Kellogg’s and Tesco
To grow as an organisation Kellogg’s and Tesco will use different strategies. These include diversification where the organisation effectively enters a new market. Tesco have done this where they have gone from just selling products in their shops to selling petrol, insurance and having their own mobile network. Kellogg’s have also done this as they have gone from selling cereals to selling cereal bars, ready to eat cereal with milk and they have recently introduced crisps through their Special K range. Kellogg’s will develop their products, they would have gone from just selling the cereal Frosties to then selling Frosties cereal bars and the Frosties that comes with milk so it is ready to eat. Tesco will also develop their products and they will do this by having more than one product so that the customer can choose from a range of items. Organisations will develop in the market. Tesco would do this by ensuring that they have a big supermarket in each covering area of a certain size of population, as well as having your local community stores (Express) and the city/town centre stores (Metro). Kellogg’s will make sure that their products are always available by supplying them to stores and they would make a deal with organisations such as Tesco where they would say that each Tesco store would stock Kellogg’s products. Ansoff used these four categories in a matrix to show how the opportunities differ in terms of new and existing products and markets.
Kellogg’s and Tesco have both established a national brand with products that are seen to be of a certain quality. These products are also seen to be reasonably priced as they aren’t the most expensive and are also not the cheapest but that is because there is a quality to their products. They try to back this up by advertising on TV, radio and in newspapers. Both...