg secret of success, years of investing in the promotion of the Kellogg’s name have meant it can raise its prices above those of competitors and the product will still succeed. However when they started charging consumers over $5 for a box of cereal sales started slide, which caused Kellogg to reduce their prices.
To keep up with the growing market, Kellogg Company developed new product, packaging and marketing innovations to fit consumer needs. In 1914 Kellogg Company created Waxtite wrappers, a new concept in packaging technology. (n.d) Some other things Kellogg did to attract more consumer was held art... [continues]
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