History : Froot Loops is a brand of breakfast cereal produced by Kellogg's and sold in Austria, India, Australia, Canada, New Zealand, the United States, Germany, The Middle East, The Caribbean and Latin America. The cereal pieces are torus-shaped (hence "loops") and come in a variety of bright colors and a blend of artificial fruit flavors. Kellogg's introduced Froot Loops in 1963. Originally, there were red, orange, andyellow loops, but green, then purple, and, finally, blue were added by the 1990s.. Kellogg's has made many ventures for Froot Loopso, including snack bags called Snack Ums. Snack Ums were just like the cereal, only bigger. Their slogan was "Super sized bites with deliciously intense natural fruit flavors"
Mission statement of kellogg’s : “Kellogg is a Global Company Committed to Building Long-Term Growth In Volume and Profit and to Enhancing its Worldwide Leadership Position by Providing Nutritious Food Products of Superior Value.”
A) Situation analysis:
Current data: With 2010 sales of nearly $12.6 billion, Kellogg is the world’s leading producer of cereal and one of the largest producers of convenience food]. With sales in more than 180 countries, Kellogg's produces some of the world's most iconic and easily recognizable brands including: Keebler , Pop-Tarts, Eggo and Rice Krispies. As of FY 2009, the company generated 67% percent of its revenues in North America, 19% in Europe, 8% in Latin America, and the remainder in the Asia Pacific region. In June 2010, Kellog's voluntarily recalled 28 million boxes of cereal (Apple Jacks, Corn Pops, Froot Loops, and Honey Smacks) that may have a strong "waxy" smell or taste. In the first quarter of 2010, Kellogg posted revenues of $3.17 billion, a decrease of 2.7% from Q1 2008 figures; net income remained nearly unchanged at $321 million.The decrease in revenues is predominantly due to unfavorable foreign exchange fluctuations which had a negative 7.7% impact on the company during the quarter. This was partially mitigated by net pricing increases which raised revenues by 4.2%.The increase in net income is a result of Kellogg's ability to maintain costs and operating expenses as prices increased, contributing to a higher margin.
In the second quarter of 2010, Kellogg posted revenues of $3.23 billion, a 3.5% decrease from Q2 2009 figures; net income grew 13.5% to $354 million. In terms of volume, the company fared relatively well, losing only .5% across its operating divisions. A net pricing increase of 3.1%, however, was negated by a 6.4% adverse shift in foreign currency translation. % Change Q2 2009 vs. Q2 2008
Foreign Currency Impact
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Promotional strategies of Kellogg’s fruitloops:
-Strong brand logos
Some slogans used by Kellogg’s fruitloops:
* "Central heating for kids"
* "Everyone loves my Cocoa Krispies"
* "Gotta have my loops!"
* "They're grrreat!"
Kelloggs distribution channels Kellogg’s
Kellogg’s fruit loops
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