Kelloggs Case Study

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Using aims and objectives to create a business strategy
When preparing a strategy for success, a business needs to be clear about what it wants to achieve. It needs to know how it is going to turn its desires into reality in the face of intense competition. Setting clear and specific aims and objectives is vital for a business to compete. However, a business must also be aware of why it is different to others in the same market. This case study looks at the combination of these elements and shows how Kellogg prepared a successful strategy by setting aims and objectives linked to its unique brand. One of the most powerful tools that organisations use is branding. A brand is a name, design, symbol or major feature that helps to identify one or more products from a business or organisation. The reason that branding is powerful is that the moment a consumer recognises a brand, the brand itself instantly provides a lot of information to that consumer. This helps them to make quicker and better decisions about what products or services to buy. Managing a brand is part of a process called product positioning. The positioning of a product is a process where the various attributes and qualities of a brand are emphasised to consumers. When consumers see the brand, they distinguish the brand from other products and brands because of these attributes and qualities. Focused on Kellogg, this case study looks at how aims and objectives have been used to create a strategy which gives Kellogg a unique position in the minds of its consumers.

CURRICULUM TOPICS • Aims and objectives • Branding • Positioning • Communication

GLOSSARY Branding: process of managing brands by using the position of the brand to communicate a series of values to consumers. Product positioning: emphasising the attributes and qualities of one brand against the qualities and attributes of its competitors. Market share: proportion of total sales of products by value, against total sales within the market. Segments: parts of a large market.


Consumer confidence

Name, design, symbol

Market leader: the firm that has the largest share of the market, measured by sales (value or volume). Premium: high position within a market, based upon the faith and confidence of consumers.

Product choice based upon perceptions

Product positioning

Influences perceptions of consumers

The market
The value of the UK cereals market is around £1.1 billion per year. Kellogg has a 42% market share of the value of the UK’s breakfast cereal market. The company has developed a range of products for the segments within this market, targeted at all age groups over three years old. This includes 39 brands of cereals as well as different types of cereal bars. Consumers of cereal products perceive Kellogg to be a high quality manufacturer. As the market leader, Kellogg has a distinct premium position within the market. This means that it has the confidence of its consumers. KELLOGG’S


Developing an aim for a business Today, making the decision to eat a healthy balanced diet is very important for many consumers. More than ever before people want a lifestyle in which the food they eat and the activities they take part in contribute equally to keeping them healthy. Research undertaken for Kellogg, as well as comprehensive news coverage and growing public awareness, helped its decision-takers to understand the concerns of its consumers. In order to meet these concerns, managers realised it was essential that Kellogg was part of the debate about health and lifestyle. It needed to promote the message 'Get the Balance Right'. Decision-takers also wanted to demonstrate Corporate Responsibility (CR). This means that they wanted to develop the business responsibly and in a way that was sensitive to all of Kellogg’s consumers’ needs, particularly with regard to health issues. This is more than the law...
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