Assignment 1 Summer B
The Situation
Kellogg’s: From Slumping to Thumping1
Kellogg’s is the world’s leading producer of cereal and a leading producer of convenience foods; including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts, and cones, with 2010 global sales of about $12.4 billion and a market share of more than 30 percent. David Mackey, CEO of Kellogg’s, takes pride in being part of the Kellogg’s company because of the consistency of the decisions that are made within the company to promote the long-term growth of the business, as well as serve the needs of their people and communities.
With such a large market share, one would think that Kellogg’s is untouchable. However, Kellogg’s faced a slump in the market. Its cereal sales were declining, and it had to face the challenge of getting out of its slump. Kellogg’s, therefore, turned to marketing research to identify the problem and develop several potential solutions to increase cereal sales.
Kellogg’s used several tasks to identify the problem. The researchers spoke to decision makers within the company, interviewed industry experts and conducted a review of available data. Several important issues came out of this preliminary research. Current products were being targeted to kids. Bagels and muffins were winning for favored breakfast foods. High prices were turning consumers to generic brands. Some other information also came to light during the research. Adults want quick foods that require very little or no preparation.
Follow Up Questions
Name the symptom(s) that lead David Mackey, CEO of Kellogg’s to realize there was a problem. Select all that apply.
Growing trend in generic brands for cereal
Some of Kellogg’s breakfast foods required too much preparation
Cereal sales were declining
Growing demand for bagels and muffins
1This case was prepared for class discussion purposes only. The problem scenario is hypothetical and has been developed from
Kellogg’s: From Slumping to Thumping1
Kellogg’s is the world’s leading producer of cereal and a leading producer of convenience foods; including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts, and cones, with 2010 global sales of about $12.4 billion and a market share of more than 30 percent. David Mackey, CEO of Kellogg’s, takes pride in being part of the Kellogg’s company because of the consistency of the decisions that are made within the company to promote the long-term growth of the business, as well as serve the needs of their people and communities.
With such a large market share, one would think that Kellogg’s is untouchable. However, Kellogg’s faced a slump in the market. Its cereal sales were declining, and it had to face the challenge of getting out of its slump. Kellogg’s, therefore, turned to marketing research to identify the problem and develop several potential solutions to increase cereal sales.
Kellogg’s used several tasks to identify the problem. The researchers spoke to decision makers within the company, interviewed industry experts and conducted a review of available data. Several important issues came out of this preliminary research. Current products were being targeted to kids. Bagels and muffins were winning for favored breakfast foods. High prices were turning consumers to generic brands. Some other information also came to light during the research. Adults want quick foods that require very little or no preparation.
Follow Up Questions
Name the symptom(s) that lead David Mackey, CEO of Kellogg’s to realize there was a problem. Select all that apply.
Growing trend in generic brands for cereal
Some of Kellogg’s breakfast foods required too much preparation
Cereal sales were declining
Growing demand for bagels and muffins
1This case was prepared for class discussion purposes only. The problem scenario is hypothetical and has been developed from