Kellogg Case Study

Topics: Kellogg Company, Will Keith Kellogg, John Harvey Kellogg Pages: 3 (666 words) Published: April 20, 2008
Kellogg Company
Case Study

-A Leading maker of grain-based breakfast cereals for over a hundred years -43% market share for “Ready to eat” cereals market share in the US -A leader producer also of convenience foods (i.e. cookies, toaster pastries, ect.) -Products are manufactured in 17 countries and marketed in over 180 countries -First company to use full-color magazine advertising and widespread consumer sampling. -Created consistent icons to represent its brands- this made it easy for people regardless of where they lived to recognize the brand. -W.K. Kellogg Foundation- one of the world’s largest philanthropic organizations. -Carlos Guitterrez became CEO when Kellogg was struggling and helped the company to turn around in 1999. -Kellogg in 2005 was considered a very profitable company that generates more cash each year than it needs to pay dividends and fund capital expenditures. -Has some of the most well known brands on the market

-Kellogg acquired Kashi (natural cereal and convenience food maker). -

-Closed its original plant in Battle Creek, Michigan (The South Plant) because it was too labor intensive and inefficient. This generated negative press in the public and gave Kellogg’s a bad reputation. -Kellogg acquired Keebler from Flowers Industries for cash, incurring about $6 billion in debt to do so. -Kellogg’s Keebler unit faces strong competition from the world’s largest maker of cookies and crackers- Nabisco division of Kraft Foods and from Frito-Lay division of PepsiCo. -Kellogg’s primary competitor in ready to eat breakfast is General Mills. -When General Mills and Nestle entered the European cereal market as the Cereal Partners of the World. -Kellogg also faces competition from private-label cereals (A&P, Wal-Mart, Stop and Shop, which lowers the cost of the product). They also offer everyday low pricing and free consumers from cutting out coupons. -As the baby boomer generation ages...
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