Critical Analysis: Kellogg: When a Sugar High Isn’t Enough

Topics: Kellogg Company, Procter & Gamble, Breakfast cereal Pages: 3 (823 words) Published: April 14, 2013

Critical Analysis: Kellogg: When a Sugar High Isn’t Enough * Kellogg is a brand with a rich history. It is a brand that we all know because we have grown up hearing and seeing the brand weather on commercials or in our kitchen cabinets. It is the home of Tony the Tiger. However, Kellogg is not the strong brand it used to be in previous decades. The Kellogg Company has recently experienced a slow growth in its operating profit. Cereal is not as popular as it once was and Kellogg has had issues with promoting unfounded health claims. Kellogg is trying to rectify its poor performance by expanding into snack products in foreign markets. * The Kellogg Company has recently experienced a slow growth in its operating profit. Kellogg has experience poor performances in the last few years and this has lead to some of the people in the organization to wonder if they should be exploring new products in new markets. Kellogg is beginning to see new trends that have seemed to work against the organization. For example, products like Corn Flakes and Rice Krispies are easily copied to make generic cereal that is cheaper to buy for the consumer. This is similar to what is happening with such products as over the counter drugs and beauty products that has the same ingredients as the original brand name product but are sold at a lower price. The rise in purchase of generic products is a result of the new trend of the bargain shopper which has only grown in popularity among consumers. Also, Kellogg is seeing that the snack trend in America as well as the rest of the world seems to being growing. This has presented Kellogg with an opportunity to buy Pringles from Procter & Gamble and test to see if they have the chops to get into the snack industry in order to increase profits for the company. It seems that cereal is not as popular as it once was in the past. Cereal was once looked at as the fast and convenient breakfast food for the on-the-go modern...
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